Common use of Indexed Fund Clause in Contracts

Indexed Fund. or Indexed Funds, meaning any publicly offered or privately placed mutual fund, open-ended investment company, closed-end (or closed-ended) investment company or unit investment trust (or UIT) established, organized, sponsored or managed by Licensee where the return on such Indexed Fund is linked to or derived from the performance of an Index or the investment objective of which is to track the price and yield performance of publicly traded common stocks of companies as represented by an Index. For purposes of this Order Schedule, Licensee is authorized to issue the following Indexed Fund only: S&P Dividend Aristocrats Select 25 Strategy Portfolio (the “Trust”), an unit investment trust with constituents in the final portfolio that are selected by Licensee using the following criteria: a. Begin with all of the securities listed in the Index and exclude companies with average or low sensitivity to market moves. b. Rank the remaining securities based on the attractiveness of key fundamentals: free cash flow yield, return on assets, and earnings before interest, taxes, depreciation and amortization divided by enterprise value (EBITDA/EV). c. Select the 50 securities with the best overall fundamental rankings listed in Step 2, while assuring balanced diversification across portfolio characteristics of size, sector, and growth/value styles.