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EXHIBIT 4.6
TDA EMPLOYER SPONSORED/QUALIFIED CONV. MULTIPLE FUND VA CONTRACT, FORM P-14020
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CONTRACT NUMBER GAXX,XXX
CONTRACTHOLDER ABC SCHOOL
DATE OF ISSUE JULY 1, 1995
CONTRACT DATE JULY 1, 1995
FIRST CONTRACT ANNIVERSARY JULY 1, 1996
American United Life Insurance Company (AUL) shall provide all the rights and
benefits of this contract.
This contract is issued in consideration of the application and of the payment
of Contributions to AUL.
All provisions and conditions stated on this and subsequent pages are made a
part of this contract.
This contract is signed for AUL at its Home Office in Indianapolis, Indiana by
the parties identified below:
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. The Contractholder may return the contract
for any reason within ten days after receiving it. If returned, the contract
shall be considered void from the beginning and any Contributions shall be
refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
/s/ Xxxxx X. Xxxxxx
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
Employer-Sponsored TDA and Qualified Plan Multiple-Fund Group Variable Annuity
Nonparticipating
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND OR MUTUAL
FUND PORTFOLIO IN WHICH THE INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS
AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THIS CONTRACT EXPLAINS
THE VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
If you have questions concerning your contract, or wish to register a complaint,
you may reach AUL by calling 0-000-000-0000 or 0-000-000-0000.
P-14020(SBR)(MBR)(NBR)conv
TABLE OF CONTENTS
ARTICLE 1 DEFINITIONS
ARTICLE 2 CONTRACT AND AUTHORITY
2.1--------Entire Contract
2.2--------Authority
ARTICLE 3 CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1--------Amount of Contributions
3.2--------How Contributions Are Handled
3.3--------Addition, Deletion, or Substitution of Investments
3.4--------Transfers
3.5--------Limitations on Transfers
3.6--------Reallocation of Participant Accounts
3.7--------Transferred Amounts
ARTICLE 4 BENEFITS
4.1--------General Withdrawal Provisions
4.2--------"Benefit Responsive" Plan Benefits and Annuities
4.3--------Other Plan Benefits Payable in Cash
4.4--------Election of Annuity Options
4.5--------Annuity Options
4.6--------Guaranteed Rate of Interest
4.7--------Alternate Nonparticipating Retirement Annuity
4.8--------Minimum Payments
4.9--------Due Proof of Date of Birth and Survival
ARTTICLE 5 VALUATIONS
5.1--------Valuation of Mutual Fund or Mutual Fund Portfolio Assets
5.2--------Accumulation Units
5.3--------Value of Accumulation Units
5.4--------Determining the Net Investment Factor
5.5--------Determining the Value of Each Participant Account's Share
of Any Investment Account
ARTICLE 6 OTHER CHARGES
6.1--------Mortality Risk and Expense Risk Charges
6.2--------Mutual Fund or Mutual Fund Portfolio Expenses
6.3--------Transfer Charge
6.4--------Other Charges
6.5--------Reduction or Waiver of Withdrawal Charge
P-14020(SBR)(MBR)(NBR)conv.1
ARTICLE 7 RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1--------Right of AUL to Change Guaranteed Rate of Interest
7.2------- Right of AUL to Change Annuity Table
7.3--------Right of AUL to Change Withdrawal Charge
7.4--------Amendment of Contract to Conform with Law
ARTICLE 8 TERMINATION OF CONTRACT
8.1--------Right of Contractholder to Terminate
8.2--------Payment Due to Termination by Contractholder
8.3--------Right of AUL to Terminate
8.4--------Payment Due to Termination by AUL
ARTICLE 9 MISCELLANEOUS
9.1--------Ownership
9.2--------AUL's Annual Statement
9.3--------Certification of Plan Status
9.4--------Essential Data
9.5--------Reliance
9.6--------Misstatement of Essential Data
9.7--------Assignment by Contractholder
9.8--------Annuity Certificates
9.9--------Election, Notice, or Direction Requirements
9.10-------Quarterly Statement of Account Value
9.11-------Conformity with State Laws
9.12-------Reference to Federal Laws
9.13-------Sex and Number
9.14-------Facility of Payment
9.15-------Insulation from Liability
9.16-------Voting
9.17-------Acceptance of New Participants or Contributions
9.18-------Nonforfeitability and Nontransferability
9.19-------Notice of Annual Meeting of Members
TABLE OF IMMEDIATE ANNUITIES
SCHEDULE A
P-14020(SBR)(MBR)(NBR)conv.2
ARTICLE 1 - DEFINITIONS
1.1 "Account Value" for any Participant Account on any given date means:
(a) the balance of the Participant Account's Code Section 401(a)
subaccounts' share of the Fixed Interest Account on that date; plus
(b) the balance of the Participant Account's Code Section 403(b)
subaccounts' share of the Fixed Interest Account on that date; plus
(c) the value of the Participant Account's Code Section 401(a)
subaccounts' Accumulation Units in each Investment Account on that
date; plus
(d) the value of the Participant Account's Code Section 403(b)
subaccounts' Accumulation Units in each Investment Account on that
date.
1.2 "Accumulation Period" means the period of time commencing on the date on
which a Participant's initial Contribution is credited to the Participant
Account and terminating on the date when such Participant Account is
closed.
1.3 "Accumulation Unit" means a statistical device used to measure amounts of
increases to, decreases from, and accumulations in any Investment Account
during the Accumulation Period.
1.4 "Annuity Commencement Date" means the first day of any month upon which an
annuity begins under this contract. However, for any Participant, this date
shall not be later than the required beginning date as defined in the
applicable sections of the Code and Regulations issued thereunder.
1.5 "Code" means the Internal Revenue Code of l986, as amended.
1.6 "Contract Anniversary" means the first day of the second Contract Year and
each subsequent Contract Year. Each Contract Anniversary after the First
Contract Anniversary shall be the same day of the same month as the day and
month which is stated on the face page of this contract for the First
Contract Anniversary.
1.7 "Contract Quarter" means each of the four successive intervals of three
months, the sum of which corresponds to a 12-month Contract Year.
1.8 "Contract Year" means, for the first such year, the period beginning with
the Contract Date and ending on the day immediately preceding the First
Contract Anniversary, and for each succeeding Contract Year, the period
beginning with a Contract Anniversary and ending on the day immediately
preceding the next succeeding Contract Anniversary.
1.9 "Contributions" means amounts paid to AUL pursuant to the Contractholder's
Code Section 401(a) Plan or 403(b) Plan, including amounts transferred to
this contract from another AUL group annuity contract, which are credited
to a Participant Account maintained hereunder.
The following types of Code Section 403(b) Contributions shall be credited
to individual subaccounts under the Participant Account:
(a) "Elective Deferrals," which means, with respect to any taxable year,
any Contribution made under a salary reduction agreement. A
Contribution made under a salary reduction agreement shall not be
treated as an Elective Deferral if, under the salary reduction
agreement, such Contribution is made pursuant to a one-time
irrevocable election made by the Participant at the time of initial
eligibility to participate in the agreement, or is made pursuant to a
similar arrangement involving a one-time irrevocable election
specified in Regulations issued under the Code.
(b) "Employee Mandatory Contributions," which means Contributions made
under a salary reduction agreement pursuant to a one-time irrevocable
election made by the Participant at the time of initial eligibility to
participate in the agreement, or is made pursuant to a similar
arrangement involving a one-time irrevocable election specified in
Regulations issued under the Code.
(c) "Employer Contributions," which means Contributions made by the
Participant's employer that are not made pursuant to (a) or (b) above.
1.10 "Current Rates of Interest" means each of the annual effective rates of
interest as determined and declared by AUL from time-to-time and as
credited to each interest pocket maintained within the Fixed Interest
Account. The Current Rates of Interest shall always be equal to or greater
than the Guaranteed Rate of Interest.
1.11 "Excess Contributions" means those Contributions made on behalf of a
Participant which exceed the limitations in effect under applicable
provisions of the Code and Regulations issued thereunder.
1.12 "Fixed Interest Account" means that portion of AUL's general asset account
in which all or a portion of a Participant's Account Value may be held for
accumulation at the Current Rates of Interest.
(a) Contributions allocated, or amounts transferred (excluding amounts
transferred from another AUL contract), to the Fixed Interest Account
shall be credited to the open interest pocket and shall earn interest
at the Current Rate of Interest in effect for that interest pocket.
Such Contributions or transferred amounts, during the time that the
Current Rate of Interest exceeds the Guaranteed Rate of Interest,
shall earn interest at such credited Current Rate of Interest for at
least 1 year. After such 1-year period, AUL reserves the right to
declare, at any time, a new Current Rate of Interest to be applied to
funds held within that interest pocket. Any such new Current Rate of
Interest must remain in effect for that interest pocket for at least 1
year.
(b) If AUL changes the Current Rate of Interest for such new Contributions
or such new amounts transferred to the Fixed Interest Account, the
previous open interest pocket shall close, and any such Contributions
or amounts transferred on or after the effective date of such change
shall be credited to a new open interest pocket and shall earn
interest at the new Current Rate of Interest in effect for such new
open interest pocket. Therefore, at any given time, various funds
credited to a Participant Account and allocated to the Fixed Interest
Account may be earning interest at different Current Rates of Interest
for different periods of time.
1.13 "Guaranteed Rate of Interest" means interest at an annual effective rate of
4.00%.
P-14020(SBR)(MBR)(NBR)conv.3
1.14 "Home Office" means the principal office of AUL. The mailing address is
X.X. Xxx 0000, Xxxxxxxxxxxx, Xxxxxxx 00000-0000. The telephone number is
0-000-000-0000.
1.15 "Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and
identified in Schedule A of the contract. Schedule A of the contract may be
amended by AUL from time to time as described in Section 3.3. Amounts
allocated to any Investment Account identified in Schedule A of the
contract shall be invested in the shares of the corresponding Mutual Fund
or Mutual Fund Portfolio listed in the current prospectus for the Variable
Account.
1.16 "Investment Liquidation Charge" means a charge assessed by AUL which is
determined by multiplying a percentage times that portion of the Withdrawal
Value of each Participant Account which is to be paid under Section
8.2(b)(1)(i) from the Fixed Interest Account.
The percentage shall be 6 times (X-Y) where:
X = the Current Rate of Interest being credited by AUL, as of the date
of payment, to new Contributions; and
Y = the average rate of interest being credited by AUL, as of the date
of payment, to each affected Participant Account.
If Y is greater than X, the Investment Liquidation Charge shall be
zero.
AUL's determination of the Investment Liquidation Charge shall be
conclusive.
1.17 "Investment Option" means the Fixed Interest Account or any of the
Investment Accounts of the Variable Account. AUL reserves the right to
provide other Investment Options under this contract at any time.
1.18 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open-end management investment
company made available by AUL, as listed in Schedule A.
1.19 "Participant" means any person reported to AUL by the Contractholder as
eligible for, and as participating in, a Plan, and for whom a Participant
Account is established.
1.20 "Participant Account" means an account established under this contract for
a Participant. Within each Participant Account, the Contractholder can
direct the establishment of one or more subaccounts as made available by
AUL. Contributions received by AUL shall be credited to Participant
Accounts and their subaccounts as AUL is directed in writing by the
Contractholder.
1.21 "Plan" includes the Plan Sponsor's Code Section 401(a) plan and its Code
Section 403(b) plan as they exist on the Contract Date, and any subsequent
amendment to them.
1.22 "Plan Sponsor" means ABC School.
1.23 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
P-14020(SBR)(MBR)(NBR)conv.4
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL Series III (SBR,
MBR) group annuity contracts GA XX,XXX and GA XX,XXX, the initial With-
drawal Charge percentage under this contract shall be equal to the With-
drawal Charge percentage applicable to the Participant under the AUL Series
I (NBR) group annuity contracts GA XX,XXX and GA XX,XXX from which funds
have been transferred to such Series III (SBR,MBR) contracts, determined by
AUL immediately prior to the date of such transfer, rounded down to the
next whole Withdrawal Charge percentage if the Withdrawal Charge percentage
under such Series I (NBR) contracts is a fractional Withdrawal Charge
percentage. However, the Withdrawal Charge percentage under this paragraph
shall never be greater than 8%. The Withdrawal Charge percentage shall be
decreased by 1% for each subsequent Participant Account Year until the
Withdrawal Charge percentage equals 4%. (However, if the applicable
Withdrawal Charge percentage under such Series I contracts is greater than
0% but less than 4%, it shall be rounded up to 4% in this contract.) This
4% Withdrawal Charge percentage shall be in effect during the next 6
consecutive Participant Account Years. Thereafter, the Withdrawal Charge
percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA III SBR,MBR/GAA III SBR,MBR -- Series I)
(original GRA I NBR/GAA I NBR -- Series I)
P-14020(SBR)(MBR)(NBR)conv.5
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL Series III (NBR)
group annuity contracts GA XX,XXX and GA XX,XXX, the initial Withdrawal
Charge percentage under this contract shall be equal to the Withdrawal
Charge percentage applicable to the Participant under the AUL Series I
(NBR) group annuity contracts GA XX,XXX and GA XX,XXX from which funds have
been transferred to such Series III (NBR) contracts, determined by AUL
immediately prior to the date of such transfer, rounded down to the next
whole Withdrawal Charge percentage if the Withdrawal Charge percentage
under such Series I (NBR) contracts is a fractional Withdrawal Charge
percentage. However, the Withdrawal Charge percentage under this paragraph
shall never be greater than 8%. The Withdrawal Charge percentage shall be
decreased by 1% for each subsequent Participant Account Year until the
Withdrawal Charge percentage equals 4%. (However, if the applicable
Withdrawal Charge percentage in such Series I contracts is greater than 0%
but less than 4%, it shall be rounded up to 4% in this contract.) This 4%
Withdrawal Charge percentage shall be in effect during the next 6
consecutive Participant Account Years. Thereafter, the Withdrawal Charge
percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA III NBR/GAA III NBR -- Series I)
(original GRA I NBR/GAA I NBR -- Series I)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL Series III (SBR,
MBR) group annuity contracts GXX,XXX and GXX,XXX, the initial Withdrawal
Charge percentage under this contract shall be equal to the Withdrawal
Charge percentage applicable to the Participant under the AUL Series III
(with a Series I Withdrawal Charge scale) (NBR) group annuity contracts
GA XX,XXX and GA XX,XXX from which funds have been transferred to such
Series III (SBR,MBR) contracts, determined by AUL immediately prior to the
date of such transfer, rounded down to the next whole Withdrawal Charge
percentage if the Withdrawal Charge percentage under such Series III (with
a Series I Withdrawal Charge scale) (NBR) contracts is a fractional With-
drawal Charge percentage. However, the Withdrawal Charge percentage under
this paragraph shall never be greater than 8%. The Withdrawal Charge per-
centage shall be decreased by 1% for each subsequent Participant Account
Year until the Withdrawal Charge percentage equals 4%. (However, if the
applicable Withdrawal Charge percentage in such Series III (with a Series I
Withdrawal Charge scale) (NBR) contracts is greater than 0% but less than
4%, it shall be rounded up to 4% in this contract.) This 4% Withdrawal
Charge percentage shall be in effect during the next 6 consecutive Partici-
pant Account Years. Thereafter, the Withdrawal Charge percentage shall be
reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA III SBR,MBR/GAA III SBR, MBR -- Series I)
(original GRA III NBR/GAA III NBR -- Series I)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL Series III (with
a Series I Withdrawal Charge scale) (NBR) group annuity contracts GXX,XXX
and GXX,XXX, the initial Withdrawal Charge percentage under this contract
shall be equal to the Withdrawal Charge percentage applicable to the Parti-
cipant under such AUL Series III (with a Series I Withdrawal Charge scale)
(NBR) group annuity contracts, determined by AUL immediately prior to the
Contract Date of this contract, rounded down to the next whole Withdrawal
Charge percentage if the Withdrawal Charge percentage under such Series III
(with a Series I Withdrawal Charge scale) (NBR) contracts is a fractional
Withdrawal Charge percentage. However, the Withdrawal Charge percentage
under this paragraph shall never be greater than 8%. The Withdrawal Charge
percentage shall be decreased by 1% for each subsequent Participant Account
Year until the Withdrawal Charge percentage equals 4%. (However, if the
applicable Withdrawal Charge percentage under such Series III (with a
Series I Withdrawal Charge scale) (NBR) contracts is greater than 0% but
less than 4%, it shall be rounded up to 4% in this contract.) This 4%
Withdrawal Charge percentage shall be in effect during the next 6
consecutive Participant Account Years. Thereafter, the Withdrawal Charge
percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GRA III NBR/GAA III NBR -- Series I)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL GRA VII (SBR,MBR)
group annuity contract GXX,XXX and AUL GRA III (SBR,MBR) group annuity
contract GXX,XXX, the initial Withdrawal Charge percentage under this
contract shall be equal to the Withdrawal Charge percentage applicable to
the Participant under the AUL GRA VII (NBR) and GRA VI (NBR) group annuity
contracts GA XX,XXX and GA XX,XXX from which funds have been transferred to
such GRA VII (SBR,MBR) and GRA III (SBR,MBR) contracts, determined by AUL
immediately prior to the date of such transfer, rounded down to the next
whole Withdrawal Charge percentage if the Withdrawal Charge percentage
under such GRA VII (NBR) and GRA VI (NBR) contracts is a fractional
Withdrawal Charge percentage. However, the Withdrawal Charge percentage
under this paragraph shall never be greater than 8%. The Withdrawal Charge
percentage shall be decreased by 1% for each subsequent Participant Account
Year until the Withdrawal Charge percentage equals 4%. (However, if the
applicable Withdrawal Charge percentage under such GRA VII (NBR) and GRA VI
(NBR) contracts is greater than 0% but less than 4%, it shall be rounded up
to 4% in this contract.) This 4% Withdrawal Charge percentage shall be in
effect during the next 6 consecutive Participant Account Years. Thereafter,
the Withdrawal Charge percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA VII SBR,MBR/GRA III SBR,MBR -- Series I)
(original GRA VII NBR/GRA VI NBR -- Series I)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL GRA VII (NBR)
group annuity contract GXX,XXX and AUL GRA VI (NBR) group annuity contract
GXX,XXX, the initial Withdrawal Charge percentage under this contract shall
be equal to the Withdrawal Charge percentage applicable to the Participant
under such AUL GRA VII (NBR) and GRA VI (NBR) group annuity contracts,
determined by AUL immediately prior to the Contract Date of this contract,
rounded down to the next whole Withdrawal Charge percentage if the
Withdrawal Charge percentage under such GRA VII (NBR) and GRA VI (NBR)
contracts is a fractional Withdrawal Charge percentage. However, the
Withdrawal Charge percentage under this paragraph shall never be greater
than 8%. The Withdrawal Charge percentage shall be decreased by 1% for each
subsequent Participant Account Year until the Withdrawal Charge percentage
equals 4%. (However, if the applicable Withdrawal Charge percentage under
such GRA VII (NBR) and GRA VI (NBR) contracts is greater than 0% but less
than 4%, it shall be rounded up to 4% in this contract.) This 4% Withdrawal
Charge percentage shall be in effect during the next 6 consecutive
Participant Account Years. Thereafter, the Withdrawal Charge percentage
shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GRA VII NBR/GRA VI NBR -- Series I)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL GRA VII (SBR,MBR)
group annuity contract GXX,XXX and AUL GRA III (SBR,MBR) group annuity
contract GXX,XXX, the initial Withdrawal Charge percentage under this
contract shall be equal to the Withdrawal Charge percentage applicable to
the Participant under the AUL GRA VII (NBR) and GRA VI (NBR) group annuity
contracts GA XX,XXX and GA XX,XXX from which funds have been transferred to
such GRA VII (SBR,MBR) and GRA III (SBR,MBR) contracts, determined by AUL
immediately prior to the date of such transfer, rounded down to 8% if the
Withdrawal Charge percentage under such GRA VII (NBR) and GRA VI (NBR)
contracts is greater than 8%. If the Withdrawal Charge percentage is
rounded down from 10% to 8%, the 8% Withdrawal Charge percentage shall be
in effect through that Participant Account Year and through the next 2
succeeding Participant Account Years. If the Withdrawal Charge percentage
is rounded down from 9% to 8%, the 8% Withdrawal Charge percentage shall be
in effect through that Participant Account Year and through the next
succeeding Participant Account Year. Thereafter, the Withdrawal Charge
percentage shall be decreased by 1% for each subsequent Participant Account
Year until the Withdrawal Charge percentage equals 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA VII SBR,MBR/GRA III SBR,MBR -- Series
III)
(original GRA VII NBR/GRA VI NBR -- Series III)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL GRA VII (NBR)
group annuity contract GXX,XXX and AUL GRA VI (NBR) group annuity contract
GXX,XXX, the initial Withdrawal Charge percentage under this contract shall
be equal to the Withdrawal Charge percentage applicable to the Participant
under such AUL GRA VII (NBR) and GRA VI (NBR) group annuity contracts,
determined by AUL immediately prior to the Contract Date of this contract,
rounded down to 8% if the Withdrawal Charge percentage under such GRA VII
(NBR) and GRA VI (NBR) contracts is greater than 8%. If the Withdrawal
Charge percentage is rounded down from 10% to 8%, the 8% Withdrawal Charge
percentage shall be in effect through that Participant Account Year and
through the next 2 succeeding Participant Account Years. If the Withdrawal
Charge percentage is rounded down from 9% to 8%, the 8% Withdrawal Charge
percentage shall be in effect through that Participant Account Year and
through the next succeeding Participant Account Year. Thereafter, the
Withdrawal Charge percentage shall be decreased by 1% for each subsequent
Participant Account Year until the Withdrawal Charge percentage equals 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GRA VII NBR/GRA VI NBR -- Series III)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL GRA VII (NBR)
group annuity contract GXX,XXX and AUL GRA VI (NBR) group annuity contract
GXX,XXX, the initial Withdrawal Charge percentage under this contract shall
be equal to the Withdrawal Charge percentage applicable to the Participant
under such AUL GRA VII (NBR) and GRA VI (NBR) group annuity contracts,
determined by AUL immediately prior to the Contract Date of this contract,
rounded down to the next whole Withdrawal Charge percentage if the
Withdrawal Charge percentage under such GRA VII (NBR) and GRA VI (NBR)
contracts is a fractional Withdrawal Charge percentage. However, the
Withdrawal Charge percentage under this paragraph shall never be greater
than 8%. The Withdrawal Charge percentage shall be decreased by 1% for each
subsequent Participant Account Year until the Withdrawal Charge percentage
equals 4%. (However, if the applicable Withdrawal Charge percentage under
such GRA VII (NBR) and GRA VI (NBR) contracts is greater than 0% but less
than 4%, it shall be rounded up to 4% in this contract.) This 4% Withdrawal
Charge percentage shall be in effect during the next 6 consecutive
Participant Account Years. Thereafter, the Withdrawal Charge percentage
shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GRA VII NBR/GRA VI NBR -- Series I)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
Notwithstanding the above provisions of this Section, for any Participant
who also participates in AUL GAA III (SBR,MBR,NBR) group annuity contract
GXX,XXX, AUL MFVA (SBR,MBR,NBR) group annuity contract GXX,XXX, and AUL GRA
VIII (SBR,MBR,NBR) group annuity contract GXX,XXX, and who has had amounts
transferred from previous AUL group annuity contracts to such GAA III,
MFVA, and GRA VIII contracts, the Withdrawal Charge percentage is as
follows:
During Withdrawal Charge
Participant Account Years Percentage
1 8
2 8
3 8
4 7
5 6
6 5
7 4
8 3
9 2
10 1
Thereafter 0
Participant Account Years credited under previous AUL group annuity
contracts from which amounts have been transferred to this contract shall
be counted in determining Participant Account Years under this Section.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GAA III SBR,MBR,NBR -- Series III)
(transfer from original GRA VIII SBR,MBR,NBR -- Series III)
(transfer from original MFVA SBR,MBR,NBR -- Series III)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
Notwithstanding the above provisions of this Section, for any Participant
who also participates in AUL GAA III (SBR,MBR,NBR) group annuity contract
GXX,XXX, AUL MFVA (SBR,MBR,NBR) group annuity contract GXX,XXX, and AUL GRA
VIII (SBR,MBR,NBR) group annuity contract GXX,XXX, and who has had amounts
transferred from previous AUL group annuity contracts to such GAA III,
MFVA, and GRA VIII contracts, the Withdrawal Charge percentage is as
follows:
During Withdrawal Charge
Participant Account Years Percentage
1 8
2 7
3 6
4 5
5 4
6 4
7 4
8 4
9 4
10 4
Thereafter 0
Participant Account Years credited under previous AUL group annuity
contracts from which amounts have been transferred to this contract shall
be counted in determining Participant Account Years under this Section.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GAA III SBR,MBR,NBR -- Series I)
(transfer from original GRA VIII SBR,MBR,NBR -- Series I)
(transfer from original MFVA SBR,MBR,NBR -- Series I)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL GAA III (SBR,MBR)
group annuity contract GXX,XXX and AUL GRA III (SBR,MBR) group annuity
contract GXX,XXX, the initial Withdrawal Charge percentage under this
contract shall be equal to the Withdrawal Charge percentage applicable to
the Participant under the AUL GAA III (NBR) and AUL GRA III (NBR) group
annuity contracts GA XX,XXX and GA XX,XXX from which funds have been
transferred to such GAA III (SBR,MBR) and GRA III (SBR,MBR) contracts,
determined by AUL immediately prior to the date of such transfer, rounded
down to 8% if the Withdrawal Charge percentage under such GAA III (NBR) and
GRA III (NBR) contracts is greater than 8%. If the Withdrawal Charge
percentage is rounded down from 10% to 8%, the 8% Withdrawal Charge
percentage shall be in effect through that Participant Account Year and
through the next 2 succeeding Participant Account Years. If the Withdrawal
Charge percentage is rounded down from 9% to 8%, the 8% Withdrawal Charge
percentage shall be in effect through that Participant Account Year and
through the next succeeding Participant Account Year. Thereafter, the
Withdrawal Charge percentage shall be decreased by 1% for each subsequent
Participant Account Year until the Withdrawal Charge percentage equals 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA III SBR,MBR/GAA III SBR,MBR -- Series
III)
(original GRA III NBR/GAA III NBR -- Series III)
P-14020(SBR)(MBR)(NBR)conv.6
1.24 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.25 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.26 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.27 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in AUL GRA III (NBR)
group annuity contract GXX,XXX and AUL GAA III (NBR) group annuity contract
GXX,XXX, the initial Withdrawal Charge percentage under this contract shall
be equal to the Withdrawal Charge percentage applicable to the Participant
under such AUL GRA III (NBR) and AUL GAA III (NBR) group annuity contracts,
determined by AUL immediately prior to the Contract Date of this contract,
rounded down to 8% if the Withdrawal Charge percentage under such GRA III
(NBR) and GAA III (NBR) contracts is greater than 8%. If the Withdrawal
Charge percentage is rounded down from 10% to 8%, the 8% Withdrawal Charge
percentage shall be in effect through that Participant Account Year and
through the next 2 succeeding Participant Account Years. If the Withdrawal
Charge percentage is rounded down from 9% to 8%, the 8% Withdrawal Charge
percentage shall be in effect through that Participant Account Year and
through the next succeeding Participant Account Year. Thereafter, the
Withdrawal Charge percentage shall be decreased by 1% for each subsequent
Participant Account Year until the Withdrawal Charge percentage equals 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.28 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GRA III NBR/GAA III NBR -- Series III)
P-14020(SBR)(MBR)(NBR)conv.6
ARTICLE 2 - CONTRACT AND AUTHORITY
2.1 Entire Contract: This contract and the application of the Contractholder is
the entire agreement between AUL and the Contractholder. AUL is not a party
to, nor bound by, a Plan, trust, custodial agreement, or other agreement,
or any amendment or modification to any of the same. AUL is not a fiduciary
under this contract or under any such Plan, trust, custodial agreement, or
other agreement.
2.2 Authority: This contract cannot be modified or amended, nor can any
provision or condition be waived, except by a written agreement signed by a
corporate officer of AUL. Such authority may not be delegated to any other
person or entity, except by a written agreement signed by a corporate
officer of AUL.
P-14020(SBR)(MBR)(NBR)conv.7
ARTICLE 3 - CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency; however, they must be
at least equal to a minimum annual Contribution of $300 (for Code
Section 401(a) Contributions) and $200 (for Code Section 403(b)
Contributions) per Participant in any full Contract Year. AUL may
change the minimum annual Contribution acceptable under this con
tract, but any such change shall apply only to individuals who become
Participants on or after the date of the change.
(b) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
or to whomever the Contractholder directs pursuant to the Plan upon
receipt by AUL at its Home Office of complete written instructions
from the Contractholder. Such written instructions must include the
amount to be withdrawn and returned, and certification that such
Contributions constitute Excess Contributions and that such returns
are permitted by the applicable Plan and by applicable provisions of
the Code and Regulations issued thereunder. It shall not be the
responsibility of AUL to determine the existence or amount of Excess
Contributions or gains or losses thereon, or that returns of Excess
Contributions or gains or losses thereon are permitted by the Plan and
by applicable provisions of the Code and Regulations. In withdrawing
and returning the identified amount, AUL may rely solely on such
written instructions and certification. Such a withdrawal and return
of Excess Contributions shall not be subject to Section 4.1.
3.2 How Contributions Are Handled:
(a) Contributions received at AUL's Home Office shall be identified by the
Contractholder and shall be credited to the appropriate subaccounts of
each of the Participant Accounts as directed by the Contractholder in
written allocation instructions. Code Section 403(b) Contributions
shall be identified as Elective Deferrals, Employee Mandatory
Contributions, or Employer Contributions.
(b) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable by AUL by the Contractholder or by that person designated
in writing to AUL by the Contractholder. If no Investment Option
election is made with respect to a particular Contribution to any
Participant Account, AUL shall process such credits in accordance with
the Investment Option election applicable to the immediately preceding
Contribution. The Contractholder or such designated person may change
an Investment Option election with respect to future allocations to
the applicable Participant Account by giving new Investment Option
elections to AUL at its Home Office in a form acceptable to AUL.
(c) The initial Contribution for a Participant shall be allocated to the
Participant Account no later than the close of business on the second
business day of AUL after the later of (1) the business day that AUL
receives the initial Contribution at its Home Office or (2) the
business day that AUL receives, at its Home Office, the data required
to establish the Participant Account, instructions regarding the
amount of the initial Contribution for the Participant, and Investment
Option elections regarding the initial Contribution.
(d) (1) For Code Section 401(a) Contributions: If the data required
to establish a Participant Account and instructions regarding the
amount of a Contribution for the Participant are not received by
AUL at its Home Office as of the date AUL receives that
Contribution, AUL shall allocate that Contribution to a suspense
account within AUL's general asset account, which shall earn
interest at rates equal to the Current Rates of Interest which
would have been earned had such Contributions been allocated to
the Fixed Interest Account on the date such Contribution was
allocated to the suspense account.
(2) For Code Section 403(b) Contributions:
If the data required to establish a Participant Account and
instructions regarding the amount of a Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives that Contribution, AUL
shall return that Contribution to the Contractholder unless the
Contractholder consents to AUL retaining that Contribution until
the earlier of (i) the date AUL receives such data and
instructions and, therefore, can properly allocate that
Contribution to the Participant Account or (ii) 25 days from the
date that Contribution is received by AUL.
(e) If the data required to establish a Participant Account, including any
annuity enrollment form required by AUL, and instructions regarding
the amount of a Contribution for the Participant are received, but an
Investment Option election form for that Participant is not received,
by AUL at its Home Office as of the date AUL receives that
Contribution, AUL shall allocate that Contribution to the Investment
Option election identified in the Participant's annuity enrollment
form, which is the AUL American Money Market Investment Account.
(f) Under Subsections (d)(1) and (e), if AUL subsequently receives the
data required to establish the Participant Account, instructions
regarding the amount of the Contribution for the Participant, and an
Investment Option election form, AUL shall then transfer such amounts
allocated pursuant to those Subsections, plus gains or minus losses
thereon, to another Investment Option, if such election form so
directs.
(g) Contributions for a Participant subsequent to the initial Contribution
shall be allocated to the Participant Account as of the close of
business on the later of (1) the Valuation Period in which AUL
receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
elections.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds or Mutual Fund Portfolios and to
substitute shares of, or interests in, another Portfolio of the AUL
American Series Fund, Inc., another open-end, registered investment
company, or another investment vehicle, for shares already purchased
or to be purchased in the future under the contract, if the shares of
any or all
P-14020(SBR)(MBR)(NBR)conv.8
eligible Mutual Funds or Mutual Fund Portfolios are no longer
available for investment or if further investment in any or all
eligible Mutual Funds or Mutual Fund Portfolios becomes inappropriate
in view of the purposes of the Variable Account or the contract. Where
required under applicable law, AUL will not substitute any shares
attributable to the Contractholder's interest in the Variable Account
or any Investment Account without notice, Contractholder or
Participant approval, or prior approval of the Securities and Exchange
Commission or a state insurance commissioner, and without following
the filing or other procedures established by applicable state
insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion between series or
classes of contracts on the basis of requests made by a majority of
other contractholders or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable
Account, or in other securities or investment vehicles. AUL reserves
the right to eliminate or combine existing Investment Accounts if
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under this contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Contractholder, or that
person designated to AUL by the Contractholder, may direct AUL, in a
form acceptable to AUL, to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. Any transfer from an Investment Account shall be
effective as of the close of business on the Valuation Date that AUL
receives that transfer direction at its Home Office.
(b) AUL shall make the transfer as requested within 7 days from the date a
proper request is received by AUL at its Home Office, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer a transfer of
amounts from the Fixed Interest Account for a period of up to 6 months
after AUL receives the transfer request at its Home Office.
(c) All transfers from the Fixed Interest Account to any Investment
Account shall be made on a first-in/first-out accounting basis.
3.5 Limitations on Transfers:
(a) Daily transfer directions may be made with respect to any single
Participant Account.
(b) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option as of the close of business on
the Valuation Date that AUL receives that transfer direction at its
Home Office. However, if that transfer reduces the Participant
Account's remaining share of that Investment Option to less than $500,
the entire remaining share shall also be transferred.
(c) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract Date or the Contract Anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that Contract Year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account as of
the close of business on the Valuation Date that AUL receives that
transfer direction at its Home Office. And if that transfer reduces
the Participant Account's remaining share of the Fixed Interest
Account to less than $500, the entire remaining share shall also be
transferred.
(d) Amounts which have been transferred to this contract, except for
amounts transferred from other AUL group annuity contracts, shall be
allocated pursuant to the provisions of Section 3.2.
(e) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege
provided in Sections 3.4 and 3.5, and to impose a charge on a
transfer.
3.6 Reallocation of Participant Accounts: The Contractholder, in accordance
with Plan provisions, may direct AUL to reallocate all or a portion of the
Account Value of any Participant Account among other Participant Accounts.
The Contractholder shall certify that such reallocation is in accordance
with Plan provisions.
3.7 Transferred Amounts: If permitted under the Plan, AUL shall accept amounts
transferred from other contracts. Such transferred amounts shall be
credited as directed by the Contractholder to a separate rollover
subaccount established under the appropriate Participant Account. Amounts
transferred to a Code Section 403(b) Contribution rollover subaccount of a
Participant Account must be attributable to contributions made pursuant to
Code Section 403(b).
P-14020(SBR)(MBR)(NBR)conv.9
ARTICLE 4 - BENEFITS
4.1 General Withdrawal Provisions: Subject to the following provisions of this
Section, at any time prior to termination of the contract pursuant to
Article 8, the Contractholder may direct AUL to withdraw all or a portion
of a Participant Account pursuant to Sections 4.2 and 4.3 to provide Plan
benefits (other than Plan termination benefits). Such Contractholder
direction must be submitted to AUL at its Home Office in a form acceptable
to AUL.
(a) Amounts attributable to amounts held as of December 31, 1988 under
another Code Section 403(b) annuity contract may be withdrawn to
provide such benefits.
(b) Amounts attributable to Code Section 403(b) Contributions made other
than pursuant to a salary reduction agreement (within the meaning of
Code Section 402(g)(3)(C)) may be withdrawn to provide such benefits.
(c) Amounts attributable to Code Section 403(b) Contributions made
pursuant to a salary reduction agreement (within the meaning of Code
Section 402(g)(3)(C)) may be withdrawn to provide such benefits,
provided that the withdrawal is made to provide a loan or that any
distribution of such amount shall not occur until the Participant has
either attained age 59 1/2, separated from service, died, become
totally disabled (as defined by the Plan), or experienced a hardship
(as defined by the Plan). However, in the case of a hardship
withdrawal, any gain credited to such Contributions may not be
withdrawn.
(d) Withdrawal of any amount from this contract which is transferred
directly by AUL pursuant to Contractholder or Participant instructions
to another Code Section 403(b) tax-deferred annuity funding vehicle
under applicable IRS rules and regulations is not the provision of a
Plan benefit for purposes of Section 4.2, but instead is a Contract
termination as to that amount for that Participant; and any such
withdrawal shall be subject to application of the Withdrawal Charge
pursuant to Section 4.3. The Contractholder hereby grants to a
Participant the right to direct the withdrawal and direct transfer of
such Participant's voluntary Elective Deferrals (as determined by the
Contractholder) to another Code Section 403(b) tax-deferred annuity
funding vehicle.
(e) If, as provided in Internal Revenue Code Regulation Section
1.403(b)-2T Q&A-2, the distributee of any eligible rollover
distribution elects to have the distribution paid directly to an
eligible retirement plan (as defined in Q&A-1 of that Section) and
specifies the eligible retirement plan to which the distribution is to
be paid, then the distribution shall be paid to that eligible
retirement plan in a direct rollover.
(f) AUL shall not be responsible for determining a Participant's
compliance with the requirements above. Any withdrawal request
submitted by the Contractholder shall include certification as to the
purpose of the withdrawal. The Contractholder assumes full
responsibility for determining whether any withdrawal is permitted
under applicable law and under the terms of a particular Plan. AUL may
rely solely upon the representations of the Contractholder made in the
withdrawal request.
(g) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire
P-14020(SBR)(MBR)(NBR)conv.10
share of the Investment Option as of the close of business on the
Valuation Date that AUL receives that withdrawal request (or due proof
of death, if received later), in a form acceptable to AUL, at its Home
Office. If a withdrawal reduces the Participant Account's share of an
Investment Option to less than $500, such remaining share shall also
be withdrawn.
(h) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to Sections 4.2, 4.3, or 4.4 shall be determined, as
of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or due proof of death, if received later),
in a form acceptable to AUL, at its Home Office.
(i) AUL shall pay any cash lump sum to the Contractholder or to whomever
the Contractholder directs within 7 days from the appropriate
Valuation Date as determined in Subsection (h) above, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(j) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
4.2 "Benefit Responsive" Plan Benefits and Annuities:
(a) Subject to the limitations provided in Section 4.1, and subject to the
provisions of Subsection (b) below for death benefits, at any time
prior to termination of the contract pursuant to the provisions of
Article 8, the Contractholder may direct AUL to withdraw all or a
portion of the Account Value (subject to Section 6.4) of a Participant
Account for the purpose of providing:
(1) an annuity in accordance with the Annuity Options shown in
Section 4.5, as directed by the Contractholder, for benefits as
provided by the Plan (other than Plan termination benefits); or
(2) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay benefits as provided by the Plan
(other than Plan termination benefits) for retirement, death,
disability, termination of employment, hardships, loans, required
minimum distribution benefits pursuant to Code Section 401(a)(9)
and Regulations issued thereunder, or (for Code Section 403(b)
plans or profit-sharing plans) benefits upon attainment of age 59
1/2 or (for profit-sharing plans) after a fixed number of years
(as allowed by the Code and Regulations issued thereunder and by
applicable IRS rulings), provided that such benefit upon
attainment of age 59 1/2 or after a fixed number of years is a
taxable distribution paid to the Participant and not to any other
person or entity, including any substitute funding medium.
(SBR)
P-14020(SBR)(MBR)(NBR)conv.11
share of the Investment Option as of the close of business on the
Valuation Date that AUL receives that withdrawal request (or due
proof of death, if received later), in a form acceptable to AUL,
at its Home Office. If a withdrawal reduces the Participant
Account's share of an Investment Option to less than $500, such
remaining share shall also be withdrawn.
(h) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to Sections 4.2, 4.3, or 4.4 shall be determined, as
of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or due proof of death, if received later),
in a form acceptable to AUL, at its Home Office.
(i) AUL shall pay any cash lump sum to the Contractholder or to whomever
the Contractholder directs within 7 days from the appropriate
Valuation Date as determined in Subsection (h) above, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(j) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
4.2 "Benefit Responsive" Plan Benefits and Annuities:
(a) Subject to the limitations provided in Section 4.1, and subject to the
provisions of Subsection (b) below for death benefits, at any time
prior to termination of the contract pursuant to the provisions of
Article 8, the Contractholder may direct AUL to withdraw all or a
portion of the Account Value (subject to Section 6.5) of a Participant
Account for the purpose of providing:
(1) an annuity in accordance with the Annuity Options shown in
Section 4.5, as directed by the Contractholder, for benefits as
provided by the Plan (other than Plan termination benefits); or
(2) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay death benefits as provided by the
Plan; or
(3) providing the Participant has attained (1) age 55 and has 10
years of service with the employer identified in the Plan or (2)
age 62, a cash lump-sum payment to the Contractholder or to
whomever the Contractholder directs to pay benefits as provided
by the Plan (other than Plan termination benefits) for
retirement, disability, termination of employment, hardships,
loans, required minimum distribution benefits pursuant to Code
Section 401(a)(9) and Regulations issued thereunder, or (for
profit-sharing plans) benefits upon attainment of age 59 1/2 or
after a fixed number of years (as allowed by the Code and
Regulations issued thereunder and by applicable IRS rulings),
provided that such benefit upon attainment of age 59 1/2 or after
a fixed number of years is a taxable distribution paid to the
Participant and not to any other person or entity, including any
substitute funding medium.
(MBR)
P-14020(SBR)(MBR)(NBR)conv.13
share of the Investment Option as of the close of business on the
Valuation Date that AUL receives that withdrawal request (or due
proof of death, if received later), in a form acceptable to AUL,
at its Home Office. If a withdrawal reduces the Participant
Account's share of an Investment Option to less than $500, such
remaining share shall also be withdrawn.
(h) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to Sections 4.2, 4.3, or 4.4 shall be determined, as
of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or due proof of death, if received later),
in a form acceptable to AUL, at its Home Office.
(i) AUL shall pay any cash lump sum to the Contractholder or to whomever
the Contractholder directs within 7 days from the appropriate
Valuation Date as determined in Subsection (h) above, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(j) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
4.2 "Benefit Responsive" Plan Benefits and Annuities:
(a) Subject to the limitations provided in Section 4.1, and subject to the
provisions of Subsection (b) below for death benefits, at any time
prior to termination of the contract pursuant to the provisions of
Article 8, the Contractholder may direct AUL to withdraw all or a
portion of the Account Value (subject to Section 6.5) of a Participant
Account for the purpose of providing:
(1) an annuity in accordance with the Annuity Options shown in
Section 4.5, as directed by the Contractholder, for benefits as
provided by the Plan (other than Plan termination benefits), or
(2) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay death benefits as provided by the
Plan.
(NBR)
P-14020(SBR)(MBR)(NBR)conv.13
(b) Regarding death benefits specifically, notwithstanding the provisions
of Article 8, upon receipt at its Home Office of instructions in a
form acceptable to AUL from the Contractholder and of due proof of the
Participant's (and, if applicable, the beneficiary's) death during the
Accumulation Period, AUL shall apply the Account Value (subject to
Section 6.4) of the Participant Account for the purpose of providing a
death benefit under the Plan. The death benefit shall be paid to the
Participant's beneficiary according to the method of payment elected
by the beneficiary (unless such method of payment was previously
elected by the Participant). The Participant's beneficiary may also
designate a beneficiary. The death benefit attributable to Code
Section 403(b) funds shall be payable:
(1) in a single sum or other method not provided in (2) below;
provided, however, that the entire Account Value (subject to
Section 6.4) must be paid to the beneficiary on or before
December 31 of the calendar year which contains the fifth
anniversary of the Participant's death, or
(2) as an annuity in accordance with the Annuity Options shown in
Section 4.5 over a period not to exceed the life or life
expectancy of the beneficiary. If the beneficiary is not the
Participant's surviving spouse, the annuity must begin on or
before December 31 of the calendar year immediately following the
calendar year in which the Participant died. If the beneficiary
is the Participant's surviving spouse, the annuity need not begin
before December 31 of the calendar year in which the Participant
would have attained age 70 1/2.
If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Annuity Option selected shall be paid at
least as rapidly as prior to the Participant's death.
4.3 Other Plan Benefits Payable in Cash: Subject to the limitations provided in
Section 4.1, at any time prior to termination of the contract pursuant to
the provisions of Article 8, the Contractholder may direct AUL to make a
cash payment from a Participant Account to the Contractholder or to
whomever the Contractholder directs for the purpose of providing Plan
benefits other than those provided in Section 4.2(a)(2). If it is necessary
to withdraw the entire Account Value of a Participant Account to make such
payment, the amount paid shall equal the Withdrawal Value, minus any
Section 6.4 charges. If it is not necessary to withdraw the entire Account
Value to make such payment, AUL shall reduce the Account Value of the
Participant Account by an amount sufficient to make the cash payment
requested and to cover the Withdrawal Charge and any Section 6.4 charges.
Notwithstanding the previous paragraph, in the first Contract Year in which
a Participant Account is established, the Contractholder may withdraw from
that Participant Account up to 10% of the sum of the Account Value of that
Participant Account (determined as of the later of the Contract Date or the
Contract Anniversary immediately preceding the request for the withdrawal)
plus Contributions made during that Contract Year, without application of
the Withdrawal Charge. In the next succeeding Contract Year, the
Contractholder may also withdraw from that Participant Account up to 10% of
the sum of the Account Value of that Participant Account (determined as of
the Contract Anniversary immediately preceding the request for the
withdrawal) plus Contributions made during that Contract Year, without
application of the Withdrawal Charge. In any subsequent Contract Year, the
(SBR)
(NBR)
P-14020(SBR)(MBR)(NBR)conv.14
(b) Regarding death benefits specifically, notwithstanding the provisions
of Article 8, upon receipt at its Home Office of instructions in a
form acceptable to AUL from the Contractholder and of due proof of the
Participant's (and, if applicable, the beneficiary's) death during the
Accumulation Period, AUL shall apply the Account Value (subject to
Section 6.4) of the Participant Account for the purpose of providing a
death benefit under the Plan. The death benefit shall be paid to the
Participant's beneficiary according to the method of payment elected
by the beneficiary (unless such method of payment was previously
elected by the Participant). The Participant's beneficiary may also
designate a beneficiary. The death benefit attributable to Code
Section 403(b) funds shall be payable:
(1) in a single sum or other method not provided in (2) below;
provided, however, that the entire Account Value (subject to
Section 6.4) must be paid to the beneficiary on or before
December 31 of the calendar year which contains the fifth
anniversary of the Participant's death, or
(2) as an annuity in accordance with the Annuity Options shown in
Section 4.5 over a period not to exceed the life or life
expectancy of the beneficiary. If the beneficiary is not the
Participant's surviving spouse, the annuity must begin on or
before December 31 of the calendar year immediately following the
calendar year in which the Participant died. If the beneficiary
is the Participant's surviving spouse, the annuity need not begin
before December 31 of the calendar year in which the Participant
would have attained age 70 1/2.
If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Annuity Option selected shall be paid at least
as rapidly as prior to the Participant's death.
4.3 Other Plan Benefits Payable in Cash: Subject to the limitations provided in
Section 4.1, at any time prior to termination of the contract pursuant to
the provisions of Article 8, the Contractholder may direct AUL to make a
cash payment from a Participant Account to the Contractholder or to
whomever the Contractholder directs for the purpose of providing Plan
benefits other than those provided in Section 4.2(a)(2) and (3). If it is
necessary to withdraw the entire Account Value of a Participant Account to
make such payment, the amount paid shall equal the Withdrawal Value, minus
any Section 6.4 charges. If it is not necessary to withdraw the entire
Account Value to make such payment, AUL shall reduce the Account Value of
the Participant Account by an amount sufficient to make the cash payment
requested and to cover the Withdrawal Charge and any Section 6.4 charges.
Notwithstanding the previous paragraph, in the first Contract Year in which
a Participant Account is established, the Contractholder may withdraw from
that Participant Account up to 10% of the sum of the Account Value of that
Participant Account (determined as of the later of the Contract Date or the
Contract Anniversary immediately preceding the request for the withdrawal)
plus Contributions made during that Contract Year, without application of
the Withdrawal Charge. In the next succeeding Contract Year, the
Contractholder may also withdraw from that Participant Account up to 10% of
the sum of the Account Value of that Participant Account (determined as of
the Contract Anniversary immediately preceding the request for the
withdrawal) plus Contributions made during that Contract Year, without
application of the Withdrawal Charge. In any subsequent Contract Year, the
(MBR)
P-14020(SBR)(MBR)(NBR)conv.14
Contractholder may withdraw from that Participant Account up to 10% of the
Account Value of that Participant Account (determined as of the Contract
Anniversary immediately preceding the request for the withdrawal) without
application of the Withdrawal Charge.
4.4 Election of Annuity Options: At the written request of the Contractholder
pursuant to Section 4.2, AUL shall apply all or a portion of the Account
Value (subject to Section 6.4) of a Participant Account for the purpose of
providing a fixed payment annuity under the Plan. Upon receipt of a request
for an annuity, AUL is hereby authorized by the Contractholder to value and
transfer the Participant Account's share of the Variable Account to the
Fixed Interest Account as of the date provided in Section 4.1(h). Such
transferred amounts shall be held in the Fixed Interest Account until the
Participant's Annuity Commencement Date. The Contractholder request shall
include certification as to the purpose for the annuity, the election of
one of the following annuity options, notification of the Annuity
Commencement Date, written designation of the contingent annuitant or
beneficiary, and any election forms needed in connection with any benefit
option requested. The amount of any annuity shall be computed from the
Table of Immediate Annuities then included in this contract, except as
provided under Section 4.7.
4.5 Annuity Options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the annuitant's monthly annuity shall be paid to the contingent
annuitant named in the election for as long as the contingent
annuitant lives. An election of this option is automatically cancelled
if either the Participant or the contingent annuitant dies before the
Annuity Commencement Date.
(d) Installment Refund Life Annuity. The monthly annuity shall be payable
to the annuitant for as long as the annuitant lives, and shall end
with the last monthly payment before the death of the annuitant. If,
at the death of the annuitant, the sum of the monthly payments
previously received is less than the amount applied to provide the
annuity, monthly payments of the same amount shall continue to the
annuitant's beneficiary until the total of the monthly payments
received equals such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 30
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Any other annuity options made available by AUL at the time the option
to elect an annuity is exercised.
If the total Account Value is less than $2,000, such value shall not be
annuitized under options (a)-(f) of this Section, but shall be paid in a
lump sum.
If the annuity option selected is not included in the attached Table of
Immediate Annuities, the amount of monthly annuity shall be based on rates
determined in the same manner as those found in the Table.
4.6 Guaranteed Rate of Interest: The retirement annuity options provided in
this Article and illustrated in the attached Table of Immediate Annuities
are based on a guaranteed interest rate of 4.00% compounded annually.
4.7 Alternate Nonparticipating Retirement Annuity: Any annuity elected shall be
provided at whatever current single premium nonparticipating immediate
annuity rates are available under this class of group annuity contract if
such rates produce a higher income than that provided under the Table of
Immediate Annuities provided in this contract.
4.8 Minimum Payments: If the monthly annuity is less than AUL's then current
established minimum, AUL reserves the right to make payments on a less
frequent basis or to pay the Account Value in a single sum.
4.9 Due Proof of Date of Birth and Survival: Before commencing payments under
any annuity, AUL may require proof of the date of birth of any annuitant
and may require due proof that any annuitant is living before the payment
of each or any installment under the option.
P-14020(SBR)(MBR)(NBR)conv.15
ARTICLE 5 - VALUATIONS
5.1 Valuation of Mutual Fund or Mutual Fund Portfolio Assets: All assets of
each Mutual Fund or Mutual Fund Portfolio shall be valued as provided in
the prospectus for the applicable Mutual Fund or Mutual Fund Portfolio as
such prospectus may be amended or supplemented from time to time.
5.2 Accumulation Units: Any amounts allocated to any Investment Account on
behalf of a Participant shall be credited to his Participant Account in the
form of Accumulation Units on the basis of the value of such units in that
Investment Account as of the later of (1) the end of the Valuation Period
on which such amounts are received by AUL at its Home Office or (2) the end
of the Valuation Period on which the data required to establish the
Participant Account and allocate such amounts to the Participant Account
and to Investment Options are received by AUL at its Home Office. However,
if the initial Contribution for a Participant is allocated pursuant to
Section 3.2(c) on the next succeeding Valuation Period, the unit value as
of the end of that Valuation Period shall be used. Such crediting shall be
made separately for amounts allocated to each Investment Account. The
number of Accumulation Units in each Investment Account credited to each
Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that
Participant Account as of such Valuation Period by the dollar value of one
Accumulation Unit in that Investment Account as of the close of business on
the applicable Valuation Period. The number of Accumulation Units thus
determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the AUL
American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation
Unit in any other Investment Account available under this contract shall be
established at $1.00 as of the date of the first deposit to such Investment
Account. The value of an Accumulation Unit in each Investment Account as of
any Valuation Period thereafter is equal to the dollar value of one
Accumulation Unit in that Investment Account as of the immediately
preceding Valuation Period multiplied by the Net Investment Factor, as
defined in Section 5.4, for that Investment Account for the current
Valuation Period. The value of an Accumulation Unit for each Investment
Account shall be determined for each Valuation Period before giving effect
to any additions, withdrawals, or transfers. After such determination, the
additions, withdrawals, or transfers which are effective as of that day
shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for each
Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
P-14020(SBR)(MBR)(NBR)conv.16
(a) is equal to:
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period, plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is the daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
5.5 Determining the Value of Each Participant Account's Share of any Investment
Account: The value of each Participant Account's share of any Investment
Account as of any Valuation Date shall be determined by multiplying the
Participant Account's aggregate Accumulation Units in that Investment
Account as of such Valuation Date by the dollar value of one Accumulation
Unit in that Investment Account as of such Valuation Date. The value of the
Participant Account's share of any Investment Account as of any date other
than a Valuation Date is equal to the value of its share of that Investment
Account as of the immediately preceding Valuation Date.
P-14020(SBR)(MBR)(NBR)conv.17
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, and
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
6.3 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.5(e). This charge would be
prorated among the Investment Options from which the amounts are
transferred in the same proportion that the amount transferred from the
Investment Option bears to the total amount transferred from all Investment
Options.
6.4 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Section 4.2 or 4.4
or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.5 Reduction or Waiver of Withdrawal Charge: AUL may reduce or waive the
amount of the Withdrawal Charge where the expenses associated with the
sale of this contract or the administrative costs associated with this
contract are reduced, or where this contract is sold to the directors or
employees of AUL or any of its affiliates, or to directors or any employees
of the AUL American Series Fund, Inc.
P-14020(SBR)(MBR)(NBR)conv.18
ARTICLE 7 - RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1 Right of AUL to Change Guaranteed Rate of Interest: AUL has the right at
any time, upon delivery of written notice to the Contractholder, to change
the Guaranteed Rate of Interest. Any such change shall apply only to
Participant Accounts established on or after the effective date of such
change, and shall apply for the duration of such affected Participant
Accounts. Any change in the Guaranteed Rate of Interest shall not result in
a rate less than that prescribed by applicable state law.
7.2 Right of AUL to Change Annuity Table: After the first 5 Contract Years, AUL
has the right at any time, upon delivery of written notice to the
Contractholder, to change any annuity table included in this contract, but
any such change shall apply only to Participant Accounts established on or
after the effective date of such change.
7.3 Right of AUL to Change Withdrawal Charge: AUL has the right at any time,
upon delivery of written notice to the Contractholder, to change the
Withdrawal Charge set out in Section 1.27. Any such change to the
Withdrawal Charge shall apply only to Participant Accounts established on
or after the effective date of such change, and shall apply for the
duration of such affected Participant Accounts.
7.4 Amendment of Contract to Conform with Law: Notwithstanding the provisions
of Section 9.1, AUL reserves the right to amend this contract at any time,
without the consent of the Contractholder, Participants, or any other
person or entity, to make any change to any provisions of the contract to
comply with, or give the Contractholder or Participants the benefit of, any
provisions of federal or state laws, regulations, or rulings. Any such
amendment shall be stated in a written instrument and delivered to the
Contractholder.
P-14020(SBR)(MBR)(NBR)conv.19
ARTICLE 8 - TERMINATION OF CONTRACT
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
8.2 Payment Due to Termination by Contractholder:
(a) As of the effective date of termination of this contract by the
Contractholder pursuant to Section 8.1, the Contractholder, together
with the Plan Sponsor, may elect to have a payment or payments made
under the payment option or one of the payment options set out below
to whomever the Contractholder directs. Such payment or payments shall
be in full settlement of this contract and in lieu of any other
payment under its terms. In order for such an election to be
effective, it must include the Contractholder's and the Plan Sponsor's
agreement to indemnify and hold AUL harmless from any and all losses,
claims, or demands that may later arise or be asserted against AUL in
connection with the making of such a payment or payments and, if Code
Section 403(b) funds are to be transferred to a substitute funding
medium, such election must contain the Contractholder's certification
that such substitute funding medium meets the requirements of Code
Section 403(b) and the Regulations issued thereunder. This
Contractholder's and Plan Sponsor's agreement must be received by AUL
at its Home Office prior to payment of any termination benefits
provided by this Section 8.2.
(b) Upon termination of this contract by the Contractholder:
(1) Payment options for Code Section 401(a) funds are as follows:
(i) A single sum equal to the aggregate Withdrawal Value of all
Participant Accounts attributable to Code Section 401(a)
funds, reduced by the Investment Liquidation Charge
applicable to the Fixed Interest Account, shall be
calculated as of the close of business on the effective date
of termination and shall be payable within 7 days from the
effective date of termination, except as AUL may be
permitted to defer such payment in accordance with
appropriate provisions of the federal securities laws.
(ii) If option (i) above is not elected, Code Section 401(a)
funds shall be paid out pursuant to the same provisions
listed in Subsection 8.2(b)(2) below for Code Section 403(b)
funds.
(2) Payment of Code Section 403(b) funds shall be made as follows:
(i) A single sum equal to that portion of the aggregate
Withdrawal Value of all Participant Accounts attributable to
Code Section 403(b) funds (and Code Section 401(a) funds, if
payable pursuant to Subsection (b)(1)(ii) above) and
consisting of all of the Accumulation Units of each
Investment Account credited to such Participant Accounts
shall be calculated as of the close of business on the
effective date of termination and shall be payable within 7
days from the effective date of termination, except as AUL
may be permitted to defer such payment in accordance with
appropriate provisions of the federal securities laws.
(ii) In addition to the amount payable pursuant to Section
8.2(b)(2)(i) above, commencing on the first Contract
Anniversary immediately succeeding the effective date of
termination, a portion of each Participant Account
(including Code Section 401(a) funds invested in the Fixed
Interest Account, if payable pursuant to Subsection
(b)(1)(ii) above) shall be paid in annual installments as
follows:
(A) As of the first Contract Anniversary immediately
succeeding the effective date of termination,
one-seventh of that portion of the Withdrawal Value of
each Participant Account attributable to Code Section
403(b) funds and consisting of the net dollar balance
in the Fixed Interest Account credited to each such
Participant Account shall be calculated and shall be
payable.
(B) As of the second Contract Anniversary succeeding the
effective date of termination, one-sixth of that
portion of the Withdrawal Value of each Participant
Account attributable to Code Section 403(b) funds and
consisting of the net dollar balance in the Fixed
Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
(C) As of the third Contract Anniversary succeeding the
effective date of termination, one-fifth of that
portion of the Withdrawal Value of each Participant
Account attributable to Code Section 403(b) funds and
consisting of the net dollar balance in the Fixed
Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
(D) As of the fourth Contract Anniversary succeeding the
effective date of termination, one-fourth of that
portion of the Withdrawal Value of each Participant
Account attributable to Code Section 403(b) funds and
consisting of the net dollar balance in the Fixed
Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
(E) As of the fifth Contract Anniversary succeeding the
effective date of termination, one-third of that
portion of the Withdrawal Value of each Participant
Account attributable to Code Section 403(b) funds and
consisting of the net dollar balance in the Fixed
Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
(F) As of the sixth Contract Anniversary succeeding the
effective date of termination, one-half of that portion
of the Withdrawal Value of each Participant Account
attributable to Code Section 403(b) funds and
consisting of the net dollar balance in the Fixed
Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
(G) As of the seventh Contract Anniversary succeeding the
effective date of termination, the entire remaining
portion of the Withdrawal Value of each Participant
Account attributable to Code Section 403(b) funds and
consisting of the net dollar balance in the Fixed
Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
The Current Rates of Interest being credited to other
contracts of this class shall be credited from the effective
date of termination until the final payment is made under
this Subsection (b)(2)(ii).
Until such time as the above-referenced election is implemented,
the terms of the contract shall remain applicable, except that
AUL shall have the right to refuse to accept further
Contributions.
8.3 Right of AUL to Terminate: AUL has the right, subject to applicable state
law, to terminate any Participant Account established under this contract
at any time during the Contract Year if the Account Value of such
Participant Account is less than $200 for the first Contract Year in which
a Contribution is made for the Participant, and $400 for any subsequent
Contract Year, and at least 6 months have elapsed since the last previous
Contribution to the contract. If AUL elects to terminate a Participant
Account in such event, such termination shall be effective on the date 6
months following the date that AUL gives notice to the Contractholder and
the Participant that the Participant Account is to be terminated, provided
that any Contributions made during such 6- month period are insufficient to
bring such Account Value up to the minimum level.
8.4 Payment Due to Termination by AUL: As of the effective date of termination
of a Participant Account by AUL pursuant to Section 8.3, AUL may elect to
have a payment made as set out below to the Contractholder. Any such
payment shall be in full settlement of the Participant Account under this
contract and in lieu of any other payment under its terms.
Upon termination of a Participant Account pursuant to Section 8.3, AUL may
elect to have a single sum equal to the Account Value of the Participant
Account calculated as of the close of business on the effective date of
termination and paid to the Contractholder within 7 days from such
effective date of termination.
P-14020(SBR)(MBR)(NBR)conv.20
ARTICLE 9 - MISCELLANEOUS
9.1 Ownership: The Contractholder is the owner of the contract and may agree
with AUL to any change or amendment of it without the consent of any other
person or entity.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
No other person or entity shall have any right, title, or interest in this
contract or to any amount received or credited under it until such right,
title, interest, or amount is actually made available to them.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Mutual Fund or Mutual Fund Portfolio, nor any of the
other provisions and conditions of this contract.
9.3 Certification of Plan Status: The Contractholder certifies, upon acceptance
of this contract, that, in the Contractholder's opinion, the Code Section
401(a) Plan and the Code Section 403(b) Plan meet the requirements of Code
Sections 401(a) and 403(b), respectively. If the Contractholder or Plan
Sponsor attempts to obtain Internal Revenue Service approval of a Plan as a
qualified Code Section 401(a) plan and fails to initially secure such
qualification of the Plan, or fails to retain such qualification, each
Participant Account's share of each Investment Account shall be withdrawn
and transferred to the Fixed Interest Account, and no amounts attributable
to this contract shall subsequently be placed in any Investment Account
until the Plan is again qualified.
AUL does not make any guarantee regarding the federal, state, or local tax
status of this contract, any Participant Account established hereunder, or
any transaction involving this contract.
9.4 Essential Data: The Contractholder shall furnish to AUL whatever
information is necessary to establish the eligibility and amount of annuity
or other benefit in each instance. The Contractholder shall report to AUL
any person for whom a payment becomes due under a Plan and the nature and
amount of such payment before the date on which such payment becomes due or
as soon thereafter as is practicable.
9.5 Reliance: AUL shall be fully protected in relying on any information
furnished by the Contractholder, by any person or persons certified to AUL
by the Contractholder as acting on its behalf, or by a Participant. AUL
need not inquire as to the accuracy or completeness thereof.
9.6 Misstatement of Essential Data: If it has been found that any essential
data pertaining to any person has been omitted or misstated, including, but
not limited to, a misstatement as to the age of an annuitant, there shall
be an equitable adjustment so as to provide the annuity to which that
person is entitled.
9.7 Assignment by Contractholder: The Contractholder may assign its interest in
Code Section 401(a) funds held in this contract, but any assignment must be
in writing, and AUL shall not be deemed to have knowledge of such
assignment unless the original or a duplicate is filed at the Home Office
of AUL. AUL shall not assume any responsibility for the validity of an
assignment.
9.8 Annuity Certificates: AUL shall issue to each person for whom an annuity is
purchased from AUL a certificate setting forth the amount and terms of
payment of the annuity.
9.9 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder or Participant making a request or
giving notice or direction, such request, notice, or direction must be in
writing, or in a form otherwise acceptable to AUL, and must be submitted to
and received by AUL at its Home Office before becoming effective.
9.10 Quarterly Statement of Account Value: As soon as reasonably possible after
the end of each Contract Quarter, AUL shall prepare a statement of the
Account Value of each Participant Account existing under this contract.
9.11 Conformity with State Laws: Any benefit payable under this contract shall
not be less than the minimum benefit required by any statute of the state
in which the contract is delivered.
9.12 Reference to Federal Laws: Language in this contract referring to federal
tax, securities, or other statutes or rules shall not be deemed to
incorporate within the contract such statutes or rules. This language is
informational and instructional in nature, and is not subject to approval
or disapproval by the state in which the contract is issued.
9.13 Sex and Number: Whenever the context so requires, the plural includes the
singular, the singular the plural, and the masculine the feminine.
9.14 Facility of Payment: If any Participant, contingent annuitant, or
beneficiary is legally incapable of giving a valid receipt for any payment
due him, and no guardian has been appointed, AUL may make such payment to
the person or persons who have assumed the care and principal support of
such Participant, contingent annuitant, or beneficiary. Also, AUL may make
payment directly to the Contractholder or to any person or entity when
directed to do so in writing by the Contractholder. Any payment made by AUL
will fully discharge AUL to the extent of such payment.
9.15 Insulation from Liability: The assets of the Variable Account are not
chargeable with liabilities arising out of any other business AUL may
conduct.
9.16 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of l940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund or Mutual Fund Portfolio shares as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund or Mutual Fund Portfolio.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
9.17 Acceptance of New Participants or Contributions: AUL reserves the right to
refuse to accept new Participants or new Contributions to this contract at
any time.
9.18 Nonforfeitability and Nontransferability: The entire Withdrawal Value of
the vested portion (as determined pursuant to the Code Section 403(b) Plan)
of Code Section 403(b) funds of a Participant Account under this contract
shall be nonforfeitable at all times. No sum payable under this contract
which is attributable to Code Section 403(b) funds with respect to a
Participant may be sold, assigned, discounted, or pledged as collateral for
a loan or as security for the performance of an obligation or for any other
purpose to any person or entity other than AUL. In addition, to the extent
permitted by law, no such sum shall in any way be subject to legal process
requiring the payment of any claim against the payee.
9.19 Notice of Annual Meeting of Members: The regular annual meeting of the
members of AUL shall be held at its principal place of business on the
third Thursday in February of each year at the hour of ten o'clock A.M.
Elections for directors shall be held at such annual meeting.
P-14020(SBR)(MBR)(NBR)conv.21
TABLE OF IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
EXACT LIFE 10 YEAR CERTAIN
AGE ANNUITY AND LIFE ANNUITY
45 4.0025 3.9934
46 4.0438 4.0335
47 4.0872 4.0756
48 4.1330 4.1199
49 4.1813 4.1665
50 4.2322 4.2156
51 4.2859 4.2672
52 4.3426 4.3216
53 4.4026 4.3789
54 4.4661 4.4394
55 4.5333 4.5032
56 4.6045 4.5705
57 4.6801 4.6416
58 4.7604 4.7167
59 4.8458 4.7961
60 4.9368 4.8801
61 5.0338 4.9689
62 5.1373 5.0629
63 5.2477 5.1624
64 5.3655 5.2677
65 5.4913 5.3789
66 5.6260 5.4965
67 5.7703 5.6207
68 5.9255 5.7518
69 6.0929 5.8901
70 6.2737 6.0357
71 6.4695 6.1887
72 6.6816 6.3489
73 6.9116 6.5160
74 7.1603 6.6894
75 7.4293 6.8682
00XXXX0-0
00XXXXXX
X-00000(XXX)(XXX)(XXX)xxxx.00
SCHEDULE A
The following Investment Accounts are made available to the Contractholder
by AUL. Amounts allocated to any Investment Account identified below shall
be invested in the shares of the corresponding Mutual Fund or Mutual Fund Port-
folio listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Social Mid-Cap Growth Xxxxxxx Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
P-14020(SBR)(MBR)(NBR)conv.23
AMENDMENT
TO THE
MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is .
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting Section 6.1 and by substituting the following Section
6.1 in lieu thereof:
6.1 Mortality Risk and Expense Risk Charges; Annual Variable Investment Plus
Factors: AUL shall deduct a daily mortality risk charge and a daily expense
risk charge equal to the daily equivalent of an annual combined charge of
1.25% against the average daily net assets of each Investment Account.
These charges shall be reflected in the Net Investment Factor as provided
in Section 5.4(c).
AUL shall multiply the portions (as delineated in the table below) of the
total month-end Account Value in the Variable Account of all Participants
in the contract by the monthly equivalent of the corresponding Annual
Variable Investment Plus Factors appearing in the table below. These
products shall be added together, and the sum shall be divided by the total
month-end Account Value in the Variable Account of all Participants in the
contract. This percentage shall be multiplied by the month-end Account
Value of each Participant in each Investment Account. The resulting amount
for each Investment Account shall be added to the Participant's Account
Value for that Investment Account.
Contract's Month-End Account Value in Annual Variable Investment Plus Factor
Variable Account
First $500,000 0.00%
Next $500,000 0.25%
Next $2 million 0.35%
Next $2 million 0.40%
Next $1 million 0.50%
Over $6 million 0.75%
CONTRACTHOLDER AUL
By _____________________________ By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
Title ___________________________ President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
P-XXXXX.AMD.DAC
AMENDMENT
TO THE
GROUP ANNUITY CONTRACT
NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
THE CONTRACTHOLDER
Notwithstanding any other provisions of the Contract, AUL and the Contractholder
agree that the Contract is hereby amended as follows:
By adding the following provision, effective as of the later of the Contract
Date or January 1, 1996:
No Participant shall be permitted to have elective deferral contributions
(within the meaning of Internal Revenue Code Section 402(g)(3)) made during a
calendar year under this contract, or under any other plans, contracts, or
arrangements maintained by his employer, in excess of the dollar limitation in
effect under Internal Revenue Code Section 402(g)(1) and any Regulations issued
thereunder for taxable years beginning in such calendar year.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
P-14020.AMD.SBJPA
AMENDMENT
TO THE
AUL AMERICAN SERIES
EMPLOYER-SPONSORED TDA
AND
QUALIFIED PLAN MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is the date that it is signed by AUL.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting Schedule A and by substituting the following Schedule
A in lieu thereof:
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
------------------ ------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Social Mid-Cap Growth Xxxxxxx Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
CONTRACTHOLDER AUL
By _____________________________________ By ________________________________________
Title __________________________________ Title ______________________________________
Date ___________________________________ Date ______________________________________
P-14020.A
CONTRACT NUMBER GAXX,XXX
CONTRACTHOLDER ABC SCHOOL
PARTICIPANT'S NAME XXXX XXX
SOCIAL SECURITY NUMBER 000-00-0000
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into a Multiple-Fund Group Variable Annuity
Contract (the Contract) in connection with the Contractholder's Code Section
403(b) tax-deferred annuity Plan and its Code Section 401(a) qualified
retirement Plan, and that AUL has created an account in your name to receive
Contributions from the Contractholder for your benefit pursuant to the Contract.
The only parties to the Contract are the Contractholder and AUL. All rights and
benefits are determined in accordance with the provisions of the Contract.
Benefits under the Contract will be paid at the Contractholder's direction.
Any amendments to, or changes in, the Contract will be binding and conclusive on
each Participant and beneficiary.
This certificate is not itself the Contract, but is a certificate of
participation in the Contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
EMPLOYER-SPONSORED TDA AND QUALIFIED PLAN MULTIPLE-FUND
GROUP VARIABLE ANNUITY CERTIFICATE
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND OR MUTUAL
FUND PORTFOLIO IN WHICH THE INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS
AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THE CONTRACT EXPLAINS THE
VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
If you have questions concerning your Contract, or wish to register a complaint,
you may reach AUL by calling 0-000-000-0000 or 0-000-000-0000.
P-13099(SBR)(MBR)(NBR)conv
SUMMARY OF CERTAIN CONTRACT PROVISIONS
WHICH AFFECT YOU
DEFINITIONS
"Account Value" for any Participant Account on any given date means:
(a) the balance of the Participant Account's Code Section 401(a) subaccounts'
share of the Fixed Interest Account on that date; plus
(b) the balance of the Participant Account's Code Section 403(b) subaccounts'
share of the Fixed Interest Account on that date; plus
(c) the value of the Participant Account's Code Section 401(a) subaccounts'
Accumulation Units in each Investment Account on that date; plus
(d) the value of the Participant Account's Code Section 403(b) subaccounts'
Accumulation Units in each Investment Account on that date.
"Accumulation Period" means the period of time commencing on the date on which a
Participant's initial Contribution is credited to the Participant Account and
terminating on the date when such Participant Account is closed.
"Accumulation Unit" means a statistical device used to measure amounts of
increases to, decreases from, and accumulations in any Investment Account during
the Accumulation Period.
"Annuity Commencement Date" means the first day of any month upon which an
annuity begins under the Contract. However, for any Participant, this date shall
not be later than the required beginning date as defined in the applicable
sections of the Code and Regulations issued thereunder.
"Code" means the Internal Revenue Code of l986, as amended.
"Contract Anniversary" means the first day of the second Contract Year and each
subsequent Contract Year. Each Contract Anniversary after the First Contract
Anniversary identified in the Contract shall be the same day of the same month
as the day and month which is stated in the Contract for the First Contract
Anniversary.
"Contract Quarter" means each of the four successive intervals of three months,
the sum of which corresponds to a 12-month Contract Year.
"Contract Year" means, for the first such year, the period beginning with the
Contract Date and ending on the day immediately preceding the First Contract
Anniversary identified in the Contract, and for each succeeding Contract Year,
the period beginning with a Contract Anniversary and ending on the day
immediately preceding the next succeeding Contract Anniversary.
"Contributions" means amounts paid to AUL pursuant to the Contractholder's Code
Section 401(a) Plan or 403(b) Plan, including amounts transferred to the
Contract from another AUL group annuity contract,
P-13099(SBR)(MBR)(NBR)conv.1
which are credited to a Participant Account. The following types of Code Section
403(b) Contributions are credited to individual subaccounts under the
Participant Account:
(a) "Elective Deferrals," which means, with respect to any taxable year, any
Contribution made under a salary reduction agreement. A Contribution made
under a salary reduction agreement shall not be treated as an Elective
Deferral if, under the salary reduction agreement, such Contribution is
made pursuant to a one-time irrevocable election made by the Participant at
the time of initial eligibility to participate in the agreement, or is made
pursuant to a similar arrangement involving a one-time irrevocable election
specified in Regulations issued under the Code.
(b) "Employee Mandatory Contributions," which means Contributions made under a
salary reduction agreement pursuant to a one-time irrevocable election made
by the Participant at the time of initial eligibility to participate in the
agreement, or is made pursuant to a similar arrangement involving a
one-time irrevocable election specified in Regulations issued under the
Code.
(c) "Employer Contributions," which means Contributions made by the
Participant's employer that are not made pursuant to (a) or (b) above.
"Current Rates of Interest" means each of the annual effective rates of interest
as determined and declared by AUL from time-to-time and as credited to each
interest pocket maintained within the Fixed Interest Account. The Current Rates
of Interest shall always be equal to or greater than the Guaranteed Rate of
Interest.
"Excess Contributions" means those Contributions made on behalf of a Participant
which exceed the limitations in effect under applicable provisions of the Code
and Regulations issued thereunder.
"Fixed Interest Account" means that portion of AUL's general asset account in
which all or a portion of a Participant's Account Value may be held for
accumulation at the Current Rates of Interest.
(a) Contributions allocated, or amounts transferred (excluding amounts
transferred from another AUL contract), to the Fixed Interest Account shall
be credited to the open interest pocket and shall earn interest at the
Current Rate of Interest in effect for that interest pocket. Such
Contributions or transferred amounts, during the time that the Current Rate
of Interest exceeds the Guaranteed Rate of Interest, shall earn interest at
such credited Current Rate of Interest for at least 1 year. After such
1-year period, AUL reserves the right to declare, at any time, a new
Current Rate of Interest to be applied to funds held within that interest
pocket. Any such new Current Rate of Interest must remain in effect for
that interest pocket for at least 1 year.
(b) If AUL changes the Current Rate of Interest for such new Contributions or
such new amounts transferred to the Fixed Interest Account, the previous
open interest pocket shall close, and any such Contributions or amounts
transferred on or after the effective date of such change shall be credited
to a new open interest pocket and shall earn interest at the new Current
Rate of Interest in effect for such new open interest pocket. Therefore, at
any given time, various funds credited to a Participant Account and
allocated to the Fixed Interest Account may be earning interest at
different Current Rates of Interest for different periods of time.
"Guaranteed Rate of Interest" means interest at an annual effective rate of
4.00%.
"Home Office" means the principal office of AUL. The mailing address is P. O.
Xxx 0000, Xxxxxxxxxxxx, Xxxxxxx 00000-0000. The telephone number is
0-000-000-0000.
"Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and identified
in Schedule A of the Contract. Schedule A of the Contract may be amended by AUL
from time to time as described in "Addition, Deletion, or Substitution of
Investments" below. Amounts allocated to any Investment Account identified in
Schedule A of the Contract shall be invested in the shares of the corresponding
Mutual Fund or Mutual Fund Portfolio listed in the current prospectus for the
Variable Account.
"Investment Liquidation Charge" means a charge assessed by AUL which is
determined by multiplying a percentage times that portion of the Withdrawal
Value of each Participant Account which is to be paid from the Fixed Interest
Account according to the "Contract Termination" provisions discussed below.
The percentage shall be 6 times (X-Y) where:
X = the Current Rate of Interest being credited by AUL, as of the date of
payment, to new Contributions; and
Y = the average rate of interest being credited by AUL, as of the date of
payment, to each affected Participant Account.
If Y is greater than X, the Investment Liquidation Charge shall be zero.
AUL's determination of the Investment Liquidation Charge shall be conclusive.
"Investment Option" means the Fixed Interest Account or any of the Investment
Accounts of the Variable Account. AUL reserves the right to provide other
Investment Options under the Contract at any time.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
l940, and any other such open-end management investment company made available
by AUL, as listed in Schedule A.
"Participant" means any person reported to AUL by the Contractholder as eligible
for, and as participating in, a Plan, and for whom a Participant Account is
established.
"Participant Account" means an account established under the Contract for a
Participant. Within each Participant Account, the Contractholder can direct the
establishment of one or more subaccounts as made available by AUL. Contributions
received by AUL shall be credited to Participant Accounts and their subaccounts
as AUL is directed in writing by the Contractholder.
"Plan" includes the Plan Sponsor's Code Section 401(a) plan and its Code Section
403(b) plan as they exist on the Contract Date identified in the Contract, and
any subsequent amendment to them.
"Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus for
that Mutual Fund, as such prospectus may be amended or supplemented from time to
time.
"Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
"Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL Series
III (SBR,MBR) group annuity contracts issued to the Contractholder, the initial
Withdrawal Charge percentage under the Contract shall be equal to the Withdrawal
Charge percentage applicable to the Participant under the AUL Series I (NBR)
group annuity contracts from which funds have been transferred to such Series
III (SBR,MBR) contracts, determined by AUL immediately prior to the date of such
transfer, rounded down to the next whole Withdrawal Charge percentage if the
Withdrawal Charge percentage under such Series I (NBR) contracts is a fractional
Withdrawal Charge percentage. However, the Withdrawal Charge percentage under
this paragraph shall never be greater than 8%. The Withdrawal Charge percentage
shall be decreased by 1% for each subsequent Participant Account Year until the
Withdrawal Charge percentage equals 4%. (However, if the applicable Withdrawal
Charge percentage under such Series I contracts is greater than 0% but less than
4%, it shall be rounded up to 4% in the Contract.) This 4% Withdrawal Charge
percentage shall be in effect during the next 6 consecutive Participant Account
Years. Thereafter, the Withdrawal Charge percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA III SBR,MBR/GAA III SBR,MBR -- Series I)
(original GRA I NBR/GAA I NBR -- Series I)
P-13099(SBR)(MBR)(NBR)conv.2
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL Series
III (NBR) group annuity contracts issued to the Contractholder, the initial
Withdrawal Charge percentage under the Contract shall be equal to the Withdrawal
Charge percentage applicable to the Participant under the AUL Series I (NBR)
group annuity contracts from which funds have been transferred to such Series
III (NBR) contracts, determined by AUL immediately prior to the date of such
transfer, rounded down to the next whole Withdrawal Charge percentage if the
Withdrawal Charge percentage under such Series I (NBR) contracts is a fractional
Withdrawal Charge percentage. However, the Withdrawal Charge percentage under
this paragraph shall never be greater than 8%. The Withdrawal Charge percentage
shall be decreased by 1% for each subsequent Participant Account Year until the
Withdrawal Charge percentage equals 4%. (However, if the applicable Withdrawal
Charge percentage in such Series I contracts is greater than 0% but less than
4%, it shall be rounded up to 4% in the Contract.) This 4% Withdrawal Charge
percentage shall be in effect during the next 6 consecutive Participant Account
Years. Thereafter, the Withdrawal Charge percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA III NBR/GAA III NBR -- Series I)
(original GRA I NBR/GAA I NBR -- Series I)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL Series
III (SBR,MBR) group annuity contracts issued to the Contractholder, the initial
Withdrawal Charge percentage under the Contract shall be equal to the Withdrawal
Charge percentage applicable to the Participant under the AUL Series III (with a
Series I Withdrawal Charge scale) (NBR) group annuity contracts from which funds
have been transferred to such Series III (SBR,MBR) contracts, determined by AUL
immediately prior to the date of such transfer, rounded down to the next whole
Withdrawal Charge percentage if the Withdrawal Charge percentage under such
Series III (with a Series I Withdrawal Charge scale) (NBR) contracts is a
fractional Withdrawal Charge percentage. However, the Withdrawal Charge
percentage under this paragraph shall never be greater than 8%. The Withdrawal
Charge percentage shall be decreased by 1% for each subsequent Participant
Account Year until the Withdrawal Charge percentage equals 4%. (However, if the
applicable Withdrawal Charge percentage in such Series III (with a Series I
Withdrawal Charge scale) (NBR) contracts is greater than 0% but less than 4%, it
shall be rounded up to 4% in the Contract.) This 4% Withdrawal Charge percentage
shall be in effect during the next 6 consecutive Participant Account Years.
Thereafter, the Withdrawal Charge percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA III SBR,MBR/GAA III SBR, MBR -- Series I)
(original GRA III NBR/GAA III NBR -- Series I)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL Series
III (with a Series I Withdrawal Charge scale) (NBR) group annuity contracts
issued to the Contractholder, the initial Withdrawal Charge percentage under the
Contract shall be equal to the Withdrawal Charge percentage applicable to the
Participant under such AUL Series III (with a Series I Withdrawal Charge scale)
(NBR) group annuity contracts, determined by AUL immediately prior to the
Contract Date of the Contract, rounded down to the next whole Withdrawal Charge
percentage if the Withdrawal Charge percentage under such Series III (with a
Series I Withdrawal Charge scale) (NBR) contracts is a fractional Withdrawal
Charge percentage. However, the Withdrawal Charge percentage under this
paragraph shall never be greater than 8%. The Withdrawal Charge percentage shall
be decreased by 1% for each subsequent Participant Account Year until the
Withdrawal Charge percentage equals 4%. (However, if the applicable Withdrawal
Charge percentage under such Series III (with a Series I Withdrawal Charge
scale) (NBR) contracts is greater than 0% but less than 4%, it shall be rounded
up to 4% in the Contract.) This 4% Withdrawal Charge percentage shall be in
effect during the next 6 consecutive Participant Account Years. Thereafter, the
Withdrawal Charge percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GRA III NBR/GAA III NBR -- Series I)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL GRA VII
(SBR,MBR) and GRA III (SBR,MBR) group annuity contracts issued to the
Contractholder, the initial Withdrawal Charge percentage under the Contract
shall be equal to the Withdrawal Charge percentage applicable to the Participant
under the AUL GRA VII (NBR) and GRA VI (NBR) group annuity contracts from which
funds have been transferred to such GRA VII (SBR,MBR) and GRA III (SBR,MBR)
contracts, determined by AUL immediately prior to the date of such transfer,
rounded down to the next whole Withdrawal Charge percentage if the Withdrawal
Charge percentage under such GRA VII (NBR) and GRA VI (NBR) contracts is a
fractional Withdrawal Charge percentage. However, the Withdrawal Charge
percentage under this paragraph shall never be greater than 8%. The Withdrawal
Charge percentage shall be decreased by 1% for each subsequent Participant
Account Year until the Withdrawal Charge percentage equals 4%. (However, if the
applicable Withdrawal Charge percentage under such GRA VII (NBR) and GRA VI
(NBR) contracts is greater than 0% but less than 4%, it shall be rounded up to
4% in the Contract.) This 4% Withdrawal Charge percentage shall be in effect
during the next 6 consecutive Participant Account Years. Thereafter, the
Withdrawal Charge percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA VII SBR,MBR/GRA III SBR,MBR -- Series I)
(original GRA VII NBR/GRA VI NBR -- Series I)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL GRA VII
(NBR) and GRA VI (NBR) group annuity contracts issued to the Contractholder, the
initial Withdrawal Charge percentage under the Contract shall be equal to the
Withdrawal Charge percentage applicable to the Participant under such AUL GRA
VII (NBR) and GRA VI (NBR) group annuity contracts, determined by AUL
immediately prior to the Contract Date of the Contract, rounded down to the next
whole Withdrawal Charge percentage if the Withdrawal Charge percentage under
such GRA VII (NBR) and GRA VI (NBR) contracts is a fractional Withdrawal Charge
percentage. However, the Withdrawal Charge percentage under this paragraph shall
never be greater than 8%. The Withdrawal Charge percentage shall be decreased by
1% for each subsequent Participant Account Year until the Withdrawal Charge
percentage equals 4%. (However, if the applicable Withdrawal Charge percentage
under such GRA VII (NBR) and GRA VI (NBR) contracts is greater than 0% but less
than 4%, it shall be rounded up to 4% in the Contract.) This 4% Withdrawal
Charge percentage shall be in effect during the next 6 consecutive Participant
Account Years. Thereafter, the Withdrawal Charge percentage shall be reduced to
0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GRA VII NBR/GRA VI NBR -- Series I)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL GRA VII
(SBR,MBR) and GRA III (SBR,MBR) group annuity contracts issued to the
Contractholder, the initial Withdrawal Charge percentage under the Contract
shall be equal to the Withdrawal Charge percentage applicable to the Participant
under the AUL GRA VII (NBR) and GRA VI (NBR) group annuity contracts from which
funds have been transferred to such GRA VII (SBR,MBR) and GRA III (SBR,MBR)
contracts, determined by AUL immediately prior to the date of such transfer,
rounded down to 8% if the Withdrawal Charge percentage under such GRA VII (NBR)
and GRA VI (NBR) contracts is greater than 8%. If the Withdrawal Charge
percentage is rounded down from 10% to 8%, the 8% Withdrawal Charge percentage
shall be in effect through that Participant Account Year and through the next 2
succeeding Participant Account Years. If the Withdrawal Charge percentage is
rounded down from 9% to 8%, the 8% Withdrawal Charge percentage shall be in
effect through that Participant Account Year and through the next succeeding
Participant Account Year. Thereafter, the Withdrawal Charge percentage shall be
decreased by 1% for each subsequent Participant Account Year until the
Withdrawal Charge percentage equals 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA VII SBR,MBR/GRA III SBR,MBR -- Series III)
(original GRA VII NBR/GRA VI NBR -- Series III)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL GRA VII
(NBR) and GRA VI (NBR) group annuity contracts issued to the Contractholder, the
initial Withdrawal Charge percentage under the Contract shall be equal to the
Withdrawal Charge percentage applicable to the Participant under the AUL GRA VII
(NBR) and GRA VI (NBR) group annuity contracts, determined by AUL immediately
prior to the Contract Date of the Contract, rounded down to 8% if the Withdrawal
Charge percentage under such GRA VII (NBR) and GRA VI (NBR) contracts is greater
than 8%. If the Withdrawal Charge percentage is rounded down from 10% to 8%, the
8% Withdrawal Charge percentage shall be in effect through that Participant
Account Year and through the next 2 succeeding Participant Account Years. If the
Withdrawal Charge percentage is rounded down from 9% to 8%, the 8% Withdrawal
Charge percentage shall be in effect through that Participant Account Year and
through the next succeeding Participant Account Year. Thereafter, the Withdrawal
Charge percentage shall be decreased by 1% for each subsequent Participant
Account Year until the Withdrawal Charge percentage equals 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GRA VII NBR/GRA VI NBR -- Series III)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL GRA VII
(NBR) and GRA VI (NBR) group annuity contracts issued to the Contractholder, the
initial Withdrawal Charge percentage under the Contract shall be equal to the
Withdrawal Charge percentage applicable to the Participant under such AUL GRA
VII (NBR) and GRA VI (NBR) group annuity contracts, determined by AUL
immediately prior to the Contract Date of the Contract, rounded down to the next
whole Withdrawal Charge percentage if the Withdrawal Charge percentage under
such GRA VII (NBR) and GRA VI (NBR) contracts is a fractional Withdrawal Charge
percentage. However, the Withdrawal Charge percentage under this paragraph shall
never be greater than 8%. The Withdrawal Charge percentage shall be decreased by
1% for each subsequent Participant Account Year until the Withdrawal Charge
percentage equals 4%. (However, if the applicable Withdrawal Charge percentage
under such GRA VII (NBR) and GRA VI (NBR) contracts is greater than 0% but less
than 4%, it shall be rounded up to 4% in the Contract.) This 4% Withdrawal
Charge percentage shall be in effect during the next 6 consecutive Participant
Account Years. Thereafter, the Withdrawal Charge percentage shall be reduced to
0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GRA VII NBR/GRA VI NBR -- Series I)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL GAA III
(SBR,MBR,NBR), MFVA (SBR,MBR,NBR), and GRA VIII (SBR,MBR,NBR) group annuity
contracts issued to the Contractholder, and who has had amounts transferred from
previous AUL group annuity contracts to such GAA III, MFVA, and GRA VIII
contracts, the Withdrawal Charge percentage under the Contract is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1 8
2 8
3 8
4 7
5 6
6 5
7 4
8 3
9 2
10 1
Thereafter 0
Participant Account Years credited under previous AUL group annuity contracts
from which amounts have been transferred to the Contract shall be counted in
determining Participant Account Years under this definition.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GAA III SBR,MBR,NBR -- Series III)
(transfer from original GRA VIII SBR,MBR,NBR -- Series III)
(transfer from original MFVA SBR,MBR,NBR -- Series III)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL GAA III
(SBR,MBR,NBR), MFVA (SBR,MBR,NBR), and GRA VIII (SBR,MBR,NBR) group annuity
contracts issued to the Contractholder, and who has had amounts transferred from
previous AUL group annuity contracts to such GAA III, MFVA, and GRA VIII
contracts, the Withdrawal Charge percentage under the Contract is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1 8
2 7
3 6
4 5
5 4
6 4
7 4
8 4
9 4
10 4
Thereafter 0
Participant Account Years credited under previous AUL group annuity contracts
from which amounts have been transferred to the Contract shall be counted in
determining Participant Account Years under this definition.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GAA III SBR,MBR,NBR -- Series I)
(transfer from original GRA VIII SBR,MBR,NBR -- Series I)
(transfer from original MFVA SBR,MBR,NBR -- Series I)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL GAA III
(SBR,MBR) and GRA III (SBR,MBR) group annuity contracts issued to the
Contractholder, the initial Withdrawal Charge percentage under the Contract
shall be equal to the Withdrawal Charge percentage applicable to the Participant
under the AUL GAA III (NBR) and AUL GRA III (NBR) group annuity contracts from
which funds have been transferred to such GAA III (SBR,MBR) and GRA III
(SBR,MBR) contracts, determined by AUL immediately prior to the date of such
transfer, rounded down to 8% if the Withdrawal Charge percentage under such GAA
III (NBR) and GRA III (NBR) contracts is greater than 8%. If the Withdrawal
Charge percentage is rounded down from 10% to 8%, the 8% Withdrawal Charge
percentage shall be in effect through that Participant Account Year and through
the next 2 succeeding Participant Account Years. If the Withdrawal Charge
percentage is rounded down from 9% to 8%, the 8% Withdrawal Charge percentage
shall be in effect through that Participant Account Year and through the next
succeeding Participant Account Year. Thereafter, the Withdrawal Charge
percentage shall be decreased by 1% for each subsequent Participant Account Year
until the Withdrawal Charge percentage equals 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from GRA III SBR,MBR/GAA III SBR,MBR -- Series III)
(original GRA III NBR/GAA III NBR -- Series III)
P-13099(SBR)(MBR)(NBR)conv.4
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "'Benefit Responsive' Plan Benefits and Annuities"
below, as provided by the Plan, where the percentage varies by the Participant
Account Year in which the withdrawal is made. The first Participant Account Year
begins on the date when AUL establishes a Participant Account and credits the
initial Contribution for the Participant, and ends on the day immediately
preceding the next anniversary of such date. Each Participant Account Year
thereafter begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge percentage
is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL GRA III
(NBR) and GAA III (NBR) group annuity contracts issued to the Contractholder,
the initial Withdrawal Charge percentage under the Contract shall be equal to
the Withdrawal Charge percentage applicable to the Participant under such AUL
GRA III (NBR) and AUL GAA III (NBR) group annuity contracts, determined by AUL
immediately prior to the Contract Date of the Contract, rounded down to 8% if
the Withdrawal Charge percentage under such GRA III (NBR) and GAA III (NBR)
contracts is greater than 8%. If the Withdrawal Charge percentage is rounded
down from 10% to 8%, the 8% Withdrawal Charge percentage shall be in effect
through that Participant Account Year and through the next 2 succeeding
Participant Account Years. If the Withdrawal Charge percentage is rounded down
from 9% to 8%, the 8% Withdrawal Charge percentage shall be in effect through
that Participant Account Year and through the next succeeding Participant
Account Year. Thereafter, the Withdrawal Charge percentage shall be decreased by
1% for each subsequent Participant Account Year until the Withdrawal Charge
percentage equals 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
(transfer from original GRA III NBR/GAA III NBR -- Series III)
P-13099(SBR)(MBR)(NBR)conv.4
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
(a) Contributions may vary in amount and frequency; however, they must be at
least equal to a minimum annual Contribution of $300 (for Code Section
401(a) Contributions) and $200 (for Code Section 403(b) Contributions) per
Participant in any full Contract Year.
(b) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant or to
whomever the Contractholder directs pursuant to the Plan upon receipt by
AUL at its Home Office of complete written instructions from the
Contractholder. Such written instructions must include the amount to be
withdrawn and returned, and certification that such Contributions
constitute Excess Contributions and that such returns are permitted by the
applicable Plan and by applicable provisions of the Code and Regulations
issued thereunder. It shall not be the responsibility of AUL to determine
the existence or amount of Excess Contributions or gains or losses thereon,
or that returns of Excess Contributions or gains or losses thereon are
permitted by the Plan and by applicable provisions of the Code and
Regulations. In withdrawing and returning the identified amount, AUL may
rely solely on such written instructions and certification. Such a
withdrawal and return of Excess Contributions shall not be subject to the
"General Withdrawal Provisions" discussed below.
(c) Contributions received at AUL's Home Office shall be identified by the
Contractholder and shall be credited to the appropriate subaccounts of each
of the Participant Accounts as directed by the Contractholder in written
allocation instructions. Code Section 403(b) Contributions shall be
identified as Elective Deferrals, Employee Mandatory Contributions, or
Employer Contributions.
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable by AUL by the Contractholder or by that person designated in
writing to AUL by the Contractholder. If no Investment Option election is
made with respect to a particular Contribution to any Participant Account,
AUL shall process such credits in accordance with the Investment Option
election applicable to the immediately preceding Contribution. The
Contractholder or such designated person may change an Investment Option
election with respect to future allocations to the applicable Participant
Account by giving new Investment Option elections to AUL at its Home Office
in a form acceptable to AUL.
(e) The initial Contribution for a Participant shall be allocated to the
Participant Account no later than the close of business on the second
business day of AUL after the later of (1) the business day that AUL
receives the initial Contribution at its Home Office or (2) the business
day that AUL receives, at its Home Office, the data required to establish
the Participant Account, instructions regarding the amount of the initial
Contribution for the Participant, and Investment Option elections regarding
the initial Contribution.
(f) (1) For Code Section 401(a) Contributions: If the data required to
establish a Participant Account and instructions regarding the amount
of a Contribution for the Participant are not received by AUL at its
Home Office as of the date AUL receives that Contribution, AUL shall
allocate that Contribution to a suspense account within AUL's general
asset account, which shall earn interest at rates equal to the Current
Rates of Interest which would have been earned had such Contributions
been allocated to the Fixed Interest Account on the date such
Contribution was allocated to the suspense account.
(2) For Code Section 403(b) Contributions: If the data required to
establish a Participant Account and instructions regarding the amount
of a Contribution for the Participant are not received by AUL at its
Home Office within 5 business days after AUL first receives that
Contribution, AUL shall return that Contribution to the Contractholder
unless the Contractholder consents to AUL retaining that Contribution
until the earlier of (i) the date AUL receives such data and
instructions and, therefore, can properly allocate that Contribution
to the Participant Account or (ii) 25 days from the date that
Contribution is received by AUL.
(g) If the data required to establish a Participant Account, including any
annuity enrollment form required by AUL, and instructions regarding the
amount of a Contribution for the Participant are received, but an
Investment Option election form for that Participant is not received, by
AUL at its Home Office as of the date AUL receives that Contribution, AUL
shall allocate that Contribution to the Investment Option election
identified in the Participant's annuity enrollment form, which is the AUL
American Money Market Investment Account.
(h) Under paragraphs (f)(1) and (g), if AUL subsequently receives the data
required to establish the Participant Account, instructions regarding the
amount of the Contribution for the Participant, and an Investment Option
election form, AUL shall then transfer such amounts allocated pursuant to
those paragraphs, plus gains or minus losses thereon, to another Investment
Option, if such election form so directs.
P-13099(SBR)(MBR)(NBR)conv.5
(i) Contributions for a Participant subsequent to the initial Contribution
shall be allocated to the Participant Account as of the close of business
on the later of (1) the Valuation Period in which AUL receives that
Contribution at its Home Office or (2) the Valuation Period in which AUL
receives, at its Home Office, the data required to establish the
Participant Account, instructions regarding the amount of that Contribution
for the Participant, and Investment Option elections.
Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to make
additions to, deletions from, substitution for, or combinations of, the
securities that are held by the Variable Account or any Investment Account
or that the Variable Account or any Investment Account may purchase. AUL
reserves the right to eliminate the shares of any of the eligible Mutual
Funds or Mutual Fund Portfolios and to substitute shares of, or interests
in, another Portfolio of the AUL American Series Fund, Inc., another
open-end, registered investment company, or another investment vehicle, for
shares already purchased or to be purchased in the future under the
Contract, if the shares of any or all eligible Mutual Funds or Mutual Fund
Portfolios are no longer available for investment or if further investment
in any or all eligible Mutual Funds or Mutual Fund Portfolios becomes
inappropriate in view of the purposes of the Variable Account or the
Contract. Where required under applicable law, AUL will not substitute any
shares attributable to the Contractholder's interest in the Variable
Account or any Investment Account without notice, Contractholder or
Participant approval, or prior approval of the Securities and Exchange
Commission or a state insurance commissioner, and without following the
filing or other procedures established by applicable state insurance
regulators. Nothing contained herein shall prevent the Variable Account
from purchasing other securities for other series or classes of contracts,
or from effecting a conversion between series or classes of contracts on
the basis of requests made by a majority of other contractholders or as
permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts, each of
which would invest in the corresponding Mutual Fund or Mutual Fund
Portfolio listed in the current prospectus for the Variable Account, or in
other securities or investment vehicles. AUL reserves the right to
eliminate or combine existing Investment Accounts if marketing, tax, or
investment conditions so warrant. AUL also reserves the right to provide
other Investment Options under the Contract at any time. Subject to any
required regulatory approvals, AUL reserves the right to transfer assets
from any Investment Account to another separate account of AUL or
Investment Account.
(c) In the event of any such substitution or change, AUL may, by appropriate
amendment, make such changes in the Contract as may be necessary or
appropriate to reflect such substitution or change. If deemed by AUL to be
in the best interests of persons or entities having voting rights under the
Contract, the Variable Account may be operated as a management investment
company under The Investment Company Act of 1940 or any other form
permitted by law, it may be deregistered in the event such registration is
no longer required under The Investment Company Act of 1940, or it may be
combined with other separate accounts of AUL or an affiliate thereof. AUL
may take such action as is necessary to comply with, or to obtain,
exemptions from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also may
combine one or more Investment Accounts and may establish a committee,
board, or other group to manage one or more aspects of the operation of the
Variable Account.
P-13099(SBR)(MBR)(NBR)conv.6
Transfers:
(a) Subject to the limitations of (d) through (f) below, the Contractholder, or
that person designated to AUL by the Contractholder, may direct AUL, in a
form acceptable to AUL, to transfer the amounts credited to an Investment
Option to any other Investment Option during the Accumulation Period. Any
transfer from an Investment Account shall be effective as of the close of
business on the Valuation Date that AUL receives such transfer direction.
(b) AUL shall make the transfer as requested within 3 days from the date a
proper request is received by AUL at its Home Office, except as AUL may be
permitted to defer such payment of amounts withdrawn from the Variable
Account in accordance with appropriate provisions of the federal securities
laws. AUL reserves the right to defer a transfer of amounts from the Fixed
Interest Account for a period of up to 6 months after AUL receives the
transfer request at its Home Office.
(c) All transfers from the Fixed Interest Account to any Investment Account
shall be made on a first-in/first-out accounting basis.
(d) Daily transfer directions may be made with respect to any single
Participant Account.
(e) The minimum transfer from the Participant Account's share of any Investment
Option is the lesser of $500 or the Participant Account's entire share of
that Investment Option as of the close of business on the Valuation Date
that AUL receives that transfer direction at its Home Office. However, if
that transfer reduces the Participant Account's remaining share of that
Investment Option to less than $500, the entire remaining share shall also
be transferred.
(f) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined as of
the later of the Contract Date identified in the Contract or the Contract
Anniversary immediately preceding the request for transfer. Notwithstanding
the previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract Date identified in the Contract or the Contract Anniversary
immediately preceding the request for transfer, the amount transferrable
from the Fixed Interest Account for that Contract Year is the lesser of
$500 or the Participant Account's entire share of the Fixed Interest
Account. And if that transfer reduces the Participant Account's remaining
share of the Fixed Interest Account to less than $500, the entire remaining
share shall also be transferred.
(g) Notwithstanding any provision of the "Contribution" section discussed
above, amounts which have been transferred to a Participant Account under
the Contract from other group annuity contracts issued by AUL shall be
deposited in the Fixed Interest Account. Other amounts which have been
transferred to the Contract shall be allocated in accordance with the
provisions of the "Contribution" section.
(h) AUL reserves the right to change the limitation on the minimum transfer, to
change the limit on remaining balances, to limit the number and frequency
of transfers, to suspend the transfer privilege, and to impose a charge on
a transfer.
(i) The Contractholder, in accordance with Plan provisions, may direct AUL to
reallocate all or a portion of the Account Value of any Participant Account
among other Participant Accounts. The Contractholder shall certify that
such reallocation is in accordance with Plan provisions.
(j) If permitted under the Plan, AUL shall accept amounts transferred from
other contracts. Such transferred amounts shall be credited as directed by
the Contractholder to a separate rollover subaccount established under the
appropriate Participant Accounts. Amounts transferred to a Code Section
403(b) Contribution rollover subaccount of a Participant Account must be
attributable to contributions made pursuant to Code Section 403(b).
BENEFITS
General Withdrawal Provisions: Subject to the following provisions of this
section, at any time prior to termination of the contract pursuant to the
provisions of the "Contract Termination" section discussed below, the
Contractholder may direct AUL to withdraw all or a portion of a Participant
Account, pursuant to the "'Benefit Responsive' Plan Benefits and Annuities" and
"Other Plan Benefits Payable in Cash" sections discussed below, to provide Plan
benefits (other than Plan termination benefits). Such Contractholder direction
must be submitted to AUL at its Home Office in a form acceptable to AUL.
(a) Amounts attributable to amounts held as of December 31, 1988 under another
Code Section 403(b) annuity contract may be withdrawn to provide such
benefits.
(b) Amounts attributable to Code Section 403(b) Contributions made other than
pursuant to a salary reduction agreement (within the meaning of Code
Section 402(g)(3)(C)) may be withdrawn to provide such benefits.
(c) Amounts attributable to Code Section 403(b) Contributions made pursuant to
a salary reduction agreement (within the meaning of Code Section
402(g)(3)(C)) may be withdrawn to provide such benefits, provided that the
withdrawal is made to provide a loan or that any distribution of such
amount shall not occur until the Participant has either attained age 59
1/2, separated from service, died, become totally disabled (as defined by
the Plan), or experienced a hardship (as defined by the Plan). However, in
the case of a hardship withdrawal, any gain credited to such Contributions
may not be withdrawn.
(d) Withdrawal of any amount from the Contract which is transferred directly by
AUL pursuant to Contractholder or Participant instructions to another Code
Section 403(b) tax-deferred annuity funding vehicle under applicable IRS
rules and regulations is not the provision of a Plan benefit for purposes
of the section on "'Benefit Responsive' Plan Benefits and Annuities"
discussed below, but instead is a Contract termination as to that amount
for that Participant; and any such withdrawal shall be subject to
application of the Withdrawal Charge pursuant to the section on "Other Plan
Benefits Payable in Cash" discussed below. The Contractholder grants to a
Participant the right to direct the withdrawal and direct transfer of such
Participant's voluntary Elective Deferrals (as determined by the
Contractholder) to another Code Section 403(b) tax-deferred annuity funding
vehicle.
(e) If, as provided in Internal Revenue Code Regulation Section 1.403(b)-2T
Q&A-2, the distributee of any eligible rollover distribution elects to have
the distribution paid directly to an eligible retirement plan (as defined
in Q&A-1 of that Section) and specifies the eligible retirement plan to
which the distribution is to be paid, then the distribution shall be paid
to that eligible retirement plan in a direct rollover.
(f) AUL shall not be responsible for determining a Participant's compliance
with the requirements above. Any withdrawal request submitted by the
Contractholder shall include certification as to the purpose of the
withdrawal. The Contractholder assumes full responsibility for determining
whether any withdrawal is permitted under applicable law and under the
terms of a particular Plan. AUL may rely solely upon the representations of
the Contractholder made in the withdrawal request.
(g) Withdrawals from a Participant Account's share of any Investment Option may
not be made in an amount less than the smaller of $500 or the Participant
Account's entire share of the Investment Option. If a withdrawal reduces
the Participant Account's share of an Investment Option to less than $500,
such remaining share shall also be withdrawn.
(h) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to the sections on "'Benefit Responsive' Plan Benefits and
Annuities," "Other Plan Benefits Payable in Cash," and "Annuity Options"
discussed below shall be determined, as of the close of business on the
Valuation Date that AUL receives a proper withdrawal request (or due proof
of death, if received later), in a form acceptable to AUL, at its Home
Office.
(i) AUL shall pay any cash lump sum to the Contractholder or to whomever the
Contractholder directs within 3 days from the appropriate Valuation Date as
determined in paragraph (h) above, except as AUL may be permitted to defer
such payment of amounts withdrawn from the Variable Account in accordance
with appropriate provisions of the federal securities laws. AUL reserves
the right to defer the payment of amounts withdrawn from the Fixed Interest
Account for a period of up to 6 months after AUL receives the withdrawal
request at its Home Office.
(j) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of the
Fixed Interest Account which have been on deposit for the longest period of
time, as well as the interest credited thereon, shall be withdrawn first.
"Benefit Responsive" Plan Benefits and Annuities:
(a) Subject to the limitations provided above in "General Withdrawal
Provisions," and subject to the provisions of paragraph (b) below for death
benefits, at any time prior to termination of the contract pursuant to the
provisions of the section on "Contract Termination" discussed below, the
Contractholder may direct AUL to withdraw all or a portion of the Account
Value (subject to the charges discussed in the last paragraph of the "Other
Charges" section discussed below) of a Participant Account for the purpose
of providing:
(1) an annuity in accordance with the "Annuity Options" shown below, as
directed by the Contractholder, for benefits as provided by the Plan
(other than Plan termination benefits); or
P-13099(SBR)(MBR)(NBR)conv.7
(2) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay benefits as provided by the Plan (other
than Plan termination benefits) for retirement, death, disability,
termination of employment, hardships, loans, required minimum
distribution benefits pursuant to Code Section 401(a)(9) and
Regulations issued thereunder, or (for Code Section 403(b) plans or
profit-sharing plans) benefits upon attainment of age 59 1/2 or (for
profit-sharing plans) after a fixed number of years (as allowed by the
Code and Regulations issued thereunder and by applicable IRS rulings),
provided that such benefit upon attainment of age 59 1/2 or after a
fixed number of years is a taxable distribution paid to the
Participant and not to any other person or entity, including any
substitute funding medium.
(b) Regarding death benefits specifically, notwithstanding the provisions of
the "Contract Termination" section discussed below, upon receipt at its
Home Office of instructions in a form acceptable to AUL from the
Contractholder and of due proof of the Participant's (and, if applicable,
the beneficiary's) death during the Accumulation Period, AUL shall apply
the Account Value (subject to the charges discussed in the last paragraph
of the "Other Charges" section discussed below) of the Participant Account
for the purpose of providing a death benefit under the Plan. The death
benefit shall be paid to the Participant's beneficiary according to the
method of payment elected by the beneficiary (unless such method of payment
was previously elected by the Participant). The Participant's beneficiary
may also designate a beneficiary. The death benefit attributable to Code
Section 403(b) funds shall be payable:
(1) in a single sum or other method not provided in (2) below; provided,
however, that the entire Account Value (subject to the charges
discussed in the last paragraph of the "Other Charges" section
discussed below) must be paid to the beneficiary on or before December
31 of the calendar year which contains the fifth anniversary of the
Participant's death, or
(2) as an annuity in accordance with the "Annuity Options" shown below
over a period not to exceed the life or life expectancy of the
beneficiary. If the beneficiary is not the Participant's surviving
spouse, the annuity must begin on or before December 31 of the
calendar year immediately following the calendar year in which the
Participant died. If the beneficiary is the Participant's surviving
spouse, the annuity need not begin before December 31 of the calendar
year in which the Participant would have attained age 70 1/2.
If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Annuity Option selected shall be paid at
least as rapidly as prior to the Participant's death.
"Other Plan Benefits Payable in Cash": Subject to the limitations provided above
in "General Withdrawal Provisions," at any time prior to termination of the
contract pursuant to the provisions of the section on "Contract Termination"
discussed below, the Contractholder may direct AUL to make a cash payment from a
Participant Account to the Contractholder or to whomever the Contractholder
directs for the purpose of providing Plan benefits other than those provided
above in paragraph (a)(2) of "'Benefit Responsive' Plan Benefits and Annuities."
If it is necessary to withdraw the entire Account Value of a Participant Account
to make such payment, the amount paid shall equal the Withdrawal Value, minus
any charges discussed below in the last paragraph of "Other Charges." If it is
not necessary to withdraw the entire Account Value to make such payment, AUL
shall reduce the Account Value of the
(SBR)
P-13099(SBR)(MBR)(NBR)conv.8
(2) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay death benefits as provided by the Plan;
or
(3) providing the Participant has attained (1) age 55 and has 10 years of
service with the employer identified in the Plan or (2) age 62, a cash
lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay benefits as provided by the Plan (other
than Plan termination benefits) for retirement, disability,
termination of employment, hardships, loans, required minimum
distribution benefits pursuant to Code Section 401(a)(9) and
Regulations issued thereunder, or (for profit-sharing plans) benefits
upon attainment of age 59 1/2 or after a fixed number of years (as
allowed by the Code and Regulations issued thereunder and by
applicable IRS rulings), provided that such benefit upon attainment of
age 59 1/2 or after a fixed number of years is a taxable distribution
paid to the Participant and not to any other person or entity,
including any substitute funding medium.
(b) Regarding death benefits specifically, notwithstanding the provisions of
the "Contract Termination" section discussed below, upon receipt at its
Home Office of instructions in a form acceptable to AUL from the
Contractholder and of due proof of the Participant's (and, if applicable,
the beneficiary's) death during the Accumulation Period, AUL shall apply
the Account Value (subject to the charges discussed in the last paragraph
of the "Other Charges" section discussed below) of the Participant Account
for the purpose of providing a death benefit under the Plan. The death
benefit shall be paid to the Participant's beneficiary according to the
method of payment elected by the beneficiary (unless such method of payment
was previously elected by the Participant). The Participant's beneficiary
may also designate a beneficiary. The death benefit attributable to Code
Section 403(b) funds shall be payable:
(1) in a single sum or other method not provided in (2) below; provided,
however, that the entire Account Value (subject to the charges
discussed in the last paragraph of the "Other Charges" section
discussed below) must be paid to the beneficiary on or before December
31 of the calendar year which contains the fifth anniversary of the
Participant's death, or
(2) as an annuity in accordance with the "Annuity Options" shown below
over a period not to exceed the life or life expectancy of the
beneficiary. If the beneficiary is not the Participant's surviving
spouse, the annuity must begin on or before December 31 of the
calendar year immediately following the calendar year in which the
Participant died. If the beneficiary is the Participant's surviving
spouse, the annuity need not begin before December 31 of the calendar
year in which the Participant would have attained age 70 1/2.
If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Annuity Option selected shall be paid at least
as rapidly as prior to the Participant's death.
"Other Plan Benefits Payable in Cash": Subject to the limitations provided above
in "General Withdrawal Provisions," at any time prior to termination of the
contract pursuant to the provisions of the section on "Contract Termination"
discussed below, the Contractholder may direct AUL to make a cash payment from a
Participant Account to the Contractholder or to whomever the Contractholder
directs for the purpose of providing Plan benefits other than those provided
above in paragraphs (a)(2) and (3) of "'Benefit Responsive' Plan Benefits and
Annuities." If it is necessary to withdraw the entire Account Value of a
Participant Account to make such payment, the amount paid shall equal the
Withdrawal Value, minus any charges discussed below in the last paragraph of
"Other Charges." If it is not necessary to withdraw the entire Account Value to
make such payment, AUL shall reduce the Account Value of the
(MBR)
P-13099(SBR)(MBR)(NBR)conv.11
(2) a cash lump-sum payment to the Contractholder or to whomever the
Contractholder directs to pay death benefits as provided by the Plan.
(b) Regarding death benefits specifically, notwithstanding the provisions of
the "Contract Termination" section discussed below, upon receipt at its
Home Office of instructions in a form acceptable to AUL from the
Contractholder and of due proof of the Participant's (and, if applicable,
the beneficiary's) death during the Accumulation Period, AUL shall apply
the Account Value (subject to the charges discussed in the last paragraph
of the "Other Charges" section discussed below) of the Participant Account
for the purpose of providing a death benefit under the Plan. The death
benefit shall be paid to the Participant's beneficiary according to the
method of payment elected by the beneficiary (unless such method of payment
was previously elected by the Participant). The Participant's beneficiary
may also designate a beneficiary. The death benefit attributable to Code
Section 403(b) funds shall be payable:
(1) in a single sum or other method not provided in (2) below; provided,
however, that the entire Account Value (subject to the charges
discussed in the last paragraph of the "Other Charges" section
discussed below) must be paid to the beneficiary on or before December
31 of the calendar year which contains the fifth anniversary of the
Participant's death, or
(2) as an annuity in accordance with the "Annuity Options" shown below
over a period not to exceed the life or life expectancy of the
beneficiary. If the beneficiary is not the Participant's surviving
spouse, the annuity must begin on or before December 31 of the
calendar year immediately following the calendar year in which the
Participant died. If the beneficiary is the Participant's surviving
spouse, the annuity need not begin before December 31 of the calendar
year in which the Participant would have attained age 70 1/2.
If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Annuity Option selected shall be paid at least
as rapidly as prior to the Participant's death.
"Other Plan Benefits Payable in Cash": Subject to the limitations provided above
in "General Withdrawal Provisions," at any time prior to termination of the
contract pursuant to the provisions of the section on "Contract Termination"
discussed below, the Contractholder may direct AUL to make a cash payment from a
Participant Account to the Contractholder or to whomever the Contractholder
directs for the purpose of providing Plan benefits other than those provided
above in paragraph (a)(2) of "'Benefit Responsive' Plan Benefits and Annuities."
If it is necessary to withdraw the entire Account Value of a Participant Account
to make such payment, the amount paid shall equal the Withdrawal Value, minus
any charges discussed below in the last paragraph of "Other Charges." If it is
not necessary to withdraw the entire Account Value to make such payment, AUL
shall reduce the Account Value of the
(NBR)
P-13099(SBR)(MBR)(NBR)conv.11
Participant Account by an amount sufficient to make the cash payment requested
and to cover the Withdrawal Charge and any charges discussed below in the last
paragraph of "Other Charges."
Notwithstanding the previous paragraph, in the first Contract Year in which a
Participant Account is established, the Contractholder may withdraw from that
Participant Account up to 10% of the sum of the Account Value of that
Participant Account (determined as of the later of the Contract Date or the
Contract Anniversary immediately preceding the request for the withdrawal) plus
Contributions made during that Contract Year, without application of the
Withdrawal Charge. In the next succeeding Contract Year, the Contractholder may
also withdraw from that Participant Account up to 10% of the sum of the Account
Value of that Participant Account (determined as of the Contract Anniversary
immediately preceding the request for the withdrawal) plus Contributions made
during that Contract Year, without application of the Withdrawal Charge. In any
subsequent Contract Year, the Contractholder may withdraw from that Participant
Account up to 10% of the Account Value of that Participant Account (determined
as of the Contract Anniversary immediately preceding the request for the
withdrawal) without application of the Withdrawal Charge.
Election of Annuity Options: At the written request of the Contractholder
pursuant to paragraph (a)(2) of "'Benefit Responsive' Plan Benefits and
Annuities," AUL shall apply all or a portion of the Account Value (subject to
any charges discussed below in the last paragraph of "Other Charges") of a
Participant Account for the purpose of providing a fixed payment annuity under
the Plan. Upon receipt of a request for an annuity, AUL is hereby authorized by
the Contractholder to value and transfer the Participant Account's share of the
Variable Account to the Fixed Interest Account as of the date provided in
paragraph (h) of the "General Withdrawal Provisions" section discussed above.
Such transferred amounts shall be held in the Fixed Interest Account until the
Participant's Annuity Commencement Date. The Contractholder request shall
include certification as to the purpose for the annuity, the election of one of
the following annuity options, notification of the Annuity Commencement Date,
written designation of the contingent annuitant or beneficiary, and any election
forms needed in connection with any benefit option requested. The amount of any
annuity shall be computed from the Table of Immediate Annuities then included in
the Contract, except as provided below under "Alternate Nonparticipating
Retirement Annuity."
Annuity Options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant for as
long as the annuitant lives, and shall end with the last monthly payment
before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies before
receiving payments for the certain period (5, 10, 15, or 20 years, as
specified in the election), any remaining payments for the balance of the
certain period shall be paid to the annuitant's beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives. After the death of the annuitant, a
portion (all, 2/3, or 1/2, as specified in the election) of the annuitant's
monthly annuity shall be paid to the contingent annuitant named in the
election for as long as the contingent annuitant lives. An election of this
option is automatically cancelled if either the Participant or the
contingent annuitant dies before the Annuity Commencement Date.
(d) Installment Refund Life Annuity. The monthly annuity shall be payable to
the annuitant for as long as the annuitant lives, and shall end with the
last monthly payment before the death of the annuitant. If, at the death of
the annuitant, the sum of the monthly payments previously received is less
than the amount applied to provide the annuity, monthly payments of the
same amount shall continue to the annuitant's beneficiary until the total
of the monthly payments received equals such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant for a
fixed period of time (not less than 5 years nor more than 30 years, as
specified in the election). If, at the death of the annuitant, payments
have been made for less than the selected fixed period, monthly annuity
payments to the annuitant's beneficiary shall be continued during the
remainder of such fixed period.
(f) Any other annuity options made available by AUL at the time the option to
elect an annuity is exercised.
If the total Account Value is less than $2,000, such value shall not be
annuitized under options (a)-(f) of this section, but shall be paid in a lump
sum.
If the annuity option selected is not included in the attached Table of
Immediate Annuities, the amount of monthly annuity shall be based on rates
determined in the same manner as those found in the Table.
Minimum Payments: If the monthly annuity is less than AUL's then current
established minimum, AUL reserves the right to make payments on a less frequent
basis or to pay the Account Value in a single sum.
Due Proof of Date of Birth and Survival: Before commencing payments under any
annuity, AUL may require proof of the date of birth of any annuitant and may
require due proof that any annuitant is living before the payment of each or any
installment under the option.
VALUATIONS
All assets of each Mutual Fund or Mutual Fund Portfolio shall be valued as
provided in the prospectus for the applicable Mutual Fund or Mutual Fund
Portfolio as such prospectus may be amended or supplemented from time to time.
Any amounts allocated to any Investment Account on behalf of a Participant shall
be credited to his Participant Account in the form of Accumulation Units on the
basis of the value of such units in that Investment Account as of the later of
(1) the end of the Valuation Period on which such amounts are received by AUL at
its Home Office or (2) the end of the Valuation Period on which the data
required to establish the Participant Account and allocate such amounts to the
Participant Account and to Investment Options are received by AUL at its Home
Office. However, if the initial Contribution for a Participant is allocated, as
allowed above under paragraph (e) of the section on "Contributions," on the next
succeeding Valuation Period, the unit value as of the end of that Valuation
Period shall be used. Such crediting shall be made separately for amounts
allocated to each Investment Account. The number of Accumulation Units in each
Investment Account credited to each Participant Account as of any Valuation
Period shall be determined by dividing the amounts allocated to that Investment
Account for that Participant Account as of such Valuation Period by the dollar
value of one Accumulation Unit in that Investment Account as of the close of
business on the applicable Valuation Period. The number of Accumulation Units
thus determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account.
A Mutual Fund or Mutual Fund Portfolio shall pay any investment advisory fee and
certain other expenses, which may include its ordinary operational and
organizational expenses, and any extraordinary expenses, as described in the
current prospectus for that Mutual Fund or Mutual Fund Portfolio as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Mutual Fund or Mutual Fund Portfolio share
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Mutual Fund or Mutual Fund Portfolio.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
AUL reserves the right to amend the Contract at any time, without the consent of
the Contractholder, Participants, or any other person or entity, to make any
change to any provisions of the Contract to comply with, or give the
Contractholder or Participants the benefit of, any provisions of federal or
state laws, regulations, or rulings.
CONTRACT TERMINATION
Termination by Contractholder: The Contract will terminate if the Contractholder
gives written notice to AUL that the Contract is to be terminated. As of the
effective date of termination, the Contractholder, together with the Plan
sponsor, may elect to have a payment or payments made as set out below to
whomever the Contractholder directs. Such payment or payments shall be in full
settlement of the Contract and in lieu of any other payment under its terms.
Upon termination of the Contract by the Contractholder:
(a) Payment options for Code Section 401(a) funds are as follows:
(1) A single sum equal to the aggregate Withdrawal Value of all
Participant Accounts attributable to Code Section 401(a) funds,
reduced by the Investment Liquidation Charge applicable to the Fixed
Interest Account, shall be calculated as of the close of business on
the effective date of termination and shall be payable within 3 days
from the effective date of termination, except as AUL may be permitted
to defer such payment in accordance with appropriate provisions of the
federal securities laws.
(2) If option (1) above is not elected, Code Section 401(a) funds shall be
paid out pursuant to the same provisions listed in (b) below for Code
Section 403(b) funds.
(b) Payment of Code Section 403(b) funds shall be made as follows:
(1) A single sum equal to that portion of the aggregate Withdrawal Value
of all Participant Accounts attributable to Code Section 403(b) funds
(and Code Section 401(a) funds, if payable pursuant to (a)(2) above)
and consisting of all of the Accumulation Units of each Investment
Account credited to such Participant Accounts shall be calculated as
of the close of business on the effective date of termination and
shall be payable within 3 days from the effective date of termination,
except as AUL may be permitted to defer such payment in accordance
with appropriate provisions of the federal securities laws.
(2) In addition to the amount payable pursuant to (1) above, commencing on
the first Contract Anniversary immediately following the effective
date of termination, a portion of each Participant Account (including
Code Section 401(a) funds invested in the Fixed Interest Account, if
payable pursuant to (a)(2) above) shall be paid in annual installments
as follows:
(i) As of the first Contract Anniversary immediately following the
effective date of termination, one-seventh of that portion of the
Withdrawal Value of each Participant Account attributable to Code
Section 403(b) funds and consisting of the net dollar balance in
the Fixed Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
(ii) As of the second Contract Anniversary following the effective
date of termination, one-sixth of that portion of the Withdrawal
Value of each Participant Account attributable to Code Section
403(b) funds and consisting of the net dollar balance in the
Fixed Interest Account credited to each such Participant Account
shall be calculated and shall be payable.
(iii) As of the third Contract Anniversary following the effective
date of termination, one-fifth of that portion of the Withdrawal
Value of each Participant Account attributable to Code Section
403(b) funds and consisting of the net dollar balance in the
Fixed Interest Account credited to each such Participant Account
shall be calculated and shall be payable.
(iv) As of the fourth Contract Anniversary following the effective
date of termination, one-fourth of that portion of the Withdrawal
Value of each Participant Account attributable to Code Section
403(b) funds and consisting of the net dollar balance in the
Fixed Interest Account credited to each such Participant Account
shall be calculated and shall be payable.
(v) As of the fifth Contract Anniversary following the effective date
of
termination, one-third of that portion of the Withdrawal Value of
each Participant Account attributable to Code Section 403(b)
funds and consisting of the net dollar balance in the Fixed
Interest Account credited to each such Participant Account shall
be calculated and shall be payable.
(vi) As of the sixth Contract Anniversary following the effective date
of termination, one-half of that portion of the Withdrawal Value
of each Participant Account attributable to Code Section 403(b)
funds and consisting of the net dollar balance in the Fixed
Interest Account credited to each such Participant Account shall
be calculated and shall be payable.
(vii) As of the seventh Contract Anniversary following the effective
date of termination, the entire remaining portion of the
Withdrawal Value of each Participant Account attributable to Code
Section 403(b) funds and consisting of the net dollar balance in
the Fixed Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
The Current Rates of Interest being credited to other contracts with
the same form number as the Contract shall be credited from the
effective date of termination until the final payment is made
under (b) above.
Until such time as the above-referenced election is implemented, the terms of
the Contract remain applicable, except that AUL has the right to refuse to
accept further Contributions.
Termination by AUL:
(a) AUL has the right, subject to applicable state law, to terminate any
Participant Account established under the Contract at any time during the
Contract Year if the Account Value of such Participant Account is less than
$200 for the first Contract Year in which a Contribution is made for the
Participant, and $400 for any subsequent Contract Year, and at least 6
months have elapsed since the Contractholder's last previous Contribution
to the Contract. If AUL elects to terminate a Participant Account in such
event, such termination shall be effective on the date 6 months following
the date that AUL gives notice to the Contractholder and the Participant
that the Participant Account is to be terminated, provided that any
Contributions made during such 6- month period are insufficient to bring
such Account Value up to the minimum level.
(b) Upon termination of a Participant Account by AUL, AUL may elect to have a
single sum equal to the Account Value of the Participant Account calculated
as of the close of business on the effective date of termination and paid
to the Contractholder within 3 days from the effective date of termination.
Any such payment shall be in full settlement of the Participant Account
under the Contract and in lieu of any other payment under its terms.
MISCELLANEOUS
Ownership: The Contractholder is the owner of the Contract and may agree with
AUL to any change or amendment of it without the consent of any other person or
entity.
AUL is not obligated to make any payment or distribution except as specified in
the Contract.
Certification of Plan Status: The Contractholder certifies, upon acceptance of
the Contract, that, in the Contractholder's opinion, the Code Section 401(a)
Plan and the Code Section 403(b) Plan meet the requirements of Code Sections
401(a) and 403(b), respectively. AUL does not make any guarantee regarding the
federal, state, or local tax status of the Contract, any Participant Account
established thereunder, or any transaction involving the Contract.
Essential Data: The Contractholder must furnish to AUL whatever information is
necessary to establish the eligibility and amount of annuity or other benefit in
each instance.
Reliance: AUL shall be fully protected in relying on any information furnished
by the Contractholder, by any person or persons certified to AUL by the
Contractholder as acting on its behalf, or by a Participant. AUL need not
inquire as to the accuracy or completeness thereof.
Misstatement of Essential Data: If it has been found that any essential data
pertaining to any person has been omitted or misstated, including, but not
limited to, a misstatement as to the age of an annuitant, there shall be an
equitable adjustment so as to provide the annuity to which that person is
entitled.
Annuity Certificates: AUL shall issue to each person for whom an annuity is
purchased from AUL a certificate setting forth the amount and terms of payment
of the annuity.
Election, Notice, or Direction Requirements: Wherever in the Contract reference
is made to the Contractholder or Participant making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in a
form otherwise acceptable to AUL, and must be submitted to and received by AUL
at its Home Office before becoming effective.
Quarterly Statement of Account Value: As soon as reasonably possible after the
end of each Contract Quarter, AUL shall prepare a statement of the Account Value
of each Participant Account existing under the Contract.
Sex and Number: Whenever the context of this certificate so requires, the plural
includes the singular, the singular the plural, and the masculine the feminine.
Facility of Payment: If any Participant, contingent annuitant, or beneficiary is
legally incapable of giving a valid receipt for any payment due him, and no
guardian has been appointed, AUL may make such payment to the person or persons
who have assumed the care and principal support of such Participant, contingent
annuitant, or beneficiary. Also, AUL may make payment directly to the
Contractholder or to any person or entity when directed to do so in writing by
the Contractholder. Any payment made by AUL will fully discharge AUL to the
extent of such payment.
Insulation from Liability: The assets of the Variable Account are not chargeable
with liabilities arising out of any other business AUL may conduct.
Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual Fund
or Mutual Fund Portfolio held in the Investment Accounts at any regular and
special meetings of the shareholders of a Mutual Fund on matters requiring
shareholder voting under The Investment Company Act of l940 or other
applicable laws. AUL shall exercise these voting rights based on
instructions received from persons having the voting interest in
corresponding Investment Accounts of the Variable Account. However, if The
Investment Company Act of l940 or any regulations thereunder should be
amended, or if the present interpretation thereof should change, and as a
result AUL determines that it is permitted to vote the shares of a Mutual
Fund or Mutual Fund Portfolio in its own right, it may elect to do so. AUL
will vote shares of any Investment Account, if any, that it owns
beneficially in its own discretion, except that if a Mutual Fund or Mutual
Fund Portfolio offers its shares to any insurance company separate account
that funds variable life insurance contracts or if otherwise required by
applicable law, AUL will vote its own shares in the same proportion as the
voting instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the number of
Mutual Fund or Mutual Fund Portfolio shares as to which voting instructions
may be given to AUL is determined by dividing the value of all of the
Accumulation Units of the corresponding Investment Account attributable to
the Contract on a particular date by the net asset value per share of that
Mutual Fund or Mutual Fund Portfolio as of the same date. Fractional votes
will be counted. The number of votes as to which voting instructions may be
given will be determined as of the date coincident with the date
established by the applicable Mutual Fund or Mutual Fund Portfolio for
determining shareholders eligible to vote at the meeting of that Mutual
Fund. If required by the Securities and Exchange Commission, AUL reserves
the right to determine in a different fashion the voting rights
attributable to the shares of a Mutual Fund or Mutual Fund Portfolio.
(c) Voting rights attributable to the Contract for which no timely voting
instructions are received will be voted by AUL in the same proportion as
the voting instructions which are received in a timely manner for all
contracts and Participant Accounts participating in that Investment
Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as to the
instructions received or the authority of Contractholders, Participants, or
others to instruct the voting of Mutual Fund or Mutual Fund Portfolio
shares.
(e) Every person or entity having such voting rights will receive such reports
or prospectuses concerning the Variable Account or a Mutual Fund or Mutual
Fund Portfolio as may be required by applicable federal law.
Nonforfeitability and Nontransferability: The entire Withdrawal Value of the
vested portion (as determined pursuant to the Code Section 403(b) Plan) of Code
Section 403(b) funds of a Participant Account under the Contract is
nonforfeitable at all times. No sum payable under the Contract which is
attributable to Code Section 403(b) funds with respect to a Participant may be
sold, assigned, discounted, or pledged as collateral for a loan or as security
for the performance of an obligation or for any other purpose to any person or
entity other than AUL. In addition, to the extent permitted by law, no such sum
shall in any way be subject to legal process requiring the payment of any claim
against the payee.
Acceptance of New Contributions: AUL reserves the right to refuse to accept new
Contributions to the Contract at any time.
P-13099(SBR)(MBR)(NBR)conv.12
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
AUL AMERICAN SERIES
MULTIPLE-FUND GROUP VARIABLE ANNUITY CONTRACT (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
The Effective Date of this Addendum is the effective date of the corresponding
Amendment to the Contract.
Pursuant to this Addendum, the Participant's Certificate under the Contract is
hereby amended as follows:
By deleting the first paragraph of "Other Charges" and by substituting the
following first paragraph in lieu thereof:
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account. Additionally, AUL shall
multiply the portions (as delineated in the table below) of the total month-end
Account Value in the Variable Account of all Participants in the contract by the
monthly equivalent of the corresponding Annual Variable Investment Plus Factors
appearing in the table below. These products shall be added together, and the
sum shall be divided by the total month-end Account Value in the Variable
Account of all Participants in the contract. This percentage shall be multiplied
by the month-end Account Value of each Participant in each Investment Account.
The resulting amount for each Investment Account shall be added to the
Participant's Account Value for that Investment Account.
Contract's Month-End Account Value in Annual Variable Investment Plus Factor
Variable Account
First $500,000 0.00%
Next $500,000 0.25%
Next $2 million 0.35%
Next $2 million 0.40%
Next $1 million 0.50%
Over $6 million 0.75%
AUL
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AUL XXXXXXXX.XXX.XXX
