Common use of Final Construction Clause in Contracts

Final Construction. Finally, the screened and weighted portfolio is tested to assure appropriate representation in each of the 12 S&P 500 industry sectors (as set forth in Annex B). If any sector of the Portfolio is less than 65% of the S&P 500 weight, Aeltus will increase its investment in that sector sufficiently to meet this criterion. Similarly, if any sector is greater than 135% of the S&P weight, Aeltus will decrease its investment in that sector sufficiently to meet this criterion. The portfolio is generally rebalanced monthly to reflect changes in rank and/or weighting components. Use of Futures Transaction efficiency is improved by using S&P 500 futures. They will represent no more than 20% of the equity portfolio, and will not be leveraged or used for speculative purposes. ANNEX B SECTOR LIST Sector Abbreviation Sector Name ------------------- ----------- CAPG CAPITAL GOODS TECH TECHNOLOGY CONC CONSUMER CYCLICALS CONN CONSUMER NON-CYCLICALS XXXX HEALTH CARE RETL RETAILERS RAWM RAW MATERIALS XXXX TRANSPORTATION ENGY ENERGY XXXX FINANCIAL TELF TELEPHONE UTILITIES ELUT ELECTRIC UTILITIES ANNEX C SAMPLE CALCULATION OF HYPOTHETICAL TOTAL ASSET VALUE If Actual Data Based Then Hypothetical on Actual Expense Data if Higher Ratio in Asset Covered Expense Allocation Model Ratio had been used were: would be: ---------------------- ---------------------- Business Day Preceding Permanent Deficit Event: - Equity Percentage 30.0% 19.7% (a) - Discount Rate 5.50% 5.50% - Remaining Time to Maturity (in Years) 4.00 4.00 - Actual Expense Ratio in Asset Allocation Model 1.40% 1.40% - Higher Covered Expense Ratio 2.25% 2.25% - Gross Principal Guarantee $ 100,000,000 $ 100,000,000 - Present Value of Aggregate Guarantee Amount plus $ 85,093,654 $ 85,093,654 Present Value of Covered Expenses using Actual Expense Ratio - Present Value of Aggregate Guarantee Amount plus $ 87,982,971 $ 87,982,971 Present Value of Covered Expenses using Higher Covered Expense Ratio - Cash Equivalent Value $ 0 $ 0 - Equity Portfolio Value $ 28,052,853 $ 18,421,799 (b) - Fixed Income Portfolio Value $ 65,456,657 $ 75,087,712 (c) - Total Asset Value $ 93,509,510 $ 93,509,510 (d) - Adjusted Total Asset Value $ 85,093,654 $ 87,982,971 Date on Which Permanent Deficit Event Occurs - Change in Equity Portfolio Value -40.00% -40.00% (e) - Change in Disc. Rate -0.50% -0.50% - Change in Fixed Income Portfolio Value 2.00% 2.00% (f) - Cash Equivalent Value $ 0 $ 0 - Equity Portfolio Value $ 16,831,712 $ 11,053,079 (g) - Fixed Income Portfolio Value $ 66,765,790 $ 76,589,466 (h) ------------------ - Total Asset Value $ 83,597,502 $ 87,642,544 (i) ------------------

Final Construction. Finally, the screened and weighted portfolio is tested to assure appropriate representation in each of the 12 S&P 500 industry sectors (as set forth in Annex B)sectors. If any sector of the Portfolio is less than 65% of the S&P 500 weight, Aeltus will increase its investment in that sector sufficiently to meet this criterion. Similarly, if any sector is greater than 135% of the S&P weight, Aeltus will decrease its investment in that sector sufficiently to meet this criterion. The portfolio is generally rebalanced monthly to reflect changes in rank and/or weighting components. Use of Futures Transaction efficiency is improved by using S&P 500 futures. They will represent no more than 20% of the equity portfolio, and will not be leveraged or used for speculative purposes. ANNEX B SECTOR LIST Sector Abbreviation Sector Name ------------------- ----------- CAPG CAPITAL GOODS TECH TECHNOLOGY CONC CONSUMER CYCLICALS CONN CONSUMER NON-CYCLICALS XXXX HEALTH CARE RETL RETAILERS RAWM RAW MATERIALS XXXX TRANSPORTATION ENGY ENERGY XXXX FINANCIAL TELF TELEPHONE UTILITIES ELUT ELECTRIC UTILITIES ANNEX C SAMPLE CALCULATION OF HYPOTHETICAL TOTAL ASSET VALUE NET ASSETS If Actual Data Based Then Hypothetical on Actual Expense Data if Higher Ratio in Asset Covered Expense Allocation Model Ratio had been used were: used would be: ---------------------- ---------------------- -------------------- ----------------- Business Day Preceding Permanent Deficit Event: - Equity Percentage 30.0% 19.7% (a21.0%(a) - Discount Rate 5.505.00% 5.505.00% - Remaining Time to Maturity (in Years) 4.00 4.00 - Actual Expense Ratio in Asset Allocation 1.75% 1.75% Model 1.40% 1.40% - Higher -Higher Covered Expense Ratio 2.252.50% 2.252.50% - Gross Principal Guarantee $ $100,000,000 $ $100,000,000 - Present Value of Aggregate Guarantee Amount $ 87,972,462 $ 87,972,462 plus $ 85,093,654 $ 85,093,654 Present Value of Covered Expenses using Actual Expense Ratio - Present Value of Aggregate Guarantee Amount $ 90,595,064 $ 90,595,064 plus $ 87,982,971 $ 87,982,971 Present Value of Covered Expenses using Higher Covered Expense Ratio - Cash Equivalent Value Value* $ 0 $ 0 - Equity Portfolio Value $ 28,052,853 29,001,909 $ 18,421,799 (b20,259,902(b) - Fixed Income Portfolio Value $ 65,456,657 67,671,126 $ 75,087,712 (c76,413,133(c) - Total Asset Value Net Assets $ 93,509,510 96,673,035 $ 93,509,510 (d96,673,035(d) - Adjusted Total Asset Value Net Assets $ 85,093,654 89,972,462 $ 87,982,971 90,595,064 Date on Which Permanent Deficit Event Occurs - Change in Equity Portfolio Value -40.00% -40.00% (e) - Change in Disc. Rate -0.50% -0.50% - Change in Fixed Income Portfolio Value 2.00% 2.00% (f2.00%(f) - Cash Equivalent Value $ 0 $ 0 - Equity Portfolio Value $ 16,831,712 17,401,145 $ 11,053,079 (g12,155,941(g) - Fixed Income Portfolio Value $ 66,765,790 69,024,549 $ 76,589,466 (h77,941,396(h) ------------------ - Total Asset Value Net Assets $ 83,597,502 86,425,694 $ 87,642,544 (i90,097,337(i) ------------------* Excludes Cash Associated with Futures and Cash Margin.

Final Construction. Finally, the screened and weighted portfolio is tested to assure appropriate representation in each of the 12 S&P 500 industry sectors (as set forth in Annex B)sectors. If any sector of the Portfolio is less than 65% of the S&P 500 weight, Aeltus will increase its investment in that sector sufficiently to meet this criterion. Similarly, if any sector is greater than 135% of the S&P weight, Aeltus will decrease its investment in that sector sufficiently to meet this criterion. The portfolio is generally rebalanced monthly to reflect changes in rank and/or weighting components. Use of Futures Transaction efficiency is improved by using S&P 500 futures. They will represent no more than 20% of the equity portfolio, and will not be leveraged or used for speculative purposes. 46 ANNEX B SECTOR LIST Sector Abbreviation Sector Name ------------------- ----------- CAPG CAPITAL GOODS TECH TECHNOLOGY CONC CONSUMER CYCLICALS CONN CONSUMER NON-CYCLICALS XXXX HEALTH CARE RETL RETAILERS RAWM RAW MATERIALS XXXX TRANSPORTATION ENGY ENERGY XXXX FINANCIAL TELF TELEPHONE UTILITIES ELUT ELECTRIC UTILITIES ANNEX C SAMPLE CALCULATION OF HYPOTHETICAL TOTAL ASSET VALUE NET ASSETS If Actual Data Based on Then Hypothetical on Data Actual Expense Data Ratio in if Higher Ratio in Covered Asset Covered Expense Allocation Model Expense Ratio had been used were: used would be: ---------------------- ---------------------- ----------------------- ----------------------- Business Day Preceding Permanent Deficit Event: - Equity Percentage 30.0% 19.7% (a) - Discount Rate 5.50% 5.50% - Remaining Time to Maturity (in Years) 4.00 4.00 - Actual Expense Ratio in Asset Allocation Model 1.40% 1.40% - Higher Model -Higher Covered Expense Ratio 2.252.50% 2.252.50% - Gross Principal Guarantee $ 100,000,000 $ 100,000,000 - Present Value of Aggregate Guarantee Amount plus Present $ 85,093,654 $ 85,093,654 Present Value of Covered Expenses using Actual Expense Ratio - Present Value of Aggregate Guarantee Amount plus Present $ 87,982,971 $ 87,982,971 Present Value of Covered Expenses using Higher Covered Expense Ratio - Cash Equivalent Value Value* $ 0 $ 0 - Equity Portfolio Value $ 28,052,853 $ 18,421,799 (b18,421,799(b) - Fixed Income Portfolio Value $ 65,456,657 $ 75,087,712 (c75,087,712(c) - Total Asset Value Net Assets $ 93,509,510 $ 93,509,510 (d93,509,510(d) - Adjusted Total Asset Value Net Assets $ 85,093,654 $ 87,982,971 Date on Which Permanent Deficit Event Occurs - Change in Equity Portfolio Value -40.00% -40.00% (e-40.00%(e) - Change in Disc. Rate -0.50% - -0.50% - Change in Fixed Income Portfolio Value 2.00% 2.00% (f2.00%(f) - Cash Equivalent Value $ 0 $ 0 - Equity Portfolio Value $ 16,831,712 $ 11,053,079 (g11,053,079(g) - Fixed Income Portfolio Value $ 66,765,790 $ 76,589,466 (h76,589,466(h) ------------------ - Total Asset Value Net Assets $ 83,597,502 $ 87,642,544 (i87,642,544(I) ------------------* Excludes Cash Associated with Futures and Cash Margin.

Final Construction. Finally, the screened and weighted portfolio is tested to assure appropriate representation in each of the 12 S&P 500 industry sectors (as set forth in Annex B)sectors. If any sector of the Portfolio is less than 65% of the S&P 500 weight, Aeltus will increase its investment in that sector sufficiently to meet this criterion. Similarly, if any sector is greater than 135% of the S&P weight, Aeltus will decrease its investment in that sector sufficiently to meet this criterion. The portfolio is generally rebalanced monthly to reflect changes in rank and/or weighting components. Use of Futures Transaction efficiency is improved by using S&P 500 futures. They will represent no more than 20% of the equity portfolio, and will not be leveraged or used for speculative purposes. ANNEX B SECTOR LIST Sector Abbreviation Sector Name ------------------- ----------- CAPG CAPITAL GOODS TECH TECHNOLOGY CONC CONSUMER CYCLICALS CONN CONSUMER NON-CYCLICALS XXXX HEALTH CARE RETL RETAILERS RAWM RAW MATERIALS XXXX TRANSPORTATION ENGY ENERGY XXXX FINANCIAL TELF TELEPHONE UTILITIES ELUT ELECTRIC UTILITIES ANNEX C SAMPLE CALCULATION OF HYPOTHETICAL TOTAL ASSET VALUE NET ASSETS If Actual Data Based on Then Hypothetical on Data Actual Expense Data Ratio in if Higher Ratio in Covered Asset Covered Expense Allocation Model Expense Ratio had been used were: used would be: ---------------------- ----------------------- ---------------------- Business Day Preceding Permanent Deficit Event: - Equity Percentage 30.0% 19.721.0% (a) - Discount Rate 5.505.00% 5.505.00% - Remaining Time to Maturity (in Years) 4.00 4.00 - Actual Expense Ratio in Asset Allocation 1.75% 1.75% Model 1.40% 1.40% - Higher -Higher Covered Expense Ratio 2.252.50% 2.252.50% - Gross Principal Guarantee $ 100,000,000 $ 100,000,000 - Present Value of Aggregate Guarantee Amount plus Present $ 85,093,654 87,972,462 $ 85,093,654 Present 87,972,462 Value of Covered Expenses using Actual Expense Ratio - Present Value of Aggregate Guarantee Amount plus Present $ 87,982,971 90,595,064 $ 87,982,971 Present 90,595,064 Value of Covered Expenses using Higher Covered Expense Ratio - Cash Equivalent Value Value* $ 0 $ 0 - Equity Portfolio Value $ 28,052,853 29,001,909 $ 18,421,799 (b20,259,902(b) - Fixed Income Portfolio Value $ 65,456,657 67,671,126 $ 75,087,712 (c76,413,133(c) - Total Asset Value Net Assets $ 93,509,510 96,673,035 $ 93,509,510 (d96,673,035(d) - Adjusted Total Asset Value Net Assets $ 85,093,654 87,972,462 $ 87,982,971 90,595,064 Date on Which Permanent Deficit Event Occurs - Change in Equity Portfolio Value -40.00% -40.00% (e-40.00%(e) - Change in Disc. Rate -0.50% - -0.50% - Change in Fixed Income Portfolio Value 2.00% 2.00% (f2.00%(f) - Cash Equivalent Value $ 0 $ 0 - Equity Portfolio Value $ 16,831,712 17,401,145 $ 11,053,079 (g12,155,941(g) - Fixed Income Portfolio Value $ 66,765,790 69,024,549 $ 76,589,466 (h77,941,396(h) ------------------ - Total Asset Value Net Assets $ 83,597,502 86,425,694 $ 87,642,544 (i90,097,337(i) ------------------* Excludes Cash Associated with Futures and Cash Margin.

Final Construction. Finally, the screened and weighted portfolio is tested to assure appropriate representation in each of the 12 S&P 500 industry sectors (as set forth in Annex B)sectors. If any sector of the Portfolio is less than 65% of the S&P 500 weight, Aeltus will increase its investment in that sector sufficiently to meet this criterion. Similarly, if any sector is greater than 135% of the S&P weight, Aeltus will decrease its investment in that sector sufficiently to meet this criterion. The portfolio is generally rebalanced monthly to reflect changes in rank and/or weighting components. Use of Futures Transaction efficiency is improved by using S&P 500 futures. They will represent no more than 20% of the equity portfolio, and will not be leveraged or used for speculative purposes. ANNEX Annex B SECTOR LIST Sector Abbreviation Sector Name ------------------- ----------- CAPG CAPITAL GOODS TECH TECHNOLOGY CONC CONSUMER CYCLICALS CONN CONSUMER NON-CYCLICALS XXXX HEALTH CARE RETL RETAILERS RAWM RAW MATERIALS XXXX TRANSPORTATION ENGY ENERGY XXXX FINANCIAL TELF TELEPHONE UTILITIES ELUT ELECTRIC UTILITIES ANNEX C SAMPLE CALCULATION OF HYPOTHETICAL TOTAL ASSET VALUE NET ASSETS If Actual Data Based Then Hypothetical Based on Actual Expense Data if Higher Expense Ratio in Asset Covered Expense Asset Allocation Model Ratio had been used Model were: used would be: ---------------------- ---------------------- ---------------- ----------------- Business Day Preceding Permanent Deficit Event: - Equity Percentage 30.0% 19.7% (a21.0%(a) - Discount Rate 5.505.00% 5.505.00% - Remaining Time to Maturity (in Years) 4.00 4.00 - Actual Expense Ratio in Asset Allocation 1.75% 1.75% Model 1.40% 1.40% - Higher -Higher Covered Expense Ratio 2.252.50% 2.252.50% - Gross Principal Guarantee $ 100,000,000 $ 100,000,000 - Present Value of Aggregate Guarantee Amount $ 87,972,462 $ 87,972,462 plus $ 85,093,654 $ 85,093,654 Present Value of Covered Expenses using Actual Expense Ratio - Present Value of Aggregate Guarantee Amount $ 90,595,064 $ 90,595,064 plus $ 87,982,971 $ 87,982,971 Present Value of Covered Expenses using Higher Covered Expense Ratio - Cash Equivalent Value Value* $ 0 $ 0 - Equity Portfolio Value $ 28,052,853 29,001,909 $ 18,421,799 (b20,259,902(b) - Fixed Income Portfolio Value $ 65,456,657 67,671,126 $ 75,087,712 (c76,413,133(c) - Total Asset Value -Total Net Assets $ 93,509,510 96,673,035 $ 93,509,510 (d96,673,035(d) - Adjusted Total Asset Value Net Assets $ 85,093,654 87,972,462 $ 87,982,971 90,595,064 Date on Which Permanent Deficit Event Occurs - Change in Equity Portfolio Value -40.00% -40.00% (e-40.00%(e) - Change in Disc. Rate -0.50% -0.50% - Change in Fixed Income Portfolio Value 2.00% 2.00% (f2.00%(f) - Cash Equivalent Value $ 0 $ 0 - Equity Portfolio Value $ 16,831,712 17,401,145 $ 11,053,079 (g12,155,941(g) - Fixed Income Portfolio Value $ 66,765,790 69,024,549 $ 76,589,466 (h77,941,396(h) ------------------ - Total Asset Value ----------------- -Total Net Assets $ 83,597,502 86,425,694 $ 87,642,544 (i90,097,337(i) ------------------* Excludes Cash Associated with Futures and Cash Margin.