RETAIL FUND PARTICIPATION AGREEMENT
THIS AGREEMENT, made and entered into this ____ of ___________, 2005, by
and among American United Life Insurance Company, a life insurance company
organized under the laws of Indiana (hereinafter the "Company"), on its own
behalf and on behalf of each separate account of the Company set forth in
Schedule A hereto, as may be amended from time to time (each such account
hereinafter referred to as a "Separate Account"), and PIONEER FUNDS DISTRIBUTOR,
INC. ("PFD"), a Massachusetts corporation and a member of the UniCredito
Italiano banking group, register of banking groups (hereinafter the
"Underwriter").
WITNESSETH:
WHEREAS, the Underwriter is the principal underwriter of the Pioneer family
of mutual funds (each a "Fund" and collectively, the "Funds"); and
WHEREAS, each Fund is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended (hereinafter the
"1940 Act") and its shares are registered under the Securities Act of 1933, as
amended (hereinafter the "1933 Act"); and
WHEREAS, the Company issues certain group variable annuity contracts and
group funding agreements (the "Contracts") in connection with retirement plans
intended to meet the qualification requirements of Sections 401, 403(b) or 457
of the Internal Revenue Code of 1986, as amended (the "Code"); and
WHEREAS, each Separate Account is a duly organized, validly existing
segregated asset account, established by resolution of the Board of Directors of
the Company under the insurance laws of the State of Indiana to set aside and
invest assets attributable to the Contracts; and
WHEREAS, the Underwriter is registered as a broker-dealer with the
Securities and Exchange Commission (hereinafter the "SEC") under the Securities
Exchange Act of 1934, as amended (hereinafter the "1934 Act"), and is a member
in good standing of the National Association of Securities Dealers, Inc.
(hereinafter "NASD"); and
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, the Company intends to purchase shares in the Funds set forth in
Schedule A on behalf of each corresponding Separate Account set forth on such
Schedule A to fund the Contracts and the Underwriter is authorized to sell such
shares to unit investment trusts such as the Separate Accounts at net asset
value.
NOW, THEREFORE, in consideration of their mutual promises, the Company, the
Fund and the Underwriter agree as follows:
ARTICLE I. Purchase and Redemption of Fund Shares.
1.1 NSCC Provision. On any business day ("Business Day") that the New York
Stock Exchange and a Fund is open for business, the Company will accept request
orders for the purchase, transfer and redemption of shares of that Fund, when
such request orders are received in compliance ("good order") with the then
existing requirements of the Funds' prospectus. Orders received by the Company
prior to the close of trading on the New York Stock Exchange (usually 4:00 p.m.
Eastern Time) on any Business Day ("Business Day" or "Day 1") shall be
transmitted by the Company, via the NSCC's DCC&S Fund/SERV system to the
Underwriter or its designated affiliate no later than 9:00 a.m. Eastern Time on
the next Business Day ("Day 2"). Such trades will be effected as of the close of
trading on Day 1 subject to the terms of such Fund's prospectus.
1.2 Non-NSCC Provision. To the extent that such orders cannot be
transmitted to the Underwriter or its designated affiliate via the DCC&S
Fund/SERV system, such orders shall be transmitted via facsimile to the
Underwriter or its designated affiliate by 10:00 a.m. Eastern time on Day 2.
Such trades will be effected on Day 1 subject to the terms of such Fund's
prospectus.
1.3 With respect to request orders placed on each Business Day on which
both parties have access to NSCC and NSCC calculates a net purchase order, the
Company agrees to initiate payment for net purchases of shares attributable to
all orders executed through NSCC on a given Business Day by wire to the
Underwriter or its designated affiliate through NSCC by 6:00 p.m. on Day 2 for
each Fund involved. The Underwriter agrees that payment for net redemptions of
shares attributable to all orders executed through NSCC on a given Business Day
will be wired to the Company through NSCC on such Business Day for each Fund
involved. Such payments will be made by Federal Funds wire transfer and will be
initiated in accordance with the rules and regulations of the NSCC, as amended
from time to time.
With respect to request orders placed on each Business Day on which a party
is unable to access NSCC, the Company will wire payment for net purchase orders
to an account designated by the Underwriter. The Company agrees that by 1:00
P.M. Eastern Time on Day 2, the Company will initiate, the wire payment for net
purchases of shares attributable to all orders executed on a given Business Day.
The Underwriter agrees that payment for net redemptions of shares attributable
to all orders executed on a given Business Day will be wired by the Underwriter,
to an account designated by the Company, by 1:00 P.M. Eastern Time on Day 2;
provided, however, that if a Plan Account in any Fund is to be redeemed in full
such that it will have a zero balance following the redemption, the Underwriter
reserves the right to wire transfer the redemption proceeds within the time set
forth in the Fund's prospectus. Such payments will be made by Federal Funds wire
transfer.
1.4 The Company will place separate orders to purchase or redeem shares of
each Fund.
1.5 Issuance and transfer of the Fund's shares will be by book entry only.
Share certificates will not be issued to the Company or any Separate Account.
Purchase and redemption orders for Fund shares will be recorded in an
appropriate title for each Separate Account or the appropriate subaccount of
each Separate Account.
1.6 The Underwriter shall furnish to the Company any income, dividends or
capital gain distributions payable on the Fund's shares as soon as reasonably
available. The Company hereby elects to receive all such dividends and
distributions as are payable on a Fund's shares in the form of additional shares
of that Fund. The Company reserves the right to revoke this election and to
receive in cash all such dividends and distributions declared after receipt of
notice of revocation by the Fund.
1.7 Pricing Information. The Underwriter or its designated affiliate will
make the following information available to the Company by 6:30 p.m. Eastern
Time on each Business Day: (i) net asset value ("NAV") information as of the
close of trading (normally 4:00 p.m. Eastern Time) on the New York Stock
Exchange or as of such other times at which the Fund's NAV is calculated as
specified in such Fund's prospectus; (ii) dividend and capital gains information
as such becomes available; and (iii) in the case of income Funds, the daily
accrual for the Funds' interest rate factor. In the event the Underwriter is
unable to make the 6:30 p.m. deadline stated herein, it shall provide additional
time for the Company to place orders for the purchase and redemption of shares.
Such additional time shall be equal to the additional time that the Underwriter
takes to make the closing net asset value available to the Company.
1.8 Price Errors. The Underwriter or its designated affiliate will follow
its internal policies to determine whether an adjustment is necessary to correct
any error in the computation of the NAV per share for any Fund.
1. Notification. If an adjustment is required to correct any error
in the computation of the NAV of Shares ("Price Error"), the
Underwriter shall notify the Company as soon as practicable after
discovering the Price Error. Notice may be made via facsimile or
via direct or indirect systems access and shall state the
incorrect price, the correct price and, to the extent
communicated to the Funds' other shareholders, the reason for the
price change.
2. Underpayments. If a Price Error causes a Separate Account to
receive less than the amount to which it would otherwise have
been entitled prior to a price adjustment, the Underwriter shall
adjust its records to accurately reflect the number of shares
held by the Separate Account.
3. Overpayments. If a Price Error causes a Separate Account to
receive more than the amount to which it otherwise would have
been entitled, the Company, when requested by the Underwriter,
will use all commercially reasonable efforts to attempt to
collect such excess amount from the applicable Separate Account.
Absent the Company's failure to use all commercially reasonable
efforts to attempt to collect such amount, the Company will in no
event be liable to any of the parties for any such amounts if,
prior to notice from the Underwriter of a price adjustment, such
amounts were distributed to the Separate Account.
4. Expenses. If a Price Error causes the Company to adjust its
records for the Separate Account, the Underwriter will reimburse
the Company for all reasonable costs and expenses (including
reasonable hourly compensation for any personnel utilized by the
Company in making such adjustments) incurred by the Company in
making such adjustments.
5. Liability. Except as otherwise expressly set forth in this
Agreement, the Company will have no responsibility or liability
for calculating the Funds' NAV or for a Price Error.
ARTICLE II. Representations and Warranties
2.1. The Company represents and warrants that the Contracts are or will be
registered unless exempt and that it will make every effort to maintain such
registration under the 1933 Act to the extent required by the 1933 Act; that the
Contracts are intended to be issued and sold in compliance in all material
respects with all applicable federal and state laws. The Company further
represents and warrants that it is an insurance company duly organized and in
good standing under applicable law and that it has legally and validly
established each Separate Account prior to any issuance or sale of Contracts,
shares or other interests therein, as a segregated asset account under the
insurance laws of the State of Indiana and has registered or, prior to any
issuance or sale of the Contracts, will register and will maintain the
registration of each Separate Account as a unit investment trust in accordance
with and to the extent required by the provisions of the 1940 Act, unless exempt
therefrom, to serve as a segregated investment account for the Contracts. Unless
exempt, the Company shall amend its registration statement for its Contracts
under the 1933 Act and the 1940 Act from time to time as required in order to
effect the continuous offering of its Contracts. The Company shall register and
qualify the Contracts for sale in accordance with securities laws of the various
states only if and to the extent deemed necessary by the Company.
2.2 The Underwriter represents and warrants that (i) Fund shares sold
pursuant to this Agreement shall be registered under the 1933 Act and duly
authorized for issuance in accordance with applicable law and that the Fund is
and shall remain registered under the 1940 Act for as long as the Fund shares
are sold; (ii) the Fund shall amend the registration statement for its shares
under the 1933 Act and the 1940 Act from time to time as required in order to
effect the continuous offering of its shares; and (iii) the Fund shall register
and qualify its shares for sales in accordance with the laws of the various
states only if and to the extent deemed advisable by the Fund or the
Underwriter.
2.3 The Underwriter, represents that each Fund (a) is currently qualified
as a Regulated Investment Company under Subchapter M of the Code; (b) will make
every effort to maintain such qualification (under Subchapter M or any successor
or similar provision); and (c) will notify the Company immediately upon having a
reasonable basis for believing that such Fund has ceased to so qualify or might
not so qualify in the future.
2.4 To the extent that the Fund finances distribution expenses pursuant to
Rule 12b-1 under the 1940 Act, the Underwriter represents that the Fund's Board
of Trustees or Directors, as applicable, including a majority of its
Trustees/Directors who are not interested persons of the Fund, have formulated
and approved a plan under Rule 12b-1 to finance distribution expenses.
2.5 The Underwriter makes no representation as to whether any aspect of the
Fund's operations (including, but not limited to, fees and expenses and
investment policies) complies with the insurance laws or insurance regulations
of the various states except that the Underwriter represents that the Fund's
investment policies, fees and expenses are and shall at all times remain in
compliance with the laws of the States of Indiana. The Underwriter represents
that its and the Fund's respective operations are and shall at all times remain
in material compliance with the laws of the State of Indiana to the extent
required to perform this Agreement.
2.6 The Underwriter represents and warrants that it is a member in good
standing of the NASD and is registered as a broker-dealer with the SEC. The
Underwriter further represents that it will sell and distribute the Fund shares
in accordance in all material respects with all applicable federal and state
securities laws, including without limitation the 1933 Act, the 1934 Act, and
the 0000 Xxx.
2.7 The Underwriter represents that each Fund is lawfully organized and
validly existing under the laws of the State of Delaware and that it does and
will comply in all material respects with applicable provisions of the 0000 Xxx.
2.8 The Underwriter represents and warrants that all of the Fund's
Trustees/Directors, 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 by Rule 17g-1 under 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.
2.9 The Company represents and warrants that all of its directors,
officers, employees, investment advisers, and other individuals/entities dealing
with the money and/or securities of the Fund are covered by a blanket fidelity
bond or similar coverage in an amount not less than $5 million. The aforesaid
includes coverage for larceny and embezzlement and is issued by a reputable
bonding company.
2.10 The foregoing representations and warranties shall be made, by the
party hereto that makes the representation or warranty as of the date first
written above and at the time of each purchase and each sale of the Fund's
shares pursuant to this Agreement.
ARTICLE III. Prospectuses; Reports and Proxy Statements; Voting
3.1 The Underwriter shall provide the Company at no charge with as many
printed copies of each Fund's current prospectus and statement of additional
information as the Company may reasonably request. If requested by the Company,
in lieu of providing printed copies of the Fund's current prospectus and
statement of additional information, the Fund shall provide camera-ready film,
computer diskettes, e-mail transmissions or PDF files containing the Fund's
prospectus and statement of additional information, and such other assistance as
is reasonably necessary in order for the Company once each year (or more
frequently if the prospectus and/or statement of additional information for the
Fund are amended during the year) to have the prospectus for the Contracts (if
applicable) and the Fund's prospectus printed together in one document or
separately. The Company may elect to print the Fund's prospectus and/or its
statement of additional information in combination with other fund companies'
prospectuses and statements of additional information.
3.2(a) The Underwriter shall be responsible for providing the Company at no
charge with copies of the Fund's proxy statements, Fund reports to shareholders,
and other Fund communications to shareholders in such quantity as the Company
shall reasonably require for distributing to Contract owners.
3.2(b) The Underwriter shall be responsible for the cost of typesetting,
printing and distributing all Fund prospectuses, statements of additional
information, Fund reports to shareholders and other Fund communications to
Contract owners and prospective Contract owners. The Fund shall pay for all
costs for typesetting, printing and distributing proxy materials.
3.3. The Fund's statement of additional information shall be obtainable by
Contract owners from the Fund, the Underwriter, the Company or such other person
as the Fund may designate.
3.4 If and to the extent required by law the Company shall distribute all
proxy material furnished by the Fund to Contract owners to whom voting
privileges are required to be extended and shall:
A. solicit voting instructions from Contract owners;
B. vote the Fund shares held in the Separate Account in accordance
with instructions received from Contract owners; and
C. so long as and to the extent that the SEC continues to interpret
the 1940 Act to require pass through voting privileges for
variable annuity contract owners, vote Fund shares held in the
Separate Account for which no timely instructions have been
received, in the same proportion as Fund shares of such Fund for
which instructions have been received from the Company's Contract
owners. The Company reserves the right to vote Fund shares held
in any segregated asset account for its own account, to the
extent permitted by law. Notwithstanding the foregoing, with
respect to the Fund shares held by unregistered Separate Accounts
that issue Contracts issued in connection with employee benefit
plans subject to the provisions of the Employee Retirement Income
Security Act of 1974, as amended, the Company shall vote such
Fund shares allocated to such Contracts only in accordance with
the Company's agreements with such Contract owners.
3.5 The Underwriter represents and warrants that the Fund will comply with
all provisions of the 1940 Act requiring voting by shareholders. The Underwriter
represents and warrants that the Fund will not hold annual meetings but will
hold such special meetings as may be necessary from time to time.
ARTICLE IV. Sales Material and Information
4.1 The Company shall furnish, or shall cause to be furnished, to the Fund,
the Underwriter or their designee, each piece of sales literature or other
promotional material prepared by the Company or any person contracting with the
Company in which the Fund, the Adviser or the Underwriter is described, at least
five calendar days prior to its use. No such literature or material shall be
used without prior approval from the Fund, the Underwriter or their designee,
however, the failure to object in writing within five calendar days will be
deemed approval. The Company shall use best efforts to use content from Fund
materials previously approved by the Underwriter. Such approval process shall
not apply to subsequent usage of materials that are substantially similar to
prior approved materials.
4.2 Neither the Company nor any person contracting with the Company shall
give any information or make any representations or statements on behalf of the
Fund or concerning the Fund in connection with the sale of the Contracts other
than the information or representations contained in the registration statement
or prospectus for the Fund shares, as such registration statement and prospectus
may be amended or supplemented from time to time, or in reports to shareholders
or proxy statements for the Fund, or in sales literature or other promotional
material approved by the Fund or its designee, except with the permission of the
Fund or its designee.
4.3 The Underwriter shall furnish, or shall cause to be furnished, to the
Company or its designee, each piece of sales literature or other promotional
material in which the Company or any Separate Account is named, at least five
calendar days prior to its use. No such literature or material shall be used
without prior approval from the Company or its designee, however, the failure to
object in writing within five calendar Days will be deemed approval. Such
approval process shall not apply to subsequent usage of materials that are
substantially similar to prior approved materials.
4.4 The Underwriter shall not give any information or make any
representations on behalf of the Company or concerning the Company, each
Separate Account, or the Contracts other than the information or representations
contained in the Contracts, a disclosure document, registration statement or
prospectus for the Contracts (if applicable), as such registration statement and
prospectus may be amended or supplemented from time to time, or in published
reports for each Separate Account which are in the public domain or approved by
the Company for distribution to Contract owners or participants, or in sales
literature or other promotional material approved by the Company, except with
the permission of the Company.
4.5 The Underwriter will provide to the Company at least one complete copy
of all prospectuses, statements of additional information, reports to
shareholders, proxy statements, and all amendments to any of the above, that
relate to the Fund or its shares, promptly after the filing of such document
with the SEC or other regulatory authorities.
4.6. The Company will provide to the Fund at least one complete copy of all
prospectuses, statements of additional information, reports, solicitations for
voting instructions, and all amendments to any of the above, if applicable to
the investment in a Separate Account or Contract, promptly after the filing of
such document with the SEC or other regulatory authorities.
4.7 For purposes of this Article IV, 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, Internet, or other public media), 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, electronic mail, 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,
disclosure documents, prospectuses, statements of additional information,
shareholder reports, and proxy materials.
4.8 The Underwriter authorizes the Company to use the names or other
identifying marks of Pioneer, including PIONEER INVESTMENTS(R), and the Funds in
connection with the services to be provided hereunder. The Underwriter or its
affiliates may withdraw this authorization as to any particular use of any such
name or identifying xxxx at any time: (a) upon a reasonable determination that
such use would have a material adverse effect on the reputation or marketing
efforts of the Underwriter or its affiliates or a Fund or (b) if any of the
Funds cease to be available through the Company. Except as set forth in this
Agreement, neither party will cause or permit, without prior written permission,
the use, description or reference to the other party's name, or to the
relationship contemplated in this Agreement, in any advertisement, or
promotional materials or activities, including without limitation, any
advertisement or promotional materials published, distributed, or made
available, or any activity conducted through, the Internet or any other
electronic medium.
4.9 The Underwriter agrees and acknowledges that it has no right, title or
interest in the names and marks of the Company, and that all use of any
designation comprised in whole or part or such names or marks under this
Agreement shall inure to the benefit of the Company. Except as provided in
Section 4.3, the Underwriter acknowledges that neither the Underwriter nor the
Fund shall use any such names or marks on its own behalf or on behalf of a Fund
in connection with marketing the Fund without prior written consent of the
Company. Upon termination of this Agreement for any reason, the Fund and
Underwriter shall cease all use of any such names or marks.
ARTICLE V. Fees and Expenses
5.1 The Fund shall pay the fees and expenses provided for in the attached
Schedule B.
5.2 Within 30 days after each quarter end, the Company will send the
Underwriter a written request for payment that sets forth the amount to be paid
in a mutually agreeable form.
ARTICLE VI. Indemnification
6.1 Indemnification By The Company
(a) The Company agrees to indemnify and hold harmless the Fund, the
Underwriter and each of their respective trustees, directors,
officers, employees or agents and each person, if any, who
controls the Fund or the Underwriter within the meaning of
section 15 of the 1933 Act (collectively, the "Indemnified
Parties" for purposes of this Section 6.1) against any and all
losses, claims, damages, liabilities (including amounts paid in
settlement with the written consent of the Company) or litigation
(including reasonable legal and other expenses), to which the
Indemnified Parties may become subject under any statute,
regulation, at common law or otherwise, insofar as such losses,
claims, damages, liabilities or expenses (or actions in respect
thereof) or settlements are related to the sale or acquisition of
the Fund's shares or the Contracts and:
(i) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in
the disclosure statement, registration statement, prospectus
or statement of information for the Contracts or contained
in the Contracts or sales literature or other promotional
material for the Contracts (or any amendment or supplement
to any of the foregoing), or arise out of or are based upon
the omission or the alleged 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 an
Indemnified Party if such statement or omission or such
alleged statement or omission was made in reliance upon and
in conformity with information furnished by such Indemnified
Party or the Fund to the Company on behalf of the Fund for
use in the registration statement, prospectus or statement
of additional information for the Contracts or in the
Contracts or sales literature (or any amendment or
supplement) or otherwise for use in connection with the sale
of the Contracts or Fund shares; or
(ii) arise out of or as a result of (a) statements or
representations by or on behalf of the Company (other than
statements or representations contained in the Fund
registration statement, Fund prospectus or sales literature
or other promotional material of the Fund not supplied by
the Company, or persons under its control and other than
statements or representations authorized by the Fund, the
Underwriter or the Adviser); or (b) the willful misfeasance,
bad faith, gross negligence or reckless disregard of duty of
the Company or persons under its control, with respect to
the sale or distribution of the Contracts or Fund shares; or
(iii)arise out of or as a result of any untrue statement or
alleged untrue statement of a material fact contained in the
Fund registration statement, Fund prospectus, statement of
additional information or sales literature or other
promotional material of the Fund (or any amendment thereof
or supplement thereto) or the omission or alleged 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 the Fund or the Underwriter by the Company or persons
under its control; or
(iv) arise as a result of any material failure by the Company to
provide the services and furnish the materials under the
terms of this Agreement; or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Company in this
Agreement or arise out of or result from any other material
breach by the Company of this Agreement; except to the
extent provided in Sections 6.1(b) and 6.4 hereof.
(b) No party shall be entitled to indemnification to the extent that
such loss, claim, damage, liability or litigation is due to the
willful misfeasance, bad faith, gross negligence or reckless
disregard of duty by the party seeking indemnification.
(c) In accordance with Section 6.4 hereof, the Indemnified Parties
will promptly notify the Company of the commencement of any
litigation or proceedings against them in connection with the
issuance or sale of the Fund shares or the Contracts or the
operation of the Fund.
6.2 Indemnification By the Underwriter
(a) The Underwriter agrees, with respect to each Fund that it
distributes, to indemnify and hold harmless the Company and each
of its directors, officers, employees or agents and each person,
if any, who controls the Company within the meaning of section 15
of the 1933 Act (collectively, the "Indemnified Parties" for
purposes of this Section 6.2) against any and all losses, claims,
damages, liabilities (including amounts paid in settlement with
the written consent of the Underwriter) or litigation (including
reasonable legal and other expenses) to which the Indemnified
Parties may become subject under any statute, regulation, at
common law or otherwise, insofar as such losses, claims, damages,
liabilities or expenses (or actions in respect thereof) or
settlements are related to the sale or acquisition of the shares
of the Funds that it distributes or the Contracts and:
(i) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in
the registration statement, prospectus or statement of
additional information for the Fund or sales literature or
other promotional material of the Fund (or any amendment or
supplement to any of the foregoing), or arise out of or are
based upon the omission or the alleged 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 by such
Indemnified Party or the Company to the Fund or the
Underwriter on behalf of the Company for use in the
registration statement, prospectus or statement of
additional information for the Fund or in sales literature
of the Fund (or any amendment or supplement thereto) or
otherwise for use in connection with the sale of the
Contracts or the Fund shares; or
(ii) arise out of or as a result of (a) statements or
representations (other than statements or representations
contained in the registration statement, prospectus or sales
literature for the Contracts not supplied by the Fund or the
Underwriter or persons under their respective control and
other than statements or representations authorized by the
Company); or (b) the willful misfeasance, bad faith, gross
negligence or reckless disregard of duty of the Fund or the
Underwriter or persons under the control of the Fund or the
Underwriter, respectively, with respect to the sale or
distribution of the Contracts or Fund shares; or
(iii)arise out of any untrue statement or alleged untrue
statement of a material fact contained in a registration
statement, prospectus, statement of additional information
or sales literature or other promotional material with
respect to the Contracts (or any amendment thereof or
supplement thereto), or the omission or alleged omission to
state therein a material fact required to be stated therein
or necessary to make the statement or statements therein not
misleading, if such statement or omission was made in
reliance upon and in conformity with information furnished
to the Company by the Fund or the Underwriter or persons
under the control of the Fund or the Underwriter,
respectively; or
(iv) arise as a result of any material failure by the Fund or the
Underwriter to provide the services and furnish the
materials under the terms of this Agreement; or
(v) arise out of or result from any material breach of any
representation and/or warranty made by the Underwriter or
the Fund in this Agreement or arise out of or result from
any other material breach of this Agreement by the
Underwriter or the Fund; except to the extent provided in
Sections 6.2(b) and 6.4 hereof.
(b) No party shall be entitled to indemnification to the extent that
such loss, claim, damage, liability or litigation is due to the
willful misfeasance, bad faith, gross negligence or reckless
disregard of duty by the party seeking indemnification.
(c) In accordance with Section 6.4 hereof, the Indemnified Parties
will promptly notify the Underwriter of the commencement of any
litigation or proceedings against them in connection with the
issuance or sale of the Fund shares or the Contracts or the
operation of the Separate Accounts.
6.4. Indemnification Procedure
(a) Any person obligated to provide indemnification under this
Article VI ("Indemnifying Party" for the purpose of this Section
6.4) shall not be liable under the indemnification provisions of
this Article VI with respect to any claim made against a party
entitled to indemnification under this Article VI ("Indemnified
Party" for the purpose of this Section 6.4) unless such
Indemnified Party shall have notified the Indemnifying Party in
writing within a reasonable time after the summons or other first
legal process giving information of the nature of the claim shall
have been served upon such Indemnified Party (or after such party
shall have received notice of such service on any designated
agent), but failure to notify the Indemnifying Party of any such
claim shall not relieve the Indemnifying Party from any liability
which it may have to the Indemnified Party against whom such
action is brought otherwise than on account of the
indemnification provision of this Article VI. In case any such
action is brought against the Indemnified Party, the Indemnifying
Party will be entitled to participate, at its own expense, in the
defense thereof. The Indemnifying Party also shall be entitled to
assume the defense thereof, with counsel satisfactory to the
party named in the action. After notice from the Indemnifying
Party to the Indemnified Party of the Indemnifying Party's
election to assume the defense thereof, the Indemnified Party
shall bear the fees and expenses of any additional counsel
retained by the Indemnified Party, and the Indemnifying Party
will not be liable to such party under this Agreement for any
legal or other expenses subsequently incurred by such party
independently in connection with the defense thereof other than
reasonable costs of investigation, unless:
(i) the Indemnifying Party and the Indemnified Party shall have
mutually agreed to the retention of such counsel or
(ii) the named parties to any such proceeding (including any
impleaded parties) include both the Indemnifying Party and
the Indemnified Party and representation of both parties by
the same counsel would be inappropriate due to actual or
potential differing interests between them.
A successor by law of the parties to this Agreement shall be
entitled to the benefits of the indemnification contained in this
Article VI. The indemnification provisions contained in this
Article VI shall survive any termination of this Agreement.
ARTICLE VII. Applicable Law
7.1 This Agreement shall be construed and the provisions hereof interpreted
under and in accordance with the laws of
Indiana.
7.2 This Agreement shall be subject to the provisions of the 1933, 1934 and
1940 Acts, and the rules and regulations and rulings thereunder, including such
exemptions from those statutes, rules and regulations as the SEC may grant and
the terms hereof shall be interpreted and construed in accordance therewith.
ARTICLE VIII. Termination
8.1 This Agreement shall terminate:
(a) at the option of any party upon one month advance written notice
to the other parties unless otherwise agreed in a separate
written agreement among the parties; or
(b) at the option of the Fund or the Underwriter, upon institution of
formal proceedings against the Company by the NASD, NASD
Regulation, Inc. ("NASDR"), the SEC, the insurance commission of
any state or any other regulatory body regarding the Company's
duties under this Agreement or related to the sale of the
Contracts, the administration of the Contracts, the operation of
the Separate Accounts, or the purchase of the Fund shares, which
in the judgment of the Fund, the Underwriter or the Adviser are
reasonably likely to have a material adverse effect on the
Company's ability to perform its obligations under this
Agreement; or
(c) at the option of the Company upon institution of formal
proceedings against the Fund, the Underwriter or the Adviser by
the NASD, NASDR, the SEC, or any state securities or insurance
department or any other regulatory body, related to the purchase
or sale of the Fund shares or the operation of the Fund which in
the judgment of the Company are reasonably likely to have a
material adverse effect on the Underwriter's, the Fund's or the
Adviser's ability to perform its obligations under this
Agreement; or
(d) at the option of the Company if a Fund delineated in Schedule A
ceases to qualify as a Regulated Investment Company under
Subchapter M of the Code (a "RIC"), or under any successor or
similar provision, and the disqualification is not cured within
the period permitted for such cure, or if the Company reasonably
believes that any such Fund may fail to so qualify and be unable
to cure such disqualification within the period permitted for
such cure; or
(e) at the option of any party to this Agreement, upon another
party's material breach of any provision of this Agreement;
provided that the party not in breach shall give the party in
breach notice of the breach and the party in breach does not cure
such breach within 30 days of receipt of such notice of breach;
or
(f) at the option of the Company, if the Company determines in its
sole judgment exercised in good faith, that either the Fund, the
Underwriter or the Adviser has suffered a material adverse change
in its business, operations or financial condition since the date
of this Agreement or is the subject of material adverse publicity
which is likely to have a material adverse impact upon the
business and operations of the Company; or
(g) at the option of the Fund or the Underwriter if the Fund or the
Underwriter, respectively, shall determine in its sole judgment
exercised in good faith, that the Company has suffered a material
adverse change in its business, operations or financial condition
since the date of this Agreement or is the subject of material
adverse publicity which is likely to have a material adverse
impact upon the business and operations of the Fund or
Underwriter.
8.2 Notice Requirement
(a) In the event that any termination of this Agreement is based upon
the provisions of Sections 8.1(b), 8.1(c) or 8.1(d), prompt
written notice of the election to terminate this Agreement for
cause shall be furnished by the party terminating the Agreement
to the non-terminating parties, with said termination to be
effective upon receipt of such notice by the non-terminating
parties; provided that for any termination of this Agreement
based on the provisions of Section 8.1(d), said termination shall
be effective upon the Fund's failure to qualify as a RIC and to
cure such disqualification within the period permitted for such
cure.
(b) In the event that any termination of this Agreement is based upon
the provisions of Sections 8.1(f) or 8.1(g), prior written notice
of the election to terminate this Agreement for cause shall be
furnished by the party terminating this Agreement to the
non-terminating parties. Such prior written notice shall be given
by the party terminating this Agreement to the non-terminating
parties at least 60 days before the effective date of
termination.
8.3 It is understood and agreed that the right to terminate this Agreement
pursuant to Section 8.1(a) may be exercised for any reason or for no reason.
8.4 Effect of Termination
(a) Notwithstanding any termination of this Agreement pursuant to
Section 8.1(a) through 8.1(g) of this Agreement and subject to
Section 1.2 of this Agreement, the Company may require the Fund
and the Underwriter to continue to make available additional
shares of the Fund for so long after the termination of this
Agreement as the Company desires pursuant to the terms and
conditions of this Agreement as provided in paragraph (b) below,
for all Contracts in effect on the effective date of termination
of this Agreement (hereinafter referred to as "Existing
Contracts"), unless such further sale of Fund shares is
proscribed by law, regulation or an applicable regulatory body.
Specifically, without limitation, the owners of the Existing
Contracts shall be permitted to direct reallocation of
investments in the Fund, redeem investments in the Fund and/or
invest in the Fund upon the making of additional purchase
payments under the Existing Contracts unless such further sale of
Fund shares is proscribed by law, regulation or an applicable
regulatory body.
(b) Fund and/or Underwriter shall remain obligated to pay Company the
fee in effect as of the date of termination for so long as shares
are held by the Accounts and Company continues to provide
services to the Accounts. Such fee shall apply to shares
purchased both prior to and subsequent to the date of
termination. This Agreement, or any provision thereof, shall
survive the termination to the extent necessary for each party to
perform its obligations with respect to shares for which a fee
continues to be due subsequent to such termination.
ARTICLE IX. Notices
9.1 (a) Any notice shall be deemed duly given only if sent by hand or
overnight express delivery, evidenced by written receipt or by certified mail,
return receipt requested, to the other party at the address of such party set
forth below or at such other address as such party may from time to time specify
in writing to the other party. All notices shall be deemed given the date
received or rejected by the addressee.
If to the Company:
American United Life Insurance Company
Xxx Xxxxxxxx Xxxxxx
X.X. Xxx 000
Xxxxxxxxxxxx, XX 00000-0000
Attention: Xxxx Xxxxxx
If to the Underwriter:
Attention: President
Pioneer Funds Distributor, Inc.
00 Xxxxx Xxxxxx
Xxxxxx, XX 00000
With a copy to:
General Counsel
Pioneer Investment Management USA Inc.
00 Xxxxx Xxxxxx
Xxxxxx, XX 00000
ARTICLE X Miscellaneous
10.1 Subject to law and regulatory authority, each party hereto shall treat
as confidential the names and addresses of the owners of the Contracts and all
other information reasonably identified as such in writing by any other party
hereto, and, except as contemplated by this Agreement, shall not disclose,
disseminate or utilize such confidential information without the express prior
written consent of the affected party until such time as it may come into the
public domain. In addition, the parties hereby represent that they will use and
disclose Personal Information (as defined below) only to carry out the purposes
for which it was disclosed to them and will not use or disclose Personal
information if prohibited by applicable law, including, without limitation,
statutes and regulations enacted pursuant to the Xxxxx-Xxxxx-Xxxxxx Act (Public
Law 106-102). "Personal Information" means financial and medical information
that identifies an individual personally and is not available to the public,
including, but not limited to, credit history, income, financial benefits,
policy or claim information and medical records. If either party outsources
services to a third party, such third party will agree in writing to maintain
the security and confidentiality of any information shared with them.
10.2 The captions in this Agreement are included for convenience of
reference only and in no way define or delineate any of the provisions hereof or
otherwise affect their construction or effect.
10.3 This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together shall constitute one and the same
instrument.
10.4 If any provision of this Agreement shall be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the Agreement shall
not be affected thereby.
10.5 This Agreement shall not be assigned by any party hereto without the
prior written consent of all the parties.
10.6 Each party hereto shall cooperate with each other party and all
appropriate governmental authorities (including without limitation the SEC, the
NASD, NASDR and state insurance regulators) and shall permit each other and such
authorities (and the parties hereto) reasonable access to its books and records
in connection with any investigation or inquiry relating to this Agreement or
the transactions contemplated hereby.
10.7 Each party represents that (a) the execution and delivery of this
Agreement and the consummation of the transactions contemplated herein have been
duly authorized by all necessary corporate or trust action, as applicable, by
such party and when so executed and delivered this Agreement will be the valid
and binding obligation of such party enforceable in accordance with its terms
subject to bankruptcy, insolvency, reorganization, moratorium and similar laws
of general applicability relating to or affecting creditors' rights and to
general equity principles; (b) the party has obtained, and during the term of
this Agreement will maintain, all authorizations, licenses, qualifications or
registrations required to be maintained in connection with the performance of
its duties under this Agreement; and (c) the party will comply in all material
respects with all applicable laws, rules and regulations.
10.8 The parties to this Agreement may amend by written agreement the
Schedules to this Agreement from time to time to reflect changes in or relating
to the Contracts, the Separate Accounts or the Funds of the Fund.
10.9 The Company hereby acknowledges that: (i) the Company has adopted an
anti-money laundering program that complies with the requirements of applicable
anti-money laundering laws, including the USA Patriot Act, the Bank Secrecy Act
and applicable regulations thereunder; (ii) the Company regularly searches its
databases for shareholder/customer names and countries appearing on U.S.
governmental agencies' lists of prohibited persons (e.g., lists maintained by
the Office of Foreign Assets Control); and (iii) the Company monitors its
compliance with such program. The Company agrees to notify the Underwriter and
the Funds of any: (i) identified instances of non-compliance that involve an
account related to the Funds or the Underwriter (a "Pioneer Related Account"),
either through a shareholder or transaction(s); and (ii) other anti-money
laundering issues that may arise with respect to a Pioneer Related Account. The
Company agrees to notify the Underwriter and the Funds with such periodic
certifications of compliance as the Underwriter may reasonably request.
10.10 The Company agrees to use its best efforts to assist the Underwriter
and the Funds to identify and address excessive or short-term trading in the
Funds, consistent with the policies of the Underwriter and each Fund as
described in the Fund's prospectus. The Company further agrees to notify the
Underwriter in the event that the Company becomes aware of any excessive or
short-term trading that is inconsistent with such policies with respect to any
intermediary or account, including any aggregate activity by accounts under
common control. The Company agrees that upon notice from the Underwriter that
any excessive or short-term activity is disruptive to the fund(s), to use
reasonable efforts to identify and deter such activities by an account holder
and/or intermediary.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to
be executed in its name and behalf by its duly authorized representative as of
the date first written above.
[ ] PIONEER FUNDS DISTRIBUTOR, INC.
By By: ______________________________
Name: Name: ______________________________
Title: Title: ______________________________
SCHEDULE A
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Separate Accounts
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Each Separate Account established by resolution of the Board of Directors of
the Company under the insurance laws of the State of Indiana to set aside and
invest assets attributable to the Contracts. Currently, those Separate
Accounts are as follows:
000 Xxxxxx
000 and 457 Markets
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Schedule B
In consideration of the services provided by the Company, the Underwriter, or
one of its affiliates, agrees to pay the Company an amount equal to the
following basis points per annum on the average aggregate amount invested by the
Company's Separate Account(s) in each Fund under the Agreement, such amounts to
be paid within 30 days of the end of each calendar quarter.
Service
Fund Fees
Class R Shares
Pioneer Bond Fund 0.60 %
Pioneer High Yield Fund 0.60 %
Pioneer Mid-Cap Value Fund 0.60 %
Pioneer Oak Ridge Large Cap Growth Fund 0.60 %
Pioneer Xxxx Small and Mid Cap Growth Fund 0.60 %
Pioneer Fund 0.60 %
Pioneer Small Cap Value Fund 0.60 %
Pioneer Strategic Income Fund 0.60 %
