PARTICIPATION AGREEMENT
BY AND AMONG
AIM VARIABLE INSURANCE FUNDS,
A I M DISTRIBUTORS, INC.,
AMERICAN UNITED LIFE INSURANCE COMPANY,
ON BEHALF OF ITSELF AND
ITS SEPARATE ACCOUNTS,
AND
ONEAMERICA SECURITIES, INC.
TABLE OF CONTENTS
Description
Page
Section 1. Available Funds.....................................................................................2
1.1 Availability....................................................................................2
1.2 Addition, Deletion or Modification of Funds.....................................................2
1.3 No Sales to the General Public..................................................................2
Section 2. Processing Transactions.............................................................................2
2.1 Timely Pricing and Orders.......................................................................2
2.2 Timely Payments.................................................................................3
2.3 Applicable Price................................................................................3
2.4 Dividends and Distributions.....................................................................4
2.5 Book Entry......................................................................................4
Section 3. Costs and Expenses..................................................................................5
3.1 General 5
3.2 Parties To Cooperate............................................................................5
Section 4. Legal Compliance....................................................................................5
4.1 Tax Laws 5
4.2 Insurance and Certain Other Laws................................................................7
4.3 Securities Laws.................................................................................8
4.4 Notice of Certain Proceedings and Other Circumstances...........................................9
4.5 LIFE COMPANY To Provide Documents; Information About AVIF.......................................9
4.6 AVIF To Provide Documents; Information About LIFE COMPANY......................................10
Section 5. Mixed and Shared Funding...........................................................................11
5.1 General 11
5.2 Disinterested Trustees.........................................................................12
5.3 Monitoring for Material Irreconcilable Conflicts...............................................12
5.4 Conflict Remedies..............................................................................13
5.5 Notice to LIFE COMPANY.........................................................................14
5.6 Information Requested by Board.................................................................14
5.7 Compliance with SEC Rules......................................................................14
5.8 Other Requirements.............................................................................15
Section 6. Termination........................................................................................15
6.1 Events of Termination..........................................................................15
6.2 Notice Requirement for Termination.............................................................16
6.3 Funds To Remain Available......................................................................16
6.4 Survival of Warranties and Indemnifications....................................................17
6.5 Continuance of Agreement for Certain Purposes..................................................17
Section 7. Parties To Cooperate Respecting Termination........................................................17
Section 8. Assignment.........................................................................................17
Section 9. Notices............................................................................................17
Section 10. Voting Procedures...................................................................................18
Section 11. Foreign Tax Credits.................................................................................19
Section 12. Indemnification.....................................................................................19
12.1 Of AVIF and AIM by LIFE COMPANY and UNDERWRITER................................................19
12.2 Of LIFE COMPANY and UNDERWRITER by AVIF and AIM................................................21
12.3 Effect of Notice...............................................................................23
12.4 Successors.....................................................................................24
Section 13. Applicable Law......................................................................................24
Section 14. Execution in Counterparts...........................................................................24
Section 15. Severability........................................................................................24
Section 16. Rights Cumulative...................................................................................24
Section 17. Headings............................................................................................24
Section 18. Confidentiality.....................................................................................24
Section 19. Trademarks and Fund Names...........................................................................25
Section 20. Parties to Cooperate................................................................................26
Section 21. Amendments; Need For................................................................................26
Section 22. Force Majeure.......................................................................................26
PARTICIPATION AGREEMENT
THIS AGREEMENT, made and entered into as of the 30th day of April, 2004
("Agreement"), by and among AIM VARIABLE INSURANCE FUNDS, a Delaware Trust
("AVIF"), A I M Distributors, Inc., a Delaware corporation ("AIM"), American
United Life Insurance Company, an Indiana life insurance company ("LIFE
COMPANY"), on behalf of itself and each of its segregated asset accounts listed
in Schedule A hereto, as the parties hereto may amend from time to time (each,
an "Account," and collectively, the "Accounts"); and OneAmerica Securities,
Inc., an affiliate of LIFE COMPANY and the principal underwriter of the
Contracts ("UNDERWRITER") (collectively, the "Parties").
WITNESSETH THAT:
WHEREAS, AVIF is registered with the Securities and Exchange Commission
("SEC") as an open-end management investment company under the Investment
Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, AVIF currently consists of twenty-seven separate series
("Series"), shares ("Shares") each of which are registered under the Securities
Act of 1933, as amended (the "1933 Act") and are currently sold to one or more
separate accounts of life insurance companies to fund benefits under variable
annuity contracts and variable life insurance contracts; and
WHEREAS, AVIF will make Shares of each Series listed on Schedule A hereto
as the Parties hereto may amend from time to time (each a "Fund"; reference
herein to "AVIF" includes reference to each Fund, to the extent the context
requires) available for purchase by the Accounts; and
WHEREAS, LIFE COMPANY will be the issuer of certain variable annuity
contracts and variable life insurance contracts ("Contracts") as set forth on
Schedule A hereto, as the Parties hereto may amend from time to time, which
Contracts (hereinafter collectively, the "Contracts"), if required by applicable
law, will be registered under the 1933 Act; and
WHEREAS, LIFE COMPANY will fund the Contracts through the Accounts, each of
which may be divided into two or more subaccounts ("Subaccounts"; reference
herein to an "Account" includes reference to each Subaccount thereof to the
extent the context requires); and
WHEREAS, LIFE COMPANY will serve as the depositor of the Accounts, each of
which is registered as a unit investment trust investment company under the 1940
Act (or exempt therefrom), and the security interests deemed to be issued by the
Accounts under the Contracts will be registered as securities under the 1933 Act
(or exempt therefrom); and
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, LIFE COMPANY intends to purchase Shares in one or more of the Funds
on behalf of the Accounts to fund the Contracts; and
WHEREAS, UNDERWRITER is a broker-dealer registered with the SEC under the
Securities Exchange Act of 1934 ("1934 Act") and a member in good standing of
the National Association of Securities Dealers, Inc. ("NASD");
WHEREAS, AIM is a broker-dealer registered with the SEC under the 1934 Act
and a member in good standing of the NASD;
NOW, THEREFORE, in consideration of the mutual benefits and promises
contained herein, the Parties hereto agree as follows:
Section 1. Available Funds
1.1 Availability
AVIF will make Shares of each Fund available to LIFE COMPANY for purchase
and redemption at net asset value and with no sales charges, subject to the
terms and conditions of this Agreement. The Board of AVIF (the "Board") may
refuse to sell Shares of any Fund to any person, or suspend or terminate the
offering of Shares of any Fund (a) if such action is required by law or by
regulatory authorities having jurisdiction, (b) if, in the sole discretion of
the Trustees acting in good faith and in light of their fiduciary duties under
federal and any applicable state laws, such action is deemed in the best
interests of the shareholders of such Fund, or (c) if such action is required by
any policies that the Board has adopted and that apply to all Participating
Insurance Companies.
1.2 Addition, Deletion or Modification of Funds
The Parties hereto may agree, from time to time, to add other Funds to
provide additional funding media for the Contracts, or to delete, combine, or
modify existing Funds, by amending Schedule A hereto. Upon such amendment to
Schedule A, any applicable reference to a Fund, AVIF, or its Shares herein shall
include a reference to any such additional Fund. Schedule A, as amended from
time to time, is incorporated herein by reference and is a part hereof.
1.3 No Sales to the General Public
AVIF represents and warrants that no Shares of any Fund have been or will
be sold to the general public.
Section 2. Processing Transactions
2.1 Timely Pricing and Orders
(a) .....AVIF or its designated agent will use its best efforts to provide
LIFE COMPANY with the net asset value per Share for each Fund by 6:00
p.m. Central Time on each Business Day. As used herein, "Business Day"
shall mean any day on which (i) the New York Stock Exchange is open
for regular trading, (ii) AVIF calculates the Fund's net asset value,
and (iii) LIFE COMPANY is open for business.
(b) .....LIFE COMPANY will use the data provided by AVIF each Business Day
pursuant to paragraph (a) immediately above to calculate Account unit
values and to process transactions that receive that same Business
Day's Account unit values. LIFE COMPANY will perform such Account
processing the same Business Day, and will place corresponding orders
to purchase or redeem Shares with AVIF by 9:00 a.m. Central Time the
following Business Day; provided, however, that AVIF shall provide
additional time to LIFE COMPANY in the event that AVIF is unable to
meet the 6:00 p.m. time stated in paragraph (a) immediately above.
Such additional time shall be equal to the additional time that AVIF
takes to make the net asset values available to LIFE COMPANY.
(c)......With respect to payment of the purchase price by LIFE COMPANY and
of redemption proceeds by AVIF, LIFE COMPANY and AVIF shall net
purchase and redemption orders with respect to each Fund and shall
transmit one net payment per Fund in accordance with Section 2.2,
below.
(d) .....If AVIF provides materially incorrect Share net asset value
information (as determined under SEC guidelines), LIFE COMPANY shall
be entitled to an adjustment to the number of Shares purchased or
redeemed to reflect the correct net asset value per Share. Any
material error in the calculation or reporting of net asset value per
Share, dividend or capital gain information shall be reported promptly
upon discovery to LIFE COMPANY. Materiality and reprocessing cost
reimbursement shall be determined in accordance with standards
established by the Parties as provided in Schedule B, attached hereto
and incorporated herein (except that for any money market fund,
materiality shall be determined in a manner consistent with Rule 2a-7
under the 1940 Act).
2.2 Timely Payments
LIFE COMPANY will wire payment for net purchases to a custodial account
designated by AVIF by 1:00 p.m. Central Time on the same day as the order for
Shares is placed, to the extent practicable. AVIF will wire payment for net
redemptions to an account designated by LIFE COMPANY by 1:00 p.m. Central Time
on the same day as the Order is placed, to the extent practicable, in order to
enable LIFE COMPANY to pay redemption proceeds within the time specified in
Section 22(e) of the 1940 Act or such shorter period of time as may be required
by law.
2.3 Applicable Price
(a)......Share purchase payments and redemption orders that result from
purchase payments, premium payments, surrenders and other transactions
under Contracts (collectively, "Contract transactions") and that LIFE
COMPANY receives prior to the close of regular trading on the New York
Stock Exchange (or such other time set by the Board for purposes of
determining the current net asset value of a Fund in accordance with
Rule 22c-1 under the 0000 Xxx) on a Business Day will be executed at
the net asset values of the appropriate Funds next computed after
receipt by AVIF or its designated agent of the orders. For purposes of
this Section 2.3(a), LIFE COMPANY shall be the designated agent of
AVIF for receipt of orders relating to Contract transactions, , in
accordance with Section 22(c) and Rule 22c-1 under the 1940 Act, on
each Business Day and receipt by such designated agent shall
constitute receipt by AVIF; provided that AVIF receives notice of such
orders by 9:00 a.m. Central Time on the next following Business Day or
such later time as computed in accordance with Section 2.1(b) hereof.
In connection with this Section 2.3(a), LIFE COMPANY represents and
warrants that it will not submit any order for Shares or engage in any
practice, nor will it allow or suffer any person acting on its behalf
to submit any order for Shares or engage in any practice, that would
violate or cause a violation of applicable law or regulation
including, without limitation Section 22 of the 1940 Act and the rules
thereunder.
(b) All other Share purchases and redemptions by LIFE COMPANY will be
effected at the net asset values of the appropriate Funds next
computed after receipt by AVIF or its designated agent of the order
therefor, and such orders will be irrevocable.
(c)......Without limiting the scope or effect of Section 1.1 hereof,
pursuant to which the Board may reject a Share purchase order by or on
behalf of LIFE COMPANY under the circumstances described therein, LIFE
COMPANY and [NAME OF UNDERWRITER] agree to cooperate with the Fund and
AIM to prevent any person exercising, or purporting to exercise,
rights or privileges under one or more Contracts (including, but not
limited to Contract owners, annuitants, insureds or participants, as
the case may be (collectively, "Participants")) from engaging in any
trading practices in any Fund that the Board or AIM determines, in
good faith and in their sole discretion, to be detrimental or
potentially detrimental to the other shareholders of the Fund, or to
be in contravention of any applicable law or regulation including,
without limitation, Section 22 of the 1940 Act and the rules
thereunder. Such cooperation may include, but shall not be limited to,
identifying the person or persons engaging in such trading practices,
facilitating the imposition of any applicable redemption fee on such
person or persons, limiting the telephonic or electronic trading
privileges of such person or persons, and taking such other remedial
steps, all to the extent permitted or required by applicable law.
2.4 Dividends and Distributions
AVIF will furnish notice by wire or telephone (followed by written
confirmation) prior to the payment date to LIFE COMPANY of any income dividends
or capital gain distributions payable on the Shares of any Fund. LIFE COMPANY
hereby elects to reinvest all dividends and capital gains distributions in
additional Shares of the corresponding Fund at the ex-dividend date net asset
values until LIFE COMPANY otherwise notifies AVIF in writing, it being agreed by
the Parties that the ex-dividend date and the payment date with respect to any
dividend or distribution will be the same Business Day. LIFE COMPANY reserves
the right to revoke this election and to receive all such income dividends and
capital gain distributions in cash.
2.5 Book Entry
Issuance and transfer of AVIF Shares will be by book entry only. Stock
certificates will not be issued to LIFE COMPANY. Shares ordered from AVIF will
be recorded in an appropriate title for LIFE COMPANY, on behalf of its Account.
Section 3. Costs and Expenses
3.1 General
Except as otherwise specifically provided in Schedule C, attached hereto
and made a part hereof, each Party will bear, or arrange for others to bear, all
expenses incident to its performance under this Agreement.
3.2 Parties To Cooperate
Each Party agrees to cooperate with the others, as applicable, in arranging
to print, mail and/or deliver, in a timely manner, combined or coordinated
prospectuses or other materials of AVIF and the Accounts.
Section 4. Legal Compliance
4.1 Tax Laws
(a)......AVIF represents and warrants that each Fund is currently qualified
as a regulated investment company ("RIC") under Subchapter M of the
Internal Revenue Code of 1986, as amended (the "Code"), and represents
that it will use its best efforts to qualify and to maintain
qualification of each Fund as a RIC. AVIF will notify LIFE COMPANY
immediately upon having a reasonable basis for believing that a Fund
has ceased to so qualify or that it might not so qualify in the
future.
(b)......AVIF represents that it will use its best efforts to comply and to
maintain each Fund's compliance with the diversification requirements
set forth in Section 817(h) of the Code and Section 1.817-5(b) of the
regulations under the Code. AVIF will notify LIFE COMPANY immediately
upon having a reasonable basis for believing that a Fund has ceased to
so comply or that a Fund might not so comply in the future. In the
event of a breach of this Section 4.1(b) by AVIF, it will take all
reasonable steps to adequately diversify the Fund so as to achieve
compliance within the grace period afforded by Section 1.817-5 of the
regulations under the Code.
(c) ....Notwithstanding any other provision of this Agreement, but without
limiting the ability of AVIF and/or AIM to assume the defense of any
action pursuant to Section 12.2(d) hereof, LIFE COMPANY agrees that if
the Internal Revenue Service ("IRS") asserts in writing in connection
with any governmental audit or review of LIFE COMPANY or, to LIFE
COMPANY's knowledge, of any Participants, that any Fund has failed to
comply with the diversification requirements of Section 817(h) of the
Code or LIFE COMPANY otherwise becomes aware of any facts that could
give rise to any claim against AVIF or its affiliates as a result of
such a failure or alleged failure:
(i) LIFE COMPANY shall promptly notify AVIF of such assertion or
potential claim (subject to the Confidentiality provisions of
Section 18 as to any Participant);
(ii) LIFE COMPANY shall consult with AVIF as to how to minimize any
liability that may arise as a result of such failure or alleged
failure;
(iii)LIFE COMPANY shall use its best efforts to minimize any
liability of AVIF or its affiliates resulting from such failure,
including, without limitation, demonstrating, pursuant to
Treasury Regulations Section 1.817-5(a)(2), to the Commissioner
of the IRS that such failure was inadvertent;
(iv) LIFE COMPANY shall permit AVIF, its affiliates and their legal
and accounting advisors to participate in any conferences,
settlement discussions or other administrative or judicial
proceeding or contests (including judicial appeals thereof) with
the IRS, any Participant or any other claimant regarding any
claims that could give rise to liability to AVIF or its
affiliates as a result of such a failure or alleged failure;
provided, however, that LIFE COMPANY will retain control of the
conduct of such conferences discussions, proceedings, contests or
appeals;
(v) any written materials to be submitted by LIFE COMPANY to the IRS,
any Participant or any other claimant in connection with any of
the foregoing proceedings or contests (including, without
limitation, any such materials to be submitted to the IRS
pursuant to Treasury Regulations Section 1.817-5(a)(2)), (a)
shall be provided by LIFE COMPANY to AVIF (together with any
supporting information or analysis); subject to the
confidentiality provisions of Section 18, at least ten (10)
business days or such shorter period to which the Parties hereto
agree prior to the day on which such proposed materials are to be
submitted, and (b) shall not be submitted by LIFE COMPANY to any
such person without the express written consent of AVIF which
shall not be unreasonably withheld;
(vi) LIFE COMPANY shall provide AVIF or its affiliates and their
accounting and legal advisors with such cooperation as AVIF shall
reasonably request (including, without limitation, by permitting
AVIF and its accounting and legal advisors to review the relevant
books and records of LIFE COMPANY) in order to facilitate review
by AVIF or its advisors of any written submissions provided to it
pursuant to the preceding clause or its assessment of the
validity or amount of any claim against its arising from such a
failure or alleged failure;
(vii)LIFE COMPANY shall not with respect to any claim of the IRS or
any Participant that would give rise to a claim against AVIF or
its affiliates (a) compromise or settle any claim, (b) accept any
adjustment on audit, or (c) forego any allowable administrative
or judicial appeals, without the express written consent of AVIF
or its affiliates, which shall not be unreasonably withheld,
provided that LIFE COMPANY shall not be required, after
exhausting all administrative remedies, to appeal any adverse
judicial decision unless AVIF or its affiliates shall have
provided an opinion of independent counsel to the effect that a
reasonable basis exists for taking such appeal; and provided
further that the costs of any such appeal shall be borne equally
by the Parties hereto; and
(viii) AVIF and its affiliates shall have no liability as a result of
such failure or alleged failure if LIFE COMPANY fails to comply
with any of the foregoing clauses (i) through (vii), and such
failure could be shown to have materially contributed to the
liability.
Should AVIF or any of its affiliates refuse to give its written consent to
any compromise or settlement of any claim or liability hereunder, LIFE COMPANY
may, in its discretion, authorize AVIF or its affiliates to act in the name of
LIFE COMPANY in, and to control the conduct of, such conferences, discussions,
proceedings, contests or appeals and all administrative or judicial appeals
thereof, and in that event AVIF or its affiliates shall bear the fees and
expenses associated with the conduct of the proceedings that it is so authorized
to control; provided, that in no event shall LIFE COMPANY have any liability
resulting from AVIF's refusal to accept the proposed settlement or compromise
with respect to any failure caused by AVIF. As used in this Agreement, the term
"affiliates" shall have the same meaning as "affiliated person" as defined in
Section 2(a)(3) of the 1940 Act.
(d)......LIFE COMPANY represents and warrants that the Contracts currently
are and will be treated as annuity contracts or life insurance
contracts under applicable provisions of the Code and that it will use
its best efforts to maintain such treatment; LIFE COMPANY will notify
AVIF immediately upon having a reasonable basis for believing that any
of the Contracts have ceased to be so treated or that they might not
be so treated in the future.
(e) LIFE COMPANY represents and warrants that each Account is a
"segregated asset account" and that interests in each Account are
offered exclusively through the purchase of or transfer into a
"variable contract," within the meaning of such terms under Section
817 of the Code and the regulations thereunder. LIFE COMPANY will use
its best efforts to continue to meet such definitional requirements,
and it will notify AVIF immediately upon having a reasonable basis for
believing that such requirements have ceased to be met or that they
might not be met in the future.
4.2 Insurance and Certain Other Laws
(a)......AVIF will use its best efforts to comply with any applicable state
insurance laws or regulations, to the extent specifically requested in
writing by LIFE COMPANY, which efforts shall include, without
limitation, the furnishing of information that is not otherwise
available to LIFE COMPANY and that is required by state insurance law
to enable LIFE COMPANY to obtain the authority needed to issue the
Contracts in any applicable state.
(b)......LIFE COMPANY represents and warrants that (i) it is an insurance
company duly organized, validly existing and in good standing under
the laws of the State of _________________ and has full corporate
power, authority and legal right to execute, deliver and perform its
duties and comply with its obligations under this Agreement, (ii) it
has legally and validly established and maintains each Account as a
segregated asset account under Section ____ of the _________________
Insurance Law and the regulations thereunder, and (iii) the Contracts
comply in all material respects with all other applicable federal and
state laws and regulations.
(c)......AVIF represents and warrants that it is lawfully organized,
validly existing, and in good standing under the laws of the State of
Delaware and has full power, authority, and legal right to execute,
deliver, and perform its duties and comply with its obligations under
this Agreement.
4.3 Securities Laws
(a)......LIFE COMPANY represents and warrants that (i) interests in each
Account pursuant to the Contracts will be registered under the 1933
Act to the extent required by the 1933 Act, (ii) the Contracts will be
duly authorized for issuance and sold in compliance with all
applicable federal and state laws, including, without limitation, the
1933 Act, the 1934 Act, the 1940 Act and the law(s) of LIFE COMPANY's
state(s) of organization and domicile, (iii) each Account is and will
remain registered under the 1940 Act, to the extent required by the
1940 Act, (iv) each Account does and will comply in all material
respects with the requirements of the 1940 Act and the rules
thereunder, to the extent required, (v) each Account's 1933 Act
registration statement relating to the Contracts, together with any
amendments thereto, will at all times comply in all material respects
with the requirements of the 1933 Act and the rules thereunder, (vi)
LIFE COMPANY will amend the registration statement for its Contracts
under the 1933 Act and for its Accounts under the 1940 Act from time
to time as required in order to effect the continuous offering of its
Contracts or as may otherwise be required by applicable law, and (vii)
each Account Prospectus, Statement of Additional Information, and
then-current stickers (collectively referred to herein as "Account
Prospectus"), will at all times comply in all material respects with
the requirements of the 1933 Act and the rules thereunder.
(b)......AVIF represents and warrants that (i) Shares sold pursuant to this
Agreement will be registered under the 1933 Act to the extent required
by the 1933 Act and duly authorized for issuance and sold in
compliance with Delaware law, (ii) AVIF is and will remain registered
under the 1940 Act to the extent required by the 1940 Act, (iii) AVIF
will amend the registration statement for its Shares under the 1933
Act and itself under the 1940 Act from time to time as required in
order to effect the continuous offering of its Shares, (iv) AVIF does
and will comply in all material respects with the requirements of the
1940 Act and the rules thereunder, (v) AVIF's 1933 Act registration
statement, together with any amendments thereto, will at all times
comply in all material respects with the requirements of the 1933 Act
and rules thereunder, and (vi) AVIF's Prospectus, Statement of
Additional Information, and then-current stickers (collectively
referred to herein as "AVIF Prospectus"), will at all times comply in
all material respects with the requirements of the 1933 Act and the
rules thereunder.
(c) AVIF will at its expense register and qualify its Shares for sale in
accordance with the laws of any state or other jurisdiction if and to
the extent reasonably deemed advisable by AVIF.
(d)......AVIF represents and warrants that all of its trustees, officers,
employees, investment advisers, and other individuals/entities having
access to the funds and/or securities of the Fund are and continue to
be at all times covered by a blanket fidelity bond or similar coverage
for the benefit of the Fund in an amount not less than the minimal
coverage as required currently by Rule 17g-(1) of the 1940 Act or
related provisions as may be promulgated from time to time. The
aforesaid bond includes coverage for larceny and embezzlement and is
issued by a reputable bonding company.
4.4 Notice of Certain Proceedings and Other Circumstances
(a)......AVIF or AIM will immediately notify LIFE COMPANY of (i) the
issuance by any court or regulatory body of any stop order, cease and
desist order, or other similar order with respect to AVIF's
registration statement under the 1933 Act or AVIF Prospectus, (ii) any
request by the SEC for any amendment to such registration statement or
AVIF Prospectus that may affect the offering of Shares of AVIF, (iii)
the initiation of any proceedings for that purpose or for any other
purpose relating to the registration or offering of AVIF's Shares, or
(iv) any other action or circumstances that may prevent the lawful
offer or sale of Shares of any Fund in any state or jurisdiction,
including, without limitation, any circumstances in which (a) such
Shares are not registered and, in all material respects, issued and
sold in accordance with applicable state and federal law, or (b) such
law precludes the use of such Shares as an underlying investment
medium of the Contracts issued or to be issued by LIFE COMPANY. AVIF
and AIM will make every reasonable effort to prevent the issuance,
with respect to any Fund, of any such stop order, cease and desist
order or similar order and, if any such order is issued, to obtain the
lifting thereof at the earliest possible time.
(b)......LIFE COMPANY or UNDERWRITER will immediately notify AVIF of (i)
the issuance by any court or regulatory body of any stop order, cease
and desist order, or other similar order with respect to each
Account's registration statement under the 1933 Act relating to the
Contracts or each Account Prospectus, (ii) any request by the SEC for
any amendment to such registration statement or Account Prospectus
that may affect the offering of Shares of AVIF, (iii) the initiation
of any proceedings for that purpose or for any other purpose relating
to the registration or offering of each Account's interests pursuant
to the Contracts, or (iv) any other action or circumstances that may
prevent the lawful offer or sale of said interests in any state or
jurisdiction, including, without limitation, any circumstances in
which said interests are not registered and, in all material respects,
issued and sold in accordance with applicable state and federal law.
LIFE COMPANY and UNDERWRITER will make every reasonable effort to
prevent the issuance of any such stop order, cease and desist order or
similar order and, if any such order is issued, to obtain the lifting
thereof at the earliest possible time.
4.5 LIFE COMPANY To Provide Documents; Information About AVIF
(a)......LIFE COMPANY will provide to AVIF or its designated agent at least
one (1) complete copy of all SEC registration statements, Account
Prospectuses, reports, any preliminary and final voting instruction
solicitation material, applications for exemptions, requests for
no-action letters, and all amendments to any of the above, that relate
to each Account or the Contracts, contemporaneously with the filing of
such document with the SEC or other regulatory authorities.
(b) .....LIFE COMPANY will provide to AVIF or its designated agent at
least one (1) complete copy of each piece of sales literature or other
promotional material in which AVIF or any of its affiliates is named,
at leastfive (5) Business Days prior to its use or such shorter period
as the Parties hereto may, from time to time, agree upon. No such
material shall be used if AVIF or its designated agent objects to such
use within five (5) Business Days after receipt of such material or
such shorter period as the Parties hereto may, from time to time,
agree upon. AVIF hereby designates AIM as the entity to receive such
sales literature, until such time as AVIF appoints another designated
agent by giving notice to LIFE COMPANY in the manner required by
Section 9 hereof.
(c)......Neither LIFE COMPANY nor any of its affiliates, will give any
information or make any representations or statements on behalf of or
concerning AVIF or its affiliates in connection with the sale of the
Contracts other than (i) the information or representations contained
in the registration statement, including the AVIF Prospectus contained
therein, relating to Shares, as such registration statement and AVIF
Prospectus may be amended from time to time; or (ii) in reports or
proxy materials for AVIF; or (iii) in published reports for AVIF that
are in the public domain and approved by AVIF for distribution; or
(iv) in sales literature or other promotional material approved by
AVIF, except with the express written permission of AVIF.
(d) ....LIFE COMPANY shall adopt and implement procedures reasonably
designed to ensure that information concerning AVIF and its affiliates
that is intended for use only by brokers or agents selling the
Contracts (i.e., information that is not intended for distribution to
Participants) ("broker only materials") is so used, and neither AVIF
nor any of its affiliates shall be liable for any losses, damages or
expenses relating to the improper use of such broker only materials.
(e)......For the purposes of this Section 4.5, the phrase "sales literature
or other promotional material" includes, but is not limited to,
advertisements (such as material published, or designed for use in, a
newspaper, magazine, or other periodical, radio, television, telephone
or tape recording, videotape display, signs or billboards, motion
pictures, or other public media, (e.g., on-line networks such as the
Internet or other electronic messages), sales literature (i.e., any
written communication distributed or made generally available to
customers or the public, including brochures, circulars, research
reports, market letters, form letters, seminar texts, reprints or
excerpts of any other advertisement, sales literature, or published
article), educational or training materials or other communications
distributed or made generally available to some or all agents or
employees, registration statements, prospectuses, statements of
additional information, shareholder reports, and proxy materials and
any other material constituting sales literature or advertising under
the NASD rules, the 1933 Act, or the 0000 Xxx.
4.6 AVIF To Provide Documents; Information About LIFE COMPANY
(a) .....AVIF will provide to LIFE COMPANY at least one (1) complete copy
of all SEC registration statements, AVIF Prospectuses, reports, any
preliminary and final proxy material, applications for exemptions,
requests for no-action letters, and all amendments to any of the
above, that relate to AVIF or the Shares of a Fund, contemporaneously
with the filing of such document with the SEC or other regulatory
authorities.
(b)......AVIF will provide to LIFE COMPANY a camera ready copy of all AVIF
prospectuses and printed copies, in an amount specified by LIFE
COMPANY, of AVIF statements of additional information, proxy
materials, periodic reports to shareholders and other materials
required by law to be sent to Participants who have allocated any
Contract value to a Fund. AVIF will provide such copies to LIFE
COMPANY in a timely manner so as to enable LIFE COMPANY, as the case
may be, to print and distribute such materials within the time
required by law to be furnished to Participants.
(c)......AVIF will provide to LIFE COMPANY or its designated agent at least
one (1) complete copy of each piece of sales literature or other
promotional material in which LIFE COMPANY, or any of its respective
affiliates is named, or that refers to the Contracts, at least five
(5) Business Days prior to its use or such shorter period as the
Parties hereto may, from time to time, agree upon. No such material
shall be used if LIFE COMPANY or its designated agent objects to such
use within five (5) Business Days after receipt of such material or
such shorter period as the Parties hereto may, from time to time,
agree upon. LIFE COMPANY shall receive all such sales literature until
such time as it appoints a designated agent by giving notice to AVIF
in the manner required by Section 9 hereof.
(d)......Neither AVIF nor any of its affiliates will give any information
or make any representations or statements on behalf of or concerning
LIFE COMPANY, each Account, or the Contracts other than (i) the
information or representations contained in the registration
statement, including each Account Prospectus contained therein,
relating to the Contracts, as such registration statement and Account
Prospectus may be amended from time to time; or (ii) in published
reports for the Account or the Contracts that are in the public domain
and approved by LIFE COMPANY for distribution; or (iii) in sales
literature or other promotional material approved by LIFE COMPANY or
its affiliates, except with the express written permission of LIFE
COMPANY.
(e) ....AVIF shall cause its principal underwriter to adopt and implement
procedures reasonably designed to ensure that information concerning
LIFE COMPANY, and its respective affiliates that is intended for use
only by brokers or agents selling the Contracts (i.e., information
that is not intended for distribution to Participants) ("broker only
materials") is so used, and neither LIFE COMPANY, nor any of its
respective affiliates shall be liable for any losses, damages or
expenses relating to the improper use of such broker only materials.
(f) ....For purposes of this Section 4.6, the phrase "sales literature or
other promotional material" includes, but is not limited to,
advertisements (such as material published, or designed for use in, a
newspaper, magazine, or other periodical, radio, television, telephone
or tape recording, videotape display, signs or billboards, motion
pictures, or other public media, (e.g., on-line networks such as the
Internet or other electronic messages), sales literature (i.e., any
written communication distributed or made generally available to
customers or the public, including brochures, circulars, research
reports, market letters, form letters, seminar texts, reprints or
excerpts of any other advertisement, sales literature, or published
article), educational or training materials or other communications
distributed or made generally available to some or all agents or
employees, registration statements, prospectuses, statements of
additional information, shareholder reports, and proxy materials and
any other material constituting sales literature or advertising under
the NASD rules, the 1933 Act, or the 1940 Act.
Section 5. Mixed and Shared Funding
5.1 General
The SEC has granted an order to AVIF exempting it from certain provisions
of the 1940 Act and rules thereunder so that AVIF may be available for
investment by certain other entities, including, without limitation, separate
accounts funding variable annuity contracts or variable life insurance
contracts, separate accounts of insurance companies unaffiliated with LIFE
COMPANY, and trustees of qualified pension and retirement plans (collectively,
"Mixed and Shared Funding"). The Parties recognize that the SEC has imposed
terms and conditions for such orders that are substantially identical to many of
the provisions of this Section 5. Sections 5.2 through 5.8 below shall apply
pursuant to the exemptive order granted to AVIF. AVIF hereby notifies LIFE
COMPANY that, in the event that AVIF implements Mixed and Shared Funding, it may
be appropriate to include in the prospectus pursuant to which a Contract is
offered disclosure regarding the potential risks of Mixed and Shared Funding.
5.2 Disinterested Trustees
AVIF agrees that its Board shall at all times consist of trustees a
majority of whom (the "Disinterested Trustees") are not interested persons of
AVIF within the meaning of Section 2(a)(19) of the 1940 Act and the rules
thereunder and as modified by any applicable orders of the SEC, except that if
this condition is not met by reason of the death, disqualification, or bona fide
resignation of any director, then the operation of this condition shall be
suspended (a) for a period of forty-five (45) days if the vacancy or vacancies
may be filled by the Board; (b) for a period of sixty (60) days if a vote of
shareholders is required to fill the vacancy or vacancies or (c) for such longer
period as the SEC may prescribe by order upon application.
5.3 Monitoring for Material Irreconcilable Conflicts
AVIF agrees that its Board will monitor for the existence of any material
irreconcilable conflict between the interests of the Participants in all
separate accounts of life insurance companies utilizing AVIF ("Participating
Insurance Companies"), including each Account, and participants in all qualified
retirement and pension plans investing in AVIF ("Participating Plans"). LIFE
COMPANY agrees to inform the Board of AVIF of the existence of or any potential
for any such material irreconcilable conflict of which it is aware. The concept
of a "material irreconcilable conflict" is not defined by the 1940 Act or the
rules thereunder, but the Parties recognize that such a conflict may arise for a
variety of reasons, including, without limitation:
(a) ....an action by any state insurance or other regulatory authority;
(b) ....a change in applicable federal or state insurance, tax or
securities laws or regulations, or a public ruling, private letter
ruling, no-action or interpretative letter, or any similar action by
insurance, tax or securities regulatory authorities;
(c) ....an administrative or judicial decision in any relevant proceeding;
(d) ....the manner in which the investments of any Fund are being managed;
(e) ....a difference in voting instructions given by variable annuity
contract and variable life insurance contract Participants or by
Participants of different Participating Insurance Companies;
(f) ....a decision by a Participating Insurance Company to disregard the
voting instructions of Participants; or
(g) .....a decision by a Participating Plan to disregard the voting
instructions of Plan participants.
Consistent with the SEC's requirements in connection with exemptive orders
of the type referred to in Section 5.1 hereof, LIFE COMPANY will assist the
Board in carrying out its responsibilities by providing the Board with all
information reasonably necessary for the Board to consider any issue raised,
including information as to a decision by LIFE COMPANY to disregard voting
instructions of Participants. LIFE COMPANY's responsibilities in connection with
the foregoing shall be carried out with a view only to the interests of
Participants.
5.4 Conflict Remedies
(a)......It is agreed that if it is determined by a majority of the members
of the Board or a majority of the Disinterested Trustees that a
material irreconcilable conflict exists, LIFE COMPANY will, if it is a
Participating Insurance Company for which a material irreconcilable
conflict is relevant, at its own expense and to the extent reasonably
practicable (as determined by a majority of the Disinterested
Trustees), take whatever steps are necessary to remedy or eliminate
the material irreconcilable conflict, which steps may include, but are
not limited to:
(i) withdrawing the assets allocable to some or all of the Accounts
from AVIF or any Fund and reinvesting such assets in a different
investment medium, including another Fund of AVIF, or submitting
the question whether such segregation should be implemented to a
vote of all affected Participants and, as appropriate,
segregating the assets of any particular group (e.g., annuity
Participants, life insurance Participants or all Participants)
that votes in favor of such segregation, or offering to the
affected Participants the option of making such a change; and
(ii) establishing a new registered investment company of the type
defined as a "management company" in Section 4(3) of the 1940 Act
or a new separate account that is operated as a management
company.
(b)......If the material irreconcilable conflict arises because of LIFE
COMPANY's decision to disregard Participant voting instructions and
that decision represents a minority position or would preclude a
majority vote, LIFE COMPANY may be required, at AVIF's election, to
withdraw each Account's investment in AVIF or any Fund. No charge or
penalty will be imposed as a result of such withdrawal. Any such
withdrawal must take place within six (6) months after AVIF gives
notice to LIFE COMPANY that this provision is being implemented, and
until such withdrawal AVIF shall continue to accept and implement
orders by LIFE COMPANY for the purchase and redemption of Shares of
AVIF.
(c)......If a material irreconcilable conflict arises because a particular
state insurance regulator's decision applicable to LIFE COMPANY
conflicts with the majority of other state regulators, then LIFE
COMPANY will withdraw each Account's investment in AVIF within six (6)
months after AVIF's Board informs LIFE COMPANY that it has determined
that such decision has created a material irreconcilable conflict, and
until such withdrawal AVIF shall continue to accept and implement
orders by LIFE COMPANY for the purchase and redemption of Shares of
AVIF. No charge or penalty will be imposed as a result of such
withdrawal.
(d)......LIFE COMPANY agrees that any remedial action taken by it in
resolving any material irreconcilable conflict will be carried out at
its expense and with a view only to the interests of Participants.
(e)......For purposes hereof, a majority of the Disinterested Trustees will
determine whether or not any proposed action adequately remedies any
material irreconcilable conflict. In no event, however, will AVIF or
any of its affiliates be required to establish a new funding medium
for any Contracts. LIFE COMPANY will not be required by the terms
hereof to establish a new funding medium for any Contracts if an offer
to do so has been declined by vote of a majority of Participants
materially adversely affected by the material irreconcilable conflict.
5.5 Notice to LIFE COMPANY
AVIF will promptly make known in writing to LIFE COMPANY the Board's
determination of the existence of a material irreconcilable conflict, a
description of the facts that give rise to such conflict and the implications of
such conflict.
5.6 Information Requested by Board
LIFE COMPANY and AVIF (or its investment adviser) will at least annually
submit to the Board of AVIF such reports, materials or data as the Board may
reasonably request so that the Board may fully carry out the obligations imposed
upon it by the provisions hereof or any exemptive order granted by the SEC to
permit Mixed and Shared Funding, and said reports, materials and data will be
submitted at any reasonable time deemed appropriate by the Board. All reports
received by the Board of potential or existing conflicts, and all Board actions
with regard to determining the existence of a conflict, notifying Participating
Insurance Companies and Participating Plans of a conflict, and determining
whether any proposed action adequately remedies a conflict, will be properly
recorded in the minutes of the Board or other appropriate records, and such
minutes or other records will be made available to the SEC upon request.
5.7 Compliance with SEC Rules
If, at any time during which AVIF is serving as an investment medium for
variable life insurance Contracts, 1940 Act Rules 6e-3(T) or, if applicable,
6e-2 are amended or Rule 6e-3 is adopted to provide exemptive relief with
respect to Mixed and Shared Funding, AVIF agrees that it will comply with the
terms and conditions thereof and that the terms of this Section 5 shall be
deemed modified if and only to the extent required in order also to comply with
the terms and conditions of such exemptive relief that is afforded by any of
said rules that are applicable.
5.8 Other Requirements
AVIF will require that each Participating Insurance Company and
Participating Plan enter into an agreement with AVIF that contains in substance
the same provisions as are set forth in Sections 4.1(b), 4.1(d), 4.3(a), 4.4(b),
4.5(a), 5, and 10 of this Agreement.
Section 6. Termination
6.1 Events of Termination
Subject to Section 6.4 below, this Agreement will terminate as to a Fund:
(a)......at the option of any party, with or without cause with respect to
the Fund, upon six (6) months advance written notice to the other
parties, or, if later, upon receipt of any required exemptive relief
from the SEC, unless otherwise agreed to in writing by the parties; or
(b)......at the option of AVIF upon institution of formal proceedings
against LIFE COMPANY or its affiliates by the NASD, the SEC, any state
insurance regulator or any other regulatory body regarding LIFE
COMPANY's obligations under this Agreement or related to the sale of
the Contracts, the operation of each Account, or the purchase of
Shares, if, in each case, AVIF reasonably determines that such
proceedings, or the facts on which such proceedings would be based,
have a material likelihood of imposing material adverse consequences
on the Fund with respect to which the Agreement is to be terminated;
or
(c)......at the option of LIFE COMPANY upon institution of formal
proceedings against AVIF, its principal underwriter, or its investment
adviser by the NASD, the SEC, or any state insurance regulator or any
other regulatory body regarding AVIF's obligations under this
Agreement or related to the operation or management of AVIF or the
purchase of AVIF Shares, if, in each case, LIFE COMPANY reasonably
determines that such proceedings, or the facts on which such
proceedings would be based, have a material likelihood of imposing
material adverse consequences on LIFE COMPANY, or the Subaccount
corresponding to the Fund with respect to which the Agreement is to be
terminated; or
(d)......at the option of any Party in the event that (i) the Fund's Shares
are not registered and, in all material respects, issued and sold in
accordance with any applicable federal or state law, or (ii) such law
precludes the use of such Shares as an underlying investment medium of
the Contracts issued or to be issued by LIFE COMPANY; or
(e)......upon termination of the corresponding Subaccount's investment in
the Fund pursuant to Section 5 hereof; or
(f)......at the option of LIFE COMPANY if the Fund ceases to qualify as a
RIC under Subchapter M of the Code or under successor or similar
provisions, or if LIFE COMPANY reasonably believes that the Fund may
fail to so qualify; or
(g)......at the option of LIFE COMPANY if the Fund fails to comply with
Section 817(h) of the Code or with successor or similar provisions, or
if LIFE COMPANY reasonably believes that the Fund may fail to so
comply; or
(h)......at the option of AVIF if the Contracts issued by LIFE COMPANY
cease to qualify as annuity contracts or life insurance contracts
under the Code (other than by reason of the Fund's noncompliance with
Section 817(h) or Subchapter M of the Code) or if interests in an
Account under the Contracts are not registered, where required, and,
in all material respects, are not issued or sold in accordance with
any applicable federal or state law; or
(i)......upon another Party's material breach of any provision of this
Agreement.
6.2 Notice Requirement for Termination
No termination of this Agreement will be effective unless and until the
Party terminating this Agreement gives prior written notice to the other Party
to this Agreement of its intent to terminate, and such notice shall set forth
the basis for such termination. Furthermore:
(a)......in the event that any termination is based upon the provisions of
Sections 6.1(a) or 6.1(e) hereof, such prior written notice shall be
given at least six (6) months in advance of the effective date of
termination unless a shorter time is agreed to by the Parties hereto;
(b)......in the event that any termination is based upon the provisions of
Sections 6.1(b) or 6.1(c) hereof, such prior written notice shall be
given at least ninety (90) days in advance of the effective date of
termination unless a shorter time is agreed to by the Parties hereto;
and
(c)......in the event that any termination is based upon the provisions of
Sections 6.1(d), 6.1(f), 6.1(g), 6.1(h) or 6.1(i) hereof, such prior
written notice shall be given as soon as possible within twenty-four
(24) hours after the terminating Party learns of the event causing
termination to be required.
6.3 Funds To Remain Available
Notwithstanding any termination of this Agreement by LIFE COMPANY, AVIF
will, at the option of LIFE COMPANY, continue to make available additional
shares of the Fund pursuant to the terms and conditions of this Agreement, for
all Contracts in effect on the effective date of termination of this Agreement
(hereinafter referred to as "Existing Contracts"), unless AIM or the Board
determines that doing so would not serve the best interests of the shareholders
of the affected Funds or would be inconsistent with applicable law or
regulation. Specifically, without limitation, the owners of the Existing
Contracts will be permitted to reallocate investments in the Fund (as in effect
on such date), redeem investments in the Fund and/or invest in the Fund upon the
making of additional purchase payments under the Existing Contracts. The parties
agree that this Section 6.3 will not apply to any (i) terminations under Section
5 and the effect of such terminations will be governed by Section 5 of this
Agreement or (ii) any rejected purchase and/or redemption order as described in
Section 2.3(c) hereof.
6.4 Survival of Warranties and Indemnifications
All warranties and indemnifications will survive the termination of this
Agreement.
6.5 Continuance of Agreement for Certain Purposes
If any Party terminates this Agreement with respect to any Fund pursuant to
Sections 6.1(b), 6.1(c), 6.1(d), 6.1(f), 6.1(g), 6.1(h) or 6.1(i) hereof, this
Agreement shall nevertheless continue in effect as to any Shares of that Fund
that are outstanding as of the date of such termination (the "Initial
Termination Date"). This continuation shall extend to the earlier of the date as
of which an Account owns no Shares of the affected Fund or a date (the "Final
Termination Date") six (6) months following the Initial Termination Date, except
that LIFE COMPANY may, by written notice shorten said six (6) month period in
the case of a termination pursuant to Sections 6.1(d), 6.1(f), 6.1(g), 6.1(h) or
6.1(i).
Section 7. Parties To Cooperate Respecting Termination
The Parties hereto agree to cooperate and give reasonable assistance to one
another in taking all necessary and appropriate steps for the purpose of
ensuring that an Account owns no Shares of a Fund after the Final Termination
Date with respect thereto, or, in the case of a termination pursuant to Section
6.1(a), the termination date specified in the notice of termination. Such steps
may include combining the affected Account with another Account, substituting
other mutual fund shares for those of the affected Fund, or otherwise
terminating participation by the Contracts in such Fund.
Section 8. Assignment
This Agreement may not be assigned by any Party, except with the written
consent of each other Party.
Section 9. Notices
Notices and communications required or permitted will be given by means
mutually acceptable to the Parties concerned. Each other notice or communication
required or permitted by this Agreement will be given to the following persons
at the following addresses and facsimile numbers, or such other persons,
addresses or facsimile numbers as the Party receiving such notices or
communications may subsequently direct in writing:
AIM VARIABLE INSURANCE FUNDS
A I M Distributors, Inc.
00 Xxxxxxxx Xxxxx, Xxxxx 000
Xxxxxxx, Xxxxx 00000
Facsimile: (000) 000-0000
Attn: Xxxxx X. Xxxxxxxx, Esq.
AMERICAN UNITED LIFE INSURANCE COMPANY
X.X. Xxx 000
Xxx Xxxxxxxx Xxxxxx
Xxxxxxxxxxxx, Xxxxxxx 00000-0000
Attn: Xxxx X. Xxxxxx, Esq.
ONEAMERICA SECURITIES, INC.
X.X. Xxx 000
Xxx Xxxxxxxx Xxxxxx
Xxxxxxxxxxxx, Xxxxxxx 00000-0000
Attn: Xxxx X. Xxxxxx, Esq.
Section 10. Voting Procedures
Subject to the cost allocation procedures set forth in Section 3 hereof,
LIFE COMPANY will distribute all proxy material furnished by AVIF to
Participants to whom pass-through voting privileges are required to be extended
and will solicit voting instructions from Participants. LIFE COMPANY will vote
Shares in accordance with timely instructions received from Participants. LIFE
COMPANY will vote Shares that are (a) not attributable to Participants to whom
pass-through voting privileges are extended, or (b) attributable to
Participants, but for which no timely instructions have been received, in the
same proportion as Shares for which said instructions have been received from
Participants, so long as and to the extent that the SEC continues to interpret
the 1940 Act to require pass through voting privileges for Participants. Neither
LIFE COMPANY nor any of its affiliates will in any way recommend action in
connection with or oppose or interfere with the solicitation of proxies for the
Shares held for such Participants. LIFE COMPANY reserves the right to vote
shares held in any Account in its own right, to the extent permitted by law.
LIFE COMPANY shall be responsible for assuring that each of its Accounts holding
Shares calculates voting privileges in a manner consistent with that of other
Participating Insurance Companies or in the manner required by the Mixed and
Shared Funding exemptive order obtained by AVIF. AVIF will notify LIFE COMPANY
of any changes of interpretations or amendments to Mixed and Shared Funding
exemptive order it has obtained. AVIF will comply with all provisions of the
1940 Act requiring voting by shareholders, and in particular, AVIF either will
provide for annual meetings (except insofar as the SEC may interpret Section 16
of the 1940 Act not to require such meetings) or will comply with Section 16(c)
of the 1940 Act (although AVIF is not one of the trusts described in Section
16(c) of that Act) as well as with Sections 16(a) and, if and when applicable,
16(b). Further, AVIF will act in accordance with the SEC's interpretation of the
requirements of Section 16(a) with respect to periodic elections of trustees and
with whatever rules the SEC may promulgate with respect thereto.
Section 11. Foreign Tax Credits
AVIF agrees to consult in advance with LIFE COMPANY concerning any decision
to elect or not to elect pursuant to Section 853 of the Code to pass through the
benefit of any foreign tax credits to its shareholders.
Section 12. Indemnification
12.1 Of AVIF and AIM by LIFE COMPANY and UNDERWRITER
(a)......Except to the extent provided in Sections 12.1(b) and 12.1(c),
below, LIFE COMPANY and UNDERWRITER agree to indemnify and hold
harmless AVIF, AIM, their affiliates, and each person, if any, who
controls AVIF, AIM, or their affiliates within the meaning of Section
15 of the 1933 Act and each of their respective trustees and officers,
(collectively, the "Indemnified Parties" for purposes of this Section
12.1) against any and all losses, claims, damages, liabilities
(including amounts paid in settlement with the written consent of LIFE
COMPANY and UNDERWRITER) or actions in respect thereof (including, to
the extent reasonable, legal and other expenses), to which the
Indemnified Parties may become subject under any statute, regulation,
at common law or otherwise; provided, the Account owns shares of the
Fund and insofar as such losses, claims, damages, liabilities or
actions:
(i) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any Account's
1933 Act registration statement, any Account Prospectus, the
Contracts, or sales literature or advertising for the Contracts
(or any amendment or supplement to any of the foregoing), or
arise out of or are based upon the omission to state therein a
material fact required to be stated therein or necessary to make
the statements therein not misleading; provided, that this
agreement to indemnify shall not apply as to any Indemnified
Party if such statement or omission or such alleged statement or
omission was made in reliance upon and in conformity with
information furnished to LIFE COMPANY or UNDERWRITER by or on
behalf of AVIF or AIM for use in any Account's 1933 Act
registration statement, any Account Prospectus, the Contracts, or
sales literature or advertising or otherwise for use in
connection with the sale of Contracts or Shares (or any amendment
or supplement to any of the foregoing); or
(ii) arise out of or as a result of any other statements or
representations (other than statements or representations
contained in AVIF's 1933 Act registration statement, AVIF
Prospectus, sales literature or advertising of AVIF, or any
amendment or supplement to any of the foregoing, not supplied for
use therein by or on behalf of LIFE COMPANY, UNDERWRITER or their
respective affiliates and on which such persons have reasonably
relied) or the negligent, illegal or fraudulent conduct of LIFE
COMPANY, UNDERWRITER or their respective affiliates or persons
under their control (including, without limitation, their
employees and "persons associated with a member," as that term is
defined in paragraph (q) of Article I of the NASD's By-Laws), in
connection with the sale or distribution of the Contracts or
Shares; or
(iii)arise out of or are based upon any untrue statement of any
material fact contained in AVIF's 1933 Act registration
statement, AVIF Prospectus, sales literature or advertising of
AVIF, or any amendment or supplement to any of the foregoing, or
the omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not
misleading if such a statement or omission was made in reliance
upon and in conformity with information furnished to AVIF, AIM or
their affiliates by or on behalf of LIFE COMPANY, UNDERWRITER or
their respective affiliates for use in AVIF's 1933 Act
registration statement, AVIF Prospectus, sales literature or
advertising of AVIF, or any amendment or supplement to any of the
foregoing; or
(iv) arise as a result of any failure by LIFE COMPANY or UNDERWRITER
to perform the obligations, provide the services and furnish the
materials required of them under the terms of this Agreement, or
any material breach of any representation and/or warranty made by
LIFE COMPANY or UNDERWRITER in this Agreement or arise out of or
result from any other material breach of this Agreement by LIFE
COMPANY or UNDERWRITER; or
(v) arise as a result of failure by the Contracts issued by LIFE
COMPANY to qualify as annuity contracts or life insurance
contracts under the Code, otherwise than by reason of any Fund's
failure to comply with Subchapter M or Section 817(h) of the
Code.
(b)......Neither LIFE COMPANY nor UNDERWRITER shall be liable under this
Section 12.1 with respect to any losses, claims, damages, liabilities
or actions to which an Indemnified Party would otherwise be subject by
reason of willful misfeasance, bad faith, or gross negligence in the
performance by that Indemnified Party of its duties or by reason of
that Indemnified Party's reckless disregard of obligations or duties
(i) under this Agreement, or (ii) to AVIF or AIM.
(c)......Neither LIFE COMPANY nor UNDERWRITER shall be liable under this
Section 12.1 with respect to any action against an Indemnified Party
unless AVIF or AIM shall have notified LIFE COMPANY and UNDERWRITER in
writing within a reasonable time after the summons or other first
legal process giving information of the nature of the action shall
have been served upon such Indemnified Party (or after such
Indemnified Party shall have received notice of such service on any
designated agent), but failure to notify LIFE COMPANY and UNDERWRITER
of any such action shall not relieve LIFE COMPANY and UNDERWRITER from
any liability which they may have to the Indemnified Party against
whom such action is brought otherwise than on account of this Section
12.1. Except as otherwise provided herein, in case any such action is
brought against an Indemnified Party, LIFE COMPANY and UNDERWRITER
shall be entitled to participate, at their own expense, in the defense
of such action and also shall be entitled to assume the defense
thereof, with counsel approved by the Indemnified Party named in the
action, which approval shall not be unreasonably withheld. After
notice from LIFE COMPANY or UNDERWRITER to such Indemnified Party of
LIFE COMPANY's or UNDERWRITER's election to assume the defense
thereof, the Indemnified Party will cooperate fully with LIFE COMPANY
and UNDERWRITER and shall bear the fees and expenses of any additional
counsel retained by it, and neither LIFE COMPANY nor UNDERWRITER will
be liable to such Indemnified Party under this Agreement for any legal
or other expenses subsequently incurred by such Indemnified Party
independently in connection with the defense thereof, other than
reasonable costs of investigation.
12.2 Of LIFE COMPANY and UNDERWRITER by AVIF and AIM
(a)......Except to the extent provided in Sections 12.2(c), 12.2(d) and
12.2(e), below, AVIF and AIM agree to indemnify and hold harmless LIFE
COMPANY, UNDERWRITER, their respective affiliates, and each person, if
any, who controls LIFE COMPANY, UNDERWRITER or their respective
affiliates within the meaning of Section 15 of the 1933 Act and each
of their respective trustees and officers, (collectively, the
"Indemnified Parties" for purposes of this Section 12.2) against any
and all losses, claims, damages, liabilities (including amounts paid
in settlement with the written consent of AVIF and/or AIM) or actions
in respect thereof (including, to the extent reasonable, legal and
other expenses), to which the Indemnified Parties may become subject
under any statute, regulation, at common law, or otherwise; provided,
the Account owns shares of the Fund and insofar as such losses,
claims, damages, liabilities or actions:
(i) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in AVIF's 1933
Act registration statement, AVIF Prospectus or sales literature
or advertising of AVIF (or any amendment or supplement to any of
the foregoing), or arise out of or are based upon the omission to
state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading;
provided, that this agreement to indemnify shall not apply as to
any Indemnified Party if such statement or omission or such
alleged statement or omission was made in reliance upon and in
conformity with information furnished to AVIF or its affiliates
by or on behalf of LIFE COMPANY, UNDERWRITER or their respective
affiliates for use in AVIF's 1933 Act registration statement,
AVIF Prospectus, or in sales literature or advertising or
otherwise for use in connection with the sale of Contracts or
Shares (or any amendment or supplement to any of the foregoing);
or
(ii) arise out of or as a result of any other statements or
representations (other than statements or representations
contained in any Account's 1933 Act registration statement, any
Account Prospectus, sales literature or advertising for the
Contracts, or any amendment or supplement to any of the
foregoing, not supplied for use therein by or on behalf of AVIF,
AIM or their affiliates and on which such persons have reasonably
relied) or the negligent, illegal or fraudulent conduct of AVIF,
AIM or their affiliates or persons under their control
(including, without limitation, their employees and "persons
associated with a member" as that term is defined in Section (q)
of Article I of the NASD By-Laws), in connection with the sale or
distribution of AVIF Shares; or
(iii)arise out of or are based upon any untrue statement of any
material fact contained in any Account's 1933 Act registration
statement, any Account Prospectus, sales literature or
advertising covering the Contracts, or any amendment or
supplement to any of the foregoing, or the omission to state
therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, if such
statement or omission was made in reliance upon and in conformity
with information furnished to LIFE COMPANY, UNDERWRITER or their
respective affiliates by or on behalf of AVIF or AIM for use in
any Account's 1933 Act registration statement, any Account
Prospectus, sales literature or advertising covering the
Contracts, or any amendment or supplement to any of the
foregoing; or
(iv) arise as a result of any failure by AVIF to perform the
obligations, provide the services and furnish the materials
required of it under the terms of this Agreement, or any material
breach of any representation and/or warranty made by AVIF in this
Agreement or arise out of or result from any other material
breach of this Agreement by AVIF.
(b)......The parties agree that the foregoing indemnification by AVIF shall
not apply to any acts or omissions of AIM. Except to the extent
provided in Sections 12.2(c), 12.2(d) and 12.2(e) hereof, AVIF and AIM
agree to indemnify and hold harmless the Indemnified Parties from and
against any and all losses, claims, damages, liabilities (including
amounts paid in settlement thereof with, the written consent of AVIF
and/or AIM) or actions in respect thereof (including, to the extent
reasonable, legal and other expenses) to which the Indemnified Parties
may become subject directly or indirectly under any statute, at common
law or otherwise, insofar as such losses, claims, damages, liabilities
or actions directly or indirectly result from or arise out of the
failure of any Fund to operate as a regulated investment company in
compliance with (i) Subchapter M of the Code and regulations
thereunder, or (ii) Section 817(h) of the Code and regulations
thereunder, including, without limitation, any income taxes and
related penalties, rescission charges, liability under state law to
Participants asserting liability against LIFE COMPANY pursuant to the
Contracts, the costs of any ruling and closing agreement or other
settlement with the IRS, and the cost of any substitution by LIFE
COMPANY of Shares of another investment company or portfolio for those
of any adversely affected Fund as a funding medium for each Account
that LIFE COMPANY reasonably deems necessary or appropriate as a
result of the noncompliance.
(c)......Neither AVIF nor AIM shall be liable under this Section 12.2 with
respect to any losses, claims, damages, liabilities or actions to
which an Indemnified Party would otherwise be subject by reason of
willful misfeasance, bad faith, or gross negligence in the performance
by that Indemnified Party of its duties or by reason of such
Indemnified Party's reckless disregard of its obligations and duties
(i) under this Agreement, or (ii) to LIFE COMPANY, UNDERWRITER, each
Account or Participants.
(d)......Neither AVIF nor AIM shall be liable under this Section 12.2 with
respect to any action against an Indemnified Party unless the
Indemnified Party shall have notified AVIF and/or AIM in writing
within a reasonable time after the summons or other first legal
process giving information of the nature of the action shall have been
served upon such Indemnified Party (or after such Indemnified Party
shall have received notice of such service on any designated agent),
but failure to notify AVIF or AIM of any such action shall not relieve
AVIF or AIM from any liability which it may have to the Indemnified
Party against whom such action is brought otherwise than on account of
this Section 12.2. Except as otherwise provided herein, in case any
such action is brought against an Indemnified Party, AVIF and/or AIM
will be entitled to participate, at its own expense, in the defense of
such action and also shall be entitled to assume the defense thereof
(which shall include, without limitation, the conduct of any ruling
request and closing agreement or other settlement proceeding with the
IRS), with counsel approved by the Indemnified Party named in the
action, which approval shall not be unreasonably withheld. After
notice from AVIF and/or AIM to such Indemnified Party of AVIF's or
AIM's election to assume the defense thereof, the Indemnified Party
will cooperate fully with AVIF and AIM and shall bear the fees and
expenses of any additional counsel retained by it, and AVIF and AIM
will not be liable to such Indemnified Party under this Agreement for
any legal or other expenses subsequently incurred by such Indemnified
Party independently in connection with the defense thereof, other than
reasonable costs of investigation.
(e) ....In no event shall AVIF or AIM be liable under the indemnification
provisions contained in this Agreement to any individual or entity,
including, without limitation, LIFE COMPANY, UNDERWRITER or any other
Participating Insurance Company or any Participant, with respect to
any losses, claims, damages, liabilities or expenses that arise out of
or result from (i) a breach of any representation, warranty, and/or
covenant made by LIFE COMPANY or UNDERWRITER hereunder or by any other
Participating Insurance Company under an agreement containing
substantially similar representations, warranties and covenants; (ii)
the failure by LIFE COMPANY or any other Participating Insurance
Company to maintain its segregated asset account (which invests in any
Fund) as a legally and validly established segregated asset account
under applicable state law and as a duly registered unit investment
trust under the provisions of the 1940 Act (unless exempt therefrom);
or (iii) the failure by LIFE COMPANY or any other Participating
Insurance Company to maintain its variable annuity or life insurance
contracts (with respect to which any Fund serves as an underlying
funding vehicle) as annuity contracts or life insurance contracts
under applicable provisions of the Code.
12.3 Effect of Notice
Any notice given by the indemnifying Party to an Indemnified Party referred
to in Sections 12.1(c) or 12.2(d) above of participation in or control of any
action by the indemnifying Party will in no event be deemed to be an admission
by the indemnifying Party of liability, culpability or responsibility, and the
indemnifying Party will remain free to contest liability with respect to the
claim among the Parties or otherwise.
12.4 Successors
A successor by law of any Party shall be entitled to the benefits of the
indemnification contained in this Section 12.
Section 13. Applicable Law
This Agreement will be construed and the provisions hereof interpreted
under and in accordance with Delaware law, without regard for that state's
principles of conflict of laws.
Section 14. Execution in Counterparts
This Agreement may be executed simultaneously in two or more counterparts,
each of which taken together will constitute one and the same instrument.
Section 15. Severability
If any provision of this Agreement is held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement will not
be affected thereby.
Section 16. Rights Cumulative
The rights, remedies and obligations contained in this Agreement are
cumulative and are in addition to any and all rights, remedies and obligations,
at law or in equity, that the Parties are entitled to under federal and state
laws.
Section 17. Headings
The Table of Contents and headings used in this Agreement are for purposes
of reference only and shall not limit or define the meaning of the provisions of
this Agreement.
Section 18. Confidentiality
AVIF acknowledges that the identities of the customers of LIFE COMPANY or
any of its affiliates (collectively, the "LIFE COMPANY Protected Parties" for
purposes of this Section 18), information maintained regarding those customers,
and all computer programs and procedures or other information developed by the
LIFE COMPANY Protected Parties or any of their employees or agents in connection
with LIFE COMPANY's performance of its duties under this Agreement are the
valuable property of the LIFE COMPANY Protected Parties. AVIF agrees that if it
comes into possession of any list or compilation of the identities of or other
information about the LIFE COMPANY Protected Parties' customers, or any other
information or property of the LIFE COMPANY Protected Parties, other than such
information as may be independently developed or compiled by AVIF from
information supplied to it by the LIFE COMPANY Protected Parties' customers who
also maintain accounts directly with AVIF, AVIF will hold such information or
property in confidence and refrain from using, disclosing or distributing any of
such information or other property except: (a) with LIFE COMPANY's prior written
consent; or (b) as required by law or judicial process. LIFE COMPANY
acknowledges that the identities of the customers of AVIF or any of its
affiliates (collectively, the "AVIF Protected Parties" for purposes of this
Section 18), information maintained regarding those customers, and all computer
programs and procedures or other information developed by the AVIF Protected
Parties or any of their employees or agents in connection with AVIF's
performance of its duties under this Agreement are the valuable property of the
AVIF Protected Parties. LIFE COMPANY agrees that if it comes into possession of
any list or compilation of the identities of or other information about the AVIF
Protected Parties' customers or any other information or property of the AVIF
Protected Parties, other than such information as may be independently developed
or compiled by LIFE COMPANY from information supplied to it by the AVIF
Protected Parties' customers who also maintain accounts directly with LIFE
COMPANY, LIFE COMPANY will hold such information or property in confidence and
refrain from using, disclosing or distributing any of such information or other
property except: (a) with AVIF's prior written consent; or (b) as required by
law or judicial process. Each party acknowledges that any breach of the
agreements in this Section 18 would result in immediate and irreparable harm to
the other parties for which there would be no adequate remedy at law and agree
that in the event of such a breach, the other parties will be entitled to
equitable relief by way of temporary and permanent injunctions, as well as such
other relief as any court of competent jurisdiction deems appropriate.
Section 19. Trademarks and Fund Names
(a)......Except as may otherwise be provided in a License Agreement among A
I M Management Group Inc., LIFE COMPANY and UNDERWRITER, neither LIFE
COMPANY nor UNDERWRITER or any of their respective affiliates, shall
use any trademark, trade name, service xxxx or logo of AVIF, AIM or
any of their respective affiliates, or any variation of any such
trademark, trade name, service xxxx or logo, without AVIF's or AIM's
prior written consent, the granting of which shall be at AVIF's or
AIM's sole option.
(b)......Except as otherwise expressly provided in this Agreement, neither
AVIF, its investment adviser, its principal underwriter, or any
affiliates thereof shall use any trademark, trade name, service xxxx
or logo of LIFE COMPANY, UNDERWRITER or any of their affiliates, or
any variation of any such trademark, trade name, service xxxx or logo,
without LIFE COMPANY's or UNDERWRITER's prior written consent, the
granting of which shall be at LIFE COMPANY's or UNDERWRITER's sole
option.
Section 20. Parties to Cooperate
Each party to this Agreement will cooperate with each other party and all
appropriate governmental authorities (including, without limitation, the SEC,
the NASD and state insurance regulators) and will permit each other and such
authorities reasonable access to its books and records (including copies
thereof) in connection with any investigation or inquiry relating to this
Agreement or the transactions contemplated hereby.
Section 21. Amendments; Need For
No provision of this Agreement may be amended or modified in any manner
except by mutual written agreement executed by all parties hereto. The Parties
shall, from time to time, review this Agreement to determine the extent to which
an amendment thereto may be necessary or appropriate to reflect changes in
applicable law or regulation, and shall cooperate in implementing any such
amendment in a timely manner, it being understood and agreed to that no such
amendment shall take effect except upon mutual written agreement of all Parties
as stated above.
Section 22. Force Majeure
Each Party shall be excused from the performance of any of its obligations
to the other where such nonperformance is occasioned by any event beyond its
control which shall include, without limitation, any applicable order, rule or
regulation of any federal, state or local body, agency or instrumentality with
jurisdiction, work stoppage, accident, natural disaster, war, acts of terrorism
or civil disorder, provided that the Party so excused shall use all reasonable
efforts to minimize its nonperformance and overcome, remedy, cure or remove such
event as soon as is reasonably practicable, and such performance shall be
excused only for so long as, in any given case, the force or circumstances
making performance impossible shall exist.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
in their names and on their behalf by and through their duly authorized officers
signing below.
AIM VARIABLE INSURANCE FUNDS
Attest: By:
Name: Name:
Title: Title:
A I M DISTRIBUTORS, INC.
Attest: By:
Name: Name:
Title: Title:
AMERICAN UNITED LIFE INSURANCE COMPANY], on behalf of itself
and its separate accounts
Attest: ________________________ By: ______________________________________
Name: ________________________ Name: ______________________________________
Title: ________________________ Title: ______________________________________
ONEAMERICA SECURITIES,
INC.
Attest: ________________________ By: ______________________________________
Name: ________________________ Name: ______________________________________
Title: ________________________ Title: ______________________________________
SCHEDULE A
FUNDS AVAILABLE UNDER THE CONTRACTS
AIM V.I. Aggressive Growth Fund AIM V.I. Money Market Fund
AIM V.I. Balanced Fund AIM V.I. Premier Equity Fund
AIM V.I. Basic Value Fund AIM V.I. Real Estate Fund
AIM V.I. Blue Chip Fund AIM V.I. Small Cap Equity Fund
AIM V.I. Capital Appreciation Fund INVESCO VIF - Core Equity Fund (name will be
AIM V.I. Capital Development Fund changed to AIM V.I. Core Stock Fund on October 15,
AIM V.I. Core Equity Fund 2004)
AIM V.I. Dent Demographic Trends Fund INVESCO VIF - Dynamics Fund (name will be changed
AIM V.I. Diversified Income Fund to AIM V.I. Dynamics Fund on October 15, 2004)
AIM V.I. Government Securities Fund INVESCO VIF - Financial Services Fund (name will
AIM V.I. Growth Fund be changed to AIM V.I. Financial Services Fund on
AIM V.I. High Yield Fund October 15, 2004)
AIM V.I. International Growth Fund INVESCO VIF - Health Sciences Fund (name will be
AIM V.I. Large Cap Growth Fund changed to AIM V.I. Health Sciences Fund on October
AIM V.I. Mid Cap Core Equity Fund 15, 2004)
INVESCO VIF - Leisure Fund (name will be changed
to AIM V.I. Leisure Fund on October 15, 2004)
INVESCO VIF - Small Company Growth Fund (name will
be changed to AIM V.I. Small Company Growth Fund on
October 15, 2004)
INVESCO VIF - Technology Fund (name will be
changed to AIM V.I. Technology Fund on October 15,
2004)
INVESCO VIF - Total Return Fund (name will be
changed to AIM V.I. Total Return Fund on October
15, 2004)
INVESCO VIF - Utilities Fund (name will be
changed to AIM V.I. Utilities Fund on October 15,
2004)
SEPARATE ACCOUNTS UTILIZING THE FUNDS
AUL American Individual Variable Annuity Unit Trust
AUL American Individual Variable Life Unit Trust
CONTRACTS FUNDED BY THE SEPARATE ACCOUNTS
Individual variable annuity contracts
Individual variable life contracts
SCHEDULE B
AIM's PRICING ERROR POLICIES
Determination of Materiality
In the event that AIM discovers an error in the calculation of the Fund's net
asset value, the following policies will apply:
If the amount of the error is less than $.01 per share, it is considered
immaterial and no adjustments are made.
If the amount of the error is $.01 per share or more, then the following
thresholds are applied:
a. If the amount of the difference in the erroneous net asset value and
the correct net asset value is less than .5% of the correct net asset
value, AIM will reimburse the affected Fund to the extent of any loss
resulting from the error. No other adjustments shall be made.
b. If the amount of the difference in the erroneous net asset value and
the correct net asset value is .5% of the correct net asset value or
greater, then AIM will determine the impact of the error to the
affected Fund and shall reimburse such Fund (and/or LIFE COMPANY, as
appropriate, such as in the event that the error was not discovered
until after LIFE COMPANY processed transactions using the erroneous
net asset value) to the extent of any loss resulting from the error.
To the extent that an overstatement of net asset value per share is
detected quickly and LIFE COMPANY has not mailed redemption checks to
Participants, LIFE COMPANY and AIM agree to examine the extent of the
error to determine the feasibility of reprocessing such redemption
transaction (for purposes of reimbursing the Fund to the extent of any
such overpayment).
Reprocessing Cost Reimbursement
To the extent a reprocessing of Participant transactions is required pursuant to
paragraph (b), above, AIM shall reimburse LIFE COMPANY for LIFE COMPANY's
reprocessing costs in an amount not to exceed $1.00 per contract affected by $10
or more.
The Pricing Policies described herein may be modified by AVIF as approved by its
Board. AIM agrees to use its best efforts to notify LIFE COMPANY at least five
(5) days prior to any such meeting of the Board of AVIF to consider such
proposed changes.
SCHEDULE C
EXPENSE ALLOCATIONS
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Life Company AVIF / AIM
--------------------------------------------------------------- -----------------------------------------------------------
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preparing and filing the Account's registration statement Preparing and filing the Fund's registration statement
--------------------------------------------------------------- -----------------------------------------------------------
--------------------------------------------------------------- -----------------------------------------------------------
text composition for Account prospectuses and supplements text composition for Fund prospectuses and supplements
--------------------------------------------------------------- -----------------------------------------------------------
--------------------------------------------------------------- -----------------------------------------------------------
text alterations of prospectuses (Account) and supplements text alterations of prospectuses (Fund) and supplements
(Account) (Fund)
--------------------------------------------------------------- -----------------------------------------------------------
--------------------------------------------------------------- -----------------------------------------------------------
printing Account and Fund prospectuses and supplements a camera ready Fund prospectus
--------------------------------------------------------------- -----------------------------------------------------------
--------------------------------------------------------------- -----------------------------------------------------------
text composition and printing Account SAIs text composition and printing Fund SAIs
--------------------------------------------------------------- -----------------------------------------------------------
--------------------------------------------------------------- -----------------------------------------------------------
mailing and distributing Account SAIs to policy owners upon mailing and distributing Fund SAIs to policy owners upon
request by policy owners request by policy owners
--------------------------------------------------------------- -----------------------------------------------------------
--------------------------------------------------------------- -----------------------------------------------------------
mailing and distributing prospectuses (Account and Fund) and
supplements (Account and Fund) to policy owners of record as
required by Federal Securities Laws and to prospective
purchasers
--------------------------------------------------------------- -----------------------------------------------------------
--------------------------------------------------------------- -----------------------------------------------------------
text composition (Account), printing, mailing, and text composition of annual and semi-annual reports (Fund)
distributing annual and semi-annual reports for Account (Fund
and Account as, applicable)
--------------------------------------------------------------- -----------------------------------------------------------
--------------------------------------------------------------- -----------------------------------------------------------
text composition, printing, mailing, distributing, and text composition, printing, mailing, distributing and
tabulation of proxy statements and voting instruction tabulation of proxy statements and voting instruction
solicitation materials to policy owners with respect to solicitation materials to policy owners with respect to
proxies related to the Account proxies related to the Fund
--------------------------------------------------------------- -----------------------------------------------------------
--------------------------------------------------------------- -----------------------------------------------------------
preparation, printing and distributing sales material and
advertising relating to the Funds, insofar as such materials
relate to the Contracts and filing such materials with and
obtaining approval from, the SEC, the NASD, any state
insurance regulatory authority, and any other appropriate
regulatory authority, to the extent required
=============================================================== ===========================================================
