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HomeMy WebLinkAboutPEBSCOPEBSCO of New York June 18, 1999 JOHN CUSHMAN DEPARTMENT HEAD P.O. BOX 1179 53095 ~ STREET SOUTHOLD, NY 11971 Re: Town of Southold, 3260 Dear John Cushman: Your Plan Administrator, PEBSCO of New York, would like to thank you for choosing the USCM once again. As you know, this program is unsurpassed in the industry due to its wide selection of annuity products; as well as PEBSCO's experience and expertise in administering Deferred Compensation programs We are enclosing your new copies of the Nationwide Group Fixed and Flexible Fund Retirement contracts and Administrative Service Agreement. Please replace your old Contracts and Administrative Agreement with the new copies. If you have any questions, please call our Customer Service Center at 1-800-545-4730 between the hours of 8:30 a.m. and 5:00 p.m. EST, Monday through Friday. Or, you may contact our PEBSCO Representative: Sincerely, Tiffany Baney Public Sector Service Center securities offered through Nationwide Investment Services Corporation I Member, NASD Two Nationwide Plaza * P,O. Box 16747 · Columbus, Ohio 43216 (614) 249-8400 * FAX (614) 249-2459 NATIONWIDE LIFE' INSURANCE COMPANY HOME OFFICE ONE NATIONWIDE PLAZA · COLUMBUS, OHIO 43216 NATIONWIDE LIFE INSURANCE COMPANY Ithe Company) agrees to make payments to the person or persons entitled thereto, in accordance with and subject to the terms of this Contract. CONTRACT SCHEDOLE Owner of Contract: NATIONWIDE TRUST COMPANY, FSB, AS TRUSTEE UNDER THE TOWN OF SOUTHOLD DEFERRED COMPENSATION PLAN Plan: NATIONWIDE TRUST COMPANY, FSB, AS TRUSTEE UNDER THE TOWN OF SOUTEOLD DEFERRED COMPENSATION PLAN Jurisdiction: NEW YORK Contract Number: 3260 Effective Date: 3/16/1999 Issue Date: 6/15/1999 Termination Date: 3/16/2004 This Contract has been issued in consideration of ~he appllcation and payment of purchase payments as provided herein. This Contract is issued and accepted subject to all the terms set forth in the following pages, which are a part of this Contract. Signed for the Company at its Home Office, One Nationwide Plaza~ Columbus. Ohio, to be effective on the Effective Date. Attest GROUP FLEXIBLE FUND RETIREMENT CONTRACT PARTICIPATING ANY AMOUNTS OR VAL~UES DETERMINED BY THE INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT ARE VARIABLE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT. TSP-536 B (3/96) ARTICLE I: Section 1.01 Section 1.02 Section 1.03 Section 1.:04 Section 1.05 Sect/on 1.06 ARTICLE II: 2.01 Ciun 2.02 °n 2.03 S~¢tion 2.04 ~ti~)n 2.05 ARTICLE III: Section 3.01 Sect'mn 3.02 Section 3.03 Section 3.0z~ Section ~.05 ARTICLE IV: Section 4.01 Section 4.02 Section 4.03 Section 4.04 Section 4.05 Section 4.06 Section 4.07 ARTICLE V: Section 5.01 Section 5.02 Section 5.03 Section 5.04 Section 5.05 TABLE OF CONTENTS DEFINITIONS Actuarial Risk Fee ............................ AdministratiVe Charge .......................... Business Day .................................. Contract Year ................................ Fund ......................................... General Account ................................ Flexible Fund Retirement Contract .......... Fixed Fund Retirement Contract ............ Account ........................... Page 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 BENEFITS Notice to Distribute ............................. 7 Additional Purchase Payment .................... 7 Elections ...................................... 7 Death Benefit Before Retirement .................. 7 optional Retirement Income Forms ............... 7 Speqial Provisions Relating to Options ............. 8 Method of Calculating Retffement Income Payments .................... 8 SUSPENSION AND TERMINATION Suspension .................................... 9 Termination by Owner ........................... 9 Redempuon of Part c~pants Accounts ............ 9 Disbursement of Fund Dividends in Cash .......... 9 Termination by Company ...................... 10 PARTICIPANTS' ACCOUNTS Purchase Payments ............................. 6 Cr ~e~li,ting Accumulation Units .................... 6 ~ecumulation Unit Value ........................ 6 Ch~mge of Allocation Percentage Ar~ong Series .................................. 6 E~ha~ges Among Series and T~ansfer to Deposit Fund ........................ 6 CHARGES ~ep, arate Account Net Investment Factor .......... 4 dm~istrative Charge .......................... 4 Pr~ Taxes ................................. 4 COntingent Deferred Sales Charge ................. 4 Sates Charge Exemptions ........................ 5 APcTICLE VI: Section 6.01 Section 6.02 Section 6.03 Section 6.04 Section 6.05 Section 6.06 Section 6.07 Section 6.08 Section 6.09 Section 6.10 GENERAL PROVISIONS The Contract ................................... 11 Modification of the Contract ..................... 11 Individual Certificates ........................... 11 Misstatements and Adjustments .................. 11 Ownership and Assignment ...................... Designation of Beneficiary ....................... 11 Data to be Furnished to the Company ............. 12 Participating, Dividends ......................... I2 Relation of this Contract to the Separate Account ......................... 12 Substitution of Fund Shares ...................... 12 ARTICLE I: DEFINITIONS SECTION 1,01 ACTUARIAL RISK FEE The Actuarial Risk Fee utilized in this Contract is .00002603. SECTION 1.02 ADMINISTRATIVE CHARGE T~e Administrative Cb-arge, described in Section 2.02. shall not be assessed. SECTION L03 BUSINESS DAY Any day ~ which the New York Stock Exchange is open for trading orany other day during which there is a suffidlei~ degr~e~ of tkad~g of the Separate Account Series shares that the current net asset value of its ~aceumulatJon units might be materially affected. SECTION L04 CONTRACT YEAR A Con, trading'ear i~ 9ach..period starting with either: (1) the Effective Date; or (2) a Contract AnniV~ar~. :, It en~lS {~dlat;el~:pr~or to the next Contract Ann~yeisary. Con~k~ct Aa~versary--A Contract A~mversary ~s an anmversary of the Effective Date. . SECTIp~ "'i~?05 FUND 2~?g~S~ered ~m~e~e~t investmen~ company (mutual fund), speci£ied in the Contract application, in wh~c~':tl~/~/asset~ of~a/SeP~ate Account Series will be invested. SECTION 1:06 GENERAL ACCOUNT ~A1 assets o~ the Company other than those in any segregated asse~ account. SECTION ]:07; GROUP FLEXIBLE FUND RETIREMENT CONTRACT T~he C ~o?rac~t descffbec~ herein, providing for variable rates of return, based upon the inves~men~ experience W a Separate AcCOunt. SECTION 1,08 GROUP FIXED FUND RETIREMENT CONTRACT A companion Contract,issued by Nationwide Life Insurance Company ro the Owner. for use with this Contrac~ providing for guaranteed rates of interest applied to principal sums invested. SECTION 1.09 PARTICIPANT A Participant is an eligible employee, member or other person who is entitled to benefits under the Plan. Such persons are determined and reported to the Company by ~he Owner. There must be at least 2 ParticiPantS under this Contract. SECTION 1.10 PARTICIPANT'S ACCOUNT An account established by the Company for each Participant. in which all financial transactions occurring under this Contract with respect to a Participant. other than the purchase or payment of benefits, are recorded. SECTION 1.11 PARTICIPANT ACCOUNT YEAR A Participant Account Year for each Participant is each ane-year period starting with either: I1) the Participant Effective Da~e: or (2) a Participant Anniversary. Participant Effective Date--The Participant Effective Date for each Participant is the first date accumulation -u~ts are credited to the Participant's. Account. Participant Anniversary--A Psrticipant Anniversary is an anniversary of the Participant Effective Date. SECTION 1.12 PLAN The Plan is the document referred to in the Contract Schedule as the Plan. The terms of this Contrac~ will apply ~o: Ill the Plan as constituted on the Effective Date of this Contract: and (2) each amendment of the Plan which is filed with the Company. In the event of a conflict between the terms of the Plan and the terms of this Contract, the terms of this Contract will govern. The Plan is mentioned herein for reference purposes only. The Company reserves the right te modify the Contract. Section 6.02 notwithstanding, if any Plan amendment affects the Company's duties, rights, liabilities, or obligations. No such modification shall be retroactive or affect Retired Participants in any manner without their written consent, unless such modification is considered necessary by the Company to obtain for Participants the benefits of federal or state statutes or regulations, or judicial decisions, or to maintain qualification of the Plan. SECTION 1.13 RETIRED PARTICIPANT A Retired Participant is a person receiving payments under an Optional Retirement Income Form. SECTION 1.14 SEPARATE ACCOUNT A segregated investment accoun~ (separate account), entitled "Nationwide DC Variable Account," (DCVA} was established and is maintained by the Company pursuant to the Insurance Laws of Ohio for this class of Contracts providing benefits based on investment results. The income, gains and losses, whether or not re~l{zed, from assets held in the Separate Account for each Series wlil be credited to or charged against such Separate Account Series without regard to other income, gains or losses of the Company; however, the assets of the Separate Account are a part of the total assets of the Company. Assets of the Separate Account equivalent to reserves for the variable benefits for this class of Contracts will be invested in shares of the specific Funds identified in the applicatian for this Contract or amendments thereto. The assets within each Separate Account Series are not chargeable with liabilities ar~'mg out of the business conducted by any other Separate Account Series nor will the Separate Account as a whole be chargeable with liabilities arising out of any other business the Company may conduct. Any reference in the Contract to the Separate Account shall mean the DCVA in the case of accumulation units in Part'~cipants' Accounts other than those held on behalf of Retired Partic'xpants, in which case such reference shall mean the DCVA-II. SECTION 1.15 SERIES Sub-accounts of the Separate Account, lo which specific Fund shares are allocated and for which accumulation units are separately maintained. Page 3 ARTICLE I1: CHARGES SECTION 2.01 SEPARATE'AcCOUNT NET INVESTMENT FACTOR The Separate Account net investment factor for each Series is determined for any Business Day by dividing ia) the net asset value of a share of the Fund which is represented by such Series ac the close of business on such day, plus the per share amount of any dividend or capital gain paid by the Fund on such · ,d. ay, and less the ,change in the per share amonnr of any applicable tax liability paid or reserved for by , ~the Company on such d~y, by (b) the, net asset value of a Share of such Fund~ determined as of the close of business ~n the p~ecedi~g ]~usine~s Day, and then subtracting from this resul~ no more than the'Actuarial ~isk Fee'~or each c~lendar day between the preceal-g Business Day and the end of the current Business ~)ay. SECTON 2.02 ADMINISTRATIVE CHARGE ,,~ The Compa~ y ~ maintain individual records with respect to each Participant and will make a charge ~or expenses attributable to m~/~ pining such records The Company will effect such charge by cancell~ · ~nu.m~,er~ ~,f ac~mulat~n um~ .on each Partxmp. an.t Anniversary equal i~ value to the applicable ~mnnstrat~ve Charge. If a Participant's Account includes more than one Series, the deduction will be :anocated between Series on the basis, of relative values at the time the deduction is made. The Comp.~a~y. will ~Se~ss an.~amiuistrative Charge on the date (other than a Participant's Anniversary) that amOUntS heldin Kespect of aP~tieipant are fully withdrawn from the Separate Account. In such case the_ an~:0unt ~ ~hg A~strat!~e Cha~ge will be on,twelfth of the applic~ble Aamluistrative Charge, mnltipI~e~!by ,~h,~,~ber bi,hole:or partial calendar months which have elapsed between the Participant ~nnlv~ (~r '~h~-P~/pant.~ffective Date during the first Participant Account Year) and the date Oi fun ~w~. F(~ ~se, P!ans wki,ch provide the Company's Group ~lexible Fund Retirement Contract and the C:!)m pa ~' s.C~kni~.Fixed Fund, Retirement Contr.a~t, the total of the Administrative Charge under the Group ~' ~×.ed ]. und l~etire, m?n ~..Contra?t ,and the Administrative Charge under the Group Flexfl)ie Fund Retirement Conl,rac~: a§$cssed shqll not exc~ the applicable Administrative Charge. SuCh: charge will be allodate.d, bet wccr, Sbries of the DCVA and the deposit fund on the bas'm of the r~lative values of the Participants Accou~ts~ ~t~ ~ trine the deduction Is made. SECTION 2~03 PREMIUM TAXES To ~t ~h~ .e~ten~ that any taxgs are assessed against the Company for purchase payments as received, or for l~e~n~ fi~ 9aye. 'ents made, the~Company will deduct such taxes from purchase payments, Participants' Accounte~ or behest payments, Such deductions will occur at such time as contributions are received b th ~; '~ ~' ~ : ' Y e Company or when w~thdrawais are made for any purpose other than Transfers or Exchanges, per Section 3.05. SECTION 2.04 CONTINGENT DEFERRED SALES CHARGE Upon withdrawal of part or all of a Participant's Account, the Company will assess a contingent deferred s~es~c~ar~g_e: agains~ the amount ~withdrawn, on a per Participant basis, in accordance with the following scaecule. When assessed, the contingent deferred sales charge will be based on the lesser of the totai of ~ purehase payments credited by the Company to the surrendering Participant's Account prior to the date of the ~equest for surrender or the amount surrendered. Deferred Sales Number of Participant Charge Percentage Account Years 4% 0-12 3% 13 2% 14 1% 15 0% 16 and after SECTION 2.05 SALES CHARGE EXEMPTIONS No contingent deferred sales charge will be assessed if: a. a Participant has a minimum of five (5) Participant Account Years, and the Participant elects a Designated Amount payment that lasts at least five (5) years. b. one-sum or periodic payments have become payable due to the death of the Participant; or P~e5 ART CLE II1: P.~.R~ICIPANTS' ACCOUNTS SECTION 3.01 PURCHASE PAYMENTS The Company shall receive such purchase payments from the Owner as are made in accordance with the requirements of the Plan. Purchase payments for each Participant must be at least $260 per Participant per year. Payments must be no less frequent than monthly, unless agreed to by the Company. SECTION 3.92 CREDITING ACCUMULATION UNITS ~When ~ p~u~..chase paym~ent~ts received BY the Company in accordance w~th the provisions of Section 3.01. the ne. purchas'~ paymen~ for each Series is applied separately to provide accnmnlation units which ar(~ credited Lo a Par~.icip~mt's Account in accordance with the instructions of the Owner. The number of ~:ccunml~:~iou units credu.ed to each:Participant's Account-for each Serie~ is determined by dividing the net purchase pvym~nt allocmed ~o ~hat Series for that Participant by the v~lue Of the accumulation unit I:(~r that Series next con,pul cd I'ollo~ iflgreceipl of/.he purchase P:L~ ment by the ComPany. The~net purchase p,~ymem I'o: each Psrricipanl is t:he I:ou'~l purchase p~ v}nent I'n~ Thai I'v r~idipm~le§s ~-uy taxes l;her] payabIe ..'s c~s( - hsd m Sec .:on 2.0.L A uLA? oN UNIT VALUE T}~-alhe of. ~.he ~,~..C~n'ulaU0n unit foreach Separate Account Series was establlshqd at $1.00 as of ~]~t; (:iai ¢:{.F..%"~n d" shagcs ,~:er(; l'~rs £. pu rchasec[ for that Series. The value of accumulation uni{~~Or anY Separ~/te . \ ccou.~il~?ri~s'if(}'~ al{.{: ~uhs¢iquent Business Day is determined by multiplying the value ~6r ~h~ pre~e~ .Bust~ ess~,l ), .x b5 he Separate ..\ccowat net mvestmant factor for that Series for the period since that day. SECTION ~.04 CHANGE OF ALLOCATION PERCENTAGE AMONG SERIES' .~.~g:Compa~.~y? pe ~rrait the Owner, or the Participant ff the Plan so provides, re chang? the allocation percen~es ~ ~.~s for subsequent purchase payments rovided that no chan m ~ be made Which would r!:.~'~'] £ .fi} .at, ?~,ou ut less ~han ..q] 0 per p.ayment being allocated to any Series m ~;he~ Se~parate Account for any Part~Ctpani. I'he Company ~ ill permit such allocation changes 'as frequently, aP p~rmitted by the Plan..-~ ch;rage in uUocal ion percentages will not affect accumulation units of any Sekie~resnlting'from purchase. 15aymenLs made be(ore the change. SE('~TION 3.05 i';XCIIANGES AMONG SERIES AND TRANSFER TO DEPOSIT FUND T~'i~ql~;.v.:~.-~o.,..~.;, -.~, wner, or the Partimpant ff the Plan so provides, t0exc, hangeamounts , ",. 'bp,.'..,? ','co...". ~,,'~ ,,.. equently as permatted by the Plan, subject to th~ ]im/ts and rules set I,'....c~, I':.',~L I o':. , -. I' .... h.,. ~.prowde the Company s Group Flexible Fund Ret~ement Contract .... ( ,", ~', ' ,~.~! ' ,."(: I;," .. , ( ~ontract~. the Owner, or the ' ' ' ' ' ' ' · · ', Participant xf the Plan qo pr. ovides~ may ',.:' " .: ;.c, .,',. :,. ':"..' '," :' · ...... any Senes of the Separate Account and the deposit fund of the Group Page 6 ARTICLE IV: BENEFITS SECTION 4.01 NOTICE TO DISTRIBUTE At least one month prior to the date a Participant is eligible for retirement income payments in accordance with the Plan, the Owner shall notify the Company to commence a distribution from the Participant's Account and shall make the elections required by Section 4.03. The Company stroll then determine the first monthly retirement income payment to be payable for that Retired Participant in accordance with the terms of the Plan, with accumulation units of each Series being applied to provide retirement income payments ~rom that Series. All such payments will be made by the Company to the Owner. The Company may, however, by agreement with and on behalf of the Owner, make such payments directly to the Retired Partieipe~t. To the extent the Plan provides that a Participant may exercise any of the rights provided the Owner by this Article. the Owner shall mean Participant in this Article. SECTION 4.02 ADDITIONAL PURCHASE PAYMENT The Owner shall have the right to make one additional purchase payment in respect of a Participant for the purpose of increasing retirement income payments. Notice of such payment shall be given to the Company at the time the Notice to Distribute is given, and such additional payment must be made no later than the last Business Day prior to the date upon which retirement income payments are to commence. Ail such payments shall be subject to any applicable premium taxes. Benefil payment rates provided under this Contract at the time of issue shall be applicable to the entire value, including any such additionsl payment. of such account which does nol exceed five times the purchase payments allocated to such account prior to the date notice to distribute is g~ven; any excess amount may be applied at benefit payment rates then offered by the Company for Contracts of the same type as this Contract. SECTION 4.03 ELECTIONS Retirement Income Form and Date-At least one month prior to a Participant's retirement date, the Owner shall by written election to the Company at its home office, elect any one of the retirement income options described below on behalf of a Participant. Alternate Assumed Investment Rate--If not prohibited by the laws and regulations of the state in which this Contract is issued, the Owner may elect on the Effective Date to have all variable benefits payable for ali Participants determined on an assumed investment rate of 5% in lieu of 3~A%. Minimum Payment--No election of any option may be made for any Retired Participant unless it would produce a periodic benefit payment of at least $25 for that Retired Participant and. if the benefit payments are to be based on more than one Series, no election may be made unless the periodic benefit payment for each Series would be at least $25 for that Retired Participant. If at any time any payment to be made to any Retired Participant under any Series becomes less than $25. the Company shall have the right to reduce the frequency of payments to such interval as will result in a payment of at least $25. In addition, if at any time the amount held in respect of the person entitled to receive benefit payments is less than $3,500, the Company shall have the right to make a lump sum distribution to such person. Other Forms and Benefit Payments--With the consent of the Company, the amount due on distribution may be applied on any other mutually agreeable basis. SECTION 4.04 DEATH BENEFIT BEFORE RETIREMENT In the event a Participant dies before his retirement income commences, a death benefit equal to the value of the Participant's Account. on the date due proof of death is received in writ'mg by the Company will be paid as provided by the Plan. If the Plan so provides, a beneficiary may elect either to receive such value in a lump sum or to apply it under any of the optional retirement income forms contained in this Contract. subject to the minimums applicable to such optional forms. Monthly payments due under such options may be fixed, variable, or a combination of fixed and variable. SECTION 4.05 OPTIONAL RETIREMENT INCOME FORMS Option 1--Payments for a Designated Period. Payments are made monthly for any specified number of years not exceeeti~g 30. The smount of each variable payment will be determined by multiplying (a) by (b) where IaI is the accumulation unit value for the date the payment is made and (b) is the number of accumulation units applied under this option divided by the number of payments selected. page Option 2--Payments of a Designated Amount. Payments are made monthly in equal installments (not less than $6.25 per month per $1,000 appliedl until the amount applied, adjusted each Business Day for inves~men~ results, is exhausted. The final installment will be the sum rem~inlug with the Company, SECTION 4.06 SPECIAL PROVISIONS RELATING TO OPTIONS Deatttpf ~Retired Participant--If any t~etir.ed Participant dies Whl]e receiving payments, any remaining payments certain will become payable as prowded by the plan Calculation ,o~ the present value of any remainlqg~payments ~cert..~ ~or p~oses of makin,g a lump s~mpayment ~ be based on the same assu .reed investment rate used hy the Company in determlnmg the payments certain prior to the death of the Retired Participan~ Wi}hdr~wal~At any time, any amount remainin~ under Option 1 or 2 may be withdrawn, subje, ct ~o ~e ~{t~s~Pecffie~in Section 4.03. . . ' F~i~9~ of P~y~ent-.~t' thee ele~ion Of the Retired Participant and ~i~h -the Consent of ~ 0~er, pay~m~tt~i~na~ u~nder any option may be made ~m-ually, semi-annually o¢ ¢f~ar~erly,_m l!.ett Of ino. fiVhly;~ · \ ny ctimlgi~ in· ~requt~nc.~ of payments must be on the anniversary or,he c~mmence, m ,ent. of retiremen~ raceme 2;0~. 4;.07 METHOD OF CALCULATING RETIREMENT INCOME PAYMENTS ~ df Payment; Under Options 1 and 2--Monthly payments~nnder Op~;ibns 1 an& 2 ,will ia ~ manner, ~et out in the description Of those options, As each paymea~ is~',~ade,unaer i~n~,~)p~m~, a nunibek Of accumulation units equal in value ~i5 the payment wal 1~ tautened. niiim,T~s-~Rekireman~ income payments calculated in accordance ~vkh this, 8eetioa may be -a~n~en umtscancelled m order to pro~nde p~ennum Ca.xes ~assessad:as aes~bedm Sect~an P~e8 ARTICLE V: SUSPENSION AND TERMINATION SECTION 5.01 SUSPENSION The Owner may suspend the Contract by giving ninety (90) days written notice to the Company. The Company may suspend the Contract at its option at any tn-ne by giving written notice to the Owner if: Iai The Owner has failed to remit to the Company any contributions specified in the Plan: or lb) The Plan is amended so as to adversely affect the financial experience of the Company with respect to the Contract. Suspension of the Contract will become effective as of the ninety-first (91st) day following receipt of written notice by the Company. Suspension of the Contract wit1 mean only that no further contributions will be accepted by the Company, except by mutual consent. AH other terms of the Contract will continue to apply, except that the Company may, at its discretion, discontinue maintenance of individual records with respect to each Participant, If the Company discontinues maintenance of individual records, then the Company will not assess the Administrative Charge. SECTION 5.02 TERMINATION BY OWNER At any time after a Contract has been suspended, the Owner may, upon written notice, terminate the Contract. Upon such termination, the Company will pay to the Owner the redemption value of all Participants' Accounts. who have not elected to have their accounts frozen. (All "frozen" accounts will continue on deposit with the Company in accordance with the terms ef this Contract in every respect, except that no further purchase payments will be made. Notwithstanding the foregoing, all such accounts shall remain the exclusive proper~y of the Owner and shall be subject to the claims of the Owner's general creditors at all times). Payment of redemption values may be suspended when redemption of fund shares is suspended as provided in Section 5.03. Payment of amounts under this section will be subject to any applicable contingent deferred sales charge. SECTION 5.03 REDEMPTION OF PARTICIPANTS' ACCOUNTS The Owner's right to redeem Participants' Accounts, either fully or partially, will be governed by the terms of the Plan. To the extent permitted by the Plan a Participant's Account may be redeemed fully or partially a~ any time prior to the date retirement income payments commence for the Participant. Al] such payments will be made by the Company to the Owner. The Company may. however, by agreement with and on behalf of the Owner, make such payments directly to the Participant. No partial redemption will directly affect either future requirements to make purchase payments for that Participant or the retirement date of that Participant. A request for a partial redemption of a Participant's Account involving more than one Series of accumulation units must specify the allocation of the partial redemption among Series of accumulation units. Upon receipt of an application for a full or partial redemption of a Participant's Account, the Company will determine the value of the number of accumulation units redeemed at the accumulation unit value next computed following receipt of such written request by the Company. Payment of any such nmount, less any contingent deferred sales charge, will be made to the Owner within seven days of the date the application is received by the Company. Payment of redemption values may be suspended when redemption of the Fund shares is suspended including (i) during any period in which the New York Stock Exchange is closed Iother than customary holiday or weekend closing), (ii) in the event that the Securities and Exchange Commission determines that trading on such exchanges is restricted or an emergency exists as a result of which the Separate Account may not reasonably dispose of its securities or fairly value its assets, or (iii) for such other periods as the Securities and Exchange Commission may by order direct for the protection of Owners or Participants. In lieu of a lump sum distribution of a full or partial redemption, the Owner, or Participant if permitted by the Plan. may elect to have that amount paid out in inst~]lrnents under Option 1 or 2 of this Contract subject to the minimums applicable to those options, SECTION 5.04 DISBURSEMENT OF FUND DIVIDENDS IN CASH Any income or capital gain dividends received from a Fund will be reinvested in shares of the same Fund unless the Owner elects in writing to take such dividends in cash. Any disbursement by the Company to the Owner under such an election will be treated as a partial redemption under the ~erms of the Contract. Page SECTION 5.05 TERMINATION BY COMPANY This Contract will terminate, at the close of business on the date upon which the performance and fulfillment by the Company of all its duties and obligations hereunder have been completed. Page 10 ARTICLE VI: GENERAL PROVISIONS SECTION 6.01 THE CONTRACT This Contract and the application of the Owner constitute the entire Contract between the Company and Owner. Ail statements made in the application will be deemed representations and not warranties. Only an officer of the Company has authority, and then only in writing, to modify the Contract or waive any of the Company's rights or requirements. SECTION 6.02 MODIFICATION OF THE CONTRACT Contract provisions with respect to the minimum death benefits, and the deductions made from purchase payments, Participant's Accounts, or the Separate Account for contingent deferred sales charges, Administrative Charges, and Actuarial Risk Fees may not be changed prior to the first Contract Anniversary. Other than as set forth above, the Company may modify the Contract at any time without consent of the Owner or Participants. No such modification shall be retroactive or affect Retired Participants in any manner without their written consent, unless such modification is considered necessary by the Company to obtain for Participants the benefit of federal or state statutes or regulations, or judicial decisions, or to maintain qualification of the Plan. SECTION 6.03 INDIVIDUAL CERTIFICATES The Company will issue a certificate to the Owner for delivery to each Retired Participant or other person for whom an Optional Retirement Income Form is purchased under this Contract, as of the date of the first payment under such Optional Retirement Income Form. Each such certificate will set forth in substance the benefits to which such Retired Participant is entitled under such form. Such certificates will not be considered a part of this Contract. SECTION 6.04 MISSTATEMENTS AND ADJUSTMENTS If the age, or any other relevant fact relating to any person is found to be misstated, the amount of retirement income payable by the Company will be adjusted without changing the date of the first payment of such retirement income, unless some other adjustment, satisfactory to the Owner and the Company, is made with respect to such misstatement. Any adjustment made under the terms of this Section shall be conclusive on any person affected by such adjustment. The dollar amount of any underpayment made by the Company will be paid in full with the next payment due. The dollar amount of any overpayment by the Company due to any misstatement will be deducted from the amounts otherwise payable thereafter. SECTION 6.05 OWNERSHIP AND ASSIGNMENT This Contract shall belong to the Owner. Ali contractual rights and privileges may be exercised by the Owner, subject to any rights specifically reserved in the Plan for Participants as a group or as individuals, The Contract may not be assigned. SECTION 6,06 DESIGNATION OF BENEFICIARY The Participant's beneficiary shall be specified by the Owner, who may receive instructions from the Participant in this regard. The Owner, or the Participant where permitted by the Plan, may change such beneficiary designation from time to time. Such change must be made by written notice filed with the Company. However, an irrevocably designated beneficiary can be changed only with such beneficiar:f s written consent. Any new designation will not be effective until such notice is recorded by the Company. When so recorded, the change will take effect as of the date the notice was signed, whether or not the Participant is then living. Any change of beneficiary will be subject to any payments made or any other action taken by the Company prior to such recording. Unless otherwise provided in the beneficiary designation, if at a Participant's death there is more than one beneficiary entitled to the proceeds then accruing, each will receive equal shares of such proceeds. If any of two or more beneficiaries die prior to the death of the Participant, the share of such proceeds which would have been payable to that beneficiary will be payable to the surviving beneficiary or beneficiaries. If no designated beneficiary is living at the Participant's death, the proceeds will be payable to the Participant's estate. If any beneficiary dies simultaneously with the Participant or within 15 days after the Participant's death and before due proof of the Participant's death has been received by the Company; then, rights tothe proceeds will be determined as though such beneficiary had died prior to the Pm~icipant. Page SECTION 6.07 DATA TO 'BE FURNISHED TO THE COMPANY The Owner or Participant, as applicable, will furnish all information which the Company may reasonably require £or the administration of the Contract. The Company will not be liable for the fulfillment of any obligations which in any way depend on such information, until it receives such information in form satisfactory ~o it. SECTION 6.08 PARTICIPATING, DIVIDENDS This Con~ract is participating. In the event that Ad~{Mstrative Charges and Actuarial Risk Fees made under this. Contract accrue to the Company in excess of an amount deemed necessary at the sole discretion of the Board of Directors of the Company, such excess may be allocated to this Contract by purchasin~ additional accumulatfon units and crediting such additional units to the Participants' Accounts. ~ECTION 6.09 RELATION OF THIS CONTRACT TO THE SEPARATE ACCOUNT Tk? Company shall haye exclusive a~d absolute control of the assets of the Separate Account. As long as ~h.e Sep~.r. at:. Acco~mt continues to be registered under the Investment Company Act o~ 1940 and ~he Separ,~re ..'kt t.ount is invc. sted. in sharas Of oneor ~°re Funds', the Company ~ ~ote Fund shares held m the Separmo .-\c~,ou nt m accord,race x~tJt:the mstr~;c~nsrece~ved ~0m Owners of Contracts0f this class ~'h~ch provide xlari~.'hle he~eflcs. I.~ach such Owner Will receive periodic reports and proxy material of the t~pplicabh! Funos and t: I'orm ~irn ~d~k:h to give voting instructions. SECTION, 6.'10 SUBSTITUTION OF FUND SHARES If~q ~ ~ha~ of any Fqnd s~ould no~ ~ger be av~ab~ for invest~nt by the Sep~ate Account or if in [.he .]~dgme~( 0f iht Compimy s ~agement ~ther ~vestment ~ such Fund's sh~es should become hmppcopri~ e in. vie~' of Lh~ pu ~oses of ~C0ntrac~, the Comply may substitute sh~es of ~other Fund i~)r Fun~ sha fas ~h-eadv pu cch?sed or ~ be p~Ch~ed ~ the ~t~e by p~c~e pa~ents under the Contract. ~e substiuaion of s~curiLies ih the seP~a~Ac~Unt, may ~e place ~thout print approv~ of the ~ties ~md I.:xchange (,omm~ss~on. and un6~ such requirem~ts as it m~ ~pose. In,t~'e~n~ of such substim~on ~ c~ge, t~ Comply may, by appropriate endorsement, m~e such c~geP,tot~ ~d'oth~ Contrac~ o(tMs das~ as may be n~ess~y to reflect such substitution or ch~ge, N~n~qp~ed ~e~ ~prevent the Sep~ Account ~om purchasing other s~ities for other S~9~0r Ct0~~ o~ Co~a~s or ~m, effect~g a ~nversion betw~ Se~es or classes of Contracts on the b~s~ of refuels made~in~U~y by O~ers of such Co~racts. Page 12