DEFERRED VARIABLE ANNUITY CONTRACT
AMERICAN AMERICAN ENTERPRISE LIFE
EXPRESS INSURANCE COMPANY
(R) [LOGO] Administrative Offices:
[829 AXP Financial Center]
[Minneapolis, MN 55474]
This is a deferred variable annuity contract. It is a legal contract between
you, as the owner, and us, American Enterprise Life Insurance Company, a Stock
Company, Indianapolis, Indiana. PLEASE READ YOUR CONTRACT CAREFULLY.
If the annuitant is living on the Retirement Date, we will begin to pay you
monthly annuity payments. Any payments made by us are subject to the terms of
this contract. The owner and beneficiary are as named in the application
unless they are changed as provided for in this contract.
We issue this contract in consideration of your application and the payment of
the purchase payments.
Signed for and issued by American Enterprise Life Insurance Company of
Indianapolis, Indiana, as of the contract date.
ACCUMULATION VALUES AND ANNUITY PAYMENTS BASED ON THE INVESTMENT RESULTS OF
THE SEPARATE ACCOUNT ARE VARIABLE AND NOT GUARANTEED AS TO FIXED DOLLAR
AMOUNT. SEE PAGE 10.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS. IF FOR ANY REASON
YOU ARE NOT SATISFIED WITH THIS CONTRACT, RETURN IT TO US OR OUR AGENT WITHIN
10 DAYS AFTER YOU RECEIVE IT. WE WILL THEN CANCEL THIS CONTRACT. UPON SUCH
CANCELLATION WE WILL REFUND AN AMOUNT EQUAL TO THE SUM OF: (1) THE CONTRACT
VALUE; AND (2) ANY PREMIUM TAX CHARGES PAID. THIS CONTRACT WILL THEN BE
CONSIDERED VOID FROM ITS START.
[ILLEGIBLE] [ILLEGIBLE]
Secretary President
o FLEXIBLE PURCHASE PAYMENT DEFERRED ANNUITY CONTRACT
o INVESTMENT EXPERIENCE REFLECTED IN BENEFITS
o VARIABLE ACCUMULATION VALUES AND OPTIONAL FIXED DOLLAR OR VARIABLE
ANNUITY PAYMENTS
o ANNUITY PAYMENTS TO BEGIN ON THE RETIREMENT DATE
o THIS CONTRACT IS NONPARTICIPATING -- DIVIDENDS ARE NOT PAYABLE
[Option C]
271498 [A(5/03)]
GUIDE TO CONTRACT PROVISIONS
DEFINITIONS Important words and meanings ......................................... Page 3
GENERAL PROVISIONS Entire contract; Annuity tax qualification; Contract modification;
Incontestability; Benefits based on incorrect data; State laws;
Reports to owner; Evidence of survival; Protection of proceeds;
Payments by us; Voting rights ........................................ Page 4
OWNERSHIP AND Owner rights; Change of ownership; Beneficiary;
BENEFICIARY Change of Beneficiary; Assignment .................................... Page 5
PAYMENTS TO BENEFICIARY Describes options and amounts payable upon death ..................... Page 6
PURCHASE PAYMENTS Purchase payments amounts; Payment limits; Allocations of
purchase payments .................................................... Page 8
CONTRACT VALUE Describes the contract values;
Contract administrative charge; Premium taxes;
Transfers of contract values ......................................... Page 9
Variable Accounts Describes the variable subaccounts
accumulation units and values; Net investment factor;
Mortality and expense risk charge; Variable account
administrative charge; Annuity unit value, ........................... Page 10
Withdrawal Provisions Contract withdrawal for its withdrawal value;
Rules for withdrawal ................................................. Page 12
Annuity Provisions When annuity payments begin; Different ways to receive
annuity payments; Determination of payment amounts ................... Page 14
Tables of Annuity Rates Tables showing the amount of the first variable annuity
payment and the guaranteed fixed annuity payments
for the various payment plans ........................................ Page 16
271498 Page 2
CONTRACT DATA
Contract Number: [9920-SAMPLE] Contract Date: [November 1, 2003]
Initial Purchase Payment: [$10,000] Retirement Date: [November 1, 2053]
Annuitant: [Xxxx Xxx] Contract Type: [Non-Qualified]
Contract Owner: [Xxxx Xxx]
Upon issuance of this contract your initial purchase payment has been applied
to the variable subaccounts as shown below. You may make additional payments
and change the purchase payment allocation as provided in this contract. Refer
to the purchase payments provision on Page 9.
Purchase Payment
Allocation Allocation Percentage
---------- ---------------------
[AIM V.I. Premier Equity Fund, Series II Shares [ %
AIM V.I. Capital Appreciation Fund - Series II Shares %
AXP(R) VP - Blue Chip Advantage Fund %
AXP(R) VP - Bond Fund %
AXP(R) VP - Cash Management Fund %
AXP(R) VP - Diversified Equity Income Fund %
AXP(R) VP - Extra Income Fund %
AXP(R) VP - Federal Income Fund %
AXP(R) VP - Managed Fund %
AXP(R) VP - New Dimensions Fund(R) %
AXP(R) VP - Small Cap Advantage Fund %
Fidelity VIP Balanced Portfolio Service Class 2 %
Fidelity VIP Growth Portfolio Service Class 2 %
Fidelity VIP Growth & Income Portfolio Service Class 2 %
Fidelity VIP Mid Cap Portfolio Service Class 2 %
FTVIPT Franklin Small Cap Fund - Class 2 %
FTVIPT Franklin Value Securities Fund - Class 2 %
FTVIPT Mutual Shares Securities Fund - Class 2 %
FTVIPT Xxxxxxxxx International Securities Fund - Class 2 %
MFS(R) Investors Trust Series - Service Class %
MFS(R) New Discovery Series - Service Class %
MFS(R) Total Return Series - Service Class %
MSF(R) Utilities Series - Service Class %
Xxxxxx VT Growth and Income Fund - Class IB Shares %
Xxxxxx VT International Growth Fund - Class IB Shares %
Xxxxxx VT Income Fund - Class IB Shares %
Xxxxxx VT Vista Fund - Class IB Shares] %]
Death Benefit Option: [Option A]
[Enhanced Death Benefit Rider Attached]
[Guaranteed Minimum Income Benefit Rider Attached Annual Charge of .30%
"Subaccount Limitation under the Guaranteed Minimum
Income Benefit: We reserve the right to limit the amount
in the [AXP(R) VP - Cash Management] Fund to (10%) of the total amount in the
subaccounts."]
271498DP Page 2A
CONTRACT DATA - Continued
Contract Number: [9920-SAMPLE] Contract Date: [November 1, 2003]
[Benefit Protector Death Benefit Rider Attached Annual Charge of [.25%]
Rider Benefit Percentage [40%]
Maximum Earnings at Death Percentage [250%]]
[Benefit Protector Plus Death Benefit Rider Attached Annual Charge of [.40%]
Rider Benefit Percentage [40%]
Maximum Earnings at Death Percentage [250%]
Purchase Payment Percentage Schedule
Death Occurring in Contract Years Percentage
--------------------------------- ----------
1 - 2 [0%]
3 - 4 [10%]
5 and later [20%]]
Mortality and Expense Risk Charge: [1.35% prints if DB Option A] See page 11.
[1.45% prints if DB Option B]
[1.65% prints if DB Option C (B with EDB rider)]
Variable Account Administrative Charge: .15% See page 11.
Contract Administrative Charge: [$40] waived at contract values of [$100,000] or more. See page 9.
The Maximum Total Purchase Payment: [[$1,000,000] for issue ages through age [85]]
[[ $100,000] for issue ages [86-90]]
The Minimum Additional Purchase Payments: [$100]
271498DP Page 2B
DEFINITIONS
The following words are used often in this contract. When we use these words,
this is what we mean:
ACCUMULATION UNIT
An accumulation unit is an accounting unit of measure. It is used to calculate
the contract value prior to annuitization.
ANNUITANT
The person or persons on whose life monthly annuity payments depend.
ANNUITIZATION
The application of the contract value of this contract to provide annuity
payments.
ANNUITY PAYMENT PLAN
The payment plan you choose to allocate your contract value to at
annuitization. You then receive annuity payments from us at regular intervals.
ANNUITY UNIT
An annuity unit is an accounting unit of measure. It is used to calculate the
value of annuity payments from the variable account on and after
annuitization.
CODE
The Internal Revenue Code of 1986, as amended.
CONTRACT ANNIVERSARY
The same day and month as the contract date each year that the contract
remains in force.
CONTRACT DATE
It is the date from which contract anniversaries, contract years, and contract
months are determined. Your contract date is shown under Contract Data.
CONTRACT VALUE
The sum of the value of all variable subaccount accumulation units under this
contract.
FIXED ANNUITY
A fixed annuity is an annuity with payments which are guaranteed by us as to
dollar amount during the annuity payment period.
IRA CONTRACT
A contract used in or under a retirement plan or program that is intended to
qualify as an Individual Retirement Annuity under Section 408(b) of the Code.
IRA REQUIRED MINIMUM DISTRIBUTIONS
These are the minimum distributions Code Section 408(b)(3) requires to be
distributed from an IRA, beginning not later than the April 1 following the
calendar year you reach age 70 1/2 (Required Beginning Date).
NONQUALIFIED CONTRACT
A contract used primarily for retirement purposes that is not intended to
qualify as an IRA contract.
RETIREMENT DATE
The date shown under Contract Data on which annuity payments are to begin.
This date may be changed as provided in this contract. You will be notified
prior to the retirement date in order to select an appropriate annuity payment
plan.
VALUATION DATE
A valuation date is each day the New York Stock Exchange is open for trading.
VALUATION PERIOD
A valuation period is the interval of time commencing at the close of business
on each valuation date and ending at the close of business on the next
valuation date.
VARIABLE ACCOUNT
Consists of separate subaccounts to which you may allocate purchase payments
and contract values; each invests in shares of one fund. The value of your
investment in each subaccount changes with the performance of the particular
fund.
VARIABLE ANNUITY
A variable annuity is an annuity with payments which are not predetermined or
guaranteed as to dollar amount and vary in amount with the investment
experience of one or more of the variable subaccounts.
WE, US, OUR
American Enterprise Life Insurance Company.
WRITTEN REQUEST
A request in writing signed by you and delivered to us at our administrative
office.
YOU, YOUR
The owner of this contract. In a non-qualified contract, the owner may be
someone other than the annuitant. The owner is shown in the application unless
the owner has been changed as provided in this contract.
271498 Page 3
GENERAL PROVISIONS
ENTIRE CONTRACT
This contract form and any endorsements or riders are the entire contract
between you and us.
No one except one of our corporate officers (President, Vice President,
Secretary or Assistant Secretary) can change or waive any of our rights or
requirements under this contract. That person must do so in writing. None of
our other representatives or other persons has the authority to change or
waive any of our rights or requirements under this contract.
ANNUITY TAX QUALIFICATION
This contract is intended to qualify as an annuity contract under Section 72
of the Code for federal income tax purposes. To that end, the provisions of
this contract are to be interpreted to ensure or maintain such
tax-qualification, notwithstanding any other provisions to the contrary.
CONTRACT MODIFICATION
We reserve the right to modify this contract to the extent necessary to:
1. qualify this contract as an annuity contract under Section 72 of the
Code and all related laws and regulations which are in effect during the
term of this contract; and
2. qualify this contract as an IRA contract, if applicable, under Sections
408 and 219 of the Code and all related laws and regulations which are
in effect during the term of this contract.
We will obtain any necessary approval of any regulatory authority for the
modifications.
INCONTESTABLE
This contract is incontestable from its date of issue.
BENEFITS BASED ON INCORRECT DATA
Payments under the contract will be based on the annuitant's birthdate and
sex. If the annuitant's birthdate or sex or your birthdate has been misstated,
payments under this contract will be adjusted. They will be based on what
would have been provided at the correct birthdate and sex. Any underpayments
made by us will be made up immediately. Any overpayments made by us will be
subtracted from the future payments.
STATE LAWS
This contract is governed by the law of the state in which it is delivered.
The values and benefits of this contract are at least equal to those required
by such state. Any paid up annuity, cash withdrawal or death benefits
available under the contract are not less than the minimum benefits required
by any statute of the state in which the contract is delivered.
REPORTS TO OWNER
At least once a year we will send you a statement showing the contract value
and the cash withdrawal value of this contract. This statement will be based
on any laws or regulations that apply to contracts of this type.
EVIDENCE OF SURVIVAL
Where any payments under this contract depend on the recipient or annuitant
being alive on a certain date, proof that such condition has been met may be
required by us. Such proof may be required prior to making the payments.
PROTECTION OF PROCEEDS
Payments under this contract are not assignable by any beneficiary prior to
the time they are due. To the extent allowed by law, payments are not subject
to the claims of creditors or to legal process.
PAYMENTS BY US
All sums payable by us are payable at our administrative office. Any payment
or withdrawal from a variable annuity is based on the variable contract value.
VOTING RIGHTS
So long as federal law requires, we will give certain voting rights to
contractowners. As contractowner, if you have voting rights we will send a
notice to you telling you the time and place of a shareholder meeting. The
notice will also explain matters to be voted upon and how many votes you get.
271498 Page 4
OWNERSHIP AND BENEFICIARY
OWNER RIGHTS
As long as the annuitant is living and unless otherwise provided in this
contract, you may exercise all rights and privileges provided in this contract
or allowed by us.
If this is an IRA contract, you shall be the annuitant, and during your life
you will have the sole and absolute power to receive and enjoy all rights
under the contract. Your entire interest is nonforfeitable. Joint ownership is
not permitted.
If you are a tax-qualified trust or tax-qualified custodial account (including
an IRA custodial account), your trustees or custodian properly named by your
trust or custodial agreement may exercise all rights and privileges provided
in this contract or allowed by us.
CHANGE OF OWNERSHIP
If this is an IRA contract, your right to change the ownership is restricted.
This contract may not be sold, assigned, transferred, 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 other than as may be required or permitted
under Section 408 of the Code, or under any other applicable section of the
Code. Your interest in this contract may be transferred to your former spouse,
if any, under a divorce decree or a written instrument incidental to such
divorce.
However, if this contract is owned by a trustee of a tax-qualified trust or
the custodian of a tax-qualified custodial account (including an IRA custodial
account), such trustee or custodian may transfer ownership of the contract to
the annuitant or to a qualified successor trustee or custodian.
If this is a nonqualified contract, you may change the ownership.
Any change of ownership as provided above must be made by written request on a
form approved by us. The change must be made while the annuitant is living.
Once the change is recorded by us, it will take effect as of the date of your
request, subject to any action taken or payment made by us before the
recording.
BENEFICIARY
Beneficiaries are those you have named in the application or later changed as
provided below, to receive benefits of this contract if you or the annuitant
die while this contract is in force.
Only those beneficiaries who are living when death benefits become payable may
share in the benefits, if any. We will pay the benefits equally to all primary
beneficiaries living when the benefit becomes payable due to death, in
accordance with your last beneficiary designation on file. If none survive, we
will pay the benefits equally to all contingent beneficiaries then living. If
no beneficiary is then living, we will pay the benefits to you, if living,
otherwise to your estate.
CHANGE OF BENEFICIARY
You may change the beneficiary anytime while the annuitant is living by
satisfactory written request to us. Once the change is recorded by us, it will
take effect as of the date of your request, subject to any action taken or
payment made by us before the recording.
ASSIGNMENT
If this is an IRA contract, you may not assign this contract as collateral.
If this is a nonqualified contract, you can assign this contract or any
interest in it while the annuitant is living. Your interest and the interest
of any beneficiary is subject to the interest of the assignee. An assignment
is not a change of ownership and an assignee is not an owner as these terms
are used in this contract. Any amounts payable to the assignee will be paid in
a single sum.
A copy of any assignment must be submitted to us at our administrative office.
Any assignment is subject to any action taken or payment made by us before the
assignment was recorded at our administrative office. We are not responsible
for the validity of any assignment.
271498 Page 5
PAYMENTS TO BENEFICIARY
DEATH BENEFITS BEFORE ANNUITIZATION
A death benefit is payable to the beneficiary upon the earlier death of you or
the annuitant while this contract is in force and prior to annuitization.
The death benefit shall be either Option A or Option B (described below) as
you elected in your application and as is shown under Contract Data. Option A
shall apply if you or the annuitant are age 80 or older as of the contract
date. The death benefit option cannot be changed.
OPTION A - We will pay the beneficiary the greater of the following amounts:
1. the contract value; or
2. the total payments made to the contract minus "adjustments for partial
withdrawals".
OPTION B - We will pay the beneficiary the greatest of the following amounts:
1. the contract value; or
2. the total payments made to the contract minus "adjustments for partial
withdrawals"; or
3. the "maximum anniversary value" immediately preceding the date of death,
plus any purchase payments since that anniversary, minus any
"adjustments for partial withdrawals" since that anniversary.
"Adjustments for Partial Withdrawals"
Under either death benefit Option A or B, adjustments for partial withdrawals
are calculated for each partial withdrawal as the product of (a) times (b)
where:
(a) is the ratio of the amount of the partial withdrawal to the
contract value on the date of (but prior to) the partial
withdrawal; and
(b) is the death benefit on the date of (but prior to) the partial
withdrawal.
"Maximum Anniversary Value (MAV)"
This is the greatest of your contract values on any contract anniversary
before either your or the annuitant's 81st birthday, plus subsequent purchase
payments minus adjustments for partial withdrawals. We calculate the MAV on
each contract anniversary through age 80.
There is no MAV prior to the first contract anniversary. On the first contract
anniversary we set the MAV equal to the greater of your (a) current contract
value, or (b) total purchase payments minus "adjustments for partial
withdrawals".
Every contract anniversary after that, through age 80, we compare the previous
anniversary's MAV, plus any payments since that anniversary minus "adjustments
for partial withdrawals" since that anniversary, to the current contract value
and we reset the MAV to the higher amount. We stop resetting the MAV after you
or the annuitant reach age 81. However we continue to add any subsequent
purchase payments to and subtract "adjustments for partial withdrawals" from
the MAV.
Any amounts payable or applied by us as described in the sections below will
be based on the contract values as of the valuation date on or next following
the date on which due proof of death is received at our administrative office.
PAYMENT OF NONQUALIFIED CONTRACT DEATH BENEFIT BEFORE ANNUITIZATION
The above death benefit will be payable in a lump sum upon the receipt of due
proof of death of you or the annuitant, whichever first occurs. The
beneficiary may elect to receive payment any time within five years after the
date of death.
The above death benefit will also be made upon the first to die if ownership
is in a joint tenancy except where spouses are joint owners with right of
survivorship and the surviving joint spouse elects to continue the contract.
In lieu of a lump sum, payments may be made under an Annuity Payment Plan,
provided:
1. the beneficiary elects the plan within 60 days after we receive due proof
of death; and
2. the plan provides payments over a period which does not exceed the life or
life expectancy of the beneficiary; and
3. payments must begin no later than one year after the date of death.
For Annuity Payment Plans, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
271498 Page 6
PAYMENT OF IRA CONTRACT DEATH BENEFIT BEFORE ANNUITIZATION
The above death benefit will be payable in a lump sum upon the receipt of due
proof of death. Under the Code, distributions are considered to have begun if
they are made when you reach your IRA required beginning date or if you have
annuitized according to applicable Treasury Regulations.
If distributions from your IRA have begun but you have not annuitized before
your death, your beneficiary must continue using the same method, or a faster
method, than you were using for your required minimum distributions, to receive
the death benefit.
If distributions from your IRA have not begun and you have not annuitized before
your death, your beneficiary may take one or more distributions so that the
entire death benefit is received by December 31 of the calendar year containing
the fifth anniversary of your death.
In lieu of taking payments within five years, payments may be made under an
Annuity Payment Plan, provided:
1. the beneficiary elects the plan within 60 days after we receive due proof
of death; and
2. the plan provides payments over a period which does not exceed the life or
life expectancy of the beneficiary; and
3. payments must begin no later than one year after the year your death
occurs, in the case of a non-spouse beneficiary, or by December 31 of the
year in which you would have turned age 70 1/2, in the case of a spouse
beneficiary.
Payment amounts, durations and life expectancy calculations must comply with
Section 401(a)(9) of the Code and regulations thereunder.
You or your beneficiary, as applicable, shall have the sole responsibility for
requesting a distribution that complies with this Contract and applicable law.
For Annuity Payment Plans, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
SPOUSE'S OPTION TO CONTINUE CONTRACT
For nonqualified contracts: If you die prior to annuitization and your spouse is
the sole beneficiary or co-owner of the contract, your spouse may keep the
contract in force as owner and may make additional purchase payments to the
contract.
For IRA contracts: If you die prior to your required beginning date and your
spouse is the sole beneficiary, your spouse may keep the contract in force as
his or her own IRA. As owner, your spouse may make additional payments to the
contract. As owner, your spouse's life will determine the IRA required beginning
date and minimum distribution amounts. If you die after your required beginning
date, spousal continuation of this contract is not available.
Election by the spouse to continue the contract must be made by written request
within 60 days after we receive proof of death. Upon such continuation the
contract value shall be equal to the death benefit that would otherwise have
been paid.
DEATH AFTER ANNUITIZATION
If you or the annuitant die after annuitization, the amount payable to the
beneficiary, if any, will be as provided in the Annuity Payment Plan then in
effect.
271498 Page 7
PURCHASE PAYMENTS
PURCHASE PAYMENTS
Purchase payments are the payments you make for this contract and the benefits
it provides. Purchase payments must be paid or mailed to us at our
administrative office or to an authorized agent. If requested, we'll give you a
receipt for your purchase payments.
ADDITIONAL PURCHASE PAYMENTS
Additional purchase payments may be made until the earlier of:
1. the date this contract terminates by withdrawal or otherwise; or
2. the date on which annuity payments begin.
Additional purchase payments are subject to the "Payment Limits Provision"
below.
PAYMENT LIMITS PROVISION
Maximum Purchase Payments -- The maximum total contract purchase payments may
not exceed the amounts shown under Contract Data. We reserve the right to
increase the maximums.
Additional Purchase Payments -- You may make additional purchase payments of at
least the amount shown in Contract Data.
In addition, if this is an IRA contract, except as otherwise provided in this
paragraph, the total purchase payments for any taxable year may not exceed the
limit described in Section 408(b) of the Code or as otherwise provided in the
Code and all related laws and regulations which are in effect during the term of
this contract. In the case of a rollover contribution described in Sections
402(c), 403(a)(4), 403(b)(8) 408(d)(3) or 457(e)(16) of the Code, there is no
limit on the amount of your purchase payment.
No contribution will be accepted under a SIMPLE plan established by any employer
pursuant to Code Section 408(p). No transfer or rollover of funds attributable
to contributions made by a particular employer under its SIMPLE plan will be
accepted from a SIMPLE IRA prior to the expiration of the two-year period
beginning on the date the individual first participated in that employer's
SIMPLE plan.
You shall have the sole responsibility for determining whether purchase payments
meet applicable income tax requirements.
All purchase payments must be made in cash. If you die before the entire
interest in this contract has been distributed to you, and your beneficiary is
other than your surviving spouse, no additional purchase payments will be
accepted from your beneficiary under this contract.
ALLOCATION OF PURCHASE PAYMENTS
You instruct us on how you want your purchase payments allocated among the
variable subaccounts. Your choice for each variable subaccount may be made in
any whole percent from 0% to 100%. Your allocation instructions as of the
contract date are shown under Contract Data. We reserve the right to limit the
maximum number of subaccounts to which you can allocate purchase payments or
contract value at any time.
By written request, or by another method agreed to by us, you may change your
choice of subaccounts or percentages. The first net purchase payment will be
allocated as of the end of the valuation period during which we make an
affirmative decision to issue this contract. Net purchase payments after the
first will be allocated as of the end of the valuation period during which we
receive the payment at our administrative office.
271498 Page 8
CONTRACT VALUE
CONTRACT VALUE
The contract value at any time is the sum of the value of all variable
subaccount accumulation units under this contract.
If:
1. part or all of the contract value is withdrawn; or
2. charges described herein are made against the contract value;
then a number of accumulation units from the variable subaccounts will be
deducted to equal such amount. For withdrawals, deductions will be made from the
variable subaccounts that you specify. Otherwise, the number of units from the
variable subaccounts will be deducted in the same proportion that your interest
in each bears to the total contract value.
CONTRACT ADMINISTRATIVE CHARGE
We charge a fee for establishing and maintaining our records for this contract.
The charge per year is shown in the Contract Data and is deducted from the
contract value at the end of each contract year. The charge deducted will be
prorated among the variable subaccounts in the same proportion your interest in
each bears to the total contract value.
We waive the annual contract administrative charge for any contract year where
the contract value immediately prior to the deduction of the contract
administrative charge is equal to or more than as shown in the Contract Data.
If you make a full withdrawal of this contract, we deduct the full contract
administrative charge at the time of full withdrawal regardless of contract
value.
The charge does not apply at or after annuitization of this contract or at the
time a death benefit is paid.
PREMIUM TAX CHARGES
We reserve the right to assess a charge against the contract value of this
contract for any applicable premium tax assessed to us by a state or local
government. This charge could be deducted when you make purchase payments, or
make a full withdrawal of the contract value or at the time of annuitization.
TRANSFERS OF CONTRACT VALUE
While this contract is in force prior to annuitization, you may transfer all or
a part of the values held in one or more of the variable subaccounts to another
one or more of the variable subaccounts
You may make a transfer by written request. Telephone / electronic transfers may
also be made according to telephone / electronic procedures that are then
currently in effect, if any. There is no fee or charge for these transfers. The
minimum transfer amount is usually $500, or if less, the entire value in the
subaccount from which the transfer is being made, or other such minimum amounts
agreed to by us.
We may suspend or modify transfer privileges at any time. The right to transfer
contract values between the subaccounts is also subject to modification if we
determine, in our sole discretion, that the exercise of that right by one or
more contract owners is, or would be, to the disadvantage of other contract
owners. Any modification could be applied to transfers to or from some or all of
the subaccounts. These modifications could include, but not be limited to, the
requirements of a minimum time period between each transfer, not accepting
transfer requests of an agent acting under a power of attorney on behalf of more
than one contract owner or limiting the dollar amount that may be transferred
between the subaccounts by a contract owner at any one time. We may apply these
modifications or restrictions in any manner reasonably designed to prevent any
use of the transfer right we consider to be to the disadvantage of other
contract owners.
271498 Page 9
VARIABLE ACCOUNTS
THE VARIABLE ACCOUNT
The variable account is a separate investment account of ours. It consists of
several subaccounts which are named under Contract Data. We have allocated a
part of our assets for this and certain other contracts to the variable account.
Such assets remain our property. However, they may not be charged with the
liabilities from any other business in which we may take part.
INVESTMENTS OF THE VARIABLE ACCOUNT
Purchase payments applied to the variable account will be allocated as specified
by the owner. Each variable subaccount will buy, at net asset value, shares of
the fund shown for that subaccount under Contract Data or as later added or
changed.
We may change the funds the variable subaccounts buy shares from if laws or
regulations change, the existing funds become unavailable or, in the judgment of
American Enterprise Life, the funds are no longer suitable for the subaccounts.
We have the right to substitute any funds for those shown under Contract Data,
including funds other than those shown under Contract Data.
We may also:
o add new subaccounts,
o combine any two or more subaccounts,
o make additional subaccounts investing in additional funds,
o transfer assets to and from the subaccounts or the variable account, and
o eliminate or close any subaccounts.
We would first seek approval of the Securities and Exchange Commission if
necessary, and, where required, the insurance regulator of the state where this
contract is delivered.
VALUATION OF ASSETS
Fund shares in the variable subaccounts will be valued at their net asset value.
VARIABLE ACCOUNT ACCUMULATION UNITS
The number of accumulation units for each of the variable subaccounts is found
by adding the number of accumulation units resulting from:
1. purchase payments allocated to the subaccount; and
2. transfers to the subaccount;
and subtracting the number of accumulation units resulting from:
1. transfers from the subaccount; and
2. withdrawals (including any applicable charges) from the subaccount; and
3. contract administrative charge or any rider charge deductions from the
subaccount.
The number of accumulation units added or subtracted for each of the above
transactions is found by dividing (1) by (2) where:
1. is the amount allocated to or deducted from the subaccount; and
2. is the accumulation unit value for the subaccount for the respective
valuation period during which we received the purchase payment or transfer
value, or during which we deducted transfers, withdrawals, contract
administrative or other charges.
VARIABLE ACCOUNT ACCUMULATION UNIT VALUE
The value of an accumulation unit for each of the variable subaccounts was set
at $1 when the first fund shares were bought. The value for any later valuation
period is found as follows:
The accumulation unit value for each variable subaccount for the last prior
valuation period is multiplied by the net investment factor for the same
subaccount for the next following valuation period. The result is the
accumulation unit value. The value of an accumulation unit may increase or
decrease from one valuation period to the next.
271498 Page 10
NET INVESTMENT FACTOR
The net investment factor is an index applied to measure the investment
performance of a variable subaccount from one valuation period to the next. The
net investment factor may be greater or less than one; therefore, the value of
an accumulation or annuity unit may increase or decrease.
The net investment factor for any such subaccount for any valuation period is
determined by: dividing (1) by (2) and subtracting (3) and (4) from the result.
This is done where:
1. is the sum of:
a. the net asset value per share of the fund held in the variable
subaccount determined at the end of the current valuation period;
plus
b. the per share amount of any dividend or capital gain distribution
made by the fund held in the variable subaccount, if the
"ex-dividend" date occurs during the current valuation period; and
2. is the net asset value per share of the fund held in the variable
subaccount, determined at the end of the last prior valuation period; and
3. is a factor representing the mortality and expense risk charge; and
4. is a factor representing the variable account administrative charge.
MORTALITY AND EXPENSE RISK CHARGE
In calculating unit values we will deduct a mortality and expense risk charge
from the variable subaccounts. The mortality and expense risk charge for your
contract is shown under Contract Data. This deduction is made to compensate us
for assuming the mortality and expense risks under contracts of this type. We
estimate that approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will be:
1. made from each variable subaccount; and
2. computed on a daily basis.
VARIABLE ACCOUNT ADMINISTRATIVE CHARGE
In calculating unit values, we will deduct a variable account administrative
charge from the variable subaccounts. This deduction is made to compensate us
for certain administrative and operating expenses for contracts of this type.
The deduction will be:
1. made from each variable subaccount; and
2. computed on a daily basis.
ANNUITY UNIT VALUE
The value of an annuity unit for each variable subaccount was arbitrarily set
at $1 when the first fund shares were bought. The value for any later
valuation period is found as follows:
1. the annuity unit value for each variable subaccount for the last prior
valuation period is multiplied by the net investment factor for the
subaccount for the valuation period for which the annuity unit value is
being calculated.
2. the result is multiplied by an interest factor. This is done to neutralize
the assumed investment rate which is built into the annuity tables on Page
16.
271498 Page 11
WITHDRAWAL PROVISIONS
WITHDRAWAL
By written request and subject to the rules below you may:
1. withdraw this contract for the total withdrawal value; or
2. partially withdraw this contract for a part of the withdrawal value.
RULES FOR WITHDRAWAL
All withdrawals will have the following conditions.
1. You must apply by written request or other method agreed to by us:
a. while this contract is in force; and
b. prior to the earlier of beginning an annuity payment plan or the
death of the annuitant or owner.
2. You must withdraw an amount equal to at least $500. Each variable
subaccount value after a partial withdrawal must be either $0 or at least
$50.
3. The amount withdrawn, less any charges, will normally be mailed to you
within seven days of the receipt of your written request and this
contract, if required.
4. For partial withdrawals, if you do not specify from which account the
withdrawal is to be made, the withdrawal will be made from the variable
subaccounts in the same proportion as your interest in each bears to the
contract value.
5. Any amounts withdrawn and charges which may apply cannot be repaid.
Upon withdrawal for the full withdrawal value this contract will terminate. We
may require that you return the contract to us before we pay the full withdrawal
value.
WITHDRAWAL VALUE
The withdrawal value at any time will be:
1. the contract value
2. minus the full contract administrative charge.
WAIVER OF WITHDRAWAL CHARGES
These provisions apply only to the Guaranteed Minimum Income Benefit Rider, if
any, attached to this contract.
The Contingent Event Benefits provision of the rider may be exercised in the
following situations:
HOSPITAL OR NURSING HOME CONFINEMENT
If both you and the annuitant were under age 76 on the contract date, and
you provide proof satisfactory to us that, as of the date you exercise the
benefit, you or the annuitant are confined to a hospital or nursing home,
and have been for the prior 60 days. To qualify, the nursing home must:
a. be licensed by an appropriate licensing agency to provide nursing
services; and
b. provide 24-hour-a-day nursing services; and
c. have a doctor available for emergency situations; and
d. have a nurse on duty or call at all times; and
e. maintain clinical records; and
f. have appropriate methods for administering drugs.
TERMINAL ILLNESS
If you or the annuitant are diagnosed in the second or later contract
years as disabled with a medical condition that with reasonable medical
certainty will result in death within 12 months or less from the date of
the licensed physician's statement. You must provide us with a licensed
physician's statement containing the terminal illness diagnosis and the
date the terminal illness was initially diagnosed.
DISABILITY
If you or the annuitant:
a. become disabled within the meaning of IRC Section 72(m)(7) after
the contract date of the contract; and
b. are receiving Social Security disability or state long-term
disability benefits; and
c. are 70 years old or younger on the date you exercise the benefit.
We must receive due proof of the items above at the time of your request
which includes, but is not limited to, a legible photocopy of the payments
described in item (b), the application for such payments that meet the
above criteria with regard to dates, and a signed letter from you that you
or the annuitant meet the above criteria.
271498 Page 12
SUSPENSION OR DELAY IN PAYMENT OF WITHDRAWAL
We have the right to suspend or delay the date of any withdrawal payment from
the variable subaccounts for any period:
1. when the New York Stock Exchange is closed; or
2. when trading on the New York Stock Exchange is restricted; or
3. when an emergency exists as a result of which:
a. disposal of securities held in the variable subaccounts is not
reasonably practical; or
b. it is not reasonably practical to fairly determine the value of the
net assets of the variable subaccounts; or
4. during any other period when the Securities and Exchange Commission, by
order, so permits for the protection of security holders.
Rules and regulations of the Securities and Exchange Commission will govern as
to whether the conditions set forth in 2 and 3 exist.
271498 Page 13
ANNUITY PROVISIONS
ANNUITIZATION
When annuitization occurs, the contract value will be applied to make annuity
payments. The first payment will be made as of the retirement date. This date is
shown under Contract Data. Before payments begin we will require satisfactory
proof that the annuitant is alive. We may also require that you exchange this
contract for a supplemental contract which provides the annuity payments.
CHANGE OF RETIREMENT DATE
You may change the retirement date shown for this contract. Tell us the new date
by written request. If you select a new date, it must be at least 30 days after
we receive your written request at our administrative office.
The maximum retirement date on an IRA contract is the later of:
1. the April 1 following the calendar year in which the annuitant attains age
70 1/2; or
2. such other date which satisfies the minimum distribution requirements
under the Code, its regulations, and/or promulgations by the Internal
Revenue Service.
Notwithstanding the above, and for all nonqualified contracts, the maximum
retirement date is the later of:
1. the annuitant's 85th birthday; or
2. the 10th contract anniversary; or
3. such other date as agreed to by us.
ANNUITY PAYMENT PLANS
Annuity payments may be made on a fixed dollar basis, a variable basis or a
combination of both. You can schedule receipt of annuity payments according to
one of the Plans A through E below or another plan agreed to by us.
If this is an IRA, payment amounts, durations and life expectancy calculations
must comply with Section 401(a)(9) of the Code and the Regulations thereunder
and generally must:
1. provide for payments over your life or over your and your beneficiary's
lives; or
2. provide for payments over a period which does not exceed your life
expectancy and/or the life expectancy of you and your beneficiary; and
3. meet the minimum incidental death benefit requirements under the Code and
all related laws and regulations which are then in effect.
An appropriate annuity payment plan is intended to satisfy the following
requirements that otherwise apply: the annual distribution required to be made
by your IRA required beginning date is for the calendar year in which you
reached age 70 1/2; annual payments for subsequent years, including the year in
which your IRA required beginning date occurs, must be made by December 31 of
that year.
You shall have the sole responsibility for electing an annuity payment plan that
complies with this Contract and applicable law.
PLAN A -- This provides monthly annuity payments during the lifetime of the
annuitant. No payments will be made after the annuitant dies.
PLAN B -- This provides monthly annuity payments during the lifetime of the
annuitant with a guarantee by us that payments will be made for a period of at
least five, 10 or 15 years. You must select the guaranteed period.
PLAN C --This provides monthly annuity payments during the lifetime of the
annuitant with a guarantee by us that payments will be made for a certain number
of months. We determine the number of months by dividing the amount applied
under this plan by the amount of the first monthly annuity payment.
PLAN D -- Monthly annuity payments will be paid during the lifetime of the
annuitant and joint annuitant. When either the annuitant or the joint annuitant
dies we will continue to make monthly payments during the lifetime of the
survivor. No payments will be made after the death of both the annuitant and
joint annuitant.
PLAN E -- This provides monthly annuity payments for a period of years. The
period of years may be no less than 10 nor more than 30.
You may select the plan by written request to us at least 30 days before the
retirement date. If at least 30 days before the retirement date we have not
received at our administrative office your written request to select a plan, we
will make payments according to Plan B with payments guaranteed for 10 years.
If the amount to be applied to a plan would not provide a monthly payment of at
least $20, we have the right to change the frequency of the payment or to make a
lump sum payment of the contract value.
271498 Page 14
ALLOCATION OF CONTRACT VALUE AT ANNUITIZATION
At the time of annuitization under an Annuity Payment Plan, you may reallocate
your contract value among the variable subaccounts to provide variable annuity
payments. You may also allocate some or all of your contract value amount to
provide fixed dollar payments. We reserve the right to limit the number of
variable subaccounts used at any one time during annuitization.
FIXED ANNUITY
A fixed annuity is an annuity with payments that are guaranteed by us as to
dollar amount. Fixed annuity payments remain the same. At annuitization the
amount you want allocated to provide fixed dollar annuity payments will be
applied to the applicable Annuity Table. This will be done in accordance with
the payment plan chosen. The minimum amount payable for each $1,000 so applied
is shown in Table B on Page 17.
VARIABLE ANNUITY
A variable annuity is an annuity with payments which:
1. are not predetermined or guaranteed as to dollar amount; and
2. vary in amount with the investment experience of the variable subaccounts.
DETERMINATION OF THE FIRST VARIABLE ANNUITY PAYMENT
At annuitization, the amount you want allocated to provide variable annuity
payments will be applied to the applicable Annuity Table. This will be done:
1. on the valuation date on or next preceding the seventh calendar day before
the retirement date; and
2. in accordance with the payment plan chosen. The amount payable for the
first payment for each $1,000 so applied is shown in Table A on Page 16.
VARIABLE ANNUITY PAYMENTS AFTER THE FIRST PAYMENT
Variable annuity payments after the first payment vary in amount. The amount
changes with the investment performance of the variable subaccounts. The dollar
amount of variable annuity payments after the first is not fixed. It may change
from month to month. The dollar amount of such payments is determined as
follows.
1. The dollar amount of the first annuity payment is divided by the value of
an annuity unit as of the valuation date on or next preceding the seventh
calendar day before the retirement date. This result establishes the
number of annuity units for each monthly annuity payment after the first
payment. This number of annuity units remains fixed during the annuity
payment period.
2. The fixed number of annuity units is multiplied by the annuity unit value
as of the valuation date on or next preceding the seventh calendar day
before the date the payment is due. The result establishes the dollar
amount of the payment.
We guarantee that the dollar amount of each payment after the first will not be
affected by variations in expenses or mortality experience.
EXCHANGE OF ANNUITY UNITS
After annuity payments begin, annuity units of any variable subaccount may be
exchanged for units of any of the other variable subaccounts. This may be done
no more than once a year. We reserve the right to limit the number of variable
subaccounts used at any one time. Once annuity payments start no exchanges may
be made to or from any fixed annuity.
271498 Page 15
TABLES OF ANNUITY RATES
Table A below shows the amount of the first monthly variable annuity payment,
based on a 5% assumed investment return, for each $1,000 of value applied
under any payment plan. The amount of the first and all subsequent monthly
fixed dollar annuity payments for each $1,000 of value applied under any
payment plan will be based on our fixed dollar Table of Annuity Rates in
effect at annuitization. Such rates are guaranteed to be not less than those
shown in Table B. The amount of such annuity payments under Plans A, B and C
will depend upon the sex and age of the annuitant at annuitization. The amount
of such annuity payments under Plan D will depend upon the sex and the age of
the annuitant and the joint annuitant at annuitization.
TABLE A - DOLLAR AMOUNT OF FIRST MONTHLY VARIABLE ANNUITY PAYMENT PER $1,000 APPLIED
-----------------------------------------------------------------------------------------------------------------------------
PLAN A PLAN B PLAN C PLAN D
-----------------------------------------------------------------------------------------------------------------------------
Age Life Income with Life Income Joint & Survivor
at Beginning Life Income Five Years Ten Years Fifteen Years Installment Non-Refund
Annui- In Non-Refund Certain Certain Certain Refund Male & Female
tization Year Male Female Male Female Male Female Male Female Male Female Same Age
-----------------------------------------------------------------------------------------------------------------------------
Age 65 2005 6.49 5.85 6.44 5.83 6.29 5.77 6.06 5.66 6.13 5.67 5.34
2010 6.40 5.78 6.35 5.76 6.22 5.71 6.00 5.61 6.06 5.61 5.30
2015 6.31 5.72 6.27 5.70 6.15 5.65 5.95 5.56 6.00 5.56 5.25
2020 6.23 5.66 6.19 5.64 6.08 5.60 5.90 5.52 5.93 5.51 5.21
2025 6.15 5.60 6.12 5.59 6.01 5.54 5.84 5.47 5.88 5.47 5.18
2030 6.08 5.55 6.05 5.53 5.95 5.50 5.80 5.43 5.82 5.43 5.14
Age 70 2005 7.41 6.54 7.29 6.50 6.98 6.36 6.54 6.14 6.79 6.22 5.85
2010 7.28 6.45 7.17 6.41 6.88 6.28 6.48 6.08 6.70 6.15 5.78
2015 7.16 6.35 7.06 6.32 6.80 6.21 6.42 6.03 6.61 6.08 5.72
2020 7.04 6.27 6.95 6.24 6.71 6.14 6.37 5.97 6.53 6.01 5.66
2025 6.93 6.19 6.85 6.16 6.63 6.07 6.31 5.92 6.45 5.95 5.61
2030 6.83 6.11 6.76 6.09 6.55 6.01 6.26 5.87 6.38 5.90 5.56
Age 75 2005 8.67 7.58 8.42 7.47 7.78 7.15 7.02 6.70 7.65 6.99 6.59
2010 8.49 7.43 8.26 7.34 7.68 7.05 6.97 6.63 7.53 6.89 6.49
2015 8.32 7.30 8.11 7.21 7.58 6.96 6.91 6.57 7.42 6.80 6.40
2020 8.16 7.18 7.97 7.10 7.48 6.87 6.86 6.51 7.31 6.71 6.31
2025 8.00 7.06 7.83 6.99 7.38 6.78 6.81 6.46 7.21 6.62 6.24
2030 7.86 6.95 7.70 6.89 7.29 6.70 6.75 6.40 7.12 6.55 6.16
Age 85 2005 13.01 11.44 11.71 10.69 9.46 9.09 7.69 7.60 10.30 9.50 9.30
2010 12.65 11.12 11.48 10.45 9.38 9.00 7.67 7.58 10.11 9.32 9.09
2015 12.31 10.82 11.26 10.23 9.30 8.90 7.66 7.56 9.93 9.15 8.90
2020 11.99 10.55 11.04 10.02 9.22 8.80 7.64 7.53 9.76 9.00 8.72
2025 11.70 10.29 10.84 9.83 9.15 8.71 7.62 7.51 9.60 8.85 8.55
2030 11.42 10.06 10.64 9.64 9.07 8.62 7.61 7.48 9.45 8.72 8.40
-----------------------------------------------------------------------------------------------------------------------------
Table A above is based on the "1983 Individual Annuitant Mortality Table A"
with 100% Projection Scale G and a 5% assumed investment return. Annuity rates
for any year, age, or any combination of year, age and sex not shown above,
will be calculated on the same basis as those rates shown in the Table above.
Such rates will be furnished by us upon request. Amounts shown in the Table
below are based on a 5% assumed investment return.
---------------------------------------------------------------------------------------------------
PLAN E - DOLLAR AMOUNT OF FIRST MONTHLY VARIABLE ANNUITY PAYMENT PER $1,000 APPLIED
---------------------------------------------------------------------------------------------------
Years Payable Monthly Payment Years Payable Monthly Payment Years Payable Monthly Payment
10 10.51 17 7.20 24 5.88
11 9.77 18 6.94 25 5.76
12 9.16 19 6.71 26 5.65
13 8.64 20 6.51 27 5.54
14 8.20 21 6.33 28 5.45
15 7.82 22 6.17 29 5.36
16 7.49 23 6.02 30 5.28
---------------------------------------------------------------------------------------------------
271498 Page 16
TABLE B - DOLLAR AMOUNT OF EACH MONTHLY FIXED DOLLAR ANNUITY PAYMENT PER $1,000 APPLIED
-----------------------------------------------------------------------------------------------------------------------------
PLAN A PLAN B PLAN C PLAN D
-----------------------------------------------------------------------------------------------------------------------------
Age Life Income with Life Income Joint & Survivor
at Beginning Life Income Five Years Ten Years Fifteen Years Installment Non-Refund
Annui- In Non-Refund Certain Certain Certain Refund Male & Female
tization Year Male Female Male Female Male Female Male Female Male Female Same Age
-----------------------------------------------------------------------------------------------------------------------------
Age 65 2005 5.32 4.69 5.28 4.68 5.16 4.63 4.96 4.54 4.85 4.44 4.21
2010 5.23 4.62 5.19 4.61 5.08 4.57 4.90 4.49 4.79 4.39 4.16
2015 5.14 4.56 5.11 4.55 5.01 4.51 4.84 4.43 4.73 4.34 4.12
2020 5.06 4.50 5.03 4.49 4.94 4.45 4.78 4.39 4.67 4.30 4.07
2025 4.98 4.44 4.95 4.43 4.87 4.40 4.73 4.34 4.61 4.26 4.03
2030 4.90 4.38 4.88 4.38 4.81 4.35 4.68 4.30 4.56 4.22 4.00
Age 70 2005 6.24 5.40 6.15 5.37 5.88 5.26 5.49 5.07 5.47 4.98 4.75
2010 6.11 5.31 6.03 5.28 5.79 5.18 5.42 5.00 5.38 4.91 4.68
2015 5.99 5.21 5.92 5.19 5.70 5.10 5.36 4.94 5.31 4.85 4.62
2020 5.87 5.13 5.81 5.10 5.61 5.03 5.30 4.88 5.23 4.79 4.56
2025 5.77 5.05 5.71 5.03 5.53 4.96 5.24 4.83 5.16 4.73 4.50
2030 5.66 4.97 5.61 4.95 5.45 4.89 5.18 4.77 5.10 4.68 4.45
Age 75 2005 7.51 6.45 7.30 6.36 6.74 6.09 6.01 5.67 6.27 5.70 5.52
2010 7.33 6.31 7.14 6.23 6.63 5.99 5.95 5.60 6.16 5.61 5.42
2015 7.15 6.17 6.99 6.10 6.52 5.89 5.90 5.54 6.06 5.53 5.33
2020 6.99 6.05 6.84 5.99 6.42 5.79 5.84 5.47 5.97 5.45 5.24
2025 6.84 5.93 6.71 5.88 6.32 5.71 5.78 5.41 5.88 5.38 5.16
2030 6.70 5.83 6.58 5.78 6.23 5.62 5.73 5.35 5.79 5.31 5.09
Age 85 2005 11.85 10.31 10.68 9.65 8.52 8.14 6.73 6.64 8.69 8.00 8.28
2010 11.49 10.00 10.45 9.41 8.44 8.04 6.72 6.62 8.53 7.85 8.07
2015 11.15 9.70 10.22 9.19 8.36 7.93 6.70 6.59 8.38 7.70 7.88
2020 10.84 9.43 10.00 8.98 8.27 7.83 6.68 6.57 8.23 7.57 7.70
2025 10.55 9.18 9.79 8.78 8.19 7.74 6.67 6.54 8.09 7.45 7.53
2030 10.28 8.95 9.60 8.59 8.11 7.64 6.65 6.52 7.96 7.33 7.38
-----------------------------------------------------------------------------------------------------------------------------
Table B above is based on the "1983 Individual Annuitant Mortality Table A" at
3.0% with 100% Projection Scale G. Annuity rates for any year, age, or any
combination of year, age and sex not shown above, will be calculated on the
same basis as those rates shown in the Table above. Such rates will be
furnished by us upon request. Amounts shown in the Table below are based on a
3.0% annual effective interest rate.
---------------------------------------------------------------------------------------------------
PLAN E - DOLLAR AMOUNT OF EACH MONTHLY FIXED DOLLAR ANNUITY PAYMENT PER $1,000 APPLIED
---------------------------------------------------------------------------------------------------
Years Payable Monthly Payment Years Payable Monthly Payment Years Payable Monthly Payment
10 9.61 17 6.23 24 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
---------------------------------------------------------------------------------------------------
271498 Page 17
DEFERRED VARIABLE ANNUITY CONTRACT
------------------------------------------------------------------------------
AMERICAN AMERICAN ENTERPRISE LIFE
EXPRESS INSURANCE COMPANY
(R) (LOGO) Administrative Offices:
[829 AXP Financial Center]
[Minneapolis, MN 55474]
o FLEXIBLE PURCHASE PAYMENT DEFERRED ANNUITY CONTRACT
o INVESTMENT EXPERIENCE REFLECTED IN BENEFITS
o VARIABLE ACCUMULATION VALUES AND OPTIONAL FIXED DOLLAR OR VARIABLE
ANNUITY PAYMENTS
o ANNUITY PAYMENTS TO BEGIN ON THE RETIREMENT DATE
o THIS CONTRACT IS NONPARTICIPATING - DIVIDENDS ARE NOT PAYABLE
