AMENDMENT 1 TO
PARTICIPATION AGREEMENT
Among
XXXXXX VARIABLE TRUST
XXXXXX MUTUAL FUNDS CORP.
and
AMERICAN CENTURION LIFE ASSURANCE COMPANY
THIS AMENDMENT 1 TO PARTICIPATION AGREEMENT ("Amendment 1") is made and entered
into this 14th day of October, 1998 by and among Xxxxxx Variable Trust (the
"Fund"); Xxxxxx Mutual Funds Corp. (the "Distributor"); and American Centurion
Life Assurance Company (the "Company").
WHEREAS, the Company, the Fund and the Distributor are parties to the
Participation Agreement dated April 30, 1997 (the "Agreement"); and
WHEREAS, the parties now desire to amend the Agreement so that an enhanced
flexible premium variable annuity contract may invest in the Authorized Funds
and to provide that such annuity will invest in Class IB Shares of the
Authorized Funds;
NOW, THEREFORE, in consideration of their mutual promises, the Company, the Fund
and the Distributor agree as follows:
1. Amendment to Schedule A. In accordance with the terms of the Agreement, the
parties hereby amend Schedule A to read as follows:
Schedule A
Contracts
ACL Variable Annuity Account 2, established October 12, 1995.
ACL Personal Portfoliosm offers the following Authorized Funds as
investment options:
Xxxxxx VT Diversified Income Fund - Class IA Shares
Xxxxxx VT Growth and Income Fund - Class IA Shares
Xxxxxx VT New Opportunities Fund - Class IA Shares
Xxxxxx VT High Yield Fund - Class IA Shares
ACL Personal Portfolio Plus2 offers the following Authorized Funds as
investment options:
Xxxxxx VT Diversified Income Fund - Class IB Shares
Xxxxxx VT Growth and Income Fund - Class IB Shares
Xxxxxx VT High Yield Fund - Class IB Shares
Xxxxxx VT Voyager Fund - Class IB Shares
2. Service Fees. With respect to any investment in Class IB Shares of the
Authorized Funds:
a) Provided the Company complies with its obligations under the
Agreement, the Distributor will pay the Company a service fee (the
"Service Fee") on shares of the Authorized Funds held in the Account
at the rate of 0.15% per annum.
b) The Company understands and agrees that all Service Fee payments are
subject to the limitations contained in each Authorized Fund's
Distribution Plan, which may be varied or discontinued at any time,
and understands and agrees that it will cease to receive such Service
Fee Payments with respect to an Authorized Fund if the Authorized Fund
ceases to pay fees to the Distributor pursuant to its Distribution
Plan.
c) The Company's failure to provide the services described in Section
2(e) below or otherwise to comply with the terms of the Agreement will
render it ineligible to receive Service Fees.
d) Except as described in Sections 2(b) and 2(c) above, the Distributor
will pay the Company the Service Fees unless it is not permissible to
continue such Service Fee arrangement under applicable laws, rules or
regulations. The Service Fee arrangement may be terminated: (A) in
writing by either party upon sixty (60) days' advance written notice
to the other party; or (B) if the Agreement is terminated, however,
the Service Fee will continue to be due and payable with respect to
shares of the Authorized Funds attributable to Contracts in effect on
the effective date of termination of the Service Fee arrangement.
e) The Company will provide the following services to Contract owners who
allocate purchase payments to subaccounts of the Account investing in
the Authorized Funds:
i) Maintain regular contact with Contract owners and assist in
answering inquiries concerning the Authorized Funds;
ii) Assist in printing and/or distributing shareholder reports,
prospectuses, service literature and sales literature or other
promotional materials provided by the Distributor;
iii) Assist the Distributor and its affiliates in the establishment
and maintenance of Contract owner and shareholder accounts and
records;
iv) Assist Contract owners in effecting administrative changes, such
as exchanging into or out of the subaccounts of the Account
investing in shares of the Authorized Funds;
v) Assist in processing purchase and redemption transactions; and
vi) Provide any other information or services as the Contract owners
of the Distributor may reasonably request.
The Company will support the Distributor's marketing and servicing
efforts for granting reasonable requests for visits to the Company's
offices by representatives of the Distributor.
f) The Company's compliance with the service requirement set forth in
this Amendment 1 will be evaluated from time to time by the
Distributor's monitoring of redemption levels of Authorized Fund
shares held in the Account and by such other methods as the
Distributor deems appropriate.
3. Definitions. Terms not defined in this Amendment 1 will have the meaning as
those terms defined in the Agreement.
4. Counterparts. This Amendment 1 may be executed simultaneously in two or
more counterparts, each of which taken together will constitute one and the
same instrument.
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment 1 to be
executed in its name and behalf by its duly authorized representatives as of the
date specified above.
XXXXXX VARIABLE TRUST XXXXXX MUTUAL FUNDS CORP.
By: /s/ Xxxx X. Xxxxxx By:/s/ Xxxx X. Xxxx
Name: Xxxx X. Xxxxxx Name: Xxxx X. Xxxx
Title: Vice President Title: Senior Vice President
AMERICAN CENTURION LIFE ASSURANCE COMPANY
ATTEST:
By: /s/ Xxxxxx Xxxxxxxx By: /s/ Xxxx X. Xxxxxxx
Name: Xxxxxx Xxxxxxxx Name: Xxxx X. Xxxxxxx
Title: President Title: General Counsel & Secretary
