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EXHIBIT 4.2
TDA , FORM P-12621
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CONTRACT NUMBER XX,XXX
CONTRACTHOLDER ABC HOSPITAL
DATE OF ISSUE JANUARY 1, 1994
CONTRACT DATE JANUARY 1, 1994
FIRST CONTRACT ANNIVERSARY JANUARY 1, 1994
American United Life Insurance Company (AUL) shall provide all the rights and
benefits of this contract.
This contract is issued in consideration of the application and of the payment
of Contributions to AUL.
All provisions and conditions stated on this and subsequent pages are made a
part of this contract.
Signed for AUL at its Home Office in Indianapolis, Indiana.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. The Contractholder may return the contract
for any reason within ten days after receiving it. If returned, the contract
shall be considered void from the beginning and any Contributions shall be
refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
AUL American Series Contract
Employer-Sponsored TDA Multiple-Fund Group Variable Annuity
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE
INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE
5 OF THIS CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
p-12621
TABLE OF CONTENTS
ARTICLE 1 DEFINITIONS
ARTICLE 2 CONTRACT AND AUTHORITY
2.1--------Entire Contract
2.2--------Authority
ARTICLE 3 CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1--------Amount of Contributions
3.2--------How Contributions Are Handled
3.3--------Addition, Deletion, or Substitution of Investments
3.4--------Transfers
3.5--------Limitations on Transfers
3.6--------Reallocation of Participant Accounts
3.7--------Transferred Amounts
ARTICLE 4 BENEFITS
4.1--------Election of Benefit Options
4.2--------Benefit Options
4.3--------Guaranteed Rate of Interest
4.4--------Alternate Nonparticipating Retirement Annuity
4.5--------Minimum Payments
4.6--------Due Proof of Date of Birth and Survival
4.7--------Death Benefits
4.8--------Withdrawal Benefits
ARTICLE 5 VALUATIONS
5.1--------Time of Valuation
5.2--------Accumulation Units
5.3--------Value of Accumulation Units
5.4--------Determining the Net Investment Factor
5.5--------Determining the Value of Each Participant Account's Share
of Any Investment Account
ARTICLE 6 OTHER CHARGES
6.1--------Mortality Risk and Expense Risk Charges
6.2--------Investment Management Charge
6.3--------Administrative Charge
6.4--------Transfer Charge
6.5--------Other Charges
6.6--------Reduction or Waiver of Certain Charges
P-12621.1
ARTICLE 7 RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1--------Right of AUL to Change Interest Rates
7.2------- Right of AUL to Change Annuity Table
7.3--------Right of AUL to Change Charges
7.4--------Amendment of Contract to Conform with Law
ARTICLE 8 TERMINATION OF CONTRACT
8.1--------Right of Contractholder to Terminate
8.2--------Payment Due to Termination by Contractholder
8.3--------Right of AUL to Terminate
8.4--------Payment Due to Termination by AUL
ARTICLE 9 MISCELLANEOUS
9.1--------Ownership
9.2--------AUL's Annual Statement
9.3--------Certification of Plan Status
9.4--------Essential Data
9.5--------Reliance
9.6--------Misstatement of Essential Data
9.7--------Annuity Certificates
9.8--------Election, Notice, or Direction Requirements
9.9--------Quarterly Statement of Account Value
9.10-------Conformity with State Laws
9.11-------Reference to Federal Laws
9.12-------Sex and Number
9.13-------Facility of Payment
9.14-------Insulation from Liability
9.15-------Voting
9.16-------Acceptance of New Participants or Contributions
9.17-------Nonforfeitability and Nontransferability
9.18-------Notice of Annual Meeting of Members
TABLE OF IMMEDIATE ANNUITIES
P-12621.2
ARTICLE 1 - DEFINITIONS
1.1 "Account Value" for any Participant Account on any given date means:
(a) the balance of the Participant Account's share of the Fixed Interest
Account on that date; plus
(b) the value of the Participant Account's share of each Investment
Account on that date.
1.2 "Accumulation Period" means the period of time commencing on the date on
which a Participant's initial Contribution is credited to the Participant
Account and terminating on the date when such Participant Account is
closed.
1.3 "Accumulation Unit" means a statistical device used to measure amounts of
increases to, decreases from, and accumulations in any Investment Account
during the Accumulation Period.
1.4 "Annuity Commencement Date" means the first day of any month upon which an
annuity begins under this contract. However, for any Participant, this date
shall not be later than the required beginning date as defined in the
applicable sections of the Code and Regulations issued thereunder.
1.5 "Code" means the Internal Revenue Code of l986, as amended.
1.6 "Contract Anniversary" means the first day of each Contract Year. Each
Contract Anniversary after the First Contract Anniversary shall be the same
day of the same month as the day and month which is stated on the face page
of this contract for the First Contract Anniversary.
1.7 "Contract Quarter" means each of the four successive intervals of three
months, the sum of which corresponds to a 12-month Contract Year.
1.8 "Contract Year" means, for the first such year, the period beginning with
the Contract Date and ending on the day immediately preceding the First
Contract Anniversary, and for each succeeding Contract Year, the period
beginning with a Contract Anniversary and ending on the day immediately
preceding the next succeeding Contract Anniversary.
1.9 "Contributions" means amounts paid to AUL pursuant to the Contractholder's
Code Section 403(b) Plan and credited to a Participant Account hereunder.
The following types of Contributions shall be credited to individual
subaccounts under the Participant Accounts:
(a) "Elective Deferrals," which means, with respect to any taxable year,
any Contribution made under a salary reduction agreement. A
Contribution made under a salary reduction agreement shall not be
treated as an Elective Deferral if, under the salary reduction
agreement, such Contribution is made pursuant to a one-time
irrevocable election made by the Participant at the time of initial
eligibility to participate in the agreement, or is made pursuant to a
similar arrangement involving a one-time irrevocable election
specified in Regulations issued under the Code.
(b) "Employee Mandatory Contributions," which means Contributions made
under a salary reduction agreement pursuant to a one-time irrevocable
election made by the Participant at the time of initial eligibility to
participate in the agreement, or is made pursuant to a similar
arrangement involving a one-time irrevocable election specified in
Regulations issued under the Code.
P-12621.3
(c) "Employer Contributions," which means Contributions made by the
Participant's employer that are not made pursuant to (a) or (b) above.
1.10 "Current Rates of Interest" means each of the annual effective rates of
interest as determined and declared by AUL from time-to-time and as
credited to each interest pocket maintained within the Fixed Interest
Account. The Current Rates of Interest shall always be equal to or greater
than the Guaranteed Rate of Interest.
1.11 "Excess Contributions" means those Contributions made on behalf of a
Participant which exceed the limitations in effect under applicable
provisions of the Code and Regulations issued thereunder.
1.12 "Fixed Interest Account" means that fund of AUL's general asset account in
which all or a portion of a Participant's Account Value may be held for
accumulation at the Current Rates of Interest.
(a) Contributions allocated, or amounts transferred, to the Fixed Interest
Account shall be credited to the open interest pocket and shall earn
interest at the Current Rate of Interest in effect for that interest
pocket. Such Contributions or transferred amounts, during the time
that the Current Rate of Interest exceeds the Guaranteed Rate of
Interest, shall earn interest at such credited Current Rate of
Interest for at least 1 year. After such 1-year period, AUL reserves
the right to declare, at any time, a new Current Rate of Interest to
be applied to funds held within that interest pocket. Any such new
Current Rate of Interest must remain in effect for that interest
pocket for at least 1 year.
(b) If AUL changes the Current Rate of Interest for new Contributions or
new amounts transferred to the Fixed Interest Account, the previous
open interest pocket shall close, and any Contributions or amounts
transferred on or after the effective date of such change shall be
credited to a new open interest pocket and shall earn interest at the
new Current Rate of Interest in effect for such new open interest
pocket. Therefore, at any given time, various funds credited to a
Participant Account and allocated to the Fixed Interest Account may be
earning interest at different Current Rates of Interest for different
periods of time.
1.13 "Guaranteed Rate of Interest" means interest at an annual effective rate of
4.00%.
1.14 "Home Office" means the principal office of AUL. The mailing address is
X.X. Xxx 0000, Xxxxxxxxxxxx, Xxxxxxx 00000-0000.
1.15 "Investment Account" means each subaccount of the Variable Account, which
subaccounts currently include the Equity Investment Account, the Bond
Investment Account, the Money Market Investment Account, and the Managed
Investment Account, as the case may be, where:
(a) Amounts allocated to the Equity Investment Account shall be invested
in shares of the AUL American Equity Portfolio of the Mutual Fund.
(b) Amounts allocated to the Bond Investment Account shall be invested in
shares of the AUL American Bond Portfolio of the Mutual Fund.
P-12621.4
(c) Amounts allocated to the Money Market Investment Account shall be
invested in shares of the AUL American Money Market Portfolio of the
Mutual Fund.
(d) Amounts allocated to the Managed Investment Account shall be invested
in shares of the AUL American Managed Portfolio of the Mutual Fund.
1.16 "Investment Option" means the Fixed Interest Account or any of the
Investment Accounts of the Variable Account. AUL reserves the right to
provide other Investment Options under this contract at any time.
1.17 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940.
1.18 "Participant" means any person reported to AUL by the Contractholder as
eligible for, and as participating in, the Plan, and for whom a Participant
Account is established.
1.19 "Participant Account" means an account established under this contract for
a Participant. Within each Participant Account, the Contractholder can
direct the establishment of one or more subaccounts as made available by
AUL. Contributions received by AUL shall be credited to Participant
Accounts and their subaccounts as AUL is directed in writing by the
Contractholder.
1.20 "Plan" means the Plan Sponsor's Code Section 403(b) plan as it exists on
the Contract Date, and any subsequent amendment to it.
1.21 "Plan Sponsor" means ___________________.
1.22 "Portfolio" means a series of the Mutual Fund as described in the
prospectus for the Mutual Fund as such prospectus may be amended or
supplemented from time to time.
1.23 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.24 "Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
1.25 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
P-12621.5
1.26 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn pursuant to Sections 4.8 or 8.2, where the
percentage varies by the number of full years measured from the date a
Participant Account is established to the date the Withdrawal Charge is
determined. Such percentage is as follows:
During
Account Years Percentage
1-5 8
6-10 4
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
1.27 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
P-12621.6
ARTICLE 2 - CONTRACT AND AUTHORITY
2.1 Entire Contract: This contract and the application of the Contractholder is
the entire agreement between AUL and the Contractholder. AUL is not a party
to, nor bound by, a Plan, trust, custodial agreement, or other agreement,
or any amendment or modification to any of the same. AUL is not a fiduciary
under this contract or under any such Plan, trust, custodial agreement, or
other agreement.
2.2 Authority: This contract cannot be modified or amended, nor can any
provision or condition be waived, except by a written agreement signed by a
corporate officer of AUL. Such authority may not be delegated to any other
person or entity, except by a written agreement signed by a corporate
officer of AUL.
P-12621.7
ARTICLE 3 - CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency; however, they must be
at least equal to a minimum annual Contribution of $200 per
Participant in any full Contract Year. AUL may change the minimum
annual Contribution acceptable under this contract, but any such
change shall apply only to individuals who become Participants on or
after the date of the change.
(b) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
or to whomever the Contractholder directs pursuant to the Plan upon
receipt by AUL at its Home Office of complete written instructions
from the Contractholder. Such written instructions must include the
amount to be withdrawn and returned, and certification that such
Contributions constitute Excess Contributions and that such returns
are permitted by the Plan and by applicable provisions of the Code and
Regulations issued thereunder. It shall not be the responsibility of
AUL to determine the existence or amount of Excess Contributions or
gains or losses thereon, or that returns of Excess Contributions are
permitted by the Plan and by applicable provisions of the Code and
Regulations. In withdrawing and returning the identified amount, AUL
may rely solely on such written instructions and certification. Such a
withdrawal and return of Excess Contributions shall not be subject to
Section 4.8.
3.2 How Contributions Are Handled:
(a) Contributions received at the Home Office shall be identified by the
Contractholder as Elective Deferrals, Employee Mandatory
Contributions, or Employer Contributions, and shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(b) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account and allocation
instructions regarding the initial Contribution. If the data required
to establish the Participant Account and allocation instructions
regarding the initial Contribution are not received by AUL at its Home
Office within 5 business days after AUL first receives the initial
Contribution, AUL shall return the initial Contribution to the
Contractholder unless the Contractholder consents to AUL retaining the
initial Contribution until AUL receives the data and allocation
instructions for the Participant. Alternatively, if the data required
to establish the Participant Account and allocation instructions
regarding the initial Contribution are not received by AUL at its Home
Office when AUL first receives the initial Contribution, to the extent
permitted by applicable law, AUL may allocate the initial Contribution
to the Money Market Investment Account, and shall transfer such
amounts credited to the Money Market Investment Account according to
the applicable allocation instructions upon receipt of the data
required to establish the Participant Account and allocation
instructions.
P-12621.8
(c) All Contributions subsequent to the initial Contribution shall be
credited and allocated as of the close of business on the Valuation
Period in which AUL receives the Contribution at its Home Office,
provided that the Contribution is received by 4:00 p.m. E.S.T. If the
Contribution is received after 4:00 p.m. E.S.T., such Contribution
shall be deemed to be received, and shall be credited and allocated as
of the close of business, on the next succeeding Valuation Period.
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments of 10%, 25%, or
33-1/3%, as elected by the Contractholder or by that person designated
in writing to AUL by the Contractholder. If no allocation instruction
is made with respect to any Participant Account, AUL shall process
such credits in accordance with the allocation instruction applicable
to the immediately preceding Contribution. The Contractholder or such
designated person may change an allocation instruction with respect to
future allocations to the applicable Participant Account by giving new
written allocation instructions to AUL at its Home Office.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Portfolios and to substitute shares of, or
interests in, another Portfolio of the Mutual Fund, of another
open-end, registered investment company, or other investment vehicle,
for shares already purchased or to be purchased in the future under
the contract, if the shares of any or all eligible Portfolios are no
longer available for investment, or if, in AUL's judgment, further
investment in any or all eligible Portfolios becomes inappropriate in
view of the purposes of the Variable Account or the contract. Where
required under applicable law, AUL will not substitute any shares
attributable to the Contractholder's interest in the Variable Account
or any Investment Account without notice, Contractholder or
Participant approval, or prior approval of the Securities and Exchange
Commission or a state insurance commissioner, and without following
the filing or other procedures established by applicable state
insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion between series or
classes of contracts on the basis of requests made by a majority of
other contractholders or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in a new Portfolio of the Mutual Fund, or
in other securities, investment vehicles, or shares of another
diversified open-end management investment company or series thereof.
AUL reserves the right to eliminate or combine existing Investment
Accounts if, in its sole discretion, marketing, tax, or investment
conditions so warrant. AUL also reserves the right to provide other
Investment Options under this contract at any time. Subject to any
required regulatory approvals, AUL reserves the right to transfer
assets from any Investment Account to another separate account of AUL
or Investment Account.
P-12621.9
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Contractholder, or that
person designated in writing to AUL by the Contractholder, may direct
AUL in writing to transfer the amounts credited to an Investment
Option to any other Investment Option during the Accumulation Period.
Any transfer from an Investment Account shall be effective as of the
close of business on the Valuation Date that AUL receives such written
direction, provided that AUL receives such direction by 4:00 p.m.
E.S.T. on that Valuation Date. If such direction is received after
4:00 p.m. E.S.T., such transfer shall be effective as of the close of
business on the next succeeding Valuation Date.
(b) AUL shall make the transfer as requested within 7 days from the date a
proper request is received by AUL at its Home Office, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer a transfer of
amounts from the Fixed Interest Account for a period of 6 months after
AUL receives the transfer request at its Home Office.
(c) All transfers from the Fixed Interest Account to any Investment
Account shall be made on a first-in/first-out accounting basis.
3.5 Limitations on Transfers:
(a) A transfer with regard to the Participant Account's share of any
Investment Option shall not be made in an amount less than $500 or the
Participant Account's entire share, if less than $500. If such a
transfer reduces the Participant Account's remaining share of an
Investment Option to less than $500, the entire remaining share shall
also be transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the last Contract Anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer.
P-12621.10
(c) Amounts under this contract which have been transferred from other
group annuity contracts, whether issued by AUL or otherwise, shall be
allocated pursuant to the provisions of Section 3.2.
(d) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege
provided in Sections 3.4 and 3.5, and to impose a charge on a
transfer.
3.6 Reallocation of Participant Accounts: The Contractholder, in accordance
with the provisions of the Plan, may direct AUL to reallocate all or a
portion of the Account Value of any Participant Account among other
Participant Accounts. The Contractholder shall certify that such
reallocation is in accordance with Plan provisions.
3.7 Transferred Amounts: If so permitted under the terms of the Plan, AUL shall
accept amounts transferred from other contracts which are attributable to
contributions made pursuant to Code Section 403(b). Such transferred
amounts shall be credited as directed by the Contractholder to a separate
rollover subaccount established under the appropriate Participant Accounts.
P-12621.11
ARTICLE 4 - BENEFITS
4.1 Election of Benefit Options: At the written request of the Contractholder,
AUL shall apply all or a portion of the Account Value (subject to Section
6.5) of a Participant Account for the purpose of providing a fixed payment
annuity under the Plan. Upon receipt of a request for an annuity, AUL is
hereby authorized by the Contractholder to value and transfer the
Participant Account's share of the Variable Account to the Fixed Interest
Account as of the date that AUL receives such written request at its Home
Office. Such transferred amounts shall be held in the Fixed Interest
Account until the Participant's Annuity Commencement Date. The
Contractholder request shall include certification as to the purpose for
the benefit and the election of one of the following benefit options. The
amount of any annuity shall be computed from the Table of Immediate
Annuities then included in this contract, except as provided under Section
4.4.
4.2 Benefit Options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the annuitant's monthly annuity shall be paid to the contingent
annuitant named in the election for as long as the contingent
annuitant lives. An election of this option is automatically cancelled
if either the Participant or the contingent annuitant dies before the
Annuity Commencement Date.
(d) Unit Refund Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives, and shall end with the
last monthly payment before the death of the annuitant. If, at the
death of the annuitant, the sum of the monthly payments previously
received is less than the amount applied to provide the annuity,
monthly payments of the same amount shall continue to the annuitant's
beneficiary until the total of the monthly payments received equals
such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 30
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Lump Sum Payment. A lump sum payment shall be payable to the
annuitant. If the total Account Value is less than $2,000, such value
shall not be annuitized under options (a), (b), (c), (d), (e), or (g)
of this Section, but shall be paid in a lump sum.
P-12621.12
(g) Any other options mutually agreed upon between the Contractholder and
AUL shall be made available.
If the annuity option selected is not included in the attached Table of
Immediate Annuities, the amount of monthly annuity shall be based on rates
determined in the same manner as those found in the Table.
If no benefit option election for a Participant has been received by AUL at
its Home Office at least 30 days prior to the Annuity Commencement Date,
the Account Value (subject to Section 6.5) of his Participant Account may
be applied under (b) above as a 10 Year Certain and Life Annuity if the
Participant is not married, or may be applied under (c) above as a 50%
Survivorship Annuity if the Participant is married. AUL must receive from
the Contractholder written notification of such Annuity Commencement Date,
written designation of the contingent annuitant or beneficiary, and any
election forms needed in connection with any benefit option provided in
this Section.
In no event shall any option elected provide annuity benefits to the
Participant or to the Participant and the contingent annuitant which would
extend for a certain period beyond the life expectancy of such Participant
or the joint life expectancy of such Participant and such contingent
annuitant as determined on the Annuity Commencement Date.
4.3 Guaranteed Rate of Interest: The retirement annuity options provided in
this Article and illustrated in the attached Table of Immediate Annuities
are based on a guaranteed interest rate of 4.00% compounded annually.
4.4 Alternate Nonparticipating Retirement Annuity: Any annuity elected shall be
provided at whatever current single premium nonparticipating immediate
annuity rates are available under this class of group annuity contract if
such rates produce a higher income than that provided under the Table of
Immediate Annuities provided in this contract.
4.5 Minimum Payments: If the monthly annuity is less than AUL's then current
established minimum, AUL reserves the right to make payments on a less
frequent basis or to pay the Account Value in a single sum.
4.6 Due Proof of Date of Birth and Survival: Before commencing payments under
any annuity, AUL may require proof of the date of birth of any annuitant
and may require due proof that any annuitant is living before the payment
of each or any installment under the option.
4.7 Death Benefits:
(a) Notwithstanding the provisions of Article 8, upon receipt of written
instructions from the Contractholder and of due proof of the
Participant's (and, if applicable, the beneficiary's) death during the
Accumulation Period at its Home Office, AUL shall apply the Account
Value of the Participant Account for the purpose of providing a death
benefit under the Plan. The death benefit shall be paid to the
Contractholder or to whomever the Contractholder directs.
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the later of (1) the
Valuation Date that AUL receives such written
P-12621.13
Contractholder instructions at its Home Office, or (2) the Valuation
Date that AUL receives such due proof of death at its Home Office,
provided that such written instructions or due proof of death received
on the later of (1) or (2) above are (is) received by 4:00 p.m. E.S.T.
If the written instructions or due proof of death received on the
later of (1) or (2) above are (is) received after 4:00 p.m. E.S.T.,
such valuation shall be made as of the close of business on the next
succeeding Valuation Date.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or by another elected method on
or before December 31 of the calendar year which contains
the fifth anniversary of the date of the Participant's
death; or
(ii) The benefit shall be paid as an annuity in accordance with
the Benefit Options shown in Section 4.2 over the life or
life expectancy of the beneficiary. If the beneficiary is
not the Participant's surviving spouse, the annuity must
begin on or before December 31 of the calendar year
immediately following the calendar year in which the
Participant died. If the beneficiary is the Participant's
surviving spouse, the annuity need not begin before December
31 of the calendar year in which the Participant would have
attained age 70 1/2.
(2) If a Participant dies on or after his Annuity Commencement Date,
any interest remaining under the Benefit Option selected shall be
paid at least as rapidly as prior to the Participant's death.
(3) If payment is to be made in a cash lump sum, payment shall be
made within 7 days of the date of valuation, as determined above
in this Section, except as AUL may be permitted to defer such
payment of amounts derived from the Variable Account in
accordance with the provisions of federal securities laws. Also,
AUL reserves the right to defer the payment of amounts withdrawn
from the Fixed Interest Account for a period of 6 months after
AUL receives written instructions at its Home Office.
4.8 Withdrawal Benefits:
(a) At any time prior to termination of the contract pursuant to the
provisions of Article 8, except as stated below, the Contractholder,
upon submitting a proper written request to AUL at its Home Office,
may direct AUL to withdraw all or a portion of the Account Value
(subject to the Withdrawal Charge) of a Participant Account for the
purpose of providing Plan benefits, other than Plan termination
benefits, provided:
(l) that any distribution to a Participant shall not occur until the
Participant has:
(i) attained age 59 1/2; or
(ii) terminated employment; or
P-12621.14
(iii) become totally disabled (as defined by the Plan); or
(iv) experienced a hardship (as defined by the Plan); or
(2) that the amount being withdrawn is attributable to Contributions
made other than pursuant to a salary reduction agreement (within
the meaning of Code Section 402(g)(3)(C)); or
(3) that the amount being withdrawn is attributable to amounts held
as of December 31, l988 under another Code Section 403(b) annuity
contract.
(4) In the case of a hardship withdrawal referred to in (1)(iv)
above, any gain credited to Contributions made pursuant to a
salary reduction agreement may not be withdrawn.
(5) AUL shall not be responsible for determining a Participant's
compliance with the requirements above. Any withdrawal request
submitted by the Contractholder shall include certification as to
the purpose of the withdrawal. The Contractholder assumes full
responsibility for determining whether any withdrawal is
permitted under applicable law and under the terms of a
particular Plan. AUL may rely solely upon the representations of
the Contractholder made in the withdrawal request.
(b) Withdrawals from a Participant Account's share of an Investment Option
may not be made in an amount less than the smaller of $500 or the
Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(c) A withdrawal request shall be effective as of the close of business on
the Valuation Date that AUL receives a proper written withdrawal
request at its Home Office, provided that AUL receives such request by
4:00 p.m. E.S.T. on that Valuation Date. If such request is received
after 4:00 p.m. E.S.T., such request shall be effective as of the
close of business on the next succeeding Valuation Date.
(d) The Account Value to be applied pursuant to this Section shall be
determined as of the applicable Valuation Date determined in (c)
above. If the entire Account Value of a Participant Account is
withdrawn, the Contractholder or party named by the Contractholder
shall be paid the Withdrawal Value. If the Contractholder requests
that a specified percentage or dollar amount be paid from a
Participant Account, AUL shall withdraw from the Participant Account
an amount equal to the dollar amount to be paid divided by the
difference between 1 and the decimal equivalent of the applicable
Withdrawal Charge. Notwithstanding the previous sentence, in any
Contract Year the Contractholder may withdraw up to 10% of the Account
Value of a Participant Account determined as of the last Contract
Anniversary preceding the request for the withdrawal without
application of any Withdrawal Charge, provided that 12 months have
elapsed from the date that the Participant's first Contribution is
credited to his Participant Account by AUL to the date of such
withdrawal.
P-12621.15
(e) AUL shall pay such amount in a cash lump sum to the Contractholder or
as otherwise directed by the Contractholder. Such cash lump sum will
be paid within 7 days from the date that AUL receives the withdrawal
request at its Home Office, except as AUL may be permitted to defer
such payment of amounts withdrawn from the Variable Account in
accordance with appropriate provisions of the federal securities laws.
AUL reserves the right to defer the payment of amounts withdrawn from
the Fixed Interest Account for a period of up to 6 months after AUL
receives the withdrawal request at its Home Office.
(f) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
P-12621.16
ARTICLE 5 - VALUATIONS
5.1 Time of Valuation: All assets of each Portfolio shall be valued as provided
in the prospectus for the Mutual Fund as such prospectus may be amended or
supplemented from time to time.
5.2 Accumulation Units: Any amounts that are allocated to any Investment
Account on behalf of a Participant shall be credited to his Participant
Account in the form of Accumulation Units on the basis of the value of such
units in that Investment Account as of the end of the Valuation Period on
which such amounts are received by AUL at its Home Office. Such crediting
shall be made separately for amounts allocated to each Investment Account.
The number of Accumulation Units in each Investment Account credited to
each Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that
Participant Account as of such Valuation Period by the dollar value of one
Accumulation Unit in that Investment Account as of the close of business on
the applicable Valuation Period. The number of Accumulation Units thus
determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in each
Investment Account was established at $1.00 as of April 12, 1990. The value
of an Accumulation Unit in each Investment Account as of any Valuation
Period thereafter is equal to the dollar value of one Accumulation Unit in
that Investment Account as of the immediately preceding Valuation Period
multiplied by the Net Investment Factor, as defined in Section 5.4, for
that Investment Account for the current Valuation Period. The value of an
Accumulation Unit for each Investment Account shall be determined for each
Valuation Period before giving effect to any additions, withdrawals, or
transfers. After such determination, the additions, withdrawals, or
transfers which are effective as of that day shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for each
Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(l) the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Portfolio during the current Valuation Period,
plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Portfolio share held in the Investment
Account determined as of the end of the immediately preceding
Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks.
P-12621.17
5.5 Determining the Value of Each Participant Account's Share of any Investment
Account: The value of each Participant Account's share of any Investment
Account as of any Valuation Date shall be determined by multiplying the
Participant Account's aggregate Accumulation Units in that Investment
Account as of such Valuation Date by the dollar value of one Accumulation
Unit in that Investment Account as of such Valuation Date. The value of the
Participant Account's share of any Investment Account as of any date other
than a Valuation Date is equal to the value of its share of that Investment
Account as of the immediately preceding Valuation Date.
P-12621.18
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account.
6.2 Investment Management Charge: The Mutual Fund shall pay an investment
advisory fee and certain other expenses, which may include its operational
and organizational expenses, as described in the current prospectus as it
may be amended or supplemented from time to time. These expenses may vary
from year to year. The net asset value of each Portfolio reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Portfolio.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $7.50 or 0.5% of the Account Value
on the last day of each Contract Quarter from each Participant Account in
existence on such day for as long as the Participant Account is in effect
during the Accumulation Period. This charge is to be prorated among each
subaccount of the Participant Account which corresponds to each Investment
Option utilized under this contract by that Participant Account. If the
entire balance of a Participant Account is applied or withdrawn pursuant to
Sections 4.1, 4.7, 4.8, 8.2, or 8.4, the administrative charge attributable
to the period of time which has elapsed since the first day of the Contract
Quarter in which such application or withdrawal of funds is made shall not
be deducted from the amount applied or withdrawn.
6.4 Transfer Charge: AUL reserves the right to deduct a charge for each
transfer transaction pursuant to Section 3.4. This charge would be prorated
among the Investment Options from which the amounts are transferred in the
same proportion that the amount transferred from the Investment Option
bears to the total amount transferred from all Investment Options.
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Section 4.1 or
such other time that premium taxes are incurred by AUL. AUL also reserves
the right to deduct the appropriate charges for federal, state, or local
income taxes incurred by AUL that are attributable to the Variable Account
and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the Mutual Fund.
P-12621.19
ARTICLE 7 - RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
7.1 Right of AUL to Change Interest Rates: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the Guaranteed
Rate of Interest. Any such change shall apply only to Participant Accounts
established on or after the effective date of such change, and shall apply
for the duration of such affected Participant Accounts. Any change in the
Guaranteed Rate of Interest shall not result in a rate less than that
prescribed by applicable state law.
7.2 Right of AUL to Change Annuity Table: After the first 5 Contract Years, AUL
has the right at any time, upon delivery of written notice to the
Contractholder, to change any annuity table included in this contract, but
any such change shall apply only to Participant Accounts established on or
after the effective date of such change.
7.3 Right of AUL to Change Charges: AUL has the right at any time, upon
delivery of written notice to the Contractholder, to change the charges set
out in Sections 1.26 and 6.3. Any such change to the Withdrawal Charge set
out in Section 1.26 shall apply only to Participant Accounts established on
or after the effective date of such change, and shall apply for the
duration of such affected Participant Accounts. The administrative charge
set out in Section 6.3 shall be limited to a maximum of $15 per Contract
Quarter until the year 2001. Any increase in the administrative charge made
by AUL for any Contract Quarter beginning after December 31, 2000 shall be
limited to an amount which is designed to reimburse AUL for the expenses
associated with the administration of the contract and the operation of the
Variable Account. Any such increase shall not be anticipated to be a source
of profit for AUL.
7.4 Amendment of Contract to Conform with Law: Notwithstanding the provisions
of Section 9.1, AUL reserves the right to amend this contract at any time,
without the consent of the Contractholder, Participants, or any other
person or entity, to make any change to any provisions of the contract to
comply with, or give the Contractholder or Participants the benefit of, any
provisions of federal or state laws, regulations, or rulings. Any such
amendment shall be stated in a written instrument and delivered to the
Contractholder.
P-12621.20
ARTICLE 8 - TERMINATION OF CONTRACT
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office, provided that AUL
receives such notice by 4:00 p.m. E.S.T. on that Valuation Date. If such
notice is received after 4:00 p.m. E.S.T., such notice shall be effective
as of the close of business on the next succeeding Valuation Date. This
date shall be the effective date of termination. This contract shall also
terminate automatically as of the date that there are no Participant
Accounts maintained hereunder.
8.2 Payment Due to Termination by Contractholder:
(a) As of the effective date of termination of this contract by the
Contractholder pursuant to Section 8.1, the Contractholder may,
together with the Plan Sponsor, elect to have a payment or payments
made pursuant to (b) below to whomever the Contractholder directs.
Such payment or payments shall be in full settlement of this contract
and in lieu of any other payment under its terms. In order for such an
election to be effective, it must include the Contractholder's and the
Plan Sponsor's agreement to indemnify and hold AUL harmless from any
and all losses, claims, or demands that may later arise or be asserted
against AUL in connection with the making of such a payment or
payments and, if these funds are to be transferred to a substitute
funding medium, such election must contain the Contractholder's
certification that such substitute funding medium meets the
requirements of Code Section 403(b) and the Regulations issued
thereunder. This Contractholder's and Plan Sponsor's agreement must be
received by AUL at its Home Office prior to payment of any termination
benefits provided by this Section 8.2.
(b) Upon termination of this contract by the Contractholder:
(1) A single sum equal to that portion of the aggregate Withdrawal
Value of all Participant Accounts consisting of all of the
Accumulation Units of each Investment Account credited to such
Participant Accounts shall be calculated as of the close of
business on the effective date of termination and shall be
payable within 7 days from the effective date of termination,
except as AUL may be permitted to defer such payment in
accordance with appropriate provisions of the federal securities
laws.
(2) In addition to the amount payable pursuant to Section 8.2(b)(1)
above, commencing on the first Contract Anniversary immediately
succeeding the effective date of termination, a portion of each
Participant Account shall be paid in annual installments as
follows:
(i) As of the first Contract Anniversary immediately succeeding
the effective date of termination, one-seventh of that
portion of the Withdrawal Value of each Participant Account
consisting of the net dollar balance in the Fixed Interest
Account credited to each such Participant Account shall be
calculated and shall be payable.
P-12621.21
(ii) As of the second Contract Anniversary succeeding the
effective date of termination, one-sixth of that portion of
the Withdrawal Value of each Participant Account consisting
of the net dollar balance in the Fixed Interest Account
credited to each such Participant Account shall be
calculated and shall be payable.
(iii) As of the third Contract Anniversary succeeding the
effective date of termination, one-fifth of that portion of
the Withdrawal Value of each Participant Account consisting
of the net dollar balance in the Fixed Interest Account
credited to each such Participant Account shall be
calculated and shall be payable.
(iv) As of the fourth Contract Anniversary succeeding the
effective date of termination, one-fourth of that portion of
the Withdrawal Value of each Participant Account consisting
of the net dollar balance in the Fixed Interest Account
credited to each such Participant Account shall be
calculated and shall be payable.
(v) As of the fifth Contract Anniversary succeeding the
effective date of termination, one-third of that portion of
the Withdrawal Value of each Participant Account consisting
of the net dollar balance in the Fixed Interest Account
credited to each such Participant Account shall be
calculated and shall be payable.
(vi) As of the sixth Contract Anniversary succeeding the
effective date of termination, one-half of that portion of
the Withdrawal Value of each Participant Account consisting
of the net dollar balance in the Fixed Interest Account
credited to each such Participant Account shall be
calculated and shall be payable.
(vii) As of the seventh Contract Anniversary succeeding the
effective date of termination, the entire remaining portion
of the Withdrawal Value of each Participant Account
consisting of the net dollar balance in the Fixed Interest
Account credited to each such Participant Account shall be
calculated and shall be payable.
The Current Rates of Interest being credited to other contracts of this
class shall be credited from the effective date of termination until the
final payment is made under this subsection (b)(2).
Until such time as the above-referenced election is implemented, the terms
of the contract shall remain applicable, except that AUL shall have the
right to refuse to accept further Contributions.
8.3 Right of AUL to Terminate: AUL has the right, subject to applicable state
law, to terminate any Participant Account established under this contract
at any time during the Contract Year if the Account Value of such
Participant Account is less than $200 for the first Contract Year in which
a Contribution is made for the Participant, and $400 for any subsequent
Contract Year, and at least
P-12621.22
6 months have elapsed since the last previous Contribution to the contract.
If AUL elects to terminate a Participant Account in such event, such
termination shall be effective on the date
6 months following the date that AUL gives notice to the Contractholder and
the Participant that the Participant Account is to be terminated, provided
any Contributions made during such 6-month period are insufficient to bring
such Account Value up to the minimum level.
8.4 Payment Due to Termination by AUL: As of the effective date of termination
of a Participant Account by AUL pursuant to Section 8.3, AUL may elect to
have a payment made as set out below to the Contractholder. Any such
payment shall be in full settlement of the Participant Account under this
contract and in lieu of any other payment under its terms.
Upon termination of a Participant Account pursuant to Section 8.3, a single
sum equal to the Account Value of the Participant Account shall be
calculated as of the close of business on the effective date of termination
and shall be payable within 7 days from such effective date of termination.
P-12621.23
ARTICLE 9 - MISCELLANEOUS
9.1 Ownership: The Contractholder is the owner of the contract and may agree
with AUL to any change or amendment of it without the consent of any other
person or entity.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Portfolio, nor any of the other provisions and
conditions of this contract.
9.3 Certification of Plan Status: The Contractholder certifies, upon acceptance
of this contract, that, in the Contractholder's opinion, the Plan meets the
requirements of Code Section 403(b). AUL does not make any guarantee
regarding the federal, state, or local tax status of this contract, any
Participant Account established hereunder, or any transaction involving
this contract.
9.4 Essential Data: The Contractholder shall furnish to AUL whatever
information is necessary to establish the eligibility and amount of annuity
or other benefit in each instance. The Contractholder shall report to AUL
any person for whom a payment becomes due under the Plan and the nature and
amount of such payment before the date on which such payment becomes due or
as soon thereafter as is practicable.
9.5 Reliance: AUL shall be fully protected in relying on any information
furnished by the Contractholder, by any person or persons certified to AUL
by the Contractholder as acting on its behalf, or by a Participant. AUL
need not inquire as to the accuracy or completeness thereof.
9.6 Misstatement of Essential Data: If it has been found that any essential
data pertaining to any person has been omitted or misstated, including, but
not limited to, a misstatement as to the age of an annuitant, there shall
be an equitable adjustment so as to provide the annuity to which that
person is entitled.
9.7 Annuity Certificates: AUL shall issue to each person for whom an annuity is
purchased from AUL a certificate setting forth the amount and terms of
payment of the annuity.
9.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder or Participant making a request or
giving notice or direction, such request, notice, or direction must be in
writing and must be submitted to and received by AUL at its Home Office
before becoming effective, unless the Contractholder or Participant is
otherwise directed by AUL.
9.9 Quarterly Statement of Account Value: As soon as reasonably possible after
the end of each Contract Quarter, AUL shall prepare a statement of the
Account Value of each Participant Account existing under this contract.
P-12621.24
9.10 Conformity with State Laws: Any benefit payable under this contract shall
not be less than the minimum benefit required by any statute of the state
in which the contract is delivered.
9.11 Reference to Federal Laws: Language in this contract referring to federal
tax, securities, or other statutes or rules shall not be deemed to
incorporate within the contract such statutes or rules. This language is
informational and instructional in nature, and is not subject to approval
or disapproval by the state in which the contract is issued.
9.12 Sex and Number: Whenever the context so requires, the plural includes the
singular, the singular the plural, and the masculine the feminine.
9.13 Facility of Payment: If any Participant, contingent annuitant, or
beneficiary is legally incapable of giving a valid receipt for any payment
due him, and no guardian has been appointed, AUL may make such payment to
the person or persons who have assumed the care and principal support of
such Participant, contingent annuitant, or beneficiary. Also, AUL may make
payment directly to the Contractholder or to any person or entity when
directed to do so in writing by the Contractholder. Any payment made by AUL
will fully discharge AUL to the extent of such payment.
9.14 Insulation from Liability: The assets of the Variable Account are not
chargeable with liabilities arising out of any other business AUL may
conduct.
9.15 Voting:
(a) AUL is the legal owner of the shares of the Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the
shareholders of the Mutual Fund on matters requiring shareholder
voting under The Investment Company Act of l940 or other applicable
laws. AUL shall exercise these voting rights based on instructions
received from persons having the voting interest in corresponding
Investment Accounts of the Variable Account. However, if The
Investment Company Act of l940 or any regulations thereunder should be
amended, or if the present interpretation thereof should change, and
as a result AUL determines that it is permitted to vote the shares of
the Mutual Fund in its own right, it may elect to do so.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund shares of a particular Portfolio as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Portfolio as of the same date.
Fractional votes will be counted. The number of votes as to which
voting instructions may be given will be determined as of the date
coincident with the date established by the Mutual Fund for
determining shareholders eligible to vote at the meeting of the Mutual
Fund. If required by the Securities and Exchange Commission, AUL
reserves the right to determine in a different fashion the voting
rights attributable to the shares of the Mutual Fund.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are
P-12621.25
received in a timely manner for all contracts and Participant Accounts
participating in that Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or the Mutual
Fund as may be required by applicable federal law.
9.16 Acceptance of New Participants or Contributions. AUL reserves the right to
refuse to accept new Participants or new Contributions to this contract at
any time.
9.17 Nonforfeitability and Nontransferability: The entire Withdrawal Value of
the vested portion (as determined pursuant to the Plan) of a Participant
Account under this contract shall be nonforfeitable at all times. No sum
payable under this contract with respect to a Participant may be sold,
assigned, discounted, or pledged as collateral for a loan or as security
for the performance of an obligation or for any other purpose to any person
or entity other than AUL. In addition, to the extent permitted by law, no
such sum shall in any way be subject to legal process requiring the payment
of any claim against the payee.
9.18 Notice of Annual Meeting of Members: The regular annual meeting of the
members of AUL shall be held at its principal place of business on the
third Thursday in February of each year at the hour of ten o'clock A.M.
Elections for directors shall be held at such annual meeting.
P-12621.26
TABLE OF IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
ADJUSTED LIFE 10 YEAR CERTAIN
AGE ANNUITY AND LIFE ANNUITY
45 2.9690 2.9632
46 3.0190 3.0124
47 3.0715 3.0641
48 3.1269 3.1185
49 3.1852 3.1756
50 3.2466 3.2357
51 3.3115 3.2988
52 3.3800 3.3653
53 3.4525 3.4352
54 3.5291 3.5088
55 3.6104 3.5863
56 3.6966 3.6678
57 3.7881 3.7536
58 3.8850 3.8437
59 3.9877 3.9382
60 4.0964 4.0374
61 4.2115 4.1414
62 4.3334 4.2505
63 4.4626 4.3650
64 4.5994 4.4850
65 4.7442 4.6108
66 4.8977 4.7425
67 5.0608 4.8804
68 5.2347 5.0250
69 5.4213 5.1766
70 5.6229 5.3356
71 5.8412 5.5020
72 6.0778 5.6755
73 6.3336 5.8552
74 6.6097 6.0404
75 6.9084 6.2302
94GARF2-4
Adjusted Age = Actual Age at Settlement (in years and completed months) less the
following number of months: [.6 multiplied by (Birth Year - 1915)] rounded to
the nearest integer.
P-12621.27
CONTRACT NUMBER
CONTRACTHOLDER
PARTICIPANT'S NAME
SOCIAL SECURITY NUMBER
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into a Multiple-Fund Group Variable Annuity
Contract (the Contract) in connection with the Contractholder's tax deferred
annuity Plan, and that AUL has created an account in your name to receive
Contributions from the Contractholder for your benefit pursuant to the Contract.
The only parties to the Contract are the Contractholder and AUL. All rights and
benefits are determined in accordance with the provisions of the Contract.
Benefits under the Contract will be paid at the Contractholder's direction.
Any amendments to or changes in the Contract will be binding and conclusive on
each Participant and beneficiary.
This certificate is not itself the Contract, but is a certificate of
participation in the Contract.
AMERICAN UNITED LIFE INSURANCE COMPANY
Secretary
EMPLOYER-SPONSORED TDA MULTIPLE-FUND
GROUP VARIABLE ANNUITY CERTIFICATE
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12622
CONTRACT NUMBER
CONTRACTHOLDER
PARTICIPANT'S NAME
SOCIAL SECURITY NUMBER
American United Life Insurance Company (AUL) hereby certifies that the
Contractholder and AUL have entered into a Multiple-Fund Group Variable Annuity
Contract (the Contract) in connection with the Contractholder's tax deferred
annuity Plan, and that AUL has created an account in your name to receive
Contributions from the Contractholder for your benefit pursuant to the Contract.
The only parties to the Contract are the Contractholder and AUL. All rights and
benefits are determined in accordance with the provisions of the Contract.
Benefits under the Contract will be paid at the Contractholder's direction.
Any amendments to or changes in the Contract will be binding and conclusive on
each Participant and beneficiary.
This certificate is not itself the Contract, but is a certificate of
participation in the Contract.
NOTICE OF TEN DAY RIGHT TO EXAMINE CONTRACT
Please read this contract carefully. The Contractholder may return the con-
tract for any reason within ten days after receiving it. If returned, the
contract shall be considered void from the beginning and any Contributions shall
be refunded.
AMERICAN UNITED LIFE INSURANCE COMPANY
Secretary
EMPLOYER-SPONSORED TDA MULTIPLE-FUND
GROUP VARIABLE ANNUITY CERTIFICATE
THE ASSETS HELD IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES PROVISION
MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT PERFORMANCE
OF THE CORRESPONDING PORTFOLIO OF THE MUTUAL FUND IN WHICH THE INVESTMENT
ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS IS NOT GUARANTEED. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS.
P-12622 WV
SUMMARY OF CERTAIN CONTRACT PROVISIONS
WHICH AFFECT YOU
DEFINITIONS
"Account Value" for any Participant Account on any given date means:
(a) the balance of the Participant Account's share of the Fixed Interest
Account on that date; plus
(b) the value of the Participant Account's share of each Investment
Account on that date.
"Accumulation Period" means the period of time commencing on the date on which a
Participant's initial Contribution is credited to the Participant Account and
terminating on the date when such Participant Account is closed.
"Accumulation Unit" means a statistical device used to measure amounts of
increases to, decreases from, and accumulations in any Investment Account during
the Accumulation Period.
"Annuity Commencement Date" means the first day of any month upon which an
annuity begins under the Contract. However, for any Participant, this date shall
not be later than the required beginning date as defined in the applicable
sections of the Code and Regulations issued thereunder.
"Code" means the Internal Revenue Code of l986, as amended.
"Contributions" means amounts paid to AUL pursuant to the Contractholder's Code
Section 403(b) Plan and credited to a Participant Account. The following types
of Contributions are credited to individual subaccounts under the Participant
Account:
(a) "Elective Deferrals," which means, with respect to any taxable year,
any Contribution made under a salary reduction agreement. A
Contribution made under a salary reduction agreement shall not be
treated as an Elective Deferral if, under the salary reduction
agreement, such Contribution is made pursuant to a one-time
irrevocable election made by the Participant at the time of initial
eligibility to participate in the agreement, or is made pursuant to a
similar arrangement involving a one-time irrevocable election
specified in Regulations issued under the Code.
(b) "Employee Mandatory Contributions," which means Contributions made
under a salary reduction agreement pursuant to a one-time irrevocable
election made by the Participant at the time of initial eligibility to
participate in the agreement.
(c) "Employer Contributions," which means Contributions made by the
Participant's employer that are not made pursuant to (a) or (b) above.
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"Current Rates of Interest" means each of the annual effective rates of interest
as determined and declared by AUL from time-to-time and as credited to each
interest pocket maintained within the Fixed Interest Account. The Current Rates
of Interest shall always be equal to or greater than the Guaranteed Rate of
Interest.
"Excess Contributions" means those Contributions made on behalf of a Participant
which exceed the limitations in effect under applicable provisions of the Code
and Regulations issued thereunder.
"Fixed Interest Account" means that fund of AUL's general asset account in which
all or a portion of a Participant's Account Value may be held for accumulation
at the Current Rates of Interest.
(a) Contributions allocated, or amounts transferred, to the Fixed Interest
Account shall be credited to the open interest pocket and shall earn
interest at the Current Rate of Interest in effect for that interest
pocket. Such Contributions or transferred amounts, during the time
that the Current Rate of Interest exceeds the Guaranteed Rate of
Interest, shall earn interest at such credited Current Rate of
Interest for at least 1 year. After such 1-year period, AUL reserves
the right to declare, at any time, a new Current Rate of Interest to
be applied to funds held within that interest pocket. Any such new
Current Rate of Interest must remain in effect for that interest
pocket for at least 1 year.
(b) If AUL changes the Current Rate of Interest for new Contributions or
new amounts transferred to the Fixed Interest Account, the previous
open interest pocket shall close, and any Contributions or amounts
transferred on or after the effective date of such change shall be
credited to a new open interest pocket and shall earn interest at the
new Current Rate of Interest in effect for such new open interest
pocket. Therefore, at any given time, various funds credited to a
Participant Account and allocated to the Fixed Interest Account may be
earning interest at different Current Rates of Interest for different
periods of time.
"Guaranteed Rate of Interest" means interest at an annual effective rate of
4.00%.
"Home Office" means the principal office of AUL. The mailing address is P. O.
Xxx 0000, Xxxxxxxxxxxx, Xxxxxxx 00000-0000.
"Investment Account" means each subaccount of the Variable Account, which
subaccounts include the Equity Investment Account, the Bond Investment Account,
the Money Market Investment Account, and the Managed Investment Account, as the
case may be, where:
(a) Amounts allocated to the Equity Investment Account shall be invested
in shares of the AUL American Equity Portfolio of the Mutual Fund.
(b) Amounts allocated to the Bond Investment Account shall be invested in
shares of the AUL American Bond Portfolio of the Mutual Fund.
(c) Amounts allocated to the Money Market Investment Account shall be
invested in shares of the AUL American Money Market Portfolio of the
Mutual Fund.
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(d) Amounts allocated to the Managed Investment Account shall be invested
in shares of the AUL American Managed Portfolio of the Mutual Fund.
"Investment Option" means the Fixed Interest Account or any of the Investment
Accounts of the Variable Account. AUL reserves the right to provide other
Investment Options under the Contract at any time.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
l940.
"Participant" means any person reported to AUL by the Contractholder as eligible
for, and as participating in, the Plan, and for whom a Participant Account is
established.
"Participant Account" means an account established under the Contract for a
Participant. Within each Participant Account, the Contractholder can direct the
establishment of one or more subaccounts as made available by AUL. Contributions
received by AUL shall be credited to Participant Accounts and their subaccounts
as AUL is directed in writing by the Contractholder.
"Plan" means the Plan Sponsor's Code Section 403(b) plan.
"Portfolio" means a series of the Mutual Fund as described in the prospectus for
the Mutual Fund as such prospectus may be amended or supplemented from time to
time.
"Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
"Valuation Period" means the period beginning at the close of business on a
Valuation Date and ending at the close of business on the next succeeding
Valuation Date.
"Variable Account" means a separate account established by AUL called the AUL
American Unit Trust, which is registered under The Investment Company Act of
l940 as a unit investment trust.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, where the percentage varies by the
number of full years measured from the date a Participant Account is established
to the date the Withdrawal Charge is determined. Such percentage is as follows:
During
Account Years Percentage
1-5 8
6-10 4
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
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"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge.
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
(a) Contributions may vary in amount and frequency; however, they must be
at least equal to a minimum annual Contribution of $200 per
Participant in any full contract year.
(b) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
or to whomever the Contractholder directs pursuant to the Plan upon
receipt by AUL at its Home Office of complete written instructions
from the Contractholder. Such written instructions must include the
amount to be withdrawn and returned, and certification that such
Contributions constitute Excess Contributions and that such returns
are permitted by the Plan and by applicable provisions of the Code and
Regulations issued thereunder. It shall not be the responsibility of
AUL to determine the existence or amount of Excess Contributions or
gains or losses thereon, or that returns of Excess Contributions are
permitted by the Plan and by applicable provisions of the Code and
Regulations. In withdrawing and returning the identified amount, AUL
may rely solely on such written instructions and certification. Such a
withdrawal and return of Excess Contributions shall not be subject to
the withdrawal benefits provisions of the Contract.
(c) Contributions received at AUL's Home Office shall be identified by the
Contractholder as Elective Deferrals, Employee Mandatory
Contributions, or Employer Contributions, and shall be credited to the
appropriate subaccounts of each of the Participant Accounts as
directed by the Contractholder in written allocation instructions.
(d) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account and allocation
instructions regarding the initial Contribution. If the data required
to establish the Participant Account and allocation instructions
regarding the initial Contribution are not received by AUL at its Home
Office within 5 business days after AUL first receives the initial
Contribution, AUL shall return the initial Contribution to the
Contractholder unless the Contractholder consents to AUL retaining the
initial Contribution until AUL receives the data and allocation
instructions for the Participant. Alternatively, if the data required
to establish the Participant Account and allocation instructions
regarding the initial Contribution are not received by AUL at its Home
Office when AUL first receives the initial Contribution, to the extent
permitted by applicable law, AUL may allocate the initial Contribution
to the Money Market Investment Account, and shall transfer such
amounts credited to the Money Market Investment
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Account according to the applicable allocation instructions upon
receipt of the data required to establish the Participant Account and
allocation instructions.
(e) All Contributions subsequent to the initial Contribution shall be
credited and allocated as of the close of business on the Valuation
Period in which AUL receives the Contribution at its Home Office,
provided that the Contribution is received by 4:00 p.m. E.S.T. If the
Contribution is received after 4:00 p.m. E.S.T., such Contribution
shall be deemed to be received, and shall be credited and allocated as
of the close of business, on the next succeeding Valuation Period.
(f) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments of 10%, 25%, or
33-1/3%, as elected by the Contractholder or by that person designated
in writing to AUL by the Contractholder. If no allocation instruction
is made with respect to any Participant Account, AUL shall process
such credits in accordance with the allocation instruction applicable
to the immediately preceding Contribution. The Contractholder or such
designated person may change an allocation instruction with respect to
future allocations to the applicable Participant Account by giving new
written allocation instructions to AUL at its Home Office.
Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Portfolios and to substitute shares of, or
interests in, another Portfolio of the Mutual Fund, of another
open-end, registered investment company, or other investment vehicle,
for shares already purchased or to be purchased in the future under
the Contract, if the shares of any or all eligible Portfolios are no
longer available for investment, or if, in AUL's judgment, further
investment in any or all eligible Portfolios becomes inappropriate in
view of the purposes of the Variable Account or the Contract. Where
required under applicable law, AUL will not substitute any shares
attributable to the Contractholder's interest in the Variable Account
or any Investment Account without notice, Contractholder or
Participant approval, or prior approval of the Securities and Exchange
Commission or a state insurance commissioner, and without following
the filing or other procedures established by applicable state
insurance regulators. Nothing contained herein shall prevent the
Variable Account from purchasing other securities for other series or
classes of contracts, or from effecting a conversion between series or
classes of contracts on the basis of requests made by a majority of
other contractholders or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in a new Portfolio of the Mutual Fund, or
in other securities, investment vehicles, or shares of another
diversified open-end management investment company or series thereof.
AUL reserves the right to eliminate or combine existing Investment
Accounts if, in its sole discretion, marketing, tax, or investment
conditions so warrant.
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AUL also reserves the right to provide other Investment Options under
the Contract at any time. Subject to any required regulatory
approvals, AUL reserves the right to transfer assets from any
Investment Account to another separate account of AUL or Investment
Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in the Contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under the Contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
Transfers:
(a) Subject to the limitations of (d) through (f) below, the
Contractholder, or that person designated in writing to AUL by the
Contractholder, may direct AUL in writing to transfer the amounts
credited to an Investment Option to any other Investment Option during
the Accumulation Period. Any transfer from an Investment Account shall
be effective as of the close of business on the Valuation Date that
AUL receives such written direction, provided that AUL receives such
direction by 4:00 p.m. E.S.T. on that Valuation Date. If such
direction is received after 4:00 p.m. E.S.T., such transfer shall be
effective as of the close of business on the next succeeding Valuation
Date.
(b) AUL shall make the transfer as requested within 7 days from the date a
proper request is received by AUL at its Home Office, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer a transfer of
amounts from the Fixed Interest Account for a period of 6 months after
AUL receives the transfer request at its Home Office.
(c) All transfers from the Fixed Interest Account to any Investment
Account shall be made on a first-in/first-out accounting basis, so
that amounts credited to the Participant Account's share of the Fixed
Interest Account which have been on deposit for the longest period of
time, as well as the interest credited thereon, shall be transferred
first.
(d) A transfer with regard to the Participant Account's share of any
Investment Option shall not be made in an amount less than $500 or the
Participant Account's entire share, if less than $500. If such a
transfer reduces the Participant Account's remaining share of an
Investment Option to less than $500, the entire remaining share shall
also be transferred.
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(e) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any contract year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the last contract anniversary preceding the request for
transfer, or the Participant Account's entire share of the Fixed
Interest Account if such share would be less than $500 after the
transfer.
(f) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege,
and to impose a charge on a transfer.
(g) The Contractholder, in accordance with the Plan, may direct AUL to
reallocate all or a portion of the Account Value of any Participant
Account among other Participant Accounts. The Contractholder shall
certify that such reallocation is in accordance with the Plan.
(h) If so permitted in the Plan, AUL shall accept amounts transferred from
other contracts which are attributable to contributions made pursuant
to Code Section 403(b). Such transferred amounts shall be credited as
directed by the Contractholder to a separate rollover subaccount
established under the appropriate Participant Accounts.
BENEFITS
Benefit Options:
At the written request of the Contractholder, AUL shall apply all or a portion
of the Account Value (subject to any appropriate premium tax or similar tax
charge) of a Participant Account for the purpose of providing a fixed payment
annuity under the Plan. Upon receipt of a request for an annuity, AUL is hereby
authorized by the Contractholder to value and transfer the Participant Account's
share of the Variable Account to the Fixed Interest Account as of the date that
AUL receives such written request at its Home Office. Such transferred amounts
shall be held in the Fixed Interest Account until the Participant's Annuity
Commencement Date. The Contractholder request shall include certification as to
the purpose for the benefit and the election of one of the following benefit
options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of
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the annuitant's monthly annuity shall be paid to the contingent
annuitant named in the election for as long as the contingent
annuitant lives. An election of this option is automatically
cancelled if either the Participant or the contingent annuitant dies
before the Annuity Commencement Date.
(d) Unit Refund Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives, and shall end with the
last monthly payment before the death of the annuitant. If, at the
death of the annuitant, the sum of the monthly payments previously
received is less than the amount applied to provide the annuity,
monthly payments of the same amount shall continue to the annuitant's
beneficiary until the total of the monthly payments received equals
such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 30
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Lump Sum Payment. A lump sum payment shall be payable to the
annuitant. If the total Account Value is less than $2,000, such value
shall not be annuitized under options (a), (b), (c), (d), (e), or (g),
but shall be paid in a lump sum.
(g) Any other options mutually agreed upon between the Contractholder and
AUL shall be made available.
If no benefit option election for a Participant has been received by AUL at its
Home Office at least 30 days prior to the Annuity Commencement Date, the Account
Value (subject to any appropriate premium tax charge) of his Participant Account
may be applied under (b) above as a 10 Year Certain and Life Annuity if the
Participant is not married, or may be applied under (c) above as a 50%
Survivorship Annuity if the Participant is married. AUL must receive from the
Contractholder written notification of such Annuity Commencement Date, written
designation of the contingent annuitant or beneficiary, and any election forms
needed in connection with any benefit option provided.
In no event shall any option elected provide annuity benefits to the Participant
or to the Participant and the contingent annuitant which would extend for a
certain period beyond the life expectancy of such Participant or the joint life
expectancy of such Participant and such contingent annuitant as determined on
the Annuity Commencement Date.
If the elected option produces a monthly benefit amount that is less than AUL's
then current established minimum, AUL reserves the right to make payments on a
less frequent basis or to pay the appropriate amount in a single sum.
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Death Benefits:
(a) Notwithstanding the Contract termination provisions of the Contract,
upon receipt of written instructions from the Contractholder and of
due proof of the Participant's (and, if applicable, the beneficiary's)
death during the Accumulation Period at its Home Office, AUL shall
apply the Account Value of the Participant Account for the purpose of
providing a death benefit under the Plan. The death benefit shall be
paid to the Contractholder or to whomever the Contractholder directs.
(b) The Account Value to be applied pursuant to (a) above shall be
determined as of the close of business on the later of (1) the
Valuation Date that AUL receives such written Contractholder
instructions at its Home Office, or (2) the Valuation Date that AUL
receives such due proof of death at its Home Office, provided that
such written instructions or due proof of death received on the later
of (1) or (2) above are(is) received by 4:00 p.m. E.S.T. If the
written instructions or due proof of death received on the later of
(1) or (2) above are(is) received after 4:00 p.m. E.S.T., such
valuation shall be made as of the close of business on the next
succeeding Valuation Date.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or by another elected method on or
before December 31 of the calendar year which contains the fifth
anniversary of the date of the Participant's death; or
(ii) The benefit shall be paid as an annuity in accordance with the
Benefit Options shown above over the life or life expectancy of
the beneficiary. If the beneficiary is not the Participant's
surviving spouse, the annuity must begin on or before December 31
of the calendar year immediately following the calendar year in
which the Participant died. If the beneficiary is the
Participant's surviving spouse, the annuity need not begin before
December 31 of the calendar year in which the Participant would
have attained age 70 1/2.
(2) If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Benefit Option selected shall be paid at
least as rapidly as prior to the Participant's death.
(3) If payment is to be made in a cash lump sum, payment shall be made
within 7 days of the date of valuation, as determined in (b) above,
except as AUL may be permitted to defer such payment of amounts
derived from the Variable Account in accordance with the provisions of
federal securities laws. Also, AUL reserves the right to defer the
payment of amounts withdrawn from the Fixed Interest Account for a
period of 6 months after AUL receives written instructions at its
Home Office.
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Withdrawal Benefits:
(a) At any time prior to Contract termination, except as stated below, the
Contractholder, upon submitting a proper written request to AUL at its
Home Office, may direct AUL to withdraw all or a portion of the
Account Value (subject to the Withdrawal Charge) of a Participant
Account for the purpose of providing Plan benefits, other than Plan
termination benefits, provided:
(l) that any distribution to a Participant shall not occur until the
Participant has:
(i) attained age 59 1/2; or
(ii) terminated employment; or
(iii) become totally disabled (as defined by the Plan); or
(iv) experienced a hardship (as defined by the Plan); or
(2) that the amount being withdrawn is attributable to Contributions
made other than pursuant to a salary reduction agreement (within
the meaning of Code Section 402(g)(3)(C)); or
(3) that the amount being withdrawn is attributable to amounts held
as of December 31, l988 under another Code Section 403(b) annuity
contract.
(4) In the case of a hardship withdrawal referred to in (1)(iv)
above, any gain credited to Contributions made pursuant to a
salary reduction agreement may not be withdrawn.
(5) AUL shall not be responsible for determining a Participant's
compliance with the requirements above. Any withdrawal request
submitted by the Contractholder shall include certification as to
the purpose of the withdrawal. The Contractholder assumes full
responsibility for determining whether any withdrawal is
permitted under applicable law and under the terms of the Plan.
AUL may rely solely upon the representations of the
Contractholder made in the withdrawal request.
(b) Withdrawals from a Participant Account's share of an Investment Option
may not be made in an amount less than the smaller of $500 or the
Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(c) A withdrawal request shall be effective as of the close of business on
the Valuation Date that AUL receives a proper written withdrawal
request at its Home Office, provided that AUL receives such request by
4:00 p.m. E.S.T. on that Valuation Date. If such request is received
after 4:00 p.m. E.S.T., such request shall be effective as of the
close of business on the next succeeding Valuation Date.
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(d) The Account Value to be applied shall be determined as of the
applicable Valuation Date determined in (c) above. If the entire
Account Value of a Participant Account is withdrawn, the
Contractholder or party named by the Contractholder shall be paid the
Withdrawal Value. If the Contractholder requests that a specified
percentage or dollar amount be paid from a Participant Account, AUL
shall withdraw from the Participant Account an amount equal to the
dollar amount to be paid divided by the difference between 1 and the
decimal equivalent of the applicable Withdrawal Charge. Notwith-
standing the previous sentence, in any contract year the Contract-
holder may withdraw up to 10% of the Account Value of a Participant
Account determined as of the last contract anniversary preceding the
request for the withdrawal without application of any Withdrawal
Charge, provided that 12 months have elapsed from the date that the
Participant's first Contribution is credited to his Participant
Account by AUL to the date of such withdrawal.
(e) AUL shall pay such amount in a cash lump sum to the Contractholder or
as otherwise directed by the Contractholder. Such cash lump sum will
be paid within 7 days from the date that AUL receives the withdrawal
request at its Home Office, except as AUL may be permitted to defer
such payment of amounts withdrawn from the Variable Account in
accordance with appropriate provisions of the federal securities laws.
AUL reserves the right to defer the payment of amounts withdrawn from
the Fixed Interest Account for a period of up to 6 months after AUL
receives the withdrawal request at its Home Office.
(f) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
VALUATIONS
All assets of each Portfolio shall be valued as provided in the prospectus for
the Mutual Fund as such prospectus may be amended or supplemented from time to
time.
Any amounts that are allocated to any Investment Account on behalf of a
Participant shall be credited to his Participant Account in the form of
Accumulation Units on the basis of the value of such units in that Investment
Account as of the end of the Valuation Period on which such amounts are received
by AUL at its Home Office. Such crediting shall be made separately for amounts
allocated to each Investment Account.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such
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Valuation Date by the dollar value of one Accumulation Unit in that Investment
Account as of such Valuation Date. The value of the Participant Account's share
of any Investment Account as of any date other than a Valuation Date is equal to
the value of its share of that Investment Account as of the immediately
preceding Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account.
The Mutual Fund shall pay an investment advisory fee and certain other expenses,
which may include its operational and organizational expenses, as described in
the current prospectus as it may be amended or supplemented from time to time.
These expenses may vary from year to year. The net asset value of each Portfolio
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Portfolio.
AUL shall deduct an administrative charge per Contract year quarter equal to the
lesser of $7.50 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
is to be prorated among each subaccount of the Participant Account which
corresponds to each Investment Option utilized under the Contract by that
Participant Account.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
AUL reserves the right to amend the Contract at any time, without the consent of
the Contractholder, Participants, or any other person or entity, to make any
change to any provisions of the Contract to comply with, or give the
Contractholder or Participants the benefit of, any provisions of federal or
state laws, regulations, or rulings.
CONTRACT TERMINATION
Termination by Contractholder: The Contract will terminate if the Contractholder
gives written notice to AUL that the Contract is to be terminated. As of the
effective date of termination, the Contractholder, together with the
P-12622-12
Valuation Date by the dollar value of one Accumulation Unit in that Investment
Account as of such Valuation Date. The value of the Participant Account's share
of any Investment Account as of any date other than a Valuation Date is equal to
the value of its share of that Investment Account as of the immediately
preceding Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account.
The Mutual Fund shall pay an investment advisory fee and certain other expenses,
which may include its operational and organizational expenses, as described in
the current prospectus as it may be amended or supplemented from time to time.
These expenses may vary from year to year. The net asset value of each Portfolio
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Portfolio.
AUL shall deduct an administrative charge per Contract year quarter equal to the
lesser of $7.50 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
is to be prorated among each subaccount of the Participant Account which
corresponds to each Investment Option utilized under the Contract by that
Participant Account. However, in no event will any portion of the annual charge
for a Contract year attributable to the Fixed Interest Account subaccount of the
Participant Account exceed the amount of the Contributions allocated to such
Fixed Interest Account subaccount for the Participant during such Contract year
plus interest earned during such Contract year on amounts held in such Fixed
Interest Account subaccount. If the entire balance of a Participant Account is
applied to provide an annuity, death, withdrawal, or termination benefit, the
administrative charge attributable to the period of time which has elapsed since
the first day of the Contract year quarter in which such application of funds is
made will not be deducted from the amount applied.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
RIGHT OF AUL TO CHANGE CERTAIN PROVISIONS
AUL reserves the right to amend the Contract at any time, without the consent of
the Contractholder, Participants, or any other person or entity, to make any
change to any provisions of the Contract to comply with, or give the
Contractholder or Participants the benefit of, any provisions of federal or
state laws, regulations, or rulings.
CONTRACT TERMINATION
Termination by Contractholder: The Contract will terminate if the Contractholder
gives written notice to AUL that the Contract is to be terminated. As of the
effective date of termination, the Contractholder, together with the
P-12622-12/WA
Plan sponsor, may elect to have a payment or payments made as set out below to
whomever the Contractholder directs. Such payment or payments shall be in full
settlement of the Contract and in lieu of any other payment under its terms.
Upon termination of the Contract by the Contractholder:
(a) A single sum equal to that portion of the aggregate Withdrawal Value
of all Participant Accounts consisting of all of the Accumulation
Units of each Investment Account credited to such Participant Accounts
shall be calculated as of the close of business on the effective date
of termination and shall be payable within 7 days from the effective
date of termination, except as AUL may be permitted to defer such
payment in accordance with appropriate provisions of the federal
securities laws.
(b) In addition to the amount payable pursuant to (a) above, commencing on
the first Contract anniversary immediately following the effective
date of termination, a portion of each Participant Account shall be
paid in annual installments as follows:
(1) As of the first Contract anniversary immediately following the
effective date of termination, one-seventh of that portion of the
Withdrawal Value of each Participant Account consisting of the
net dollar balance in the Fixed Interest Account credited to each
such Participant Account shall be calculated and shall be
payable.
(2) As of the second Contract anniversary following the effective
date of termination, one-sixth of that portion of the Withdrawal
Value of each Participant Account consisting of the net dollar
balance in the Fixed Interest Account credited to each such
Participant Account shall be calculated and shall be payable.
(3) As of the third Contract anniversary following the effective date
of termination, one-fifth of that portion of the Withdrawal Value
of each Participant Account consisting of the net dollar balance
in the Fixed Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
(4) As of the fourth Contract anniversary following the effective
date of termination, one-fourth of that portion of the Withdrawal
Value of each Participant Account consisting of the net dollar
balance in the Fixed Interest Account credited to each such
Participant Account shall be calculated and shall be payable.
(5) As of the fifth Contract anniversary following the effective date
of termination, one-third of that portion of the Withdrawal Value
of each Participant Account consisting of the net dollar balance
in the Fixed Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
(6) As of the sixth Contract anniversary following the effective date
of termination, one-half of that portion of the Withdrawal Value
of each Participant Account consisting of the net dollar balance
in the Fixed Interest Account credited to each such Participant
Account shall be calculated and shall be payable.
P-12622-13
(7) As of the seventh Contract anniversary following the effective
date of termination, the entire remaining portion of the
Withdrawal Value of each Participant Account consisting of the
net dollar balance in the Fixed Interest Account credited to each
such Participant Account shall be calculated and shall be
payable.
The Current Rates of Interest being credited to other contracts of
this class shall be credited from the effective date of termination
until the final payment is made under (b) above.
Until such time as the above-referenced election is implemented, the terms of
the Contract remain applicable, except that AUL has the right to refuse to
accept further Contributions.
Termination by AUL:
(a) AUL has the right, subject to applicable state law, to terminate any
Participant Account established under the Contract at any time during
the Contract year if the Account Value of such Participant Account is
less than $200 for the first Contract year in which a Contribution is
made for the Participant, and $400 for any subsequent Contract year,
and at least 6 months have elapsed since the Contractholder's last
previous Contribution to the Contract. If AUL elects to terminate a
Participant Account in such event, such termination shall be effective
on the date 6 months following the date that AUL gives notice to the
Contractholder and the Participant that the Participant Account is to
be terminated, provided that the Contractholder fails to make
Contributions during such 6-month period sufficient to bring such
Account Value up to the minimum level.
(b) Upon termination of a Participant Account by AUL, AUL may elect to
have a single sum equal to the Account Value of the Participant
Account calculated and paid to the Contractholder within 7 days from
the effective date of termination. Any such payment shall be in full
settlement of the Participant Account under the Contract and in lieu
of any other payment under its terms.
MISCELLANEOUS
Ownership: The Contractholder is the owner of the Contract and may agree with
AUL to any change or amendment of it without the consent of any other person or
entity.
AUL shall have no obligation to make any payment or distribution except as
specified in the Contract.
Certification of Plan Status: The Contractholder certifies, upon acceptance of
the Contract, that, in the Contractholder's opinion, the Plan meets the
requirements of Code Section 403(b). AUL does not make any guarantee regarding
the federal, state, or local tax status of the Contract, any Participant Account
established thereunder, or any transaction involving the Contract.
P-12622-14
Essential Data: The Contractholder shall furnish to AUL whatever information is
necessary to establish the eligibility and amount of annuity or other benefit in
each instance.
Reliance: AUL shall be fully protected in relying on any information furnished
by the Contractholder, by any person or persons certified to AUL by the
Contractholder as acting on its behalf, or by a Participant. AUL need not
inquire as to the accuracy or completeness thereof.
Misstatement of Essential Data: If it has been found that any essential data
pertaining to any person has been omitted or misstated, including, but not
limited to, a misstatement as to the age of an annuitant, there shall be an
equitable adjustment so as to provide the annuity to which that person is
entitled.
Annuity Certificates: AUL shall issue to each person for whom an annuity is
purchased from AUL a certificate setting forth the amount and terms of payment
of the annuity.
Election, Notice, or Direction Requirements: Wherever in the Contract reference
is made to the Contractholder or Participant making a request or giving notice
or direction, such request, notice, or direction must be in writing and must be
submitted to and received by AUL at its Home Office before becoming effective,
unless the Contractholder or Participant is otherwise directed by AUL.
Quarterly Statement of Account Value: As soon as reasonably possible after the
end of each contract year quarter, AUL shall prepare a statement of the Account
Value of each Participant Account existing under the Contract.
Sex and Number: Whenever the context of this certificate so requires, the plural
includes the singular, the singular the plural, and the masculine the feminine.
Facility of Payment: If any Participant, contingent annuitant, or beneficiary is
legally incapable of giving a valid receipt for any payment due him, and no
guardian has been appointed, AUL may make such payment to the person or persons
who have assumed the care and principal support of such Participant, contingent
annuitant, or beneficiary. Also, AUL may make payment directly to the
Contractholder or to any person or entity when directed to do so in writing by
the Contractholder. Any payment made by AUL will fully discharge AUL to the
extent of such payment.
Insulation from Liability: The assets of the Variable Account are not chargeable
with liabilities arising out of any other business AUL may conduct.
Voting:
(a) AUL is the legal owner of the shares of the Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
P-12622-15
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the share-
holders of the Mutual Fund on matters requiring shareholder voting
under The Investment Company Act of l940 or other applicable laws.
AUL shall exercise these voting rights based on instructions received
from persons having the voting interest in corresponding Investment
Accounts of the Variable Account. However, if The Investment Company
Act of l940 or any regulations thereunder should be amended, or if the
present interpretation thereof should change, and as a result AUL
determines that it is permitted to vote the shares of the Mutual Fund
in its own right, it may elect to do so.
(b) The person having the voting interest under the Contract is the
Contractholder.
(c) Voting rights attributable to the Contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or the Mutual
Fund as may be required by applicable federal law.
Nonforfeitability and Nontransferability: The entire Withdrawal Value of the
vested portion (as determined pursuant to the Plan) of a Participant Account
under the Contract shall be nonforfeitable at all times. No sum payable under
the Contract with respect to a Participant may be sold, assigned, discounted, or
pledged as collateral for a loan or as security for the performance of an
obligation or for any other purpose to any person or entity other than AUL. In
addition, to the extent permitted by law, no such sum shall in any way be
subject to legal process requiring the payment of any claim against the payee.
Acceptance of New Contributions: AUL reserves the right to refuse to accept new
Contributions to the Contract at any time.
P-12622-16
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
AUL AMERICAN SERIES
MULTIPLE-FUND GROUP VARIABLE ANNUITY CONTRACT (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
The Effective Date of this Addendum is the effective date of the corresponding
Amendment to the Contract.
Pursuant to this Addendum, the Participant's Certificate under the Contract is
hereby amended as follows:
By deleting the first paragraph of "Other Charges" and by substituting the
following first paragraph in lieu thereof:
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account. Additionally, AUL shall
multiply the portions (as delineated in the table below) of the total month-end
Account Value in the Variable Account of all Participants in the contract by the
monthly equivalent of the corresponding Annual Variable Investment Plus Factors
appearing in the table below. These products shall be added together, and the
sum shall be divided by the total month-end Account Value in the Variable
Account of all Participants in the contract. This percentage shall be multiplied
by the month-end Account Value of each Participant in each Investment Account.
The resulting amount for each Investment Account shall be added to the
Participant's Account Value for that Investment Account.
Contract's Month-End Account Value in Annual Variable Investment Plus Factor
Variable Account
First $500,000 0.00%
Next $500,000 0.25%
Next $2 million 0.35%
Next $2 million 0.40%
Next $1 million 0.50%
Over $6 million 0.75%
AUL
By /s/ Xxxxxxx X. Xxxxx
Secretary
AUL XXXXXXXX.XXX.XXX
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
EMPLOYER-SPONSORED TDA MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY (THE CONTRACTHOLDER)
The Effective Date of this Amendment is the date that it is signed by AUL.
Pursuant to this Addendum, the corresponding provisions of the Participant's
Certificate under the Contract are hereby deleted and the following provisions
are substituted in lieu thereof:
"Investment Account" means each subaccount of the Variable Account made
available to the Contractholder by AUL and identified in Schedule A of the
Contract. Schedule A of the Contract may be amended by AUL from time to time as
described in "Addition, Deletion, or Substitution of Investments." Amounts
allocated to any Investment Account identified in Schedule A of the Contract
shall be invested in the shares of the corresponding Mutual Fund Portfolio
listed in the current prospectus for the Variable Account.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
l940, and any other such open-end management investment company made available
by AUL.
"Portfolio" means a series of a Mutual Fund as described in the prospectus for
the Mutual Fund, as such prospectus may be amended or supplemented from time to
time.
Addition, Deletion, or Substitution of Investments:
a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Portfolios and to substitute shares of, or
interests in, another Portfolio of the AUL American Series Fund, Inc.,
of another open-end, registered investment company, or other
investment vehicle, for shares already purchased or to be purchased in
the future under the Contract, if the shares of any or all eligible
Portfolios are no longer available for investment, or if, in AUL's
judgment, further investment in any or all eligible Portfolios becomes
inappropriate in view of the purposes of the Variable Account or the
Contract. Where required under applicable law, AUL will not substitute
any shares attributable to the Contractholder's interest in the
Variable Account or any Investment Account without notice,
Contractholder or Participant approval, or prior approval of the
Securities and Exchange Commission or a state insurance commissioner,
and without following the filing or other procedures established by
applicable state insurance regulators. Nothing contained herein shall
prevent the Variable Account from purchasing other securities for
other series or classes of contracts, or from effecting a conversion
between series or classes of contracts on the basis of requests made
by a majority of other contractholders or as permitted by federal law.
P.12622.ADD.1
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund Portfolio
listed in the current prospectus for the Variable Account, or in other
securities or investment vehicles. AUL reserves the right to eliminate
or combine existing Investment Accounts if, in its sole discretion,
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under the Contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in the Contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under the Contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
General Withdrawal Provisions:
(a) (6) Effective January 1, 1993, if, as provided in Internal Revenue
Code Regulation Section 1.403(b)-2T Q&A-2, the distributee of any
eligible rollover distribution elects to have the distribution paid
directly to an eligible retirement plan (as defined in Q&A-1 of that
Section) and specifies the eligible retirement plan to which the
distribution is to be paid, then the distribution shall be paid to
that eligible retirement plan in a direct rollover.
VALUATIONS
All assets of each Portfolio shall be valued as provided in the prospectus for
the applicable Mutual Fund as such prospectus may be amended or supplemented
from time to time.
Any amounts that are allocated to any Investment Account on behalf of a
Participant shall be credited to his Participant Account in the form of
Accumulation Units on the basis of the value of such units in that Investment
Account as of the end of the Valuation Period on which such amounts are received
by AUL at its Home Office. Such crediting shall be made separately for amounts
allocated to each Investment Account. The number of Accumulation Units in each
Investment Account credited to each Participant Account as of any Valuation
Period shall be determined by dividing the amounts allocated to that In vestment
Account for that Participant Account as of such Valuation Period by the dollar
value of one Accumulation Unit in that Investment Account as of the close of
business on the applicable Valuation Period. The number of Accumulation Units
thus determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment
P.12622.ADD.2
Account as of any date other than a Valuation Date is equal to the value of its
share of that Investment Account as of the immediately preceding Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account.
A Mutual Fund shall pay any investment advisory fee and certain other expenses,
which may include its operational and organizational expenses, as described in
the current prospectus for that Mutual Fund as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Portfolio reflects such investment advisory fee and other expenses
which are deducted from the assets of such Portfolio.
AUL shall deduct an administrative charge per Contract year quarter equal to the
lesser of $7.50 or 0.5% of the Account Value on the last day of each such
quarter from each Participant Account in existence on such day for so long as
the Participant Account is in effect during the Accumulation Period. This charge
is to be prorated among each subaccount of the Participant Account which
corresponds to each Investment Option utilized under the Contract by that
Participant Account.
AUL reserves the right to deduct a charge for each transfer transaction, to
deduct the appropriate premium tax charge, or to deduct the appropriate charges
for federal, state, or local income taxes incurred by AUL that are attributable
to the Variable Account and its Investment Accounts.
Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund held by the
Investment Accounts of the Variable Account. AUL shall exercise voting
rights attributable to the shares of each Portfolio held in the
Investment Accounts at any regular and special meetings of the
shareholders of a Mutual Fund on matters requiring shareholder voting
under The Investment Company Act of l940 or other applicable laws. AUL
shall exercise these voting rights based on instructions received from
persons having the voting interest in corresponding Investment
Accounts of the Variable Account. However, if The Investment Company
Act of l940 or any regulations thereunder should be amended, or if the
present interpretation thereof should change, and as a result AUL
determines that it is permitted to vote the shares of a Mutual Fund in
its own right, it may elect to do so. AUL will vote shares of any
Investment Account, if any, that it owns beneficially in its own
discretion, except that if a Mutual Fund offers its shares to any
insurance company separate account that funds variable life insurance
contracts or if otherwise required by applicable law, AUL will vote
its own shares in the same proportion as the voting instructions that
are received in a timely manner for contracts and Participant Accounts
participating in the Investment Account.
(b) The person having the voting interest under this contract is the
Contractholder.
(c) Voting rights attributable to the Contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
P.12622.ADD.3
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund as may be required by applicable federal law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
P.12622.ADD.4
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
EMPLOYER-SPONSORED TDA MULTIPLE-FUND
GROUP VARIABLE ANNUITY CONTRACT (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
The Effective Date of this Addendum is the effective date of the corresponding
Amendment to the Contract.
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THE CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND OR MUTUAL
FUND PORTFOLIO IN WHICH THE INVESTMENT ACCOUNT INVESTS. ARTICLE 5 OF THE
CONTRACT EXPLAINS THE VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
Pursuant to this Addendum, the corresponding provisions of the Participant's
Certificate under the Contract are hereby deleted, and the following provisions
are substituted in lieu thereof:
DEFINITIONS
The first sentence of the definition of "Contributions" is deleted, and the
following sentence is substituted in lieu thereof:
"Contributions" means amounts paid to AUL pursuant to the Plan, including
amounts transferred to the Contract from another AUL group annuity contract,
which are credited to a Participant Account.
"Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and identified
in Schedule A of the Contract. Schedule A of the Contract may be amended by AUL
from time to time as described in "Addition, Deletion, or Substitution of
Investments." Amounts allocated to any Investment Account identified in Schedule
A of the Contract shall be invested in the shares of the corresponding Mutual
Fund or Mutual Fund Portfolio listed in the current prospectus for the Variable
Account.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
l940, and any other such open-end management investment company made available
by AUL, as listed in Schedule A of the Contract.
"Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus for
that Mutual Fund, as such prospectus may be amended or supplemented from time to
time.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "Annuities and Death Benefits," as provided by the
Plan, where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date when
AUL establishes a Participant Account and credits the initial Contribution for
the Participant, and ends on the day immediately preceding the next anniversary
of such date. Each Participant Account Year thereafter begins on such an
anniversary date and ends on the day immediately preceding the next succeeding
anniversary date. The Withdrawal Charge percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
(participant account year)
(conversion)
P-12622(NBR).ADD.1
However, for any Participant who also participates in the companion AUL Series
III group annuity contract issued to the Contractholder, the initial Withdrawal
Charge percentage under the Contract shall be equal to the Withdrawal Charge
percentage applicable to the Participant under the AUL Series I group annuity
contract from which funds have been transferred to such Series III contract,
determined by AUL immediately prior to the date of such transfer, rounded down
to the next whole Withdrawal Charge percentage if the Withdrawal Charge
percentage under such Series I contract is a fractional Withdrawal Charge
percentage. However, the Withdrawal Charge percentage under this paragraph shall
never be greater than 8%. The Withdrawal Charge percentage shall be decreased by
1% for each subsequent Participant Account Year until the Withdrawal Charge
percentage equals 4%. (However, if the applicable Series I contract Withdrawal
Charge percentage is less than 4%, it shall be rounded up to 4% in the
Contract.) This 4% Withdrawal Charge percentage shall be in effect during the
next 6 consecutive Participant Account Years. Thereafter, the Withdrawal Charge
percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
(participant account year)
(conversion)
P-12622(NBR).ADD.2
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
(b) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
or to whomever the Contractholder directs pursuant to the Plan upon
receipt by AUL at its Home Office of complete written instructions
from the Contractholder. Such written instructions must include the
amount to be withdrawn and returned, and certification that such
Contributions constitute Excess Contributions and that such returns
are permitted by the Plan and by applicable provisions of the Code and
Regulations issued thereunder. It shall not be the responsibility of
AUL to determine the existence or amount of Excess Contributions or
gains or losses thereon, or that returns of Excess Contributions are
permitted by the Plan and by applicable provisions of the Code and
Regulations. In withdrawing and returning the identified amount, AUL
may rely solely on such written instructions and certification. Such a
withdrawal and return of Excess Contributions shall not be subject to
the "General Withdrawal Provisions" and "Other Plan Benefits Payable
in Cash" provisions of the Contract.
(d) (1) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account, instructions
regarding the amount of the initial Contribution for the Participant,
and Investment Option election instructions regarding the initial
Contribution.
(2) If the data required to establish a Participant Account and
instructions regarding the amount of the initial Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives the initial Contribution, AUL
shall return the initial Contribution to the Contractholder.
(3) If the data required to establish a Participant Account and
instructions regarding the amount of the initial Contribution for the
Participant are received, but Investment Option election instructions
regarding the initial Contribution are not received, by AUL at its
Home Office as of the date AUL receives the initial Contribution, AUL
shall allocate the initial Contribution to the AUL American Money
Market Investment Account, and shall send written notice to the
Contractholder following the end of the month in which the unallocable
initial Contribution is received by AUL. Upon receipt of proper
Investment Option election instructions for the Participant, AUL shall
then transfer such amounts credited to the AUL American Money Market
Investment Account, plus gains or minus losses thereon, to another
Investment Option, if such instructions so direct. If proper
Investment Option election instructions are not provided to AUL within
a reasonable period of time, which shall not exceed 105 days from the
date the initial Contribution is first credited to the AUL American
Money Market Investment Account, AUL shall return to the
Contractholder all Contributions that remain unallocated, plus gains
or minus losses thereon, or shall follow other instructions provided
by the Contractholder.
(e) Contributions for a Participant subsequent to the initial Contribution
shall be credited and allocated to the Participant Account as of the
close of business on the later of (1) the Valuation Period in which
AUL receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
election instructions.
(f) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable to AUL by the Contractholder or by that person designated
to AUL by the Contractholder. If no investment allocation instruction
is made with respect to any Participant Account, AUL shall process
such credits in accordance with the investment allocation instruction
applicable to the immediately preceding Contribution. The
Contractholder or such designated person may change an investment
allocation instruction with respect to future allocations to the
applicable Participant Account by giving new investment allocation
instructions to AUL at its Home Office in a form acceptable to AUL.
(participant account year)
(conversion)
P-12622(NBR).ADD.3
Pursuant to this Addendum, the corresponding provisions of the Participant's
Certificate under the Contract are hereby deleted, and the following provisions
are substituted in lieu thereof:
DEFINITIONS
The first sentence of the definition of "Contributions" is deleted, and the
following sentence is substituted in lieu thereof:
"Contributions" means amounts paid to AUL pursuant to the Plan, including
amounts transferred to the Contract from another AUL group annuity contract,
which are credited to a Participant Account.
"Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and identified
in Schedule A of the Contract. Schedule A of the Contract may be amended by AUL
from time to time as described in "Addition, Deletion, or Substitution of
Investments." Amounts allocated to any Investment Account identified in Schedule
A of the Contract shall be invested in the shares of the corresponding Mutual
Fund or Mutual Fund Portfolio listed in the current prospectus for the Variable
Account.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
l940, and any other such open-end management investment company made available
by AUL, as listed in Schedule A of the Contract.
"Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus for
that Mutual Fund, as such prospectus may be amended or supplemented from time to
time.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "Annuities and Death Benefits," as provided by the
Plan, where the percentage varies by the Contract year in which the withdrawal
is made. The Withdrawal Charge percentage is as follows:
During Withdrawal Charge
Contract Year Percentage
1-5 8
6-10 4
Thereafter 0
However, for any Participant who also participates in the companion AUL Series
III group annuity contract issued to the Contractholder, the initial Withdrawal
Charge percentage under the Contract shall be equal to the Withdrawal Charge
percentage applicable to the Participant under the AUL Series I group annuity
contract from which funds have been transferred to such Series III contract,
determined by AUL immediately prior to the date of such transfer, rounded down
to the next whole Withdrawal Charge percentage if the Withdrawal Charge
percentage under such Series I contract is a fractional Withdrawal Charge
percentage. However, the Withdrawal Charge percentage under this paragraph shall
never be greater than 8%. The Withdrawal Charge percentage shall be decreased by
1% for each subsequent Contract year until the Withdrawal Charge percentage
equals 4%. (However, if the applicable Series I contract Withdrawal Charge
percentage is less than 4%, it shall be rounded up to 4% in the Contract.) This
4% Withdrawal Charge percentage shall be in effect during the next 6 consecutive
Contract years. Thereafter, the Withdrawal Charge percentage shall be reduced to
0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
(contract year)
(conversion)
P-12622(NBR).ADD.1
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
(b) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
or to whomever the Contractholder directs pursuant to the Plan upon
receipt by AUL at its Home Office of complete written instructions
from the Contractholder. Such written instructions must include the
amount to be withdrawn and returned, and certification that such
Contributions constitute Excess Contributions and that such returns
are permitted by the Plan and by applicable provisions of the Code and
Regulations issued thereunder. It shall not be the responsibility of
AUL to determine the existence or amount of Excess Contributions or
gains or losses thereon, or that returns of Excess Contributions are
permitted by the Plan and by applicable provisions of the Code and
Regulations. In withdrawing and returning the identified amount, AUL
may rely solely on such written instructions and certification. Such a
withdrawal and return of Excess Contributions shall not be subject to
the "General Withdrawal Provisions" and "Other Plan Benefits Payable
in Cash" provisions of the Contract.
(d) (1) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account, instructions
regarding the amount of the initial Contribution for the Participant,
and Investment Option election instructions regarding the initial
Contribution.
(2) If the data required to establish a Participant Account and
instructions regarding the amount of the initial Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives the initial Contribution, AUL
shall return the initial Contribution to the Contractholder.
(3) If the data required to establish a Participant Account and
instructions regarding the amount of the initial Contribution for the
Participant are received, but Investment Option election instructions
regarding the initial Contribution are not received, by AUL at its
Home Office as of the date AUL receives the initial Contribution, AUL
shall allocate the initial Contribution to the AUL American Money
Market Investment Account, and shall send written notice to the
Contractholder following the end of the month in which the unallocable
initial Contribution is received by AUL. Upon receipt of proper
Investment Option election instructions for the Participant, AUL shall
then transfer such amounts credited to the AUL American Money Market
Investment Account, plus gains or minus losses thereon, to another
Investment Option, if such instructions so direct. If proper
Investment Option election instructions are not provided to AUL within
a reasonable period of time, which shall not exceed 105 days from the
date the initial Contribution is first credited to the AUL American
Money Market Investment Account, AUL shall return to the
Contractholder all Contributions that remain unallocated, plus gains
or minus losses thereon, or shall follow other instructions provided
by the Contractholder.
(e) Contributions for a Participant subsequent to the initial Contribution
shall be credited and allocated to the Participant Account as of the
close of business on the later of (1) the Valuation Period in which
AUL receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
election instructions.
(f) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable to AUL by the Contractholder or by that person designated
to AUL by the Contractholder. If no investment allocation instruction
is made with respect to any Participant Account, AUL shall process
such credits in accordance with the investment allocation instruction
applicable to the immediately preceding Contribution. The
Contractholder or such designated person may change an investment
allocation instruction with respect to future allocations to the
applicable Participant Account by giving new investment allocation
instructions to AUL at its Home Office in a form acceptable to AUL.
(contract year)
(conversion)
P-12622(NBR).ADD.2
Pursuant to this Addendum, the corresponding provisions of the Participant's
Certificate under the Contract are hereby deleted, and the following provisions
are substituted in lieu thereof:
DEFINITIONS
The first sentence of the definition of "Contributions" is deleted, and the
following sentence is substituted in lieu thereof:
"Contributions" means amounts paid to AUL pursuant to the Plan, including
amounts transferred to the Contract from another AUL group annuity contract,
which are credited to a Participant Account.
"Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and identified
in Schedule A of the Contract. Schedule A of the Contract may be amended by AUL
from time to time as described in "Addition, Deletion, or Substitution of
Investments." Amounts allocated to any Investment Account identified in Schedule
A of the Contract shall be invested in the shares of the corresponding Mutual
Fund or Mutual Fund Portfolio listed in the current prospectus for the Variable
Account.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
l940, and any other such open-end management investment company made available
by AUL, as listed in Schedule A of the Contract.
"Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus for
that Mutual Fund, as such prospectus may be amended or supplemented from time to
time.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "Annuities and Death Benefits," as provided by the
Plan, where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date when
AUL establishes a Participant Account and credits the initial Contribution for
the Participant, and ends on the day immediately preceding the next anniversary
of such date. Each Participant Account Year thereafter begins on such an
anniversary date and ends on the day immediately preceding the next succeeding
anniversary date. The Withdrawal Charge percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
(participant account year)
(non-conversion)
P-12622(NBR).ADD.1
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
(b) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
or to whomever the Contractholder directs pursuant to the Plan upon
receipt by AUL at its Home Office of complete written instructions
from the Contractholder. Such written instructions must include the
amount to be withdrawn and returned, and certification that such
Contributions constitute Excess Contributions and that such returns
are permitted by the Plan and by applicable provisions of the Code and
Regulations issued thereunder. It shall not be the responsibility of
AUL to determine the existence or amount of Excess Contributions or
gains or losses thereon, or that returns of Excess Contributions are
permitted by the Plan and by applicable provisions of the Code and
Regulations. In withdrawing and returning the identified amount, AUL
may rely solely on such written instructions and certification. Such a
withdrawal and return of Excess Contributions shall not be subject to
the "General Withdrawal Provisions" and "Other Plan Benefits Payable
in Cash" provisions of the Contract.
(d) (1) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account, instructions
regarding the amount of the initial Contribution for the Participant,
and Investment Option election instructions regarding the initial
Contribution.
(2) If the data required to establish a Participant Account and
instructions regarding the amount of the initial Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives the initial Contribution, AUL
shall return the initial Contribution to the Contractholder.
(3) If the data required to establish a Participant Account and
instructions regarding the amount of the initial Contribution for the
Participant are received, but Investment Option election instructions
regarding the initial Contribution are not received, by AUL at its
Home Office as of the date AUL receives the initial Contribution, AUL
shall allocate the initial Contribution to the AUL American Money
Market Investment Account, and shall send written notice to the
Contractholder following the end of the month in which the unallocable
initial Contribution is received by AUL. Upon receipt of proper
Investment Option election instructions for the Participant, AUL shall
then transfer such amounts credited to the AUL American Money Market
Investment Account, plus gains or minus losses thereon, to another
Investment Option, if such instructions so direct. If proper
Investment Option election instructions are not provided to AUL within
a reasonable period of time, which shall not exceed 105 days from the
date the initial Contribution is first credited to the AUL American
Money Market Investment Account, AUL shall return to the
Contractholder all Contributions that remain unallocated, plus gains
or minus losses thereon, or shall follow other instructions provided
by the Contractholder.
(e) Contributions for a Participant subsequent to the initial Contribution
shall be credited and allocated to the Participant Account as of the
close of business on the later of (1) the Valuation Period in which
AUL receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
election instructions.
(f) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable to AUL by the Contractholder or by that person designated
to AUL by the Contractholder. If no investment allocation instruction
is made with respect to any Participant Account, AUL shall process
such credits in accordance with the investment allocation instruction
applicable to the immediately preceding Contribution. The
Contractholder or such designated person may change an investment
allocation instruction with respect to future allocations to the
applicable Participant Account by giving new investment allocation
instructions to AUL at its Home Office in a form acceptable to AUL.
(participant account year)
(non-conversion)
P-12622(NBR).ADD.2
Pursuant to this Addendum, the corresponding provisions of the Participant's
Certificate under the Contract are hereby deleted, and the following provisions
are substituted in lieu thereof:
DEFINITIONS
The first sentence of the definition of "Contributions" is deleted, and the
following sentence is substituted in lieu thereof:
"Contributions" means amounts paid to AUL pursuant to the Plan, including
amounts transferred to the Contract from another AUL group annuity contract,
which are credited to a Participant Account.
"Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and identified
in Schedule A of the Contract. Schedule A of the Contract may be amended by AUL
from time to time as described in "Addition, Deletion, or Substitution of
Investments." Amounts allocated to any Investment Account identified in Schedule
A of the Contract shall be invested in the shares of the corresponding Mutual
Fund or Mutual Fund Portfolio listed in the current prospectus for the Variable
Account.
"Mutual Fund" means the AUL American Series Fund, Inc., a diversified, open-end
management investment company registered under The Investment Company Act of
l940, and any other such open-end management investment company made available
by AUL, as listed in Schedule A of the Contract.
"Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus for
that Mutual Fund, as such prospectus may be amended or supplemented from time to
time.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value withdrawn under the Contract, other than withdrawals to provide
those benefits discussed in "Annuities and Death Benefits," as provided by the
Plan, where the percentage varies by the Contract year in which the withdrawal
is made. The Withdrawal Charge percentage is as follows:
During Withdrawal Charge
Contract Years Percentage
1-5 8
6-10 4
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
(contract year)
(non-conversion)
P-12622(NBR).ADD.1
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
(b) Excess Contributions (plus gains or minus losses thereon) shall be
withdrawn from a Participant Account and returned to the Participant
or to whomever the Contractholder directs pursuant to the Plan upon
receipt by AUL at its Home Office of complete written instructions
from the Contractholder. Such written instructions must include the
amount to be withdrawn and returned, and certification that such
Contributions constitute Excess Contributions and that such returns
are permitted by the Plan and by applicable provisions of the Code and
Regulations issued thereunder. It shall not be the responsibility of
AUL to determine the existence or amount of Excess Contributions or
gains or losses thereon, or that returns of Excess Contributions are
permitted by the Plan and by applicable provisions of the Code and
Regulations. In withdrawing and returning the identified amount, AUL
may rely solely on such written instructions and certification. Such a
withdrawal and return of Excess Contributions shall not be subject to
the "General Withdrawal Provisions" and "Other Plan Benefits Payable
in Cash" provisions of the Contract.
(d) (1) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account, instructions
regarding the amount of the initial Contribution for the Participant,
and Investment Option election instructions regarding the initial
Contribution.
(2) If the data required to establish a Participant Account and
instructions regarding the amount of the initial Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives the initial Contribution, AUL
shall return the initial Contribution to the Contractholder.
(3) If the data required to establish a Participant Account and
instructions regarding the amount of the initial Contribution for the
Participant are received, but Investment Option election instructions
regarding the initial Contribution are not received, by AUL at its
Home Office as of the date AUL receives the initial Contribution, AUL
shall allocate the initial Contribution to the AUL American Money
Market Investment Account, and shall send written notice to the
Contractholder following the end of the month in which the unallocable
initial Contribution is received by AUL. Upon receipt of proper
Investment Option election instructions for the Participant, AUL shall
then transfer such amounts credited to the AUL American Money Market
Investment Account, plus gains or minus losses thereon, to another
Investment Option, if such instructions so direct. If proper
Investment Option election instructions are not provided to AUL within
a reasonable period of time, which shall not exceed 105 days from the
date the initial Contribution is first credited to the AUL American
Money Market Investment Account, AUL shall return to the
Contractholder all Contributions that remain unallocated, plus gains
or minus losses thereon, or shall follow other instructions provided
by the Contractholder.
(e) Contributions for a Participant subsequent to the initial Contribution
shall be credited and allocated to the Participant Account as of the
close of business on the later of (1) the Valuation Period in which
AUL receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
election instructions.
(f) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable to AUL by the Contractholder or by that person designated
to AUL by the Contractholder. If no investment allocation instruction
is made with respect to any Participant Account, AUL shall process
such credits in accordance with the investment allocation instruction
applicable to the immediately preceding Contribution. The
Contractholder or such designated person may change an investment
allocation instruction with respect to future allocations to the
applicable Participant Account by giving new investment allocation
instructions to AUL at its Home Office in a form acceptable to AUL.
(contract year)
(non-conversion)
P-12622(NBR).ADD.2
Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds or Mutual Fund Portfolios and to
substitute shares of, or interests in, another Portfolio of the AUL
American Series Fund, Inc., another open-end, registered investment
company, or another investment vehicle, for shares already purchased
or to be purchased in the future under the Contract, if the shares of
any or all eligible Mutual Funds or Mutual Fund Portfolios are no
longer available for investment, or if further investment in any or
all eligible Mutual Funds or Mutual Fund Portfolios becomes
inappropriate in view of the purposes of the Variable Account or the
Contract. Where required under applicable law, AUL will not substitute
any shares attributable to the Contractholder's interest in the
Variable Account or any Investment Account without notice,
Contractholder or Participant approval, or prior approval of the
Securities and Exchange Commission or a state insurance commissioner,
and without following the filing or other procedures established by
applicable state insurance regulators. Nothing contained herein shall
prevent the Variable Account from purchasing other securities for
other series or classes of contracts, or from effecting a conversion
between series or classes of contracts on the basis of requests made
by a majority of other contractholders or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable
Account, or in other securities or investment vehicles. AUL reserves
the right to eliminate or combine existing Investment Accounts if
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under the Contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in the Contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under the Contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
Transfers:
(a) Subject to the limitations of (d) through (f) below, the
Contractholder, or that person designated to AUL by the
Contractholder, may direct AUL, in a form acceptable to AUL, to
transfer the amounts credited to an Investment Option to any other
Investment Option during the Accumulation Period. Any transfer from an
Investment Account shall be effective as of the close of business on
the Valuation Date that AUL receives such transfer direction.
(d) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option. However, if that transfer
reduces the Participant Account's remaining share of that Investment
Option to less than $500, the entire remaining share shall also be
transferred.
(e) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the Contract date or the Contract anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract date or the Contract anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that Contract year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account. And
if that transfer reduces the Participant Account's remaining share of
the Fixed Interest Account to less than $500, the entire remaining
share shall also be transferred.
P-12622(NBR).ADD.3
BENEFITS
Benefit Options, Death Benefits, and Withdrawal Benefits are deleted, and the
following General Withdrawal Provisions, Annuities and Death Benefits, Other
Plan Benefits Payable in Cash, and Annuity Options are substituted in lieu
thereof:
General Withdrawal Provisions:
At any time prior to the termination of the Contract, the Contractholder may
direct AUL to withdraw all or a portion of a Participant Account pursuant to
"Annuities and Death Benefits" and "Other Plan Benefits Payable in Cash" to
provide Plan benefits (other than Plan termination benefits). Such
Contractholder direction must be submitted to AUL at its Home Office in a form
acceptable to AUL.
(a) Amounts attributable to amounts held as of December 31, 1988 under
another Code Section 403(b) annuity contract may be withdrawn to
provide such benefits.
(b) Amounts attributable to Contributions made other than pursuant to a
salary reduction agreement (within the meaning of Code Section
402(g)(3)(C)) may be withdrawn to provide such benefits.
(c) Amounts attributable to Contributions made pursuant to a salary
reduction agreement (within the meaning of Code Section 402(g)(3)(C))
may be withdrawn to provide such benefits, provided that the
withdrawal is made to provide a loan or that any distribution of such
amount shall not occur until the Participant has either attained age
59 1/2, separated from service, died, become totally disabled (as
defined by the Plan), or experienced a hardship (as defined by the
Plan). However, in the case of a hardship withdrawal, any gain
credited to such Contributions may not be withdrawn.
(d) Withdrawal of any amount from the Contract which is transferred
directly by AUL pursuant to Contractholder or Participant instructions
to another tax-deferred annuity funding vehicle under applicable IRS
rules and regulations is not the provision of a Plan benefit for
purposes of "Annuities and Death Benefits," but instead is a Contract
termination as to that amount for that Participant; and any such
withdrawal shall be subject to application of the Withdrawal Charge
pursuant to "Other Plan Benefits Payable in Cash." The Contractholder
hereby grants to a Participant the right to direct the withdrawal and
direct transfer of such Participant's voluntary Elective Deferrals (as
determined by the Contractholder) to another tax-deferred annuity
funding vehicle.
(e) If, as provided in Internal Revenue Code Regulation Section
1.403(b)-2T Q&A-2, the distributee of any eligible rollover
distribution elects to have the distribution paid directly to an
eligible retirement plan (as defined in Q&A-1 of that Section) and
specifies the eligible retirement plan to which the distribution is to
be paid, then the distribution shall be paid to that eligible
retirement plan in a direct rollover.
(f) AUL shall not be responsible for determining a Participant's
compliance with the requirements in (a) through (e) above. Any
withdrawal request submitted by the Contractholder shall include
certification as to the purpose of the withdrawal. The Contractholder
assumes full responsibility for determining whether any withdrawal is
permitted under applicable law and under the terms of a particular
Plan. AUL may rely solely upon the representations of the
Contractholder made in the withdrawal request.
(g) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(h) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to "Annuities and Death Benefits," "Other Plan
Benefits Payable in Cash," or "Annuity Options" shall be determined,
as of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or due proof of death, if received later),
in a form acceptable to AUL, at its Home Office.
(i) AUL shall pay any cash lump sum to the Contractholder or to whomever
the Contractholder directs within 7 days from the appropriate
Valuation Date as determined in (h) above, except as AUL may be
permitted to defer such payment of amounts withdrawn from the Variable
Account in accordance with appropriate provisions of the federal
securities laws.
P-12622(NBR).ADD.4
AUL reserves the right to defer the payment of amounts withdrawn from
the Fixed Interest Account for a period of up to 6 months after AUL
receives the withdrawal request at its Home Office.
(j) Withdrawals from a Participant Account's share of the Fixed Interest Account
shall be made on a first-in/first-out basis so that all or a portion of the
amounts credited to the Participant Account's share of the Fixed Interest
Account which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
"Annuities and Death Benefits:
(a) Subject to the limitation provided in "General Withdrawal Provisions,"
and subject to the provisions of (b) below for death benefits, at any
time prior to the termination of the Contract, the Contractholder may
direct AUL to withdraw all or a portion of the Account Value (subject
to any appropriate premium tax or similar tax charge) of a Participant
Account for the purpose of providing an annuity in accordance with the
Annuity Options shown in "Annuity Options," as directed by the
Contractholder, for benefits as provided by the Plan (other than Plan
termination benefits); or
(b) Regarding death benefits specifically, notwithstanding the provisions
of "Contract Termination," upon receipt at its Home Office of
instructions in a form acceptable to AUL from the Contractholder and
of due proof of the Participant's (and, if applicable, the
beneficiary's) death during the Accumulation Period, AUL shall apply
the Account Value (subject to any appropriate premium tax or similar
tax charge) of the Participant Account for the purpose of providing a
death benefit under the Plan. The death benefit shall be paid to the
Participant's beneficiary according to the method of payment elected
by the beneficiary (unless such method of payment was previously
elected by the Participant). The Participant's beneficiary may also
designate a beneficiary. This death benefit shall be payable:
(1) in a single sum or other method not provided in (2) below;
provided, however, that the entire Account Value (subject to the
appropriate premium tax or similar tax charge) must be paid to
the beneficiary on or before December 31 of the calendar year
which contains the fifth anniversary of the Participant's death,
or
(2) as an annuity in accordance with the Annuity Options shown in
"Annuity Options" over a period not to exceed the life or life
expectancy of the beneficiary. If the beneficiary is not the
Participant's surviving spouse, the annuity must begin on or
before December 31 of the calendar year immediately following the
calendar year in which the Participant died. If the beneficiary
is the Participant's surviving spouse, the annuity need not begin
before December 31 of the calendar year in which the Participant
would have attained age 70 1/2.
If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Annuity Option selected shall be paid at least as
rapidly as prior to the Participant's death.
Other Plan Benefits Payable in Cash:
Subject to the limitations provided in "General Withdrawal Provisions," at any
time prior to the termination of the Contract, the Contractholder may direct AUL
to make a cash payment from a Participant Account to the Contractholder or to
whomever the Contractholder directs for the purpose of providing Plan benefits
other than those provided in (b) of "Annuities and Death Benefits." If it is
necessary to withdraw the entire Account Value of a Participant Account to make
such payment, the amount paid shall equal the Withdrawal Value, minus any
appropriate premium tax or similar tax charge. If it is not necessary to
withdraw the entire Account Value to make such payment, AUL shall reduce the
Account Value of the Participant Account by an amount sufficient to make the
cash payment requested and to cover the Withdrawal Charge and any appropriate
premium tax or similar tax charge.
Notwithstanding the previous paragraph, in the first Contract year in which a
Participant Account is established, the Contractholder may withdraw from that
Participant Account up to 10% of the sum of the Account Value of that
Participant Account (determined as of the later of the Contract date or the
Contract anniversary immediately preceding the request for the withdrawal) plus
Contributions made during that Contract year, without application of the
Withdrawal Charge. In the next succeeding Contract year, the Contractholder may
also withdraw from that Participant Account up to 10% of the sum of the Account
Value of that Participant Account (determined as of the Contract anniversary
immediately preceding the request for the withdrawal) plus Contributions made
during that Contract year, without application of the Withdrawal Charge. In any
subsequent Contract year, the Contractholder may withdraw from that Participant
Account up to 10% of the Account Value of that Participant Account (determined
as of the Contract anniversary immediately preceding the request for the
withdrawal) without application of the Withdrawal Charge.
Annuity Options:
At the written request of the Contractholder pursuant to "Annuities and Death
Benefits," AUL shall apply all or a portion of the Account Value (subject to the
appropriate premium tax or similar tax charge) of a Participant Account for the
purpose of providing a fixed payment annuity under the Plan. Upon receipt of a
request for an annuity, AUL is hereby authorized by the Contractholder to value
and transfer the Participant Account's share of the Variable Account to the
Fixed Interest Account as of the date provided in (h) of "General Withdrawal
Provisions." Such transferred amounts shall be held in the Fixed Interest
Account until the Participant's Annuity Commencement Date. The Contractholder
request shall include certification as to the purpose for the annuity and the
election of one of the following annuity options.
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity: The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the annuitant's monthly annuity shall be paid to the contingent
annuitant named in the election for as long as the contingent
annuitant lives. An election of this option is automatically cancelled
if either the Participant or the contingent annuitant dies before the
Annuity Commencement Date.
(d) Installment Refund Annuity. The monthly annuity shall be payable to
the annuitant for as long as the annuitant lives, and shall end with
the last monthly payment before the death of the annuitant. If, at the
death of the annuitant, the sum of the monthly payments previously
received is less than the amount applied to provide the annuity,
monthly payments of the same amount shall continue to the annuitant's
beneficiary until the total of the monthly payments received equals
such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 20
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Any other annuity options made available by AUL at the time the option
to elect an annuity is exercised.
If the total Account Value is less than $2,000, such value shall not be
annuitized under options (a)-(f) above, but shall be paid in a lump sum.
If the monthly annuity is less than AUL's then current established minimum, AUL
reserves the right to make payments on a less frequent basis or to pay the
appropriate amount in a single sum.
P-12622(NBR).ADD.5
VALUATIONS
The first and second paragraphs of "Valuations" are deleted, and the following
paragraphs are substituted in lieu thereof:
All assets of each Mutual Fund or Mutual Fund Portfolio shall be valued as
provided in the prospectus for the applicable Mutual Fund or Mutual Fund
Portfolio as such prospectus may be amended or supplemented from time to time.
Any amounts allocated to any Investment Account on behalf of a Participant shall
be credited to his Participant Account in the form of Accumulation Units on the
basis of the value of such units in that Investment Account as of the later of
(1) the end of the Valuation Period on which such amounts are received by AUL at
its Home Office or (2) the end of the Valuation Period on which the data
required to establish the Participant Account and allocate such amounts to the
Participant Account and to Investment Options are received by AUL at its Home
Office. However, if the initial Contribution for a Participant is allocated
pursuant to paragraph (d)(1) of "Contributions" on the next succeeding Valuation
Period, the unit value as of the end of that Valuation Period shall be used.
Such crediting shall be made separately for amounts allocated to each Investment
Account. The number of Accumulation Units in each Investment Account credited to
each Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that Participant
Account as of such Valuation Period by the dollar value of one Accumulation Unit
in that Investment Account as of the close of business on the applicable
Valuation Period. The number of Accumulation Units thus determined shall not be
changed by any subsequent change in the dollar value of the Accumulation Units.
OTHER CHARGES
The second and third paragraphs of "Other Charges" are deleted and the following
paragraphs are substituted in lieu thereof:
A Mutual Fund or Mutual Fund Portfolio shall pay an investment advisory fee and
certain other expenses, which may include its ordinary operational and
organizational expenses, or any extraordinary expenses, as described in the
current prospectus for that Mutual Fund or Mutual Fund Portfolio as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Mutual Fund or Mutual Fund Portfolio share
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Mutual Fund or Mutual Fund Portfolio.
AUL hereby waives the administrative charge described hereafter in this
paragraph. AUL shall deduct an administrative charge per Contract year quarter
equal to the lesser of $7.50 or 0.5% of the Account Value on the last day of
each such quarter from each Participant Account in existence on such day for so
long as the Participant Account is in effect during the Accumulation Period.
This charge is to be prorated among each subaccount of the Participant Account
which corresponds to each Investment Option utilized under the Contract by that
Participant Account.
(companion)
P-12622(NBR).ADD.6
CONTRACT TERMINATION
Termination by AUL:
(b) Upon termination of a Participant Account by AUL, a single sum equal
to the Account Value of the Participant Account shall be calculated as
of the date of the close of business on the effective date of
termination and shall be payable within 7 days from such effective
date of termination.
MISCELLANEOUS
Election, Notice, or Direction Requirements: Wherever in the Contract reference
is made to the Contractholder or Participant making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in a
form otherwise acceptable to AUL, and must be submitted to and received by AUL
at its Home office before becoming effective.
Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of l940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: Xxxxxxx X. Xxxxx
Secretary
(companion)
P-12622(NBR).ADD.7
VALUATIONS
The first and second paragraphs of "Valuations" are deleted, and the following
paragraphs are substituted in lieu thereof:
All assets of each Mutual Fund or Mutual Fund Portfolio shall be valued as
provided in the prospectus for the applicable Mutual Fund or Mutual Fund
Portfolio as such prospectus may be amended or supplemented from time to time.
Any amounts allocated to any Investment Account on behalf of a Participant shall
be credited to his Participant Account in the form of Accumulation Units on the
basis of the value of such units in that Investment Account as of the later of
(1) the end of the Valuation Period on which such amounts are received by AUL at
its Home Office or (2) the end of the Valuation Period on which the data
required to establish the Participant Account and allocate such amounts to the
Participant Account and to Investment Options are received by AUL at its Home
Office. However, if the initial Contribution for a Participant is allocated
pursuant to paragraph (d)(1) of "Contributions" on the next succeeding Valuation
Period, the unit value as of the end of that Valuation Period shall be used.
Such crediting shall be made separately for amounts allocated to each Investment
Account. The number of Accumulation Units in each Investment Account credited to
each Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that Participant
Account as of such Valuation Period by the dollar value of one Accumulation Unit
in that Investment Account as of the close of business on the applicable
Valuation Period. The number of Accumulation Units thus determined shall not be
changed by any subsequent change in the dollar value of the Accumulation Units.
OTHER CHARGES
The second and third paragraphs of "Other Charges" are deleted and the following
paragraphs are substituted in lieu thereof:
A Mutual Fund or Mutual Fund Portfolio shall pay an investment advisory fee and
certain other expenses, which may include its ordinary operational and
organizational expenses, or any extraordinary expenses, as described in the
current prospectus for that Mutual Fund or Mutual Fund Portfolio as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Mutual Fund or Mutual Fund Portfolio share
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Mutual Fund or Mutual Fund Portfolio.
AUL hereby waives the administrative charge described hereafter in this
paragraph. AUL shall deduct an administrative charge per Contract year quarter
equal to the lesser of $7.50 or 0.5% of the Account Value on the last day of
each such quarter from each Participant Account in existence on such day for so
long as the Participant Account is in effect during the Accumulation Period.
This charge is to be prorated among each subaccount of the Participant Account
which corresponds to each Investment Option utilized under the Contract by that
Participant Account. However, in no event will any portion of the annual charge
for a Contract year attributable to the Fixed Interest Account subaccount of the
Participant Account exceed the amount of the Contributions allocated to such
Fixed Interest Account subaccount for the Participant during such Contract year
plus interest earned during such Contract year on amounts held in such Fixed
Interest Account subaccount. If the entire balance of a Participant Account is
applied to provide an annuity, death, withdrawal, or termination benefit, the
administrative charge attributable to the period of time which has elapsed since
the first day of the Contract year quarter in which such application of funds is
made will not be deducted from the amount applied.
(WA)
(companion)
P-12622(NBR).ADD.7
CONTRACT TERMINATION
Termination by AUL:
(b) Upon termination of a Participant Account by AUL, a single sum equal
to the Account Value of the Participant Account shall be calculated as
of the date of the close of business on the effective date of
termination and shall be payable within 7 days from such effective
date of termination.
MISCELLANEOUS
Election, Notice, or Direction Requirements: Wherever in the Contract reference
is made to the Contractholder or Participant making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in a
form otherwise acceptable to AUL, and must be submitted to and received by AUL
at its Home office before becoming effective.
Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of l940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: Xxxxxxx X. Xxxxx
Secretary
(WA)
(companion)
P-12622(NBR).ADD.8
VALUATIONS
The first and second paragraphs of "Valuations" are deleted and the following
paragraphs are substituted in lieu thereof:
All assets of each Mutual Fund or Mutual Fund Portfolio shall be valued as
provided in the prospectus for the applicable Mutual Fund or Mutual Fund
Portfolio as such prospectus may be amended or supplemented from time to time.
Any amounts allocated to any Investment Account on behalf of a Participant shall
be credited to his Participant Account in the form of Accumulation Units on the
basis of the value of such units in that Investment Account as of the later of
(1) the end of the Valuation Period on which such amounts are received by AUL at
its Home Office or (2) the end of the Valuation Period on which the data
required to establish the Participant Account and allocate such amounts to the
Participant Account and to Investment Options are received by AUL at its Home
Office. However, if the initial Contribution for a Participant is allocated
pursuant to paragraph (d)(1) of "Contributions" on the next succeeding Valuation
Period, the unit value as of the end of that Valuation Period shall be used.
Such crediting shall be made separately for amounts allocated to each Investment
Account. The number of Accumulation Units in each Investment Account credited to
each Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that Participant
Account as of such Valuation Period by the dollar value of one Accumulation Unit
in that Investment Account as of the close of business on the applicable
Valuation Period. The number of Accumulation Units thus determined shall not be
changed by any subsequent change in the dollar value of the Accumulation Units.
OTHER CHARGES
The second paragraph of "Other Charges" is deleted, and the following paragraph
is substituted in lieu thereof:
A Mutual Fund or Mutual Fund Portfolio shall pay an investment advisory fee and
certain other expenses, which may include its ordinary operational and
organizational expenses, or any extraordinary expenses, as described in the
current prospectus for that Mutual Fund or Mutual Fund Portfolio as it may be
amended or supplemented from time to time. These expenses may vary from year to
year. The net asset value of each Mutual Fund or Mutual Fund Portfolio share
reflects such investment advisory fee and other expenses which are deducted from
the assets of such Mutual Fund or Mutual Fund Portfolio.
(non-companion)
P-12622(NBR).ADD.7
CONTRACT TERMINATION
Termination by AUL:
(b) Upon termination of a Participant Account by AUL, a single sum equal
to the Account Value of the Participant Account shall be calculated as
of the date of the close of business on the effective date of
termination and shall be payable within 7 days from such effective
date of termination.
MISCELLANEOUS
Election, Notice, or Direction Requirements: Wherever in the Contract reference
is made to the Contractholder or Participant making a request or giving notice
or direction, such request, notice, or direction must be in writing, or in a
form otherwise acceptable to AUL, and must be submitted to and received by AUL
at its Home office before becoming effective.
Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of l940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: Xxxxxxx X. Xxxxx
Secretary
(non-companion)
P-12622(NBR).ADD.8
AMENDMENT
TO THE
GROUP ANNUITY CONTRACT
NUMBER (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
THE CONTRACTHOLDER
Notwithstanding any other provisions of the Contract, AUL and the Contractholder
agree that the Contract is hereby amended as follows:
By adding the following provision, effective January 1, 1993:
If, as provided in Internal Revenue Code Regulation Section 1.403(b)-2T Q&A-2,
the distributee of any eligible rollover distribution elects to have the
distribution paid directly to an eligible retirement plan (as defined in Q&A-1
of that Section) and specifies the eligible retirement plan to which the
distribution is to be paid, then the distribution shall be paid to that eligible
retirement plan in a direct rollover.
And by adding the following provision, effective January 1, 1996:
No Participant shall be permitted to have elective deferral contributions
(within the meaning of Internal Revenue Code Section 402(g)(3)) made during a
calendar year under this contract, or under any other plans, contracts, or
arrangements maintained by his employer, in excess of the dollar limitation in
effect under Internal Revenue Code Section 402(g)(1) and any Regulations issued
thereunder for taxable years beginning in such calendar year.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
P-12621.AMD.SBJPA
AMENDMENT
TO THE
AUL AMERICAN SERIES
EMPLOYER-SPONSORED TDA MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC HOSPITAL (THE CONTRACTHOLDER)
The Effective Date of this Amendment is the date that it is signed by AUL.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended as follows:
By deleting the last paragraph of the face page and by substituting the
following last paragraph in lieu thereof:
ACCUMULATION UNITS IN ANY INVESTMENT ACCOUNT FOR WHICH THIS CONTRACT MAKES
PROVISION MAY INCREASE OR DECREASE IN DOLLAR VALUE ACCORDING TO THE INVESTMENT
PERFORMANCE OF THE UNDERLYING ASSETS IN THE CORRESPONDING MUTUAL FUND OR MUTUAL
FUND PORTFOLIO IN WHICH THE INVESTMENT ACCOUNT INVESTS. THE VALUE OF SUCH ASSETS
AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THIS CONTRACT EXPLAINS
THE VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
By deleting the corresponding Sections or Subsections of the Contract and by
substituting the following Sections or Subsections in lieu thereof, and by
making any required corresponding changes in the Table of Contents of the
Contract:
1.6 "Contract Anniversary" means the first day of the second Contract Year and
each subsequent Contract Year. Each Contract Anniversary after the First
Contract Anniversary shall be the same day of the same month as the day and
month which is stated on the face page of this contract for the First
Contract Anniversary.
By deleting the first sentence of Section 1.9 and by substituting the following
first sentence in lieu thereof:
1.9 "Contributions" means amounts paid to AUL pursuant to the Plan, including
amounts transferred to this contract from another AUL group annuity
contract, which are credited to a Participant Account maintained hereunder.
1.15 "Investment Account" means each subaccount of the Variable Account which is
maintained by AUL and made available to the Contractholder by AUL and
identified in Schedule A of the contract. Schedule A of the contract may be
amended by AUL from time to time as described in Section 3.3. Amounts
allocated to any Investment Account identified in Schedule A of the
contract shall be invested in the shares of the corresponding Mutual Fund
or Mutual Fund Portfolio listed in the current prospectus for the Variable
Account.
P-12621.AMD.1
1.17 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open-end management investment
company made available by AUL, as listed in Schedule A.
1.22 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.26 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Participant Account Year in which the
withdrawal is made. The first Participant Account Year begins on the date
when AUL establishes a Participant Account and credits the initial
Contribution for the Participant, and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8
6-10 4
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
By deleting the last sentence of Section 3.1(b) and by substituting the
following last sentence in lieu thereof:
Such a withdrawal and return of Excess Contributions shall not be subject to
Sections 4.1 and 4.3.
3.2 How Contributions Are Handled:
(b) (1) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account, instructions
regarding the amount of the initial Contribution for the Participant,
and Investment Option election instructions regarding the initial
Contribution.
(2) If the data required to establish a Participant Account and
instructions regarding the amount of a Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives that Contribution, AUL
shall return that Contribution to the Contractholder unless the
Contractholder consents to AUL retaining that Contribution until
the earlier of (i) the date AUL receives such data and
instructions and, therefore, can properly allocate that
Contribution to the Participant Account or (ii) 25 days from the
date that Contribution is received by AUL.
(par year)
P-12621.AMD.2
1.17 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open-end management investment
company made available by AUL, as listed in Schedule A.
1.22 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.26 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Section 4.2, as provided by the Plan,
where the percentage varies by the Contract Year in which the withdrawal is
made. The Withdrawal Charge percentage is as follows:
During Withdrawal Charge
Contract Years Percentage
1-5 8
6-10 4
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
By deleting the last sentence of Section 3.1(b) and by substituting the
following last sentence in lieu thereof:
Such a withdrawal and return of Excess Contributions shall not be subject to
Sections 4.1 and 4.3.
3.2 How Contributions Are Handled:
(b) (1) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1
the business day that AUL receives the initial Contribution at
its Home Office, or (2) the business day that AUL receives, at
its Home Office, the data required to establish the Participant
Account, instructions regarding the amount of the initial
Contribution for the Participant, and Investment Option election
instructions regarding the initial Contribution.
(2) If the data required to establish a Participant Account and
instructions regarding the amount of a Contribution for the
Participant are not received by AUL at its Home Office within 5
business days after AUL first receives that Contribution, AUL
shall return that Contribution to the Contractholder unless the
Contractholder consents to AUL retaining that Contribution until
the earlier of (i) the date AUL receives such data and
instructions and, therefore, can properly allocate that
Contribution to the Participant Account or (ii) 25 days from the
date that Contribution is received by AUL.
(con year)
P-12621.AMD.2
(3) If the data required to establish a Participant Account,
including any annuity enrollment form required by AUL, and
instructions regarding the amount of a Contribution for the
Participant are received, but an Investment Option election for
that Participant is not received, by AUL at its Home Office as of
the date AUL receives that Contribution, AUL shall allocate that
Contribution to the Investment Option election identified in the
Participant's annuity enrollment form, which is generally the AUL
American Money Market Investment Account. If AUL subsequently
receives the data required to establish the Participant Account,
instructions regarding the amount of the Contribution for the
Participant, and an Investment Option election, AUL shall then
transfer such amounts credited to the AUL American Money Market
Investment Account or other Investment Account identified in the
Participant's annuity enrollment form, plus gains or minus losses
thereon, to another Investment Option, if such election so
directs.
(c) Contributions for a Participant subsequent to the initial Contribution
shall be credited and allocated to the Participant Account as of the
close of business on the later of (1) the Valuation Period in which
AUL receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
election instructions.
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected in a form
acceptable to AUL by the Contractholder or by that person designated
to AUL by the Contractholder. If no investment allocation instruction
is made with respect to any Participant Account, AUL shall process
such credits in accordance with the investment allocation instruction
applicable to the immediately preceding Contribution. The
Contractholder or such designated person may change an investment
allocation instruction with respect to future allocations to the
applicable Participant Account by giving new investment allocation
instructions to AUL at its Home Office in a form acceptable to AUL.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds or Mutual Fund Portfolios and to
substitute shares of, or interests in, another Portfolio of the AUL
American Series Fund, Inc., another open-end, registered investment
company, or another investment vehicle, for shares already purchased
or to be purchased in the future under the contract, if the shares of
any or all eligible Mutual Funds or Mutual Fund Portfolios are no
longer available for investment or if further investment in any or all
eligible Mutual Funds or Mutual Fund Portfolios becomes inappropriate
in view of the purposes of the Variable Account or the contract. Where
required under applicable law, AUL will not substitute any shares
attributable to the Contractholder's interest in the Variable Account
or any Investment Account without notice, Contractholder or
Participant approval, or prior approval of the Securities and Exchange
Commission or a state insurance commissioner, and without following
the filing or other procedures established by applicable state
insurance regulators. Nothing contained herein shall prevent the
Variable Account from
P-12621.AMD.3
purchasing other securities for other series or classes of contracts,
or from effecting a conversion between series or classes of contracts
on the basis of requests made by a majority of other contractholders
or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current prospectus for the Variable
Account, or in other securities or investment vehicles. AUL reserves
the right to eliminate or combine existing Investment Accounts if
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under this contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
3.4 Transfers:
(a) Subject to the limitations of Section 3.5, the Contractholder, or that
person designated to AUL by the Contractholder, may direct AUL, in a
form acceptable to AUL, to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. Any transfer from an Investment Account shall be
effective as of the close of business on the Valuation Date that AUL
receives such transfer direction.
3.5 Limitations on Transfers:
(a) The minimum transfer from the Participant Account's share of any
Investment Option is the lesser of $500 or the Participant Account's
entire share of that Investment Option. However, if that transfer
reduces the Participant Account's remaining share of that Investment
Option to less than $500, the entire remaining share shall also be
transferred.
(b) Amounts transferred from the Fixed Interest Account on behalf of a
Participant during any Contract Year shall not exceed 20% of the
Participant Account's share of the Fixed Interest Account determined
as of the later of the Contract Date or the Contract Anniversary
immediately preceding the request for transfer. Notwithstanding the
previous sentence, if the Participant Account's share of the Fixed
Interest Account is less than $2,500 determined as of the later of the
Contract Date or the Contract Anniversary immediately preceding the
request for transfer, the amount transferrable from the Fixed Interest
Account for that Contract Year is the lesser of $500 or the
Participant Account's entire share of the Fixed Interest Account. And
if that transfer reduces the Participant Account's remaining share of
P-12621.AMD.4
the Fixed Interest Account to less than $500, the entire remaining
share shall also be transferred.
(c) Amounts under this contract which have been transferred from other
group annuity contracts, whether issued by AUL or otherwise, shall be
allocated pursuant to the provisions of Section 3.2.
(d) AUL reserves the right to change the limitation on the minimum
transfer, to change the limit on remaining balances, to limit the
number and frequency of transfers, to suspend the transfer privilege
provided in Sections 3.4 and 3.5, and to impose a charge on a
transfer.
By deleting Sections 4.1, 4.2, 4.7, and 4.8 and by substituting the following
Sections 4.1 through 4.5 in lieu thereof:
4.1 General Withdrawal Provisions: Subject to the following provisions of this
Section, at any time prior to termination of the contract pursuant to
Article 8, the Contractholder may direct AUL to withdraw all or a portion
of a Participant Account pursuant to Sections 4.2 and 4.3 to provide Plan
benefits (other than Plan termination benefits). Such Contractholder
direction must be submitted to AUL at its Home Office in a form acceptable
to AUL.
(a) Amounts attributable to amounts held as of December 31, 1988 under
another Code Section 403(b) annuity contract may be withdrawn to
provide such benefits.
(b) Amounts attributable to Contributions made other than pursuant to a
salary reduction agreement (within the meaning of Code Section
402(g)(3)(C)) may be withdrawn to provide such benefits.
(c) Amounts attributable to Contributions made pursuant to a salary
reduction agreement (within the meaning of Code Section 402(g)(3)(C))
may be withdrawn to provide such benefits, provided that the
withdrawal is made to provide a loan or that any distribution of such
amount shall not occur until the Participant has either attained age
59 1/2, separated from service, died, become totally disabled (as
defined by the Plan), or experienced a hardship (as defined by the
Plan). However, in the case of a hardship withdrawal, any gain
credited to such Contributions may not be withdrawn.
(d) Withdrawal of any amount from this contract which is transferred
directly by AUL pursuant to Contractholder or Participant instructions
to another tax-deferred annuity funding vehicle under applicable IRS
rules and regulations is not the provision of a Plan benefit for
purposes of Section 4.2, but instead is a Contract termination as to
that amount for that Participant; and any such withdrawal shall be
subject to application of the Withdrawal Charge pursuant to Section
4.3. The Contractholder hereby grants to a Participant the right to
direct the withdrawal and direct transfer of such Participant's
voluntary Elective Deferrals (as determined by the Contractholder) to
another tax-deferred annuity funding vehicle.
(e) If, as provided in Internal Revenue Code Regulation Section
1.403(b)-2T Q&A-2, the distributee of any eligible rollover
distribution elects to have the distribution paid directly to an
eligible retirement plan (as defined in Q&A-1 of that Section) and
specifies the eligible retirement plan to which the distribution is to
be paid, then the distribution shall be paid to that eligible
retirement plan in a direct rollover.
(f) AUL shall not be responsible for determining a Participant's
compliance with the requirements above. Any withdrawal request
submitted by the Contractholder shall include
P-12621.AMD.5
certification as to the purpose of the withdrawal. The Contract-
holder assumes full responsibility for determining whether any with-
drawal is permitted under applicable law and under the terms of a
particular Plan. AUL may rely solely upon the representations
of the Contractholder made in the withdrawal request.
(g) Withdrawals from a Participant Account's share of any Investment
Option may not be made in an amount less than the smaller of $500 or
the Participant Account's entire share of the Investment Option. If a
withdrawal reduces the Participant Account's share of an Investment
Option to less than $500, such remaining share shall also be
withdrawn.
(h) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to Sections 4.2, 4.3, or 4.4 shall be determined, as
of the close of business on the Valuation Date that AUL receives a
proper withdrawal request (or due proof of death, if received later),
in a form acceptable to AUL, at its Home Office.
(i) AUL shall pay any cash lump sum to the Contractholder or to whomever
the Contractholder directs within 7 days from the appropriate
Valuation Date as determined in Subsection (h) above, except as AUL
may be permitted to defer such payment of amounts withdrawn from the
Variable Account in accordance with appropriate provisions of the
federal securities laws. AUL reserves the right to defer the payment
of amounts withdrawn from the Fixed Interest Account for a period of
up to 6 months after AUL receives the withdrawal request at its Home
Office.
(j) Withdrawals from a Participant Account's share of the Fixed Interest
Account shall be made on a first-in/first-out basis so that all or a
portion of the amounts credited to the Participant Account's share of
the Fixed Interest Account which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
4.2 Annuities and Death Benefits:
(a) Subject to the limitations provided in Section 4.1, and subject to the
provisions of Subsection (b) below for death benefits, at any time
prior to termination of the contract pursuant to the provisions of
Article 8, the Contractholder may direct AUL to withdraw all or a
portion of the Account Value (subject to Section 6.5) of a Participant
Account for the purpose of providing an annuity in accordance with the
Annuity Options shown in Section 4.5, as directed by the
Contractholder, for benefits as provided by the Plan (other than Plan
termination benefits).
(b) Regarding death benefits specifically, notwithstanding the provisions
of Article 8, and subject to the limitations provided in Section 4.1,
upon receipt at its Home Office of instructions in a form acceptable
to AUL from the Contractholder and of due proof of the Participant's
(and, if applicable, the beneficiary's) death during the Accumulation
Period, AUL shall apply the Account Value (subject to
P-12621.AMD.6
Section 6.5) of the Participant Account for the purpose of providing
a death benefit under the Plan. The death benefit shall be paid to the
Participant's beneficiary according to the method of payment elected
by the beneficiary (unless such method of payment was previously
elected by the Participant). The Participant's beneficiary may also
designate a beneficiary. This death benefit shall be payable:
(1) in a single sum or other method not provided in (2) below;
provided, however, that the entire Account Value (subject to
Section 6.5) must be paid to the beneficiary on or before
December 31 of the calendar year which contains the fifth
anniversary of the Participant's death, or
(2) as an annuity in accordance with the Annuity Options shown in
Section 4.5 over a period not to exceed the life or life
expectancy of the beneficiary. If the beneficiary is not the
Participant's surviving spouse, the annuity must begin on or
before December 31 of the calendar year immediately following the
calendar year in which the Participant died. If the beneficiary
is the Participant's surviving spouse, the annuity need not begin
before December 31 of the calendar year in which the Participant
would have attained age 70 1/2.
If a Participant dies on or after his Annuity Commencement Date, any
interest remaining under the Annuity Option selected shall be paid at
least as rapidly as prior to the Participant's death.
4.3 Other Plan Benefits Payable in Cash: Subject to the limitations provided in
Section 4.1, at any time prior to termination of the contract pursuant to
the provisions of Article 8, the Contractholder may direct AUL to make a
cash payment from a Participant Account to the Contractholder or to
whomever the Contractholder directs for the purpose of providing Plan
benefits other than those provided in Section 4.2(b). If it is necessary to
withdraw the entire Account Value of a Participant Account to make such
payment, the amount paid shall equal the Withdrawal Value, minus any
Section 6.5 charges. If it is not necessary to withdraw the entire Account
Value to make such payment, AUL shall reduce the Account Value of the
Participant Account by an amount sufficient to make the cash payment
requested and to cover the Withdrawal Charge and any Section 6.5 charges.
Notwithstanding the previous paragraph, in the first Contract Year in which
a Participant Account is established, the Contractholder may withdraw from
that Participant Account up to 10% of the sum of the Account Value of that
Participant Account (determined as of the later of the Contract Date or the
Contract Anniversary immediately preceding the request for the withdrawal)
plus Contributions made during that Contract Year, without application of
the Withdrawal Charge. In the next succeeding Contract Year, the
Contractholder may also withdraw from that Participant Account up to 10% of
the sum of the Account Value of that Participant Account (determined as of
the Contract Anniversary immediately preceding the request for the
withdrawal) plus Contributions made during that Contract Year, without
application of the Withdrawal Charge. In any subsequent Contract Year, the
Contractholder may withdraw from that Participant Account up to 10% of the
Account Value of that Participant Account (determined as of the Contract
Anniversary immediately preceding the request for the withdrawal) without
application of the Withdrawal Charge.
4.4 Election of Annuity Options: At the written request of the Contractholder
pursuant to Section 4.2, AUL shall apply all or a portion of the Account
Value (subject to Section 6.5) of a Participant Account for the purpose of
providing a fixed payment annuity under the Plan. Upon receipt of a request
for an annuity, AUL is hereby authorized by the Contractholder to value and
transfer the Participant Account's share of the Variable Account to the
Fixed Interest Account as of
P-12621.AMD.7
the date provided in Section 4.1(h). Such transferred amounts shall be
held in the Fixed Interest Account until the Participant's Annuity
Commencement Date. The Contractholder request shall include certification
as to the purpose for the annuity and the election of one of the following
annuity options. The amount of any annuity shall be computed from the
Table of Immediate Annuities then included in this contract, except as
provided under Section 4.7.
4.5 Annuity Options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the annuitant's monthly annuity shall be paid to the contingent
annuitant named in the election for as long as the contingent
annuitant lives. An election of this option is automatically cancelled
if either the Participant or the contingent annuitant dies before the
Annuity Commencement Date.
(d) Installment Refund Life Annuity. The monthly annuity shall be payable
to the annuitant for as long as the annuitant lives, and shall end
with the last monthly payment before the death of the annuitant. If,
at the death of the annuitant, the sum of the monthly payments
previously received is less than the amount applied to provide the
annuity, monthly payments of the same amount shall continue to the
annuitant's beneficiary until the total of the monthly payments
received equals such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 20
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Any other annuity options made available by AUL at the time the option
to elect an annuity is exercised.
If the total Account Value is less than $2,000, such value shall not be
annuitized under options (a)-(f) of this Section, but shall be paid in a
lump sum.
If the annuity option selected is not included in the attached Table of
Immediate Annuities, the amount of monthly annuity shall be based on rates
determined in the same manner as those found in the Table.
If no annuity option election for a Participant has been received by AUL
at its Home Office at least 30 days prior to the Annuity Commencement Date,
the Account Value (subject to Section 6.5) of his Participant Account may
be applied under (b) above as a 10 Year Certain and Life Annuity if the
Participant is not married, or may be applied under (c) above as a 50%
Survivorship Annuity if the Participant is married. AUL must receive from
the Contractholder written notification of such
P-12621.AMD.8
Annuity Commencement Date, written designation of the contingent annuitant
or beneficiary, and any election forms needed in connection with any
annuity option provided in this Section.
In no event shall any option elected provide annuity benefits to the
Participant or to the Participant and the contingent annuitant which would
extend for a certain period beyond the life expectancy of such Participant
or the joint life expectancy of such Participant and such contingent
annuitant as determined on the Annuity Commencement Date.
By redesignating Sections 4.3 through 4.6 as Sections 4.6 through 4.9,
respectively.
5.1 Valuation of Mutual Fund or Mutual Fund Portfolio Assets: All assets of
each Mutual Fund or Mutual Fund Portfolio shall be valued as provided in
the prospectus for the applicable Mutual Fund or Mutual Fund Portfolio as
such prospectus may be amended or supplemented from time to time.
5.2 Accumulation Units: Any amounts allocated to any Investment Account on
behalf of a Participant shall be credited to his Participant Account in the
form of Accumulation Units on the basis of the value of such units in that
Investment Account as of the later of (1) the end of the Valuation Period
on which such amounts are received by AUL at its Home Office or (2) the end
of the Valuation Period on which the data required to establish the
Participant Account and allocate such amounts to the Participant Account
and to Investment Options are received by AUL at its Home Office. However,
if the initial Contribution for a Participant is allocated pursuant to
Section 3.2(b)(1) on the next succeeding Valuation Period, the unit value
as of the end of that Valuation Period shall be used. Such crediting shall
be made separately for amounts allocated to each Investment Account. The
number of Accumulation Units in each Investment Account credited to each
Participant Account as of any Valuation Period shall be determined by
dividing the amounts allocated to that Investment Account for that
Participant Account as of such Valuation Period by the dollar value of one
Accumulation Unit in that Investment Account as of the close of business on
the applicable Valuation Period. The number of Accumulation Units thus
determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the AUL
American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation
Unit in any other Investment Account available under this contract shall be
established at $1.00 as of the date of the first deposit to such Investment
Account. The value of an Accumulation Unit in each Investment Account as of
any Valuation Period thereafter is equal to the dollar value of one
Accumulation Unit in that Investment Account as of the immediately
preceding Valuation Period multiplied by the Net Investment Factor, as
defined in Section 5.4, for that Investment Account for the current
Valuation Period. The value of an Accumulation Unit for each Investment
Account shall be determined for each Valuation Period before giving effect
to any additions, withdrawals, or transfers. After such determination, the
additions, withdrawals, or transfers which are effective as of that day
shall then be made.
P-12621.AMD.9
5.4 Determining the Net Investment Factor: The Net Investment Factor for each
Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period; plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, or
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
By deleting the last sentence of Section 6.3 and by substituting the following
last sentence in lieu thereof:
If the entire balance of a Participant Account is applied or withdrawn
pursuant to Sections 4.2, 4.3, 4.4, 8.2, or 8.4, the administrative charge
attributable to the period of time which has elapsed since the first day of
the Contract Quarter in which such application or withdrawal of funds is
made shall not be deducted from the amount applied or withdrawn.
(non-companion)
P-12621.AMD.10
5.4 Determining the Net Investment Factor: The Net Investment Factor for each
Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) the net asset value of a Mutual Fund or Mutual Fund Portfolio
share held in the Investment Account determined as of the end of
the current Valuation Period, plus
(2) the per share amount of any dividend or other distribution, if
any, paid by the Mutual Fund or Mutual Fund Portfolio during the
current Valuation Period; plus or minus
(3) any credit or charge for any taxes paid or reserved for by AUL
during the current Valuation Period which are determined by AUL
to be attributable to operation of the
Investment Account;
(b) is the net asset value of a Mutual Fund or Mutual Fund Portfolio share
held in the Investment Account determined as of the end of the
immediately preceding Valuation Period; and
(c) is a daily charge factor determined by AUL to reflect the charges
assessed against the assets of the Investment Account for mortality
and expense risks, as authorized by Section 6.1.
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account. These charges shall be reflected in the Net
Investment Factor as provided in Section 5.4(c).
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its ordinary operational and organizational expenses, or
any extraordinary expenses, as described in the current prospectus for that
Mutual Fund or Mutual Fund Portfolio as it may be amended or supplemented
from time to time. These expenses may vary from year to year. The net asset
value of each Mutual Fund or Mutual Fund Portfolio share reflects such
investment advisory fee and other expenses which are deducted from the
assets of such Mutual Fund or Mutual Fund Portfolio.
By adding the following first paragraph to Section 6.3:
6.3 Administrative Charge:
AUL hereby waives the administrative charge described hereafter in this
Section 6.3.
(stand-alone/select-like basis)
(companion)
P-12621.AMD.10
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Section 4.2 or 4.4
or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Mutual Fund or Mutual Fund Portfolio, nor any of the
other provisions and conditions of this contract.
9.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder or Participant making a request or
giving notice or direction, such request, notice, or direction must be in
writing, or in a form otherwise acceptable to AUL, and must be submitted to
and received by AUL at its Home Office before becoming effective.
9.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of l940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
(non-companion)
P-12621.AMD.11
6.5 Other Charges: AUL reserves the right to deduct the appropriate premium tax
charge at the time annuity payments commence pursuant to Section 4.2 or 4.4
or such other time that premium taxes are incurred by AUL. AUL also
reserves the right to deduct the appropriate charges for federal, state, or
local income taxes incurred by AUL that are attributable to the Variable
Account and its Investment Accounts.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc.
By adding the following first paragraph to Section 7.3:
7.3 Right of AUL to Change Charges:
Because the administrative charge described in Section 6.3 has been waived
AUL, the maximum administrative charge discussed hereafter in this Section
7.3 shall be $0.00.
8.1 Right of Contractholder to Terminate: This contract shall terminate if the
Contractholder gives written notice to AUL that this contract is to be
terminated. In such event, the termination notice shall be effective as of
the close of business on the Valuation Date that AUL receives a proper
written Contractholder notice at its Home Office. This date shall be the
effective date of termination. This contract shall also terminate
automatically as of the date that there are no Participant Accounts
maintained hereunder.
9.2 AUL's Annual Statement: No provision or condition of this contract shall be
deemed to control, determine, or modify any annual statement of AUL made to
any insurance department, contractholder, regulatory body, or other person,
nor shall anything in such annual statement be deemed to control,
determine, or modify the valuation provided for in this contract, nor the
values determined, nor the market, book, or other value of any asset in any
Investment Account or Mutual Fund or Mutual Fund Portfolio, nor any of the
other provisions and conditions of this contract.
9.8 Election, Notice, or Direction Requirements: Wherever in this contract
reference is made to the Contractholder or Participant making a request or
giving notice or direction, such request, notice, or direction must be in
writing, or in a form otherwise acceptable to AUL, and must be submitted to
and received by AUL at its Home Office before becoming effective.
9.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of l940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
(stand-alone/select-like basis)
(companion)
P-12621.AMD.11
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund or Mutual Fund Portfolio shares as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund or Mutual Fund Portfolio.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
CONTRACTHOLDER
By ____________________________________
Title _________________________________
Date __________________________________
(new business)
P-12621.AMD.12
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund or Mutual Fund Portfolio shares as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund or Mutual Fund Portfolio.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
CONTRACTHOLDER
By ___________________________________
Title ________________________________
Date _________________________________
AMERICAN UNITED LIFE INSURANCE COMPANY
By ___________________________________
Title ________________________________
Date _________________________________
(existing business)
P-12621.AMD.12
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
------------------ ------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Social Mid-Cap Growth Xxxxxxx Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
P-12621.AMD.13
AMENDMENT
TO THE
AUL AMERICAN SERIES
EMPLOYER-SPONSORED TDA MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA 73,321 (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
________________________________
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is the date that it is signed by AUL.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting Schedule A and by substituting the following Schedule
A in lieu thereof:
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
------------------ ------------------------------------
AUL American Bond AUL American Bond
AUL American Equity AUL American Equity
AUL American Managed AUL American Managed
AUL American Money Market AUL American Money Market
AUL American Tactical Asset Allocation Portfolio AUL American Tactical Asset Allocation Portfolio
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Social Mid-Cap Growth Xxxxxxx Social Mid-Cap Growth
Fidelity VIP Equity-Income Fidelity VIP Equity-Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Contrafund Fidelity VIP II Contrafund
Fidelity VIP II Index 500 Fidelity VIP II Index 500
Janus Aspen Series Flexible Income Portfolio Janus Aspen Series Flexible Income Portfolio
Janus Aspen Series Worldwide Growth Portfolio Janus Aspen Series Worldwide Growth Portfolio
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology PBHG Insurance Series Technology
and Communication and Communication
SAFECO Resource Series Trust Equity Portfolio SAFECO Resource Series Trust Equity Portfolio
SAFECO Resource Series Trust Growth Portfolio SAFECO Resource Series Trust Growth Portfolio
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
CONTRACTHOLDER AUL
By ________________________________________ By _______________________
Title ____________________________________ Title _____________________
Date ______________________________________ Date ______________________
P-12621.A
AMENDMENT
TO THE
AUL AMERICAN SERIES
EMPLOYER-SPONSORED TDA MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GXX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY (THE CONTRACTHOLDER)
The effective date of this Amendment is the date that it is signed by AUL.
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting the corresponding Sections or Subsections of the
Contract and by inserting the following Sections or Subsections in lieu thereof,
and by making any required corresponding changes in the Table of Contents of the
Contract:
1.15 "Investment Account" means each subaccount of the Variable Account made
available to the Contractholder by AUL and identified in Schedule A of the
contract. Schedule A of the contract may be amended by AUL from time to
time as described in Section 3.3. Amounts allocated to any Investment
Account identified in Schedule A of the contract shall be invested in the
shares of the corresponding Mutual Fund or Mutual Fund Portfolio listed in
the current prospectus for the Variable Account.
1.17 "Mutual Fund" means the AUL American Series Fund, Inc., a diversified,
open-end management investment company registered under The Investment
Company Act of l940, and any other such open-end management investment
company made available by AUL, as listed in Schedule A.
1.22 "Portfolio" (also known as a "Mutual Fund Portfolio") means a portfolio
established within a particular Mutual Fund as described in that prospectus
for that Mutual Fund, as such prospectus may be amended or supplemented
from time to time.
1.26 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn under this contract, other than withdrawals to
provide those benefits discussed in Sections 4.1 or 4.7, as provided by the
Plan, where the percentage varies by the Participant Account Year in which
the withdrawal is made. The first Participant Account Year begins on the
date when AUL establishes a Participant Account and credits the initial
Contribution for the Participant and ends on the day immediately preceding
the next anniversary of such date. Each Participant Account Year thereafter
begins on such an anniversary date and ends on the day immediately
preceding the next succeeding anniversary date. The Withdrawal Charge
percentage is as follows:
P-12621NBR.II.1
During Withdrawal Charge
Participant Account Years Percentage
1-5 8%
6-10 4%
Thereafter 0%
However, for any Participant who also participates in AUL Series III group
annuity contract GXX,XXX, the initial Withdrawal Charge percentage under this
contract shall be equal to the Withdrawal Charge percentage applicable to the
Participant under AUL Series I group annuity contract GXX,XXX, determined
immediately prior to the date funds under such Series I contract are transferred
to such Series III contract, rounded down to the next whole Withdrawal Charge
percentage if the Withdrawal Charge percentage under such Series I contract is a
fractional Withdrawal Charge percentage. However, the Withdrawal Charge
percentage under this paragraph shall never be greater than 8%. The Withdrawal
Charge percentage shall be decreased by 1% for each subsequent Participant
Account Year until the Withdrawal Charge percentage equals 4%. This 4%
Withdrawal Charge percentage shall be in effect during the next 6 consecutive
Participant Account Years. Thereafter, the Withdrawal Charge percentage shall be
reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including those
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
3.2 How Contributions Are Handled:
(b) The initial Contribution for a Participant shall be credited and
allocated to the Participant Account no later than the close of
business on the second business day of AUL after the later of (1) the
business day that AUL receives the initial Contribution at its Home
Office, or (2) the business day that AUL receives, at its Home Office,
the data required to establish the Participant Account, instructions
regarding the amount of the initial Contribution for the Participant,
and Investment Option election instructions regarding the initial
Contribution.
If the data required to establish a Participant Account, instructions
regarding the amount of the initial Contribution for the Participant,
and Investment Option election instructions regarding the initial
Contribution are not received by AUL at its Home Office within 5
business days after AUL first receives the initial Contribution, AUL
shall return the initial Contribution to the Contractholder unless the
Contractholder consents to AUL retaining the initial Contribution
until AUL receives the data required to establish the Participant
Account and such instructions.
However, if the data required to establish a Participant Account and
instructions regarding the amount of the initial Contribution for the
Participant are received, but Investment Option election instructions
regarding the initial Contribution are not received, by AUL at its
Home Office when AUL first receives the initial Contribution, AUL may,
in its sole discretion, allocate the initial Contribution to the AUL
American Money Market Investment Account, and shall send written
notice to the Contractholder following the end
P-12621NBR.II.2
of the month in which the unallocable initial Contribution is received by
AUL. Upon receipt of proper Investment Option election instructions
for the Participant, AUL shall then transfer such amounts credited to
the AUL American Money Market Investment Account, plus gains or minus
losses thereon, if required pursuant to such instructions. If proper
Investment Option election instructions are not provided to AUL within
a reasonable period of time, which shall not exceed 105 days from the
date the initial Contribution is first credited to the AUL American
Money Market Investment Account, AUL shall return to the
Contractholder all Contributions that remain unallocated, plus gains
or minus losses thereon, or shall follow other instructions provided
by the Contractholder.
(d) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected by the
Contractholder or by that person designated in writing to AUL by the
Contractholder. If no allocation instruction is made with respect to
any Participant Account, AUL shall process such credits in accordance
with the allocation instruction applicable to the immediately
preceding Contribution. The Contractholder or such designated person
may change an allocation instruction with respect to future
allocations to the applicable Participant Account by giving new
written allocation instructions to AUL at its Home Office.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any Investment
Account may purchase. AUL reserves the right to eliminate the shares
of any of the eligible Mutual Funds or Mutual Fund Portfolios and to
substitute shares of, or interests in, another Mutual Fund Portfolio
of the AUL American Series Fund, Inc., of another open-end, registered
investment company, or other investment vehicle, for shares already
purchased or to be purchased in the future under the contract, if the
shares of any or all eligible Mutual Funds or Mutual Fund Portfolios
are no longer available for investment, or if, in AUL's judgment,
further investment in any or all eligible Mutual Funds or Mutual Fund
Portfolios becomes inappropriate in view of the purposes of the
Variable Account or the contract. Where required under applicable law,
AUL will not substitute any shares attributable to the
Contractholder's interest in the Variable Account or any Investment
Account without notice, Contractholder or Participant approval, or
prior approval of the Securities and Exchange Commission or a state
insurance commissioner, and without following the filing or other
procedures established by applicable state insurance regulators.
Nothing contained herein shall prevent the Variable Account from
purchasing other securities for other series or classes of contracts,
or from effecting a conversion between series or classes of contracts
on the basis of requests made by a majority of other contractholders
or as permitted by federal law.
(b) AUL reserves the right to establish additional Investment Accounts,
each of which would invest in the corresponding Mutual Fund or Mutual
Fund Portfolio listed in the current
P-12621NBR.II.3
prospectus for the Variable Account, or in other securities or investment
vehicles. AUL prospectus for the Variable Account, or in other
securities or investment vehicles. AUL reserves the right to eliminate
or combine existing Investment Accounts if, in its sole discretion,
marketing, tax, or investment conditions so warrant. AUL also reserves
the right to provide other Investment Options under this contract at
any time. Subject to any required regulatory approvals, AUL reserves
the right to transfer assets from any Investment Account to another
separate account of AUL or Investment Account.
(c) In the event of any such substitution or change, AUL may, by
appropriate amendment, make such changes in this contract as may be
necessary or appropriate to reflect such substitution or change. If
deemed by AUL to be in the best interests of persons or entities
having voting rights under this contract, the Variable Account may be
operated as a management investment company under The Investment
Company Act of 1940 or any other form permitted by law, it may be
deregistered in the event such registration is no longer required
under The Investment Company Act of 1940, or it may be combined with
other separate accounts of AUL or an affiliate thereof. AUL may take
such action as is necessary to comply with, or to obtain, exemptions
from the Securities and Exchange Commission with regard to the
Variable Account. Subject to compliance with applicable law, AUL also
may combine one or more Investment Accounts and may establish a
committee, board, or other group to manage one or more aspects of the
operation of the Variable Account.
4.8 Withdrawal Benefits:
(a) (5) Withdrawal of any amount from this contract which is transferred
directly by AUL pursuant to Contractholder or Participant
instructions to another tax-deferred annuity funding vehicle
under applicable IRS rules and regulations is a Contract
termination as to that amount for that Participant; and any such
withdrawal shall be subject to application of the Withdrawal
Charge.
(6) Effective January 1, 1993, if, as provided in Internal Revenue
Code Regulation Section 1.403(b)-2T Q&A-2, the distributee of
any eligible rollover distribution elects to have the
distribution paid directly to an eligible retirement plan (as
defined in Q&A-1 of that Section) and specifies the eligible
retirement plan to which the distribution is to be paid, then the
distribution shall be paid to that eligible retirement plan in a
direct rollover.
(7) AUL shall not be responsible for determining a Participant's
compliance with the requirements above. Any withdrawal request
submitted by the Contractholder shall include certification as to
the purpose of the withdrawal. The Contractholder assumes full
responsibility for determining whether any withdrawal is
permitted under applicable law and under the terms of a
particular Plan. AUL may rely solely upon the representations of
the Contractholder made in the withdrawal request.
5.1 Time of Valuation: All assets of each Mutual Fund or Mutual Fund Portfolio
shall be valued as provided in the prospectus for the applicable Mutual
Fund or Mutual Fund Portfolio as such prospectus may be amended or
supplemented from time to time.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the AUL
American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation
Unit in any other Investment Account available under this contract shall be
established at $1.00 as of the date of the first deposit to such Investment
Account. The value of an Accumulation Unit in each Investment Account as of
any Valuation Period thereafter is equal to the dollar value of one
Accumulation Unit in that Investment Account as of the immediately
preceding Valuation Period multiplied by the Net Investment Factor, as
defined in Section 5.4, for that Investment Account for the current
Valuation Period. The value of an Accumulation Unit for each Investment
Account shall be determined for each Valuation Period before giving effect
to any additions, withdrawals, or transfers. After such determination, the
additions, withdrawals, or transfers which are effective as of that day
shall then be made.
6.2 Mutual Fund or Mutual Fund Portfolio Expenses: A Mutual Fund or Mutual Fund
Portfolio shall pay any investment advisory fee and certain other expenses,
which may include its operational and organizational expenses, as described
in the current prospectus for that Mutual Fund or Mutual Fund Portfolio as
it may be amended or supplemented from time to time. These expenses may
vary from year to year. The net asset value of each Mutual Fund or Mutual
Fund Portfolio reflects such investment advisory fee and other expenses
which are deducted from the assets of such Mutual Fund or Mutual Fund
Portfolio.
6.6 Reduction or Waiver of Certain Charges: AUL may reduce or waive the amount
of the Withdrawal Charge or the administrative charge discussed in Section
6.3 where the expenses associated with the sale of this contract or the
administrative costs associated with this contract are reduced, or where
this contract is sold to the directors or employees of AUL or any of its
affiliates, or to directors or any employees of the AUL American Series
Fund, Inc. or any other Mutual Fund made available by AUL.
9.15 Voting:
(a) AUL is the legal owner of the shares of a Mutual Fund or Mutual Fund
Portfolio held by the Investment Accounts of the Variable Account. AUL
shall exercise voting rights attributable to the shares of each Mutual
Fund or Mutual Fund Portfolio held in the Investment Accounts at any
regular and special meetings of the shareholders of a Mutual Fund on
matters requiring shareholder voting under The Investment Company Act
of l940 or other applicable laws. AUL shall exercise these voting
rights based on instructions received from persons having the voting
interest in corresponding Investment Accounts of the Variable Account.
However, if The Investment Company Act of l940 or any regulations
thereunder should be amended, or if the present interpretation thereof
should change, and as a result AUL determines that it is permitted to
vote the shares of a Mutual Fund or Mutual Fund Portfolio in its own
right, it may elect to do so. AUL will vote shares of any Investment
Account, if any, that it owns beneficially in its own discretion,
except that if a Mutual Fund or Mutual Fund Portfolio offers its
shares to any insurance company separate account that funds variable
life insurance contracts or if otherwise required by applicable law,
AUL will vote its own shares in the same proportion as the voting
instructions that are received in a timely manner for contracts and
Participant Accounts participating in the Investment Account.
(b) The person having the voting interest under this contract is the
Contractholder. Unless otherwise required by applicable law, the
number of Mutual Fund or Mutual Fund Portfolio shares as to which
voting instructions may be given to AUL is determined by dividing the
value of all of the Accumulation Units of the corresponding Investment
Account attributable to this contract on a particular date by the net
asset value per share of that Mutual Fund or Mutual Fund Portfolio as
of the same date. Fractional votes will be counted. The number of
votes as to which voting instructions may be given will be determined
as of the date coincident with the date established by the applicable
Mutual Fund or Mutual Fund Portfolio for determining shareholders
eligible to vote at the meeting of that Mutual Fund. If required by
the Securities and Exchange Commission, AUL reserves the right to
determine in a different fashion the voting rights attributable to the
shares of a Mutual Fund or Mutual Fund Portfolio.
(c) Voting rights attributable to this contract for which no timely voting
instructions are received will be voted by AUL in the same proportion
as the voting instructions which are received in a timely manner for
all contracts and Participant Accounts participating in that
Investment Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as
to the instructions received or the authority of Contractholders,
Participants, or others to instruct the voting of Mutual Fund or
Mutual Fund Portfolio shares.
(e) Every person or entity having such voting rights shall receive such
reports or prospectuses concerning the Variable Account or a Mutual
Fund or Mutual Fund Portfolio as may be required by applicable federal
law.
Contractholder AUL
By __________________________________ By ________________________________
Title _______________________________ Title ____________________________
Date ________________________________ Date ______________________________
P-12621NBR.II.6
SCHEDULE A
The following Investment Accounts are made available to the Contractholder by
AUL. Amounts allocated to any Investment Account identified below shall be
invested in the shares of the corresponding Mutual Fund or Mutual Fund Portfolio
listed below.
Investment Account Mutual Fund or Mutual Fund Portfolio
AUL American Equity AUL American Equity
AUL American Bond AUL American Bond
AUL American Money Market AUL American Money Market
AUL American Managed AUL American Managed
Fidelity VIP High Income Fidelity VIP High Income
Fidelity VIP Growth Fidelity VIP Growth
Fidelity VIP Overseas Fidelity VIP Overseas
Fidelity VIP II Asset Manager Fidelity VIP II Asset Manager
Fidelity VIP II Index 500 Fidelity VIP II Index 500
P-12621NBR.II.7
