--------------------------------------------------------------------------------
EXHIBIT 4.4
TDA CUSTODIAL SPL CONTRACT, FORM P-12833
--------------------------------------------------------------------------------
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC Company
DATE OF ISSUE January 1, 1992
CONTRACT DATE January 1, 1992
FIRST CONTRACT ANNIVERSARY January 1, 1993
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
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
P-12833SPL
NOT GUARANTEED. ARTICLE 5 OF THIS CONTRACT EXPLAINS THE VALUATION OF SUCH
ASSETS.
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
ARTICLE 4 BENEFITS AND LOANS
4.1--------Election of Annuity Options
4.2--------Annuity 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
4.9--------Loans from the Fixed Interest Account
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-12833SPL.2
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 MISCELLANEOUS
8.1--------Ownership
8.2--------AUL's Annual Statement
8.3--------Tax Status
8.4--------Essential Data
8.5--------Reliance
8.6--------Misstatement of Essential Data
8.7--------Annuity Certificates
8.8--------Election, Notice, or Direction Requirements
8.9--------Quarterly Statement of Account Value
8.10-------Conformity with State Laws
8.11-------Reference to Federal Laws
8.12-------Sex and Number
8.13-------Facility of Payment
8.14-------Insulation from Liability
8.15-------Voting
8.16-------Acceptance of New Participants or Contributions
8.17-------Nonforfeitability and Nontransferability
8.18-------Termination
8.19-------Notice of Annual Meeting of Members
TABLE OF IMMEDIATE ANNUITIES
P-12833SPL.3
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 from time to time by, or on
behalf of, Participants, which are credited to Participant Accounts
hereunder.
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 by, or 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.
(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 enrolled in this contract who elects to make
Contributions or for whom Contributions are made, and for whom a
Participant Account is established.
1.19 "Participant Account" means an account established under this contract for
a Participant. Contributions received by AUL shall be credited to
Participant Accounts as AUL is directed in writing.
1.20 "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.
1.21 "Valuation Date" means any day when the Home Office of AUL and the New York
Stock Exchange are open and operational.
1.22 "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.
1.23 "Variable Account" means a separate account established by AUL called the
AUL American Unit Trust, which is registered under The Investment Company
Act of l940 as a unit investment trust.
1.24 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn pursuant to Section 4.8, 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.
1.25 "Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge, and minus the Participant's outstanding loan balance, if
any.
P-12833SPL.4
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. Unless there is a
specific written agreement signed by a corporate officer of AUL, 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-12833SPL.5
ARTICLE 3 - CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
3.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency; however, when made,
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
upon receipt by AUL at its Home Office of complete written
instructions from the Participant. 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 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 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) When a Contribution is received at the Home Office, it shall be
credited to Participant Accounts as directed 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
contributing party unless consent is given to AUL to retain 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.
(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 Participant in writing. 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. If there should
be no allocation instruction applicable to a portion of a Contribution
other than the initial Contribution, that amount shall be credited to
the Fixed Interest Account until such time as an appropriate
allocation instruction is received, at which time such amount shall be
withdrawn from the Fixed Interest Account and allocated pursuant to
such instructions. The Participant may change an allocation
instruction with respect to future allocations to his 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 in
the Variable Account or any Investment Account without notice,
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
participants 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.
(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 Participant may direct
AUL at its Home Office to transfer the amounts credited to an
Investment Option to any other Investment Option during the
Accumulation Period. For any transfer from an Investment Account,
Accumulation Units shall be valued as of the close of business on the
Valuation Date that AUL receives the Participant's 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 by the Participant 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) The Participant may not direct a transfer with regard to his
Participant Account's share of any Investment Option 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.
(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.
(e) Where a Participant has outstanding loans under this contract, a
transfer from the Fixed Interest Account to the Variable Account shall
be permitted only to the extent that the remaining Withdrawal Value of
the Participant held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under this contract.
ARTICLE 4 - BENEFITS AND LOANS
4.1 Election of Annuity Options: At the written request of the Participant, AUL
shall apply all or a portion of the Account Value (subject to Section 6.5,
and minus any outstanding loan balance of the Participant) of the
Participant Account for the purpose of providing a fixed payment annuity.
Upon receipt of such request, AUL is hereby authorized by such Participant
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 Participant request shall include certification as to the purpose
for the annuity and the election of one of the following annuity options.
The amount of the annuity shall be computed from the Table of Immediate
Annuities then included in this contract, except as provided under Section
4.4.
4.2 Annuity Options:
(a) Life Annuity. The monthly annuity shall be payable to the annuitant
for as long as the annuitant lives, and shall end with the last
monthly payment before the death of the annuitant.
(b) Certain and Life Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. If the annuitant dies
before receiving payments for the certain period (5, 10, 15, or 20
years, as specified in the election), any remaining payments for the
balance of the certain period shall be paid to the annuitant's
beneficiary.
(c) Survivorship Annuity. The monthly annuity shall be payable to the
annuitant for as long as the annuitant lives. After the death of the
annuitant, a portion (all, 2/3, or 1/2, as specified in the election)
of the annuitant's monthly annuity shall be paid to the contingent
annuitant named in the election for as long as the contingent
annuitant lives. An election of this option is automatically cancelled
if either the Participant or the contingent annuitant dies before the
Annuity Commencement Date.
(d) Installment Refund Life Annuity. The monthly annuity shall be payable
to the annuitant for as long as the annuitant lives, and shall end
with the last monthly payment before the death of the annuitant. If,
at the death of the annuitant, the sum of the monthly payments
previously received is less than the amount applied to provide the
annuity, monthly payments of the same amount shall continue to the
annuitant's beneficiary until the total of the monthly payments
received equals such amount.
(e) Fixed Period. The monthly annuity shall be payable to the annuitant
for a fixed period of time (not less than 5 years nor more than 30
years, as specified in the election). If, at the death of the
annuitant, payments have been made for less than the selected fixed
period, monthly annuity payments to the annuitant's beneficiary shall
be continued during the remainder of such fixed period.
(f) Any other options made available by AUL at the time a Participant
exercises his option to elect an annuity.
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, and minus any outstanding loan
balance of the Participant) of his Participant Account shall be applied
under (b) above as a 10 Year Certain and Life Annuity. AUL must receive
written notification of such 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.
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 total Account Value is less than $2,000, such
value (minus any outstanding loan balances of the Participant) shall be
paid in a lump sum to the annuitant rather than annuitized under the
annuity options provided in Section 4.2. Additionally, 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.
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) Upon receipt of written instructions from the Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) 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 (minus the
Participant's outstanding loan balance, if any, under this contract)
of the Participant Account for the purpose of providing a death
benefit. The death benefit shall be paid to the beneficiary last
properly designated in writing to AUL at its Home Office by the
Participant, or, if there is no designated beneficiary living on the
date of the Participant's death, to the Participant's estate. If any
beneficiary dies while receiving payments and no beneficiary is
designated to receive any remaining payments, such remaining payments
shall be made to the deceased beneficiary's estate.
(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 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 as elected by the Participant or the
beneficiary if the Participant did not make an election:
(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 Annuity Options shown in Section 4.2 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.
(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.
(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) Except as stated below, a Participant, 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 his Participant Account, provided that:
(l) any distribution to a Participant shall not occur until the
Participant has:
P-12833SPL.6
(i) attained age 59 1/2; or
(ii) terminated employment; or
(iii) become totally disabled (as defined by the Internal Revenue
Service); or
(iv) experienced a hardship (as defined by the Internal Revenue
Service); or
(2) 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) 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
shall include certification as to the purpose of the withdrawal.
The Participant assumes full responsibility for determining
whether the withdrawal is permitted under applicable law. AUL may
rely solely upon the representations of the Participant 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
(except for amounts prohibited from being distributed because
provision (a)(1) above is not met).
(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 Participant shall be paid the Withdrawal Value. If the
Participant requests that a specified percentage or dollar amount be
paid to the Participant, 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 Participant may withdraw up to 10% of the Account
Value of his 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. Also, where a Participant has outstanding loans under this
contract, a partial withdrawal by a Participant from the Fixed
Interest Account shall be permitted only to the extent that the
remaining Withdrawal Value of the Participant held in the Fixed
Interest Account equals twice the total of the Participant's
outstanding loans under this contract.
(e) AUL shall pay such amount in a cash lump sum to the Participant. 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 with drawn 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 (other than amounts which are prohibited
from being distributed because provision (a)(1) above is not met)
which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
4.9 Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of his Account Value held in
the Fixed Interest Account may borrow money from AUL, using such
Account Value held in the Fixed Interest Account as the only security
for the loan, by submitting a proper written request to AUL at its
Home Office. The minimum amount of any single loan is $2,000. The
maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12
months, does not exceed the lesser of (l) 50% of the Withdrawal Value
of the Participant Account held in the Fixed Interest Account, or (2)
$50,000. The Withdrawal Value of the Participant Account held in the
Fixed Interest Account, which must be at least twice the amount of the
outstanding loan balance, shall serve as security for the loan, and
shall continue to earn interest. Payment by AUL of the loan amount may
be delayed for up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the effective date of such loan. The interest rate shall
be declared by AUL at the beginning of each calendar quarter. The
interest rate charged shall be equal to the Moody's Corporate Bond
Yield Average - Monthly Average Corporates as of the date of the loan,
as published by Xxxxx'x Investors Service. If publication of such
Xxxxx'x rate should ever cease, a substantially equivalent substitute
rate shall be used. However, no change from a previously established
rate may be made in an amount less than .50% in any periodic
adjustment.
(c) Loans to Participants must be repaid to AUL within a term of 5 years,
unless the Participant certifies to AUL that the loan is to be used
to acquire a principal residence for the Participant, in which case
the term may be longer. Loan repayments must be made at least
quarterly. AUL shall apply such repayments first to any accrued
interest and then to the outstanding loan principal.
(WA)
P-12833SPL.7
Participant has outstanding loans under this contract, a partial with-
drawal by a Participant from the Fixed Interest Account shall be
permitted only to the extent that the remaining Withdrawal Value of
the Participant held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under this contract.
(e) AUL shall pay such amount in a cash lump sum to the Participant. 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 with drawn 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 (other than amounts which are prohibited
from being distributed because provision (a)(1) above is not met)
which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
4.9 Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of his Account Value held in
the Fixed Interest Account may borrow money from AUL, using such
Account Value held in the Fixed Interest Account as the only security
for the loan, by submitting a proper written request to AUL at its
Home Office. The minimum amount of any single loan is $2,000. The
maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12
months, does not exceed the lesser of (l) 50% of the Withdrawal Value
of the Participant Account held in the Fixed Interest Account, or (2)
$50,000. The Withdrawal Value of the Participant Account held in the
Fixed Interest Account, which must be at least twice the amount of the
outstanding loan balance, shall serve as security for the loan, and
shall continue to earn interest. Payment by AUL of the loan amount may
be delayed for up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the effective date of such loan. The interest rate shall
be declared by AUL at the beginning of each calendar year. The
interest rate charged during a particular calendar year shall be equal
to the Moody's Corporate Bond Yield Average - Monthly Average
Corporates as published by Xxxxx'x Investors Service for October of
the previous calendar year. If publication of such Moody's rate should
ever cease, a substantially equivalent substitute rate shall be used.
However, no change from a previously established rate may be made in
an amount less than .50% in any periodic adjustment. If the Moody's
rate for any October decreases by at least .50% from the Moody's rate
for the immediately preceding October, AUL shall declare such reduced
interest rate to be in effect during the next succeeding calendar
year.
(c) Loans to Participants must be repaid to AUL within a term of 5 years,
unless the Participant certifies to AUL that the loan is to be used
to acquire a principal residence for the Participant, in which case
the term may be longer. Loan repayments must be made at least
quarterly. AUL shall apply such repayments first to any accrued
interest and then to the outstanding loan principal. Participant has
outstanding loans under this contract, a partial withdrawal by a
Participant from the Fixed Interest Account shall be permitted only to
the extent that the remaining Withdrawal Value of the Participant held
in the Fixed Interest Account equals twice the total of the
Participant's outstanding loans under this contract.
(e) AUL shall pay such amount in a cash lump sum to the Participant. 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 with drawn 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 (other than amounts which are prohibited
from being distributed because provision (a)(1) above is not met)
which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
4.9 Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of his Account Value held in
the Fixed Interest Account may borrow money from AUL, using such
Account Value held in the Fixed Interest Account as the only security
for the loan, by submitting a proper written request to AUL at its
Home Office. The minimum amount of any single loan is $1,000. The
maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12
months, does not exceed the lesser of (l) 50% of the Withdrawal Value
of the Participant Account held in the Fixed Interest Account, or (2)
$50,000. The Withdrawal Value of the Participant Account held in the
Fixed Interest Account, which must be at least twice the amount of the
outstanding loan balance, shall serve as security for the loan, and
shall continue to earn interest. Payment by AUL of the loan amount may
be delayed for up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the effective date of such loan. The interest rate shall
be declared by AUL at the beginning of each calendar quarter. The
interest rate charged shall be equal to the Moody's Corporate Bond
Yield Average - Monthly Average Corporates as of the date of the loan,
as published by Xxxxx'x Investors Service. If publication of such
Xxxxx'x rate should ever cease, a substantially equivalent substitute
rate shall be used. However, no change from a previously established
rate may be made in an amount less than .50% in any periodic
adjustment.
(c) Loans to Participants must be repaid to AUL within a term of 5 years,
unless the Participant certifies to AUL that the loan is to be used
to acquire a principal residence for the Participant, in which case
the term may be longer. Loan repayments must be made at least
quarterly. AUL shall apply such repayments first to any accrued
interest and then to the outstanding loan principal.
(OR)
P-12833SPL.14
(d) If a loan either remains unpaid at the end of its term, or if, at any
time, 100% of the total of all the Participant's loan balances equals
the Participant's Withdrawal Value allocated to the Fixed Interest
Account, then AUL shall deduct these balances from the Participant
Account's share of the Fixed Interest Account. If a Participant has
outstanding loans, then withdrawals or transfers to the Variable
Account shall be permitted only to the extent that the Participant's
remaining Withdrawal Value in the Fixed Interest Account equals twice
the total of any outstanding loans of the Participant under the
contract. All loan balances shall be paid or satisfied in full before
any amount from the Participant Account's share of the Fixed Interest
Account is paid as a full withdrawal, as a death benefit, upon
annuitization, or as another permitted distribution.
(e) AUL may modify the loan restrictions or limitations stated above in
this Section, or may add new restrictions and limitations, to the
extent necessary to comply with Code Section 72(p) or other applicable
law, as determined solely by AUL.
P-12833SPL.15
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, as authorized by Section 6.1.
5.5 Determining the Value of Each Participant Account's Share of any Investment
Account: The value of each Participant Account's share of any Investment
Account as of any Valuation Date shall be determined by multiplying the
Participant Account's aggregate Accumulation Units in that Investment
Account as of such Valuation Date by the dollar value of one Accumulation
Unit in that Investment Account as of such Valuation Date. The value of the
Participant Account's share of any Investment Account as of any date other
than a Valuation Date is equal to the value of its share of that Investment
Account as of the immediately preceding Valuation Date.
P-12833SPL.16
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, as provided in Section 5.4(c).
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 before the
last day of the Contract Quarter pursuant to Sections 4.1, 4.7, or 4.8, 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.
(OR)
P-12833SPL.17
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account, as provided in Section 5.4(c).
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 of $7.50
per Contract Quarter on the last day of each Contract 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 this contract by that Participant
Account. If the entire balance of a Participant Account is applied or
withdrawn before the last day of the Contract Quarter pursuant to Sections
4.1, 4.7, or 4.8, 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.
AUL has the right at any time, upon delivery of written notice to the
Contractholder, to change the amount of any transfer charge. Any such
charge shall be limited to a maximum of $30.00 per transfer transaction
until the year 2001. Any increase in any transfer charge made by AUL
beginning after December 31, 2000 shall be limited to an amount which is
designed to reimburse AUL for the expenses associated with processing such
transfers. Any such increase shall not be anticipated to be a source of
profit for AUL.
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.
(WA,SC)
P-12833SPL.17
ARTICLE 6 - OTHER CHARGES
6.1 Mortality Risk and Expense Risk Charges: AUL shall deduct a daily mortality
risk charge and a daily expense risk charge equal to the daily equivalent
of an annual combined charge of 1.25% against the average daily net assets
of each Investment Account, as provided in Section 5.4(c).
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 of $3.00
per Contract Quarter on the last day of each Contract 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 this contract by that Participant
Account. If the entire balance of a Participant Account is applied or
withdrawn before the last day of the Contract Quarter pursuant to Sections
4.1, 4.7, or 4.8, 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.
AUL has the right at any time, upon delivery of written notice to the
Contractholder, to change the amount of any transfer charge. Any such
charge shall be limited to a maximum of $30.00 per transfer transaction
until the year 2001. Any increase in any transfer charge made by AUL
beginning after December 31, 2000 shall be limited to an amount which is
designed to reimburse AUL for the expenses associated with processing such
transfers. Any such increase shall not be anticipated to be a source of
profit for AUL.
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.
(SC - G&W)
P-12833SPL.17
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 1.24 and 6.3. Any such change to the Withdrawal Charge set
out in Section 1.24 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 8.1, 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-12833SPL.18
ARTICLE 8 - MISCELLANEOUS
8.1 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, except that no such change or amendment shall adversely
affect the benefits to be provided by Contributions made prior to the
effective date of such change or amendment unless the consent of all
Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in this contract.
8.2 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.
8.3 Tax Status: 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.
8.4 Essential Data: The Participant shall furnish to AUL whatever information
is necessary to establish the eligibility and amount of annuity or other
benefit in each instance.
8.5 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.
8.6 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.
8.7 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.
8.8 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 Participant is otherwise directed by
AUL.
8.9 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.
8.10 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.
8.11 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.
8.12 Sex and Number: Whenever the context so requires, the plural includes the
singular, the singular the plural, and the masculine the feminine.
8.13 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 any person or entity when directed to do so in writing
by the Participant. Any payment made by AUL will fully discharge AUL to the
extent of such payment.
8.14 Insulation from Liability: The assets of the Variable Account are not
chargeable with liabilities arising out of any other business AUL may
conduct.
8.15 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. AUL will vote
shares of any Investment Account, if any, that it owns beneficially in
its own discretion, except that if the 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 persons having the voting interest under this contract are the
Participants. 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 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.
8.16 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. AUL shall have the right to refuse to accept Contributions as of
the last day of the second month following the date that written notice to
this effect is delivered to any contributing Participant or to any
Participant for whom Contributions are being made.
8.17 Nonforfeitability and Nontransferability: The entire Withdrawal Value 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.
8.18 Termination: This contract shall automatically terminate as of the date
that there are no Participant Accounts maintained hereunder.
8.19 Notice of Annual Meeting of Members: The regular annual meeting of the
members of AUL (i.e., contractholders) 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-12833SPL.19
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-12833SPL.20
CONTRACT NUMBER VXX,XXX
CONTRACTHOLDER ABC COMPANY
PARTICIPANT'S NAME XXXX XXX
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), and that AUL has created a tax-deferred annuity account
in your name to receive Contributions for your benefit pursuant to the Contract.
All rights and benefits are determined in accordance with the provisions of the
Contract.
Benefits under the Contract will be paid at the Participant's direction.
Any amendments to or changes in the Contract will be binding and conclusive on
each Participant and beneficiary.
AMERICAN UNITED LIFE INSURANCE COMPANY
Secretary
AUL American Series
TDA Multiple-Fund Group Variable Annuity Certificate
P-12834SPL
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-12834SPL
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 from time to time by, or on behalf of,
Participants, which are credited to Participant Accounts.
"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 by, or 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 Cur rent 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 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.
(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.
The AUL American Managed Portfolio of the Mutual Fund is a managed
Portfolio which invests in the same types of investments as the other
Portfolios listed in (a), (b), and (c) above.
"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 enrolled in the Contract who elects to make
Contributions or for whom Contributions are made, and for whom a Participant
Account is established.
"Participant Account" means an account established under the Contract for a
Participant. Contributions received by AUL shall be credited to Participant
Accounts as AUL is directed in writing.
"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 deter mined. 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.
"Withdrawal Value" means a Participant's Account Value minus the applicable
Withdrawal Charge, and minus the Participant's outstanding loan balance, if any.
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
(a) Contributions may vary in amount and frequency; however, when made,
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 upon receipt by
AUL at its Home Office of complete written instructions from the
Participant. 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 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
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) When a Contribution is received at AUL's Home Office, it shall be
credited to Participant Accounts as directed 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
contributing party unless consent is given to AUL to retain 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.
(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 Participant in writing. 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. If there should
be no allocation instruction applicable to a portion of a Contribu-
tion
other than the initial Contribution, that amount shall be credited to
the Fixed Interest Account until such time as an appropriate
allocation instruction is received, at which time such amount shall
be withdrawn from the Fixed Interest Account and allocated pursuant
to such instructions. The Participant may change an allocation
instruction with respect to future allocations to his 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.
(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 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) 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.
Transfers:
(a) Subject to the limitations of (d) through (g) below, the Participant
may direct AUL at its Home Office to transfer the amounts credited to
an Investment Option to any other Investment Option during the
Accumulation Period. For any transfer from an Investment Account,
Accumulation Units shall be valued as of the close of business on the
Valuation Date that AUL receives the Participant's 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 by the Participant 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.
(d) The Participant may not direct a transfer with regard to his
Participant Account's share of any Investment Option 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.
(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) Where a Participant has outstanding loans under the Contract, a
transfer from the Fixed Interest Account to the Variable Account shall
be permitted only to the extent that the remaining Withdrawal Value
of the Participant held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under the Contract.
Annuity Options:
At the written request of the Participant, AUL shall apply all or a portion of
the Account Value (subject to any appropriate premium tax charge, and minus any
outstanding loan balance of the Participant) of the Participant Account for the
purpose of providing a fixed payment annuity. Upon receipt of such request, AUL
is hereby authorized by such Participant 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 Participant 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) 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 period.
(f) Any other options made available by AUL at the time a Participant
exercises his option to elect an annuity.
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 any appropriate
premium tax charge, and minus any outstanding loan balance of the
Participant) of his Participant Account shall be applied under (b)
above as a 10 Year Certain and Life Annuity. AUL must receive written
notification of such Annuity Commencement Date, written designation
of the contingent annuitant or beneficiary and any election forms
needed in connection with any annuity 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 total Account Value is less than $2,000, such value (minus any
outstanding loan balances of the Participant) shall be paid in a lump
sum to the annuitant rather than annuitized under the annuity options
provided in (a) through (f) above. Additionally, 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.
Death Benefits:
(a) Upon receipt of written instructions from the Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) and of due proof of the Participant's (and, if applica-
ble, the beneficiary's) death during the Accumulation Period at its
Home Office, AUL shall apply the Account Value (minus the
Participant's outstanding loan balance, if any, under the Contract) of
the Participant Account for the purpose of providing a death benefit.
The death benefit shall be paid to the beneficiary last properly
designated in writing to AUL at its Home Office by the Participant,
or, if there is no designated beneficiary living on the date of the
Participant's death, to the Participant's estate. If any beneficiary
dies while receiving payments and no beneficiary is designated to
receive any remaining payments, such remaining payments shall be made
to the deceased beneficiary's estate.
(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 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 as elected by the Participant or the
beneficiary if the Participant did not make an election:
(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 Annuity Options shown above 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.
(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.
(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.
P-12834SPL.1
Withdrawal Benefits:
(a) Except as stated below, a Participant, 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 his Participant Account, provided that:
(l) 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 Internal Revenue
Service); or
(iv) experienced a hardship (as defined by the Internal Revenue
Service); or
(2) 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) 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
shall include certification as to the purpose of the withdrawal.
The Participant assumes full responsibility for determining
whether the withdrawal is permitted under applicable law. AUL may
rely solely upon the representations of the Participant 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 In vestment 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
(except for amounts prohibited from being distributed because
provision (a)(1) above is not met).
(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 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 Participant
shall be paid the Withdrawal Value. If the Participant requests that a
specified percentage or dollar amount be paid to the Participant, 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
Participant may withdraw up to 10% of the Account Value of his
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. Also, where
a Participant has outstanding loans under the Contract, a partial
withdrawal by a Participant from the Fixed Interest Account shall be
permitted only to the extent that the remaining Withdrawal Value of
the Participant held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under the Contract.
(e) AUL shall pay such amount in a cash lump sum to the Participant. 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 Vari-
able 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 (other than amounts which are prohibited
from being distributed because provision (a)(1) above is not met)
which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of his Account Value held in
the Fixed Interest Account may borrow money from AUL, using such
Account Value held in the Fixed Interest Account as the only security
for the loan, by submitting a proper written request to AUL at its
Home Office. The minimum amount of any single loan is $2,000. The
maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12
months, does not exceed the lesser of (l) 50% of the Withdrawal Value
of the Participant Account held in the Fixed Interest Account, or (2)
$50,000. The Withdrawal Value of the Participant Account held in the
Fixed Interest Account, which must be at least twice the amount of the
outstanding loan balance, shall serve as security for the loan, and
shall continue to earn interest. Payment by AUL of the loan amount may
be delayed for up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the effective date of such loan. The interest rate shall
be declared by AUL at the beginning of each calendar quarter.
(c) Loans to Participants must be repaid to AUL within a term of 5 years,
unless the Participant certifies to AUL that the loan is to be used to
acquire a principal residence for the Participant, in which case the
term may be longer. Loan repayments must be made at least quarterly.
AUL shall apply such repayments first to any accrued interest and then
to the outstanding loan principal.
(d) If a loan either remains unpaid at the end of its term, or if, at any
time, l00% of the total of all the Participant's loan balances equals
the Participant's Withdrawal Value allocated to the Fixed Interest
Account, then AUL shall deduct these balances from the Participant
Account's share of the Fixed Interest Account. If a Participant has
outstanding loans, then withdrawals or transfers to the Variable
Account shall be permitted only to the extent that the Participant's
remaining Withdrawal Value in the Fixed Interest Account equals twice
the total of any outstanding loans of the Participant under the
Contract. All loan balances shall be paid or satisfied in full before
any amount from the Participant Account's share of the Fixed Interest
Account is paid as a full withdrawal, as a death benefit, upon
annuitization, or as another permitted distribution. 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. Also, where a Participant has outstanding loans
under the Contract, a partial withdrawal by a Participant from the
Fixed Interest Account shall be permitted only to the extent that the
remaining Withdrawal Value of the Participant held in the Fixed
Interest Account equals twice the total of the Participant's
outstanding loans under the Contract.
(e) AUL shall pay such amount in a cash lump sum to the Participant. 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 Vari-
able 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 (other than amounts which are prohibited
from being distributed because provision (a)(1) above is not met)
which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of his Account Value held in
the Fixed Interest Account may borrow money from AUL, using such
Account Value held in the Fixed Interest Account as the only security
for the loan, by submitting a proper written request to AUL at its
Home Office. The minimum amount of any single loan is $1,000. The
maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12
months, does not exceed the lesser of (l) 50% of the Withdrawal Value
of the Participant Account held in the Fixed Interest Account, or (2)
$50,000. The Withdrawal Value of the Participant Account held in the
Fixed Interest Account, which must be at least twice the amount of the
outstanding loan balance, shall serve as security for the loan, and
shall continue to earn interest. Payment by AUL of the loan amount may
be delayed for up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the effective date of such loan. The interest rate shall
be declared by AUL at the beginning of each calendar quarter.
(c) Loans to Participants must be repaid to AUL within a term of 5 years,
unless the Participant certifies to AUL that the loan is to be used to
acquire a principal residence for the Participant, in which case the
term may be longer. Loan repayments must be made at least quarterly.
AUL shall apply such repayments first to any accrued interest and then
to the outstanding loan principal.
(d) If a loan either remains unpaid at the end of its term, or if, at any
time, l00% of the total of all the Participant's loan balances equals
the Participant's Withdrawal Value allocated to the Fixed Interest
Account, then AUL shall deduct these balances from the Participant
Account's share of the Fixed Interest Account. If a Participant has
outstanding loans, then withdrawals or transfers to the Variable
Account shall be permitted only to the extent that the Participant's
remaining Withdrawal Value in the Fixed Interest Account equals twice
the total of any outstanding loans of the Participant under the
Contract. All loan balances shall be paid or satisfied in full before
any amount from the Participant Account's share of the Fixed Interest
Account is paid as a full withdrawal, as a death benefit, upon
annuitization, or as another permitted distribution. 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. Also, where a Participant has outstanding loans
under the Contract, a partial withdrawal by a Participant from the
Fixed Interest Account shall be permitted only to the extent that the
remaining Withdrawal Value of the Participant held in the Fixed
Interest Account equals twice the total of the Participant's
outstanding loans under the Contract.
(e) AUL shall pay such amount in a cash lump sum to the Participant. 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 (other than amounts which are prohibited
from being distributed because provision (a)(1) above is not met)
which have been on deposit for the longest period of time, as well as
the interest credited thereon, shall be withdrawn first.
Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of his Account Value held in
the Fixed Interest Account may borrow money from AUL, using such
Account Value held in the Fixed Interest Account as the only security
for the loan, by submitting a proper written request to AUL at its
Home Office. The minimum amount of any single loan is $2,000. The
maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12
months, does not exceed the lesser of (l) 50% of the Withdrawal Value
of the Participant Account held in the Fixed Interest Account, or (2)
$50,000. The Withdrawal Value of the Participant Account held in the
Fixed Interest Account, which must be at least twice the amount of the
outstanding loan balance, shall serve as security for the loan, and
shall continue to earn interest. Payment by AUL of the loan amount may
be delayed for up to 6 months.
(b) Interest will be charged for the loan, and will accrue on the loan
balance from the effective date of such loan. The interest rate shall
be declared by AUL at the beginning of each calendar year. The
interest rate charged during a particular calendar year shall be equal
to the Moody's Corporate Bond Yield Average - Monthly Average
Corporates as published by Xxxxx'x Investors Service for October of
the previous calendar year. If publication of such Moody's rate should
ever cease, a substantially equivalent substitute rate shall be used.
However, no change from a previously established rate may be made in
an amount less than .50% in any periodic adjustment. If the Moody's
rate for any October decreases by at least .50% from the Moody's rate
for the immediately preceding October, AUL shall declare such reduced
interest rate to be in effect during the next succeeding calendar
year.
(c) Loans to Participants must be repaid to AUL within a term of 5 years,
unless the Participant certifies to AUL that the loan is to be used
to acquire a principal residence for the Participant, in which case
the term may be longer. Loan repayments must be made at least
quarterly. AUL shall apply such repayments first to any accrued
interest and then to the outstanding loan principal.
(d) If a loan either remains unpaid at the end of its term, or if, at any
time, 100% of the total of all the Participant's loan balances equal
the Participant's Withdrawal Value allocated to the Fixed Interest
Account, then AUL shall deduct these balances from the Participant
Account's share of the Fixed Interest Account. If a Participant has
outstanding loans, then withdrawals or transfers to the Variable
Account shall be permitted only to the extent that the Participant's
remaining Withdrawal Value in the Fixed Interest Account equals twice
the total of any outstanding loans of the Participant under the
Contract. All loan balances shall be paid or satisfied in full before
any amount from the Participant Account's share of the Fixed Interest
Account is paid as a full withdrawal, as a death benefit, upon
annuitization, or as another permitted distribution.
P-12834SPL.9B
SC
(e) AUL may modify the loan restrictions or limitations stated above, or
may add new restrictions and limitations, to the extent necessary to
comply with Code Section 72(p) or other applicable law, as determined
solely by AUL.
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 In vestment Account. The number of Accumulation Units in each
Investment Account credited to each Participant Account as of any Valuation
Period shall be determined by dividing the amounts allocated to that Investment
Account for that Participant Account as of such Valuation Period by the dollar
value of one Accumulation Unit in that Investment Account as of the close of
business on the applicable Valuation Period. The number of Accumulation Units
thus determined shall not be changed by any subsequent change in the dollar
value of the Accumulation Units.
The value of 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 below, 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.
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 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, as authorized by the mortality and expense risks
provisions of the Contract.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account, as explained in (c) above
under "VALUATIONS."
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 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 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.
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, except that no such change or amendment shall adversely affect the
benefits to be provided by Contributions made prior to the effective date of
such change or amendment unless the consent of all Participants is obtained.
AUL shall have no obligation to make any payment or distribution except as
specified in the Contract.
Tax Status: AUL does not make any guarantee regarding the federal, state, or
local tax status of the Contract, any Participant Account established
thereunder, or any transaction involving the Contract.
Essential Data: The Participant 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 enti-
tled.
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 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 any person or
entity when directed to do so in writing by the Participant. 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
rights attributable to the shares of each Port folio 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. AUL will vote
shares of any Investment Account, if any, that it owns beneficially in
its own discretion, except that if the 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 persons having the voting interest under the Contract are the
Participants.
(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 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 Contributions: AUL shall have the right to refuse to accept
Contributions as of the last day of the second month following the date that
written notice to this effect is delivered to any contributing Participant or to
any Participant for whom Contributions are being made.
P-12834SPL.10
TABLE OF IMMEDIATE ANNUITIES
MONTHLY INCOME PER $1,000 OF ACCOUNT VALUE
EXACT LIFE 10 YEAR CERTAIN
AGE ANNUITY AND LIFE ANNUITY
45 4.0025 3.9934
46 4.0438 4.0335
47 4.0872 4.0756
48 4.1330 4.1199
49 4.1813 4.1665
50 4.2322 4.2156
51 4.2859 4.2672
52 4.3426 4.3216
53 4.4026 4.3789
54 4.4661 4.4394
55 4.5333 4.5032
56 4.6045 4.5705
57 4.6801 4.6416
58 4.7604 4.7167
59 4.8458 4.7961
60 4.9368 4.8801
61 5.0338 4.9689
62 5.1373 5.0629
63 5.2477 5.1624
64 5.3655 5.2677
65 5.4913 5.3789
66 5.6260 5.4965
67 5.7703 5.6207
68 5.9255 5.7518
69 6.0929 5.8901
70 6.2737 6.0357
71 6.4695 6.1887
72 6.6816 6.3489
73 6.9116 6.5160
74 7.1603 6.6894
75 7.4293 6.8682
00XXXX0-0
00XXXXXX
R
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
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.
Pursuant to this Addendum, the corresponding paragraph on the face page of the
Participant's Certificate under the Contract is deleted and the following
paragraph is substituted in lieu thereof:
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. THE VALUE OF SUCH ASSETS
AND ACCUMULATION UNITS IS NOT GUARANTEED. ARTICLE 5 OF THE CONTRACT EXPLAINS THE
VALUATION OF SUCH ASSETS AND ACCUMULATION UNITS.
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
"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 the Contract for the First Contract Anniversary.
"Contract Year" means, for the first such year, the period beginning with the
Contract Date identified in the Contract 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.
"Contributions" means amounts paid to AUL from time to time by, or on behalf of,
Participants, including amounts transferred to the Contract from another AUL
group annuity contract, which are credited to Participant Accounts maintained
hereunder.
"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.
-P-12834SPL.X.ADD.1-
"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.
"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 pursuant to "Withdrawal Benefits," where the percentage
varies by the Participant Account Year in which the withdrawal is made. The
first Participant Account Year begins on the date when AUL establishes a
Participant Account and credits the initial Contribution for the Participant,
and ends on the day immediately preceding the next anniversary of such date.
Each Participant Account Year thereafter begins on such an anniversary date and
ends on the day immediately preceding the next succeeding anniversary date. The
Withdrawal Charge percentage is as follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8%
6-10 4%
Thereafter 0%
However, for any Participant who also participates in the companion AUL Series
III group annuity contract, 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.
CONTRIBUTIONS, INVESTMENTS, AND TRANSFERS
Contributions:
(a) Contributions may vary in amount and frequency; however, when made, they
must be at least equal to a minimum annual Contribution of $200 per
Participant in any full Contract Year.
(c) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected by the Participant
in a form acceptable to AUL. If no Investment
-P-12834SPL.X.ADD.2-
Option election is made with respect to a particular Contribution to any
Participant Account, AUL shall process such credits in accordance with the
Investment Option election applicable to the immediately preceding
Contribution. The Participant may change an Investment Option election with
respect to future allocations to the applicable Participant Account by
giving new Investment Option elections to AUL at its Home Office in a form
acceptable to AUL.
(d) The initial Contribution for a Participant shall be allocated to the
Participant Account no later than the close of business on the second
business day of AUL after the later of (1) the business day that AUL
receives the initial Contribution at its Home Office, or (2) the business
day that AUL receives, at its Home Office, the data required to establish
the Participant Account, instructions regarding the amount of the initial
Contribution for the Participant, and Investment Option elections regarding
the initial Contribution.
(e) 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 contributing
party unless the contributing party 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.
(f) 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 first 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 Option identified in the Participant's annuity enrollment form,
plus gains or minus losses thereon, to another Investment Option, if such
election so directs.
(g) Contributions for a Participant subsequent to the initial Contribution
shall be allocated to the Participant Account as of the close of business
on the later of (1) the Valuation Period in which AUL receives that
Contribution at its Home Office or (2) the Valuation Period in which AUL
receives, at its Home Office, the data required to establish the
Participant Account, instructions regarding the amount of that Contribution
for the Participant, and Investment Option elections.
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 in the Variable Account or any
-P-12834SPL.X.ADD.3-
Investment Account without notice, Participant approval, or prior approval
of the Securities and Exchange Commission or a state insurance commis-
sioner, 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 participants 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 (g) below, the Participant 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 the Participant's transfer direction at its Home Office.
(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 as of the close of business on the Valuation Date
that AUL receives that transfer direction at its Home Office. However, if
that transfer reduces the Participant Account's remaining share of that
Investment Option to less than $500, the entire remaining share shall also
be transferred.
(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 as of the close of business on the Valuation Date that AUL
receives that transfer direction at its Home Office. And if that transfer
reduces the Participant Account's remaining share of the Fixed Interest
Account to less than $500, the entire remaining share shall also be
transferred.
-P-12834SPL.X.ADD.5-
BENEFITS AND LOANS
Annuity Options:
The last paragraph of this section is deleted and the following last paragraph
is substituted in lieu thereof:
If the total Account Value is less than $2,000, such value (minus any
outstanding loan balances of the Participant) shall be paid in a lump sum to the
annuitant rather than annuitized under the annuity options provided in (a)
through (f) above. Additionally, if the proposed monthly annuity payment should
fall below AUL's periodically adjusted minimum monthly annuity payment, AUL
reserves the right to make payments on a less frequent basis (i.e., quarterly,
semiannually, or annually), so that the actual annuity payment is equal to or
greater than the established minimum level, or to pay the Account Value (minus
any outstanding loan balances of the Participant) in a single sum.
Death Benefits:
(a) Upon receipt of written instructions from the Participant's beneficiary
(or, if applicable, the secondary beneficiary of the Participant) 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 (minus the Participant's outstanding loan balance, if
any, under the Contract) of the Participant Account for the purpose of
providing a death benefit. The death benefit shall be paid to the
beneficiary last properly designated in writing to AUL at its Home Office
by the Participant, or, if there is no designated beneficiary living on the
date of the Participant's death, to the Participant's estate. The
Participant's beneficiary may also designate a beneficiary. If any
beneficiary dies while receiving payments and no beneficiary is designated
to receive any remaining payments, such remaining payments shall be made to
the deceased beneficiary's estate.
(b) The Account Value to be applied pursuant to (a) above 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.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions as elected by the Participant or the beneficiary
if the Participant did not make an election:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or other method not provided in (ii)
below 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
Annuity Options shown in (a) through (f) above 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.
(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.
(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 up to 6 months after AUL receives proper instructions at its
Home Office.
Withdrawal Benefits:
A Participant may direct AUL at its Home Office, in a form acceptable to AUL, to
withdraw all or a portion of the Withdrawal Value of his Participant Account,
subject to the following provisions:
(a) Amounts attributable to amounts held as of December 31, 1988 under another
Code Section 403(b) annuity contract may be withdrawn.
(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.
(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, provided that any distribution of such amounts shall not occur
until the Participant has either attained age 59 1/2, separated from
service, become totally disabled (as defined by the Internal Revenue
Service), or experienced a hardship (as defined by the Internal Revenue
Service). 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 Participant instructions to another tax-deferred annuity
funding vehicle under applicable Internal Revenue Service rules and
regulations shall be subject to application of the Withdrawal Charge.
(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 shall include
certification as to the purpose of the withdrawal. The Participant assumes
full responsibility for determining whether the withdrawal is permitted
under applicable law. AUL may rely solely upon the representations of the
Participant 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 (except for amounts
prohibited from being distributed because paragraph (c) above is not met).
(h) A withdrawal request shall be effective, and the Account Value to be
applied shall be determined, as of the close of business on the Valuation
Date that AUL receives a proper withdrawal request, in a form acceptable to
AUL, at its Home Office. If it is necessary to withdraw the entire Account
Value of a Participant Account to make a lump-sum cash payment, the amount
paid shall equal the Withdrawal Value. 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. Notwithstanding the
previous sentence, in the first Contract Year in which a Participant
Account is established, the Participant 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 Participant
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 Participant 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. Also, where a Participant has outstanding loans
under the Contract, a partial withdrawal by a Participant from the Fixed
Interest Account shall be permitted only to the extent that the remaining
Withdrawal Value of the Participant Account held in the Fixed Interest
Account equals twice the total of the Participant's outstanding loans under
the Contract.
(i) AUL shall pay any cash lump sum to the Participant 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 (other than amounts which are prohibited from being
distributed because Subsection (c) above is not met) 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 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) 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.
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 the 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 below, 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.
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 the first paragraph of "Other Charges."
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-12834SPL.X.ADD.6-
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. These charges shall be
reflected in the Net Investment Factor, as defined under "Valuations."
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.
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 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 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.
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, unless the Contractholder or
Participant is otherwise directed by AUL.
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. In
accordance with its view of present law, 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.
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. These charges shall be
reflected in the Net Investment Factor, as defined under "Valuations."
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.
AUL shall deduct an administrative charge of $7.50 per Contract Year quarter on
the last day of each such 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
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.
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, unless the Contractholder or
Participant is otherwise directed by AUL.
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. In
accordance with its view of present law, 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.
(WA,SC)
-P-12834SPL.X.ADD.9-
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. These charges shall be
reflected in the Net Investment Factor, as defined under "Valuations."
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.
AUL shall deduct an administrative charge of $3.00 per Contract Year quarter on
the last day of each such 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
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.
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, unless the Contractholder or
Participant is otherwise directed by AUL.
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. In
accordance with its view of present law, 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.
(SC-G&W)
-P-12834SPL.X.ADD.9-
(b) The persons having the voting interest under the Contract are the
Participants.
(c) Voting rights attributable to the Contract for which no timely voting
instructions are received will be voted by AUL in the same proportion as
the voting instructions which are received in a timely manner for all
contracts and Participant Accounts participating in that Investment
Account.
(d) Neither the Variable Account nor AUL is under any duty to inquire as to the
instructions received or the authority of Contractholders, Participants, or
others to instruct the voting of Mutual Fund or Mutual Fund Portfolio
shares.
(e) Every person or entity having such voting rights 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
Secretary
-P-12834SPL.X.ADD.10-
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
AUL AMERICAN SERIES
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)
EFFECTIVE DATE: MAY 1, 1993
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:
"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 (excluding transfers
discussed in (c) below), to the Fixed Interest Account shall be credited to
the open interest pocket and shall earn interest at the Current Rate of
Interest in effect for that interest pocket. Such Contributions or
transferred amounts, during the time that the Current Rate of Interest
exceeds the Guaranteed Rate of Interest, shall earn interest at such
credited Current Rate of Interest for at least 1 year. After such 1-year
period, AUL reserves the right to declare, at any time, a new Current Rate
of Interest to be applied to funds held within that interest pocket. Any
such new Current Rate of Interest must remain in effect for that interest
pocket for at least 1 year.
(b) If AUL changes the Current Rate of Interest for such new Contributions or
new amounts transferred to the Fixed Interest Account, the previous open
interest pocket shall close, and any such Contributions or amounts
transferred on or after the effective date of such change shall be credited
to a new open interest pocket and shall earn interest at the new Current
Rate of Interest in effect for such new open interest pocket. Therefore, at
any given time, various funds credited to a Participant Account and
allocated to the Fixed Interest Account may be earning interest at
different Current Rates of Interest for different periods of time.
(c) Any contribution to another AUL P-12833 contract which is allocated to the
Fixed Interest Account and which is transferred to this Contract (plus
gains and minus losses
P-12834.OTSP.ADD
thereon) and allocated to the Fixed Interest Account, beginning with the date of
such transfer, shall be credited with the Current Rate of Interest under this
Contract which was in effect on the date the transferred contribution was
originally deposited into the Fixed Interest Account under the previous AUL
contract.
"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.
"Withdrawal Charge" means a charge taken by AUL equal to a percentage of the
Account Value of a Participant Account withdrawn under the Contract, where the
percentage varies by the number of full years measured from the date that
Participant Account is established, or from the date a Participant Account is
established under a previous AUL P-12833 contract from which amounts have been
transferred to this Participant Account, to the date the Withdrawal Charge is
determined. Such percentage is as follows:
During
Account Years Percentage
1 6
2 5
3 4
4 3
5 2
6 1
Thereafter 0
In no event will the cumulative total of all Withdrawal Charges, including those
P-12834.OTSP.ADD.1
previously assessed against any amount withdrawn from a Participant Account,
exceed 9% of total Contributions allocated to that Participant Account.
Contributions:
(a) Contributions may vary in amount and frequency; however, a minimum
Contribution of at least $100,000 must be made for a Participant in order
to establish a Participant Account. Any additional Contributions made
within the 12-month period beginning on the date the initial Contribution
is credited to that Participant Account (hereinafter called a Certificate
Year) shall also be credited to that Participant Account. Any initial
Contribution made within a different Certificate Year shall also be subject
to the $100,000 minimum, and any Contributions made within that Certificate
Year shall be allocated to a separate Participant Account and shall be
evidenced by a separate Certificate issued to the Participant. AUL may
change the minimum Contribution acceptable under the Contract, but any such
change shall apply only to individuals who become Participants on or after
the date of the change.
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 in the Variable Account or any Investment
Account without notice, 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
P-12834.OTSP.ADD.2
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 participants or as permitted by federal law.
P-12834.OTSP.ADD.3
(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 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 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:
(g) Where a Participant has outstanding loans under the Contract, a transfer
from the Fixed Interest Account to the Variable Account shall be permitted
only to the extent that the remaining Withdrawal Value of the Participant
Account held in the Fixed Interest Account equals twice the total of the
Participant's outstanding loans under that Participant Account.
Withdrawal Benefits:
(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
(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 Participant shall be paid the
Withdrawal Value. If the Participant requests that a specified percentage
or dollar amount be paid to the Participant, 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 the first
Contract year in which a Participant Account is established, and in the
next succeeding Contract year, the Participant may withdraw from that
Participant Account up to 10% of the sum of the Account Value of that
Participant Account, determined as of the last Contract anniversary
preceding the request for the withdrawal, plus Contributions made during
the applicable Contract year, without application of any Withdrawal Charge.
In any subsequent Contract year, the Participant may withdraw from that
Participant Account up to 10% of the Account Value of that Participant
Account, determined as of the last Contract anniversary preceding the
request for the withdrawal, without application of any Withdrawal Charge.
Where amounts have been transferred to the Contract from another AUL
P-12833 contract, Contract years of participation for purposes of this 10%
free-out provision shall be determined by using the date o the
Participant's first contribution to the Participant Account in the previous
contract which was transferred. Also, where a Participant has outstanding
loans under the Contract, a partial withdrawal by a Participant from the
Fixed Interest Account shall be permitted only to the extent that the
remaining Withdrawal Value of the Participant Account held in the Fixed
Interest Account equals twice the total of the Participant's outstanding
loans under that Participant Account.
Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of the Account Value of a
Participant Account held in the Fixed Interest Account may borrow money
from AUL, using such Account Value held in the Fixed Interest Account as
the only security for the loan, by submitting a proper written request to
AUL at its Home Office. The minimum amount of any single loan is $2,000.
The maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12 months,
does not exceed the lesser of (l) 50% of the Withdrawal Value of the
Participant Account held in the Fixed Interest Account, or (2) $50,000. The
Withdrawal Value of the Participant Account held in the Fixed Interest
Account, which must be at least twice the amount of the outstanding loan
balance, shall serve as security for the loan, and shall continue to earn
interest. Payment by AUL of the loan amount may be delayed for up to 6
months.
(d) If a loan either remains unpaid at the end of its term, or if, at any time,
l00% of the total of all the Participant's loan balances under a
Participant Account equals the Withdrawal Value of that Participant Account
allocated to the Fixed Interest Account, then AUL shall deduct these
balances from the Participant Account's share of the Fixed Interest
Account. If a Participant has outstanding loans, then withdrawals or
transfers to the Variable Account shall be permitted only to the extent
that the Participant Account's remaining Withdrawal Value in the Fixed
Interest Account equals twice the total of any outstanding loans of the
Participant under that Participant Account. All loan balances shall be
paid or satisfied in full before any amount from the Participant Account's
share of the Fixed Interest Account is paid as a full withdrawal, as a
death benefit, upon annuitization, or as another permitted distribution.
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 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 the 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 below, 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.
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 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, as authorized under "Other Charges" below.
The value of each Participant Account's share of any Investment Account as of
any Valuation Date shall be determined by multiplying the Participant Account's
aggregate Accumulation Units in that Investment Account as of such Valuation
Date by the dollar value of one Accumulation Unit in that Investment Account as
of such Valuation Date. The value of the Participant Account's share of any
Investment Account as of any date other than a Valuation Date is equal to the
value of its share of that Investment Account as of the immediately preceding
Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account. These charges shall be
reflected in the Net Investment Factor as defined above.
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 $0.00 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 there
under 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 persons having the voting interest under this contract are the
Participants.
(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 a Mutual Fund as may be
required by applicable federal law.
AMERICAN UNITED LIFE INSURANCE COMPANY
Secretary
P-12834.OTSP.ADD.4
ADDENDUM
TO THE
CERTIFICATE
ISSUED TO THE PARTICIPANT IN THE
AUL AMERICAN SERIES
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 particular Mutual Fund as described in that
prospectus for that 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 in the Variable Account or any Investment Account without
notice, 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
P-12834SPL.ADD.1
classes of contracts on the basis of requests made by a majority
of participants 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 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.
Withdrawal Benefits:
(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.
(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 Participant
shall be paid the Withdrawal Value. If the Participant requests that a
specified percentage or dollar amount be paid to the Participant, 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 the first Contract year in
which a Participant Account is established, and in the next succeeding
Contract year, the Participant may withdraw from that Participant
Account up to 10% of the sum of the Account Value of that Participant
Account, determined as of the last Contract anniversary preceding the
request for the withdrawal, plus Contributions made during the
applicable Contract year, without application of any Withdrawal
Charge. In any subsequent Contract year, the Participant may withdraw
from that Participant Account up to 10% of the Account Value of that
Participant Account, determined as of the last Contract anniversary
preceding the request for the withdrawal, without application of any
Withdrawal Charge. Also, where a Participant has outstanding loans
under the Contract, a partial withdrawal by a Participant from the
Fixed Interest Account shall be permitted only to the extent that the
P-12834SPL.ADD.2
remaining Withdrawal Value of the Participant Account held in the
Fixed Interest Account equals twice the total of the Participant's
outstanding loans under that Participant Account.
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 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 the 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 below, 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.
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 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
P-12834SPL.ADD.3
(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 under "Other Charges" below.
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
P-12834SPL.ADD.4
Account as of such Valuation Date by the dollar value of one Accumulation Unit
in that Investment Account as of such Valuation Date. The value of the
Participant Account's share of any Investment Account as of any date other than
a Valuation Date is equal to the value of its share of that Investment Account
as of the immediately preceding Valuation Date.
OTHER CHARGES
AUL shall deduct a daily mortality risk charge and a daily expense risk charge
equal to the daily equivalent of an annual combined charge of 1.25% against the
average daily net assets of each Investment Account. These charges shall be
reflected in the Net Investment Factor as defined above.
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 persons having the voting interest under the Contract are the
Participants.
(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 a Mutual
Fund as may be required by applicable federal law.
AMERICAN UNITED LIFE INSURANCE COMPANY
By: /s/ Xxxxxxx X. Xxxxx
Secretary
P-12834SPL.ADD.5
AMENDMENT
TO THE
MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
ABC COMPANY
(THE CONTRACTHOLDER)
The Effective Date of this Amendment is .
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting Section 6.1 and by substituting the following Section
6.1 in lieu thereof:
6.1 Mortality Risk and Expense Risk Charges; Annual Variable Investment
Plus Factors: AUL shall deduct a daily mortality risk charge and a daily expense
risk charge equal to the daily equivalent of an annual combined charge of 1.25%
against the average daily net assets of each Investment Account. These charges
shall be reflected in the Net Investment Factor as provided in Section 5.4(c).
AUL shall multiply the portions (as delineated in the table below) of the total
month-end Account Value in the Variable Account of all Participants in the
contract by the monthly equivalent of the corresponding Annual Variable
Investment Plus Factors appearing in the table below. These products shall be
added together, and the sum shall be divided by the total month-end Account
Value in the Variable Account of all Participants in the contract. This
percentage shall be multiplied by the month-end Account Value of each
Participant in each Investment Account. The resulting amount for each Investment
Account shall be added to the Participant's Account Value for that Investment
Account.
Contract's Month-End Account Value in Annual Variable Investment Plus Factor
Variable Account
First $500,000 0.00%
Next $500,000 0.25%
Next $2 million 0.35%
Next $2 million 0.40%
Next $1 million 0.50%
Over $6 million 0.75%
CONTRACTHOLDER AUL
By _________________________________ By: /s/ Xxxxx X. Xxxxxx
Chairman of the Board,
Title_______________________________ President, & Chief Executive Officer
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
P-XXXXX.AMD.DAC
AMENDMENT
TO THE
AUL AMERICAN SERIES
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.
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.
1.9 "Contributions" means amounts paid to AUL from time to time by, or on
behalf of, Participants, including amounts transferred to this contract
from another AUL group annuity contract, which are credited to Participant
Accounts 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-12833spl.x.adm.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.
1.20 "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.
1.24 "Withdrawal Charge" means a charge taken by AUL equal to a percentage of
the Account Value withdrawn pursuant to Section 4.8, where the percentage
varies by the Participant Account Year in which the withdrawal is made. The
first Participant Account Year begins on the date when AUL establishes a
Participant Account and credits the initial Contribution for the
Participant, and ends on the day immediately preceding the next anniversary
of such date. Each Participant Account Year thereafter begins on such an
anniversary date and ends on the day immediately preceding the next
succeeding anniversary date. The Withdrawal Charge percentage is as
follows:
During Withdrawal Charge
Participant Account Years Percentage
1-5 8%
6-10 4%
Thereafter 0%
However, for any Participant who also participates in AUL Series III group
annuity contract GA XX,XXX, the initial Withdrawal Charge percentage under
this contract shall be equal to the Withdrawal Charge percentage applicable
to the Participant under the AUL Series I 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 this contract.) This 4% Withdrawal Charge percentage shall be in effect
during the next 6 consecutive Participant Account Years. Thereafter, the
Withdrawal Charge percentage shall be reduced to 0%.
In no event will the cumulative total of all Withdrawal Charges, including
those previously assessed against any amount withdrawn from a Participant
Account, exceed 9% of total Contributions allocated to that Participant
Account.
3.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency; however, when made,
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.
p-12833spl.x.adm.2
3.2 How Contributions Are Handled:
(b) Within any one Participant Account, the amount so credited shall be
allocated to an Investment Option in increments elected by the
Participant in a form acceptable to AUL. If no Investment Option
election is made with respect to a particular Contribution to any
Participant Account, AUL shall process such credits in accordance with
the Investment Option election applicable to the immediately preceding
Contribution. The Participant may change an Investment Option election
with respect to future allocations to the applicable Participant
Account by giving new Investment Option elections to AUL at its Home
Office in a form acceptable to AUL.
(c) The initial Contribution for a Participant shall be 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 elections regarding the initial Contribution.
(d) 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 contributing party unless the
contributing party consents to AUL retaining that Contribution until
the earlier of (i) the date AUL receives such data and instructions
and, therefore, can properly allocate that Contribution to the
Participant Account or (ii) 25 days from the date that Contribution is
received by AUL.
(e) If the data required to establish a Participant Account, including any
annuity enrollment form required by AUL, and instructions regarding
the amount of a Contribution for the Participant are received, but an
Investment Option election for that Participant is not received, by
AUL at its Home Office as of the date AUL first 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 Option identified
in the Participant's annuity enrollment form, plus gains or minus
losses thereon, to another Investment Option, if such election so
directs.
(f) Contributions for a Participant subsequent to the initial Contribution
shall be allocated to the Participant Account as of the close of
business on the later of (1) the Valuation Period in which AUL
receives that Contribution at its Home Office or (2) the Valuation
Period in which AUL receives, at its Home Office, the data required to
establish the Participant Account, instructions regarding the amount
of that Contribution for the Participant, and Investment Option
elections.
3.3 Addition, Deletion, or Substitution of Investments:
(a) AUL reserves the right, subject to compliance with applicable law, to
make additions to, deletions from, substitution for, or combinations
of, the securities that are held by the Variable Account or any
Investment Account or that the Variable Account or any
p-12833spl.x.adm.3
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 in the Variable Account or any
Investment Account without notice, 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 participants 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 Participant 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 the Participant's transfer direction at its Home Office.
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 as of the close of business on
the Valuation Date that AUL receives that transfer direction at its
Home Office. However, if that transfer reduces the Participant
Account's remaining share of that Investment Option to less than $500,
the entire remaining share shall also be transferred.
(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 as of
the close of business on the Valuation Date that AUL receives that
transfer direction at its Home Office. And if that transfer reduces
the Participant Account's remaining share of the Fixed Interest
Account to less than $500, the entire remaining share shall also be
transferred.
4.5 Minimum Payments: If the total Account Value is less than $2,000, such
value (subject to Section 6.5 and minus any outstanding loan balances of
the Participant) shall be paid in a lump sum to the annuitant rather than
annuitized under the annuity options provided in Section 4.2. Additionally,
if the proposed monthly annuity payment should fall below AUL's
periodically adjusted minimum monthly annuity payment, AUL reserves the
right to make payments on a less frequent basis (i.e., quarterly,
semiannually, or annually), so that the actual annuity payment is equal to
or greater than the established minimum level, or to pay the Account Value
(subject to Section 6.5 and minus any outstanding loan balances of the
Participant) in a single sum.
4.7 Death Benefits:
(a) Upon receipt of written instructions from the Participant's
beneficiary (or, if applicable, the secondary beneficiary of the
Participant) 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 (subject to Section
6.5, and minus the Participant's outstanding loan balance, if any,
under this contract) of the Participant Account for the purpose of
providing a death benefit. The death benefit shall be paid to the
beneficiary last properly designated in writing to AUL at its Home
Office by the Participant, or, if there is no designated beneficiary
living on the date of the Participant's death, to the Participant's
estate. The Participant's beneficiary may also designate a
beneficiary. If any beneficiary dies while receiving payments and no
beneficiary is designated to receive any remaining payments, such
remaining payments shall be made to the deceased beneficiary's estate.
(b) The Account Value to be applied pursuant to (a) above 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.
(c) (1) The benefit shall be payable in accordance with one of the
following provisions as elected by the Participant or the
beneficiary if the Participant did not make an election:
(i) The entire Account Value to be applied shall be paid to the
beneficiary in a single sum or other method not provided in
(ii) below 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 Annuity Options shown in Section 4.2 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.
(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.
(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 up to 6 months
after AUL receives proper instructions at its Home Office.
4.8 Withdrawal Benefits: A Participant may direct AUL at its Home Office, in a
form acceptable to AUL, to withdraw all or a portion of the Withdrawal
Value of his Participant Account, subject to the following provisions:
(a) Amounts attributable to amounts held as of December 31, 1988 under
another Code Section 403(b) annuity contract may be withdrawn.
(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.
(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, provided that any distribution of such amounts shall
not occur until the Participant has either attained age 59 1/2,
separated from service, become totally disabled (as defined by the
Internal Revenue Service), or experienced a hardship (as defined by
the Internal Revenue Service). 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 Participant instructions to another
tax-deferred annuity funding vehicle under applicable Internal Revenue
Service rules and regulations shall be subject to application of the
Withdrawal Charge.
(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 shall
include certification as to the purpose of the withdrawal. The
Participant assumes full responsibility for determining whether the
withdrawal is permitted under applicable law. AUL may rely solely upon
the representations of the Participant 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
(except for amounts prohibited from being distributed because
Subsection (c) above is not met).
(h) A withdrawal request shall be effective, and the Account Value to be
applied pursuant to this Section shall be determined, as of the close
of business on the Valuation Date that AUL receives a proper
withdrawal request, in a form acceptable to AUL, at its Home Office.
If it is necessary to withdraw the entire Account Value of a
Participant Account to make a lump-sum cash 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 sentence, in the first Contract Year in
which a Participant Account is established, the Participant 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 Participant 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
Participant 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. Also, where
a Participant has outstanding loans under this contract, a partial
withdrawal by a Participant from the Fixed Interest Account shall be
permitted only to the extent that the remaining Withdrawal Value of
the Participant Account held in the Fixed Interest Account equals
twice the total of the Participant's outstanding loans under this
contract.
(i) AUL shall pay any cash lump sum to the Participant 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 (other than
amounts which are prohibited from being distributed because Subsection
(c) above is not met) which have been on deposit for the longest
period of time, as well as the interest credited thereon, shall be
withdrawn first.
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.
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.
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.
8.2 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.
8.8 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, unless
the Contractholder or Participant is otherwise directed by AUL.
8.15 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. In
accordance with its view of present law, 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 persons having the voting interest under this contract are the
Participants. 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 or under any contract with any
of the Mutual Funds made available by AUL, 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.
-12833spl.x.adm.5
By deleting Section 8.18 and by redesignating Section 8.19 as new Section 8.18.
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 _______________________________
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
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Capital Accumulation Xxxxxxx Capital Accumulation
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
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
AMENDMENT
TO THE
AUL AMERICAN SERIES
TDA MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA ________ (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
BANK ONE AS CUSTODIAN ON BEHALF OF ANY PERSON ELIGIBLE TO
PARTICIPATE IN AN IRC 403(b) TAX-DEFERRED ANNUITY WHO
BECOMES A PARTICIPANT UNDER THIS CONTRACT AND SUCH SUCCESSOR
CUSTODIAN AS MAY BE APPOINTED FROM TIME TO TIME (THE
CONTRACTHOLDER)
EFFECTIVE DATE: MAY ________
AUL and the Contractholder hereby agree, by signing below, that the Contract is
hereby amended by deleting the corresponding Sections and Subsections of the
Contract, if any, and by inserting the following Sections and Subsections in
lieu thereof:
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 (excluding transfers
discussed in (c) below), to the Fixed Interest Account shall be credited to
the open interest pocket and shall earn interest at the Current Rate of
Interest in effect for that interest pocket. Such Contributions or
transferred amounts, during the time that the Current Rate of Interest
exceeds the Guaranteed Rate of Interest, shall earn interest at such
credited Current Rate of Interest for at least 1 year. After such 1-year
period, AUL reserves the right to declare, at any time, a new Current Rate
of Interest to be applied to funds held within that interest pocket. Any
such new Current Rate of Interest must remain in effect for that interest
pocket for at least 1 year.
(b) If AUL changes the Current Rate of Interest for such new Contributions or
new amounts transferred to the Fixed Interest Account, the previous open
interest pocket shall close, and any such Contributions or amounts
transferred on or after the effective date of such change shall be credited
to a new open interest pocket and shall earn interest at the new Current
Rate of Interest in effect for such new open interest pocket. Therefore, at
any given time, various funds credited to a Participant Account and
allocated to the Fixed Interest Account may be earning interest at
different Current Rates of Interest for different periods of time.
(c) Any contribution to another AUL P-12833 contract which is allocated to the
Fixed Interest Account and which is transferred to this contract (plus
gains and minus losses thereon) and allocated
P-12833.OT.AMD
to the Fixed Interest Account, beginning with the date of such transfer,
shall be credited with the Current Rate of Interest under this contract
which was in effect on the date the transferred contribution was originally
deposited into the Fixed Interest Account under the previous AUL 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 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.
1.20 "Portfolio" means a series of 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.
1.24 "Withdrawal Charge" means a charge taken by AUL equal to a percentage
of the Account Value of a Participant Account withdrawn pursuant to Section 4.8,
where the percentage varies by the number of full years measured from the date
that Participant Account is established, or from the date a Participant Account
is established under a previous AUL P-12833 contract from which amounts have
been transferred to this Participant Account, to the date the Withdrawal Charge
is determined. Such percentage is as follows:
During
Account Years Percentage
1 6
2 5
3 4
4 3
5 2
6 1
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.
3.1 Amount of Contributions:
(a) Contributions may vary in amount and frequency; however, a minimum
Contribution of at least $100,000 must be made for a Participant in order
to establish a Participant Account. Any additional Contributions made
within the 12-month period beginning on the date the initial Contribution
is credited to that Participant Account (hereinafter called
P-12833.OT.AMD.1
a Certificate Year) shall also be credited to that Participant Account. Any
initial Contribution made within a different Certificate Year shall also be
subject to the $100,000 minimum, and any Contributions made within that
Certificate Year shall be allocated to a separate Participant Account and shall
be evidenced by a separate certificate issued to the Participant. AUL may change
the minimum 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.
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 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 no substitute any shares in the Variable Account or any Investment
Account without notice, 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
participants 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 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 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.
3.5 Limitations on Transfers:
(e) Where a Participant has outstanding loans under this contract, a transfer
from the Fixed Interest Account to the Variable Account shall be permitted
only to the extent that the remaining Withdrawal Value of the Participant
Account held in the Fixed Interest Account equals twice the total of the
Participant's outstanding loans under that Participant Account.
4.8 Withdrawal Benefits:
(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.
(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
Participant shall be paid the Withdrawal Value. If the Participant requests
that a specified percentage or dollar amount be paid to the Participant,
AUL shall withdraw from the Participant Account an amount equal to the
dollar amount to be paid divided by the difference between 1and the decimal
equivalent of the applicable Withdrawal Charge. Notwithstanding the
previous sentence, in the first Contract Year in which a Participant
Account is established, and in the next succeeding Contract Year, the
Participant may withdraw from that Participant Account up to 10% of the sum
of the Account Value of that Participant Account, determined as of the last
Contract Anniversary preceding the request for the withdrawal, plus
Contributions made during the applicable Contract Year, without application
of any Withdrawal Charge. In any subsequent Contract Year, the Participant
may withdraw from that Participant Account up to 10% of the Account Value
of that Participant Account, determined as of the last Contract Anniversary
preceding the request for the withdrawal, without application of any
Withdrawal Charge. Where amounts have been transferred to this contract
from another AUL P-12833 contract, Contract Years of participation for
purposes of this 10% free-out provision shall be determined by using the
date of the Participant's first contribution to the Participant Account in
the previous contract which was transferred. Also, where a Participant has
outstanding loans under this contract, a partial withdrawal by a
Participant from the Fixed Interest Account shall be permitted only to the
extent that the remaining Withdrawal Value of the Participant Account held
in the Fixed Interest Account equals twice the total of the Participant's
outstanding loans under that Participant Account.
4.9 Loans from the Fixed Interest Account:
(a) A Participant who has all or a portion of the Account Value of a
Participant Account held in the Fixed Interest Account may borrow money
from AUL, using such Account Value held in the Fixed Interest Account as
the only security for the loan, by submitting a proper written request to
AUL at its Home Office. The minimum amount of any single loan is $2,000.
The maximum amount that may be borrowed at any time is an amount which,
when combined with the largest loan balance during the prior 12 months,
does not exceed the lesser of (l) 50% of the Withdrawal Value of the
Participant Account held in the Fixed Interest Account, or (2) $50,000. The
Withdrawal Value of the Participant Account held in the Fixed Interest
Account, which must be at least twice the amount of the outstanding loan
balance, shall serve as security for the loan, and shall continue to earn
interest. Payment by AUL of the loan amount may be delayed for up to 6
months.
(d) If a loan either remains unpaid at the end of its term, or if, at any time,
l02% of the total of all the Participant's loan balances under a
Participant Account equals the Withdrawal Value of that Participant
Account allocated to the Fixed Interest Account, then AUL shall deduct
these balances plus an expense charge equal to 2% of the outstanding loan
balances from the Participant Account's share of the Fixed Interest
Account. If a Participant has outstanding loans, then withdrawals or
transfers to the Variable Account shall be permitted only to the extent
that the Participant Account's remaining Withdrawal Value in the Fixed
Interest Account equals twice the total of any outstanding loans of the
Participant under that Participant Account. All loan balances plus the 2%
expense charge shall be paid or satisfied in full before any amount from
the Participant Account's share of the Fixed Interest Account is paid as a
full withdrawal, as a death benefit, upon annuitization, or as another
permitted distribution.
5.1 Time of Valuation: 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.
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 avail able 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 deter mined 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:
(1) 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
deter mined 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).
P-12833.OT.AMD.3
6.2 Investment Management Charge: 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.
6.3 Administrative Charge: AUL shall deduct an administrative charge per
Contract Quarter equal to the lesser of $0.00 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 before the last day of the Contract
Quarter pursuant to Sections 4.1, 4.7, or 4.8, 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.
6.6 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.
8.15 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 deter mines 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 persons having the voting interest under this contract are the
Participants. 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 applicable Mutual Fund 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.
(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 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.
CONTRACTHOLDER AUL
By ______________________________ By______________________________
Title __________________________ Title___________________________
Date ___________________________ Date____________________________
P-12833.OT.AMD.4
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 Portfolio listed below.
Investment Account 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-12833.OT.AMD.5
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-12833.AMD.SBJPA
AMENDMENT
TO THE
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 and Subsections of the
Contract, if any, and by inserting the following Sections and Subsections in
lieu thereof:
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 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.
1.20 "Portfolio" means a series of 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.
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 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 in the Variable Account or any Investment
Account without notice, 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
participants or as permitted by federal law.
P-12833SPL.AMD.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 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) (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.
(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
Participant shall be paid the Withdrawal Value. If the Participant requests
that a specified percentage or dollar amount be paid to the Participant,
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 the first Contract Year in which a Participant
Account is established, and in the next succeeding Contract Year, the
Participant may withdraw from that Participant Account up to 10% of the sum
of the Account Value of that Participant Account, determined as of the last
Contract Anniversary preceding the request for the withdrawal, plus
Contributions made during the applicable Contract Year, without application
of any Withdrawal Charge. In any subsequent Contract Year, the Participant
may withdraw from that Participant Account up to 10% of the Account Value
of that Participant Account, determined as of the last Contract Anniversary
preceding the request for the withdrawal, without application of any
Withdrawal Charge. Also, where a Participant has outstanding loans under
this contract, a partial
P-12833SPL.AMD.2
withdrawal by a Participant from the Fixed Interest Account shall be
permitted only to the extent that the remaining Withdrawal Value of the
Participant Account held in the Fixed Interest Account equals twice the
total of the Participant's outstanding loans under this contract.
5.1 Time of Valuation: 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.
5.3 Value of Accumulation Units: The value of an Accumulation Unit in the
AUL American Equity, Bond, Money Market, and Managed Investment Accounts was
established at $1.00 as of April 12, 1990. The value of an Accumulation Unit in
any other Investment Account available under this contract shall be established
at $1.00 as of the date of the first deposit to such Investment Account. The
value of an Accumulation Unit in each Investment Account as of any Valuation
Period thereafter is equal to the dollar value of one Accumulation Unit in that
Investment Account as of the immediately preceding Valuation Period multiplied
by the Net Investment Factor, as defined in Section 5.4, for that Investment
Account for the current Valuation Period. The value of an Accumulation Unit for
each Investment Account shall be determined for each Valuation Period before
giving effect to any additions, withdrawals, or transfers. After such
determination, the additions, withdrawals, or transfers which are effective as
of that day shall then be made.
5.4 Determining the Net Investment Factor: The Net Investment Factor for
each Investment Account for any Valuation Period is determined by dividing (a)
by (b), and then subtracting (c) from that result, where:
(a) is equal to:
(1) 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, 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).
P-12833SPL.AMD.3
6.2 Investment Management Charge: 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.
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.
8.15 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 persons having the voting interest under this contract are the
Participants. 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 applicable Mutual Fund 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.
(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 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.
P-12833SPL.AMD.4
CONTRACTHOLDER AUL
By ____________________________ By ______________________________
Title _________________________ Title ____________________________
Date____________________________ Date _____________________________
P-12833SPL.AMD.5
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 Portfolio listed below.
Investment Account 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-12833SPL.AMD.6
AMENDMENT
TO THE
AUL AMERICAN SERIES
TDA MULTIPLE-FUND GROUP VARIABLE ANNUITY
CONTRACT NUMBER GA XX,XXX (THE CONTRACT)
ISSUED BY
AMERICAN UNITED LIFE INSURANCE COMPANY (AUL)
TO
PEOPLES BANK & TRUST COMPANY AS CUSTODIAN ON BEHALF OF ANY PERSON ELIGIBLE TO
PARTICIPATE IN AN IRC 403(b) TAX-DEFERRED ANNUITY WHO
BECOMES A PARTICIPANT UNDER THIS CONTRACT AND SUCH SUCCESSOR
CUSTODIAN AS MAY BE APPOINTED FROM TIME TO TIME (THE CONTRACTHOLDER)
The Effective Date of this Amendment is June 1, 1997.
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 AUL American Tactical Asset Allocation
Xxxxx American Growth Xxxxx American Growth
American Century VP Capital Appreciation American Century VP Capital Appreciation
Xxxxxxx Capital Accumulation Xxxxxxx Capital Accumulation
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 Janus Aspen Series Flexible Income
Janus Aspen Series Worldwide Growth Janus Aspen Series Worldwide Growth
PBHG Insurance Series Growth II PBHG Insurance Series Growth II
PBHG Insurance Series Technology and PBHG Insurance Series Technology and
Communication Communication
SAFECO Resource Series Trust Equity SAFECO Resource Series Trust Equity
SAFECO Resource Series Trust Growth SAFECO Resource Series Trust Growth
X. Xxxx Price Equity-Income Portfolio X. Xxxx Price Equity-Income Portfolio
CONTRACTHOLDER AUL
By: /s/ Xxxxx X. Xxxxxx
By _______________________________ Chairman of the Board,
Title ___________________________ President, & Chief Executive Officer
Date: ____________________________
Attest
By: /s/ Xxxxxxx X. Xxxxx
Secretary
P-12833SPL.A
