EX-99.8(E) 3 a19-6781_1ex99d8e.txt EX-99.8(E) Exhibit 99.8(e) AMENDED AND RESTATED PARTICIPATION AGREEMENT Among OPPENHEIMER VARIABLE ACCOUNT FUNDS OPPENHEIMERFUNDS, INC. and ALLMERICA FINANCIAL LIFE INSURANCE & ANNUITY COMPANY DATED AS OF MAY 1, 2000 TABLE OF CONTENTS -----------------
PAGE ------ ARTICLE I. Purchase of Fund Shares 4 ARTICLE II Representations and Warranties 6 ARTICLE III Prospectuses, Reports to Shareholders and Proxy Statements, Voting 7 ARTICLE IV Sales Material and Information 9 ARTICLE V Fees and Expenses 10 ARTICLE VI Diversification 11 ARTICLE VII Potential Conflicts 11 ARTICLE VIII Indemnification 13 ARTICLE IX. Applicable Law 17 ARTICLE X Termination 18 ARTICLE XI Notices 19 ARTICLE XII Miscellaneous 20 SCHEDULE A Separate Accounts and Variable Products A-1 SCHEDULE B Portfolios of Oppenheimer Variable Account-Funds B-1 SCHEDULE C Proxy Voting Procedures C-1
THE AGREEMENT, initially made and entered into as of the 1st day of August, 1998 by and among: ALLMERICA FINANCIAL LIFE INSURANCE & ANNUITY COMPANY (hereinafter the "Company"), a Delaware corporation, on its own behalf and on behalf of each separate account of the Company set forth on Schedule A hereto, as may be amended from time to time (each such account hereinafter referred to as the "Account"); OPPENHEIMER VARIABLE ACCOUNT FUNDS, an unincorporated Massachusetts business trust (hereinafter the "Fund"), and OPPENHEIMERFUNDS, INC. (hereinafter the "Adviser"), a Colorado corporation, is hereby amended and restated as of the 1st day of May, 2000 as follows (the "Agreement"). WHEREAS, the Fund engages in business as an open-end management investment company and is available to act as (i) the investment vehicle for separate accounts established by insurance companies for individual and group life insurance policies and annuity contracts with variable accumulation and/or pay-out provisions (hereinafter referred to individually and/or collectively as "Variable Products") and (ii) the investment vehicle for certain qualified pension and retirement plans (hereinafter "Qualified Plans"); and WHEREAS, insurance companies desiring to utilize the Fund as an investment vehicle under their Variable Products enter into participation agreements with the Fund and the Adviser (the "Participating Insurance Companies"); WHEREAS, shares of the Fund are divided into several series of shares, each representing the interest in a particular managed portfolio of securities and other assets (each such series hereinafter referred to as a "Portfolio''), any one or more of which may be made available under this Agreement, as may be amended from time to time by mutual agreement of the parties hereto; and WHEREAS, the Fund has obtained an order from the Securities and Exchange Commission, granting Participating Insurance Companies and Variable Insurance Product separate accounts exemptions from the provisions of Sections 9(a), l3(a), 15(a), and 15(b) of the Investment Company Act of 1940, as amended (hereinafter the "1940 Act"), and Rules 6e-2(b)(l5) and 6e-3(T)(b)(l5) thereunder, to the extent necessary to permit shares of the Fund to be sold to and held by separate accounts of both affiliated and unaffiliated life insurance companies (hereinafter the "Shared Funding Exemptive Order"); and WHEREAS, the Fund is registered as an open-end management investment company under the 1940 Act and its shares are registered under the Securities Act of 1933, as amended (hereinafter the "1933 Act"); and WHEREAS, the Adviser is duly registered as an investment adviser under the Investment Advisers Act of 1940, as amended, and any applicable state securities laws and manages each of the portfolios of the Fund; and WHEREAS, Allmerica Investments, Inc. (the "Underwriter") is registered as a broker/dealer under the Securities Exchange Act of 1934, as amended (hereinafter the "1934 Act"), is a member in good standing of the National Association of Securities Dealers, Inc. (hereinafter the "NASD"); and WHEREAS, the Company has registered or will register certain Variable Products under the 1933 Act unless an exemption from registration under the 1933 Act or the 1940 Act is available; and WHEREAS, each Account is a duly organized, validly existing segregated asset account, established by resolution or under authority of the Board of Directors of the Company, to set aside and invest assets attributable to the aforesaid Variable Products, and the Company has registered or will register each Account as a unit investment trust under the 1940 Act unless an exemption from registration under the 1933 Act or the 1940 Act is available; and WHEREAS, to the extent permitted by applicable insurance laws and regulations, the Company intends to purchase, on behalf of each Account, shares in the Portfolios set forth in Schedule B attached to this Agreement, to fund certain of the aforesaid Variable Insurance Products and the Fund is authorized to sell such shares to each such Account at net asset value; and WHEREAS, the parties wish to amend the initial provisions of the Agreement as set forth below; NOW, THEREFORE, inconsideration of their mutual promises, the parties hereto agree as follows: ARTICLE I. PURCHASE OF FUND SHARES 1.1. The Fund agrees to make available for purchase by the Company shares of the Fund and shall execute orders placed for each Account on a daily basis at the net asset value next computed after receipt by the Fund or its designee of such order. For purposes of this Section 1.1, the Company shall be the designee of the Fund for receipt of such orders from each Account and receipt by such designee shall constitute receipt by the Fund; provided that the Fund receives notice of such order by 9:30 a.m. Eastern time on the next following Business Day. "Business Day" shall mean any day on which the New York Stock Exchange is open for trading and on which the Fund calculates its net asset value pursuant to the rules of the Securities and Exchange Commission. 1.2. The Fund, so long as this Agreement is in effect, agrees to make its shares available indefinitely for purchase at the applicable net asset value per share by the Company and its Accounts on those days on which the Fund calculates its net asset value pursuant to rules of the Securities and Exchange Commission and the Fund shall use reasonable efforts to calculate such net asset value on each day which the New York Stock Exchange is open for trading. Notwithstanding the foregoing, the Board of Trustees of the Fund (hereinafter the "Board") may refuse to permit the Fund to sell shares of any Portfolio to any person, or suspend or terminate the offering of shares of any Portfolio if such action is required by law or by regulatory authorities having jurisdiction or is, in the sole discretion of the Board-acting in good faith and in light of their fiduciary duties under federal and any applicable state laws, in the best interests of the shareholders of such Portfolio. 1.3. The Fund agrees that shares of the Fund will be sold only to (i) Participating Insurance Companies and their separate accounts, (ii) to certain Qualified Plans, or (iii) to such other persons as are permitted under applicable provisions of the Internal Revenue Code of 1986, as amended (the "Code") and regulations promulgated thereunder, the sale of which will not impair the tax treatment currently afforded the Variable Products. 1.4. The Fund agrees to redeem for cash, on the Company's request, any full or fractional shares of the Fund held by the Company, executing such requests on a daily basis at the net asset value next computed after receipt by the Fund or its designee of the request for redemption. For purposes of this Section 1.4, the Company shall be the designee of the Fund for receipt of requests for redemption from each Account and receipt by such designee shall constitute receipt by the Fund, provided that the Fund receives notice of such request for redemption by 9:30 am. Eastern time on the next following Business Day. 1.5. The Company agrees that purchases and redemptions of Portfolio shares offered by the then current prospectus of the Fund shall be made in accordance With the provisions of such prospectus. 1.6. The Company shall pay for Fund shares on the next Business Day after an order to purchase Fund shares is made in accordance with the provisions of Section 1.1 hereof. Payment shall be in federal funds transmitted by wire. 1.7. Issuance and transfer of the Fund's shares will be by book entry only. Stock certificates will not be issued to the Company or any Account. Shares ordered from the Fund will be recorded in an appropriate title for each Account or the appropriate subaccount of each Account. 1.8. The Fund shall furnish same day notice (by fax, e-mail or telephone, followed by written confirmation, if by telephone) to the Company of any income, dividends or capital gain distributions payable on the Fund's shares. The Company hereby elects to receive all such income dividends and capital gain distributions as are payable on the Portfolio shares in additional shares of that Portfolio. The Company reserves the right to revoke this election upon 60 days written notice and to receive all such income dividends and capital gain distributions in cash. The Fund shall notify the Company of the number of shares so issued as payment of such dividends and distributions. 1.9. The Fund shall make the net asset value per share for each Portfolio available to the Company on a daily basis as soon as reasonably practical after the net asset value per share is calculated (normally by 6:30 p.m. Eastern time) and shall use its best efforts to make such net asset value per share available by 7:00 p.m. Eastern time. ARTICLE II. REPRESENTATIONS AND WARRANTIES 2.1. The Company represents and warrants that the Variable Products are or will be registered under the 1933 Act; that the Variable Products will be issued and sold in compliance in all material respects with all applicable federal and state laws, and that the sale of the Variable Products shall comply in all material respects with state insurance suitability requirements. The Company further represents and warrants that it is an insurance company duly organized and in good standing under applicable law, that it has legally and validly established each Account as a segregated asset account under Section 2932 of the Delaware Insurance Code, and that it has registered or, prior to any issuance or sale of the Variable Products, will register each Account as a unit investment trust in accordance with the provisions of the 1940 Act to serve as a segregated investment account for the Variable Products. 2.2. The Fund represents and warrants that Fund shares sold pursuant to this Agreement shall be registered under the 1933 Act, duly authorized for issuance and sold in compliance with the laws of the Commonwealth of Massachusetts and all applicable federal and state securities laws, and that the Fund is and shall make every reasonable effort to remain registered under the 1940 Act. The Fund shall amend the registration statement for its shares under the 1933 Act and the 1940 Act from time to time as required in order to effect the continuous offering of its shares. The Fund shall register and qualify the shares for sale in accordance with the laws of the various states only if and to the extent deemed advisable by the Fund. 2.3. The Fund represents that it is currently qualified as a Regulated Investment Company under Subchapter M of the Code, and that it will make every effort to maintain such qualification (under Subchapter M or any successor or similar provision) and that it will notify the Company promptly upon having a reasonable basis for believing that it has ceased to so qualify or that it might not so qualify in the future. 2.4. The Company represents that the Variable Products are currently treated as life insurance policies or annuity contracts under applicable provisions of the Code, that it will make every effort to maintain such treatment, and that it will notify the Fund immediately upon having a reasonable basis for believing that the Variable Products have ceased to be so treated or that they might not be so treated in the future. 2.5. The Fund represents that its board of Trustees, a majority of whom are not interested persons of the Fund, has approved the Fund's plans under Rule 12b-l to finance distribution expenses of service shares (the only class of shares subject to any such plans). 2.6. The Fund represents that it is lawfully organized and validly existing under the laws of the Commonwealth of Massachusetts and that it does and will comply in all material respects with the 1940 Act. 2.7. The Adviser represents and warrants that it is and shall remain duly registered in all material respects under all applicable federal and state securities laws and that it will perform its obligations for the Fund in compliance in all material respects with the laws of its state of domicile and any applicable state and federal securities laws. 2.8. The Fund represents and warrants that its Trustees, officers, employees, and other individuals/entities dealing with the money and/or securities of the Fund are and shall continue to be at all times covered by a blanket fidelity bond or similar coverage for the benefit of the Fund in an amount not less than the minimal coverage as required currently by Rule l 7g-(1) of the 1940 Act or related provisions as may be promulgated from time to time. The aforesaid blanket fidelity bond shall include coverage for larceny and embezzlement and shall be issued by a reputable bonding company. 2.9. The Company represents and warrants that all of its directors, officers, employees, investment advisers, and other individuals/entities dealing with the money and/or securities of the Fund are covered by a blanket fidelity bond or similar coverage, in an amount not less $5 million. The aforesaid, which includes coverage for larceny and embezzlement, shall be issued by a reputable bonding company. The Company agrees to make all reasonable efforts to see that this bond or another bond containing these provisions is always in effect, and agrees to notify the Fund and the Underwriter promptly in writing in the event that such coverage no longer applies. 2.10. Notwithstanding the provisions of Section 2.1 hereof, the Company shall be permitted not to register certain Variable Products if they are properly exempt from registration under Section 3(a)(2) of the 1933 Act or will be offered exclusively in transactions that are properly exempt from registration under Section 4(a)(2) or Regulation D of the 1933 Act. The Company represents and warrants that any Variable Products offered and/or sold in private placements will comply in all material respects with the exemptions from registration requirements in the 1933 Act and applicable federal and state laws and regulations, and that it will make every effort to maintain such exemption and will notify the Fund immediately upon having a reasonable basis for believing that such exemption no longer applies or may not apply in the future. 2.11 Notwithstanding the provisions of Section 2.1 hereof, the Company shall be permitted not to register certain Accounts if they are properly exempt from registration under section 3(c)(l) or 3(c)(7) of the 1940 act The Company represents and warrants that any Accounts utilized in private placements will comply in all material respects with the exemption from registration requirements in the 1940 Act and applicable federal and state laws and regulations, and that it will make every effort to maintain such exemption and will notify the Fund immediately upon having a reasonable basis for believing that such exemption no longer applies or may not apply in the future. ARTICLE III. PROSPECTUSES, REPORTS TO SHAREHOLDERS AND PROXY STATEMENTS; VOTING 3.1. The Fund or its designee shall provide the Company with as many printed copies of the Fund's current prospectus as the Company may reasonably request. If requested by the Company, in lieu of providing printed copies, the Fund shall provide camera-ready film or computer diskettes containing the Fund's prospectus, and such other assistance as is reasonably necessary in order for the Company once each year (or more frequently if the prospectus for the Fund is amended during the year) to have the prospectus for the Variable Products and the Fund's prospectus printed together in one document. Alternatively, the Company may print the Fund's prospectus in combination with other fund companies' prospectuses. 3.2. Except as provided in this Section 3.2., all expenses of printing and distributing Fund prospectuses shall be the expense of the Company. For any prospectuses provided by the Company to the existing owners of Variable Products who currently own shares of one or more of the Fund's Portfolios, in order to update disclosure as required by the 1933 Act and/or the 1940 Act, the cost of printing shall be borne by the Fund. If the Company chooses to receive camera-ready film or computer diskettes in lieu of receiving printed copies of the Fund' prospectus, the Fund will reimburse the Company in an amount equal to the product of x and y where x is the number of such prospectuses distributed to owners of the Variable Products who currently own shares of one or more of the Fund's Portfolios, and y is the Fund's per unit cost of typesetting and printing the Fund's prospectus. The Company agrees to provide the Fund or its designee with such information as may be reasonably requested by the Fund to assure that the Fund's expenses do not include the cost of printing any prospectuses other than those actually distributed to existing owners of the Variable Products. 3.3. The Fund prospectus shall state that the statement of additional information for the Fund is available from the Fund or its designee. The Fund or its designee, at its expense, shall print and provide such statement of additional information to the Company (or a master of such statement suitable for duplication by the Company) for distribution to any owner of a contract funded by the Fund. The Fund or its designee, at the Company's expense, shall print and provide such statement to the Company (or a master of such statement suitable for duplication by the Company) for distribution to a prospective purchaser who requests such statement or to an owner of a contract not funded by the Fund. 3.4. The Fund, at its expense, shall provide the Company with copies of its proxy statements, reports to shareholders, and other communications (except for prospectuses, which are covered in Section 3.1) to shareholders in such quantity as the Company shall reasonably require for distribution to contract owners. The Fund or its designee shall bear the cost of printing, duplicating, and mailing of these documents to current contract owners, and the Company shall bear the cost for such documents used for purposes other than distribution to current contract owners. 3.5. If and to the extent required by law the Company shall: (i) solicit voting instructions from contract owners; (ii) vote the Fund shares m accordance with instructions received from contract owners; and (iii) vote Fund shares for which no instruction s have been received in the same proportion as Fund shares of such Portfolio for which instructions have been received, so long as and to the extent that the Securities and Exchange Commission continues to interpret the 1940 Act to require pass-through voting privileges for variable contract owners. The Company reserves the right to vote Fund shares held in any segregated asset account in its own right, to the extent permitted by law. The Fund and the Company shall follow the procedures, and shall have the corresponding responsibilities, for the handling of proxy and voting instruction solicitations, as set forth in Schedule C attached hereto and incorporated herein by reference. Participating Insurance Companies shall be responsible for ensuring that each of their separate accounts participating in the Fund calculates voting privileges in a manner consistent with the standards set forth on Schedule C, which standards will also be provided to the other Participating Insurance Companies, if any. 3.6. The Fund will comply with all provisions of the 1940 Act requiring voting by shareholders, and in particular the Fund will either provide for annual meetings or comply with Section 16(c) of the 1940 Act (although the Fund is not one of the trusts described in Section 16(c) of that Act) as well as with Sections 16(a) and, if and when applicable, 16(b). Further, the Fund will act in accordance with the Securities and Exchange Commission's interpretation of the requirements of Section 16(a) with respect to periodic elections of trustees and with whatever rules the Commission may promulgate with respect thereto. 3.7. The Fund shall use reasonable efforts to provide Fund prospectuses, reports to shareholders, proxy materials and other Fund communications (or camera-ready equivalents) to the Company sufficiently in advance of the Company's mailing dates to enable the Company to complete, at reasonable cost, the printing, assembling and/or distribution of the communications in accordance with applicable laws and regulations. 3.8. In the event the Company or its agent shall receive requests for the Fund's Prospectus, statement of additional information or annual or semi-annual report, the Company shall send the requested document within three business days of receipt of such request, by first-class mail or other means to ensure prompt delivery, or as otherwise required by Rule 498 under the Securities Act of 1933 or any successor provision, at the Company's expense. ARTICLE IV. SALES MATERIAL AND INFORMATION 4.1. The Company shall furnish, or shall cause to be furnished, to the Adviser or its designee, each piece of sales literature or other promotional material in which the Fund or the Adviser(s) is named, at least fifteen Business Days prior to its use. No such material shall be used if the Fund or its designee reasonably objects to such use within fifteen Business Days after receipt of such material. 4.2. The Company shall not give any information or make any representations or statements on behalf of the Fund or concerning the Fund in connection with the sale of the Variable Products other than the information or representations contained in the registration statement or prospectus for the Fund shares, as such registration statement and prospectus may be amended or supplemented from time to time, or in reports or proxy statements for the Fund, or in sales literature or other promotional material approved by the Fund or its designee, except with the permission of the Fund. 4.3. The Fund or its designee shall furnish, or shall cause to be furnished, to the Company or its designee, each piece of sales literature or other promotional material in which the Company and/or its separate account(s) is named at least fifteen Business Days prior to its use. No such material shall be used if the Company or its designee reasonably objects to such use within fifteen Business Days after receipt of such material. 4.4. The Fund and the Adviser shall not give any information or make any representations on behalf of the Company or concerning the Company, each Account, or the Variable Products, other than the information or representations contained in a registration statement, prospectus for the Variable Products, as such registration statement, prospectus may be amended or supplemented from time to time, or in published reports for each Account which are in the public domain or approved by the Company for distribution to contract owners, or in sales literature or other promotional material approved by the Company or its designee, or in any private placement memorandum or other document or material (collectively, "Private Placement Memoranda") used by or on behalf of the Company or its designee in the offer or sale of Variable Products without registration, except with the permission of the Company. 4.5. The Fund will provide to the Company at least one complete copy of all registration statements, prospectuses, statements of additional information, reports, proxy statements, sales literature and other promotional materials, applications for exemptions, requests for no-action letters, and all amendments to any of the above, that relate to the Fund or its shares, which are relevant to the Company or the Variable Products. 4.6. The Company will provide to the Fund at least one complete copy of all registration statements, prospectuses, Private Placement Memoranda, statements of additional information, reports, solicitations for voting instructions, sales literature and other promotional materials, applications for exemptions, requests for no action letters, and all amendments to any of the above, that relate to the investment in the Fund under the Variable Products. 4.7. For purposes of this Article IV, the phrase "sales literature or other promotional material" includes, but is not limited to, any of the following that refer to the Fund or any affiliate of the Fund: advertisements (such as material published, or designed for use in, a newspaper, magazine, or other periodical, radio, television, telephone or tape recording, videotape display, signs or billboards, motion pictures, or other public media), sales literature (i.e., any written or electronic communication distributed or made generally available to customers or the public, including brochures, circulars, research reports, market letters, form letters, seminar texts, reprints or excerpts of any other advertisement, sales literature, or published article), educational or training materials or other communications distributed or made generally available to some or all agents or employees, and registration statements, prospectuses, statements of additional information, shareholder reports, and proxy materials. ARTICLE V. FEES AND EXPENSES 5.1. The Fund shall pay no fee or other compensation to the Company under this Agreement. 5.2. All expenses incident to performance by each party of their respective duties under this Agreement shall be paid by that party, other than expenses assumed by the Adviser under the Management Agreement between the Fund and the Adviser or by another party. The Fund shall see to it that all its shares are registered and authorized for issuance in accordance with applicable federal law and, if and to the extent deemed advisable by the Fund, in accordance with section 2.2 hereof. The Fund shall bear the expenses for the cost of registration and qualification of the Fund's shares, preparation and filing of the Fund's prospectus and registration statement, proxy materials and reports, setting the prospectus in type, setting in type and printing the proxy materials and reports to shareholders (including the costs of printing a prospectus that constitutes an annual report), the preparation of all statements and notices required by any federal or state law, and all applicable taxes on the issuance or transfer of the Fund's shares to the Company. ARTICLE VI. DIVERSIFICATION 6.1. The Fund will at all times invest money from the Variable Products in such a manner as to ensure that the Variable Products will be treated as variable contracts under the Code and the regulations issued thereunder. Without limiting the scope of the foregoing, the Fund will at all times comply with Section 817(h) of the Code and Treasury Regulation 1.817-5, relating to the diversification requirements for variable annuity, endowment, or life insurance contracts and any amendments or other modifications to such Section or Regulations. In the event of a breach of this Article VI by the Fund, it will take all reasonable steps (a) to notify Company of such breach and (b) to adequately diversify the Fund so as to achieve compliance within the grace period afforded by Regulation 1.817-5. ARTICLE VII. POTENTIAL CONFLICTS 7.1. The Board will monitor the Fund for the existence of any material irreconcilable conflict between the interests of the contract owners of all separate accounts investing in the Fund. An material irreconcilable conflict may arise for a variety of reasons, including: (a) an action by any state insurance regulatory authority; (b) a change in applicable federal or state insurance, tax, or securities laws or regulations, or a public ruling, private letter ruling, no-action or interpretative letter, or any similar action by insurance, tax, or securities regulatory authorities; (c) an administrative or judicial decision in any relevant proceeding; (d) the manner in which the investments of any Portfolio are being managed; (e) a difference in voting instructions given by Variable Insurance Product owners; or (f) a decision by a Participating Insurance Company to disregard the voting instructions of contract owners. The Board shall promptly inform the Company if it determines that an material irreconcilable conflict exists and the implications thereof. 7.2. The Company will report any potential or existing conflicts of which it is aware to the Board. The Company will assist the Board in carrying out its responsibilities under SEC rules and regulations and the conditions of any Shared Funding Exemptive Order obtained by the Fund, by providing the Board with all information reasonably necessary for the Board to consider any issues raised. This includes, but is not limited to, an obligation by the Company to inform the Board whenever contract owner voting instructions are disregarded, by confirming in writing, at the Fund's request, that the Company is unaware of any such potential or existing material irreconcilable conflicts, and, upon request, submitting to the Board at least annually (or more frequently if deemed appropriate by the Board) such reports, materials or data as the Board may reasonably request so that the Board may fully carry out the duties imposed upon it as delineated in the Shared Funding Exemptive Order. 7.3. If it is determined by a majority of the Board, or a majority of its disinterested members, that a material irreconcilable conflict exists, the Company and other Participating Insurance Companies shall, at their expense and to the extent reasonably practicable (as determined by a majority of the disinterested directors), take whatever steps are necessary to remedy or eliminate the material irreconcilable conflict, up to and including: (1) withdrawing the assets allocable to some or all of the separate accounts from the Fund or any Portfolio and reinvesting such assets in a different investment medium, including (but not limited to) another Portfolio of the Fund, or submitting the question whether such segregation should be implemented to a vote of all affected contract owners and, as appropriate, segregating the assets of any appropriate group annuity contract owners, life insurance policy owners, or variable contract owners of one or more Participating Insurance Companies) that votes in favor of such segregation, or offering to the affected contract owners the option of making such a change; and (2) establishing a new registered management investment company or managed separate account. 7.4. If a material irreconcilable conflict arises because of a decision by the Company to disregard contract owner voting instructions and that decision represents a .minority position or would preclude a majority vote, the Company may be required, at Fund's election, to withdraw the affected Account's investment in the Fund and terminate this Agreement with respect to such Account (at the Company's expense); provided, however that such withdrawal and termination shall be limited to the extent required by the foregoing material irreconcilable conflict as determined by a majority of the disinterested members of the Board. 7.5. If a material irreconcilable conflict arises because a particular state insurance regulator's decision applicable to the Company conflicts with the majority of other state regulators, then the Company will withdraw the affected Account's investment in the Fund and terminate this Agreement with respect to such Account within six months after the Board informs the Company in writing that it has determined that such decision has created an material irreconcilable conflict; provided, however, that such withdrawal and termination shall be limited to the extent required by the foregoing material irreconcilable conflict as determined by a majority of the disinterested members of the Board. Until the end of the foregoing six month period, the Underwriter and Fund shall continue to accept and implement orders by the Company for the purchase (and redemption) of shares of the Fund, subject to applicable regulations. 7.6. For purposes of Sections 7.3 through 7.5 of this Agreement, a majority of the disinterested members of the Board shall determine whether any proposed action adequately remedies any material irreconcilable conflict, but in no event will the Fund be required to establish a new funding medium for the Variable Products. The Company shall not be required by Section 7.3 to establish a new funding medium for the Variable Products if an offer to do so has been declined by vote of a majority of contract owners materially adversely affected by the material irreconcilable conflict. 7.7. If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended, or Rule 6e-3 is adopted, to provide exemptive relief from any provision of the 1940 Act or the rules promulgated thereunder with respect to mixed or shared funding, or if the Fund obtains a Shared Exemptive Order which requires provisions that are materially different from the provisions of this Agreement, then (a) the Fund and/or the Participating Insurance Companies, as appropriate, shall take such steps as may be necessary to comply with Rules 6e-2 and 6e-3(T), as amended, and Rule 6e-3, as adopted, or to the terms of the Shared Exemptive Order, to the extent applicable; and (b) Sections 3.4, 3.5, 7.1, 7.2, 7.3, 7.4, and 7.5 of this Agreement shall continue in effect only to the extent that terms and conditions substantially identical to such Sections are contained in such Rule(s) as so amended or adopted. ARTICLE VIII. INDEMNIFICATION 8.1. Indemnification By The Company 8.l (a) The Company agrees to indemnify and hold harmless the Fund and the Adviser, each of their respective officers, employees, and Trustees or Directors, and each person if any, who controls the Fund or the Adviser within the meaning of Section 15 of the 1933 Act (collectively, the "Indemnified Parties" and individually, "Indemnified Party," for purposes of this Section 8.1) against any and all losses, claims, damages, liabilities (including amounts paid in settlement with the written consent of the Company) or litigation (including legal and other expenses), to which the Indemnified Parties may become subject under any statute, regulation, at common law or otherwise, insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof) or settlements are related to the sale or acquisition of the Fund's shares or the Variable Products and: (i) arise out of or are based upon any untrue statements or alleged untrue statements of any material fact contained in the registration statement. prospectus or Private Placement Memorandum for the Variable Products or contained in the Variable Products or sales literature for the Variable Products (or any amendment or supplement to any of the foregoing), or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, provided that this agreement to indemnify shall not apply as to any Indemnified Party if such statement or orruss1on or such alleged statement or omission was made in reliance upon and in conformity with information furnished to the Company by or on behalf of the Fund for use in the registration statement, prospectus or Private Placement Memorandum for the Variable Products or in the Variable Products or sales literature (or any amendment or supplement) or otherwise for use in connection with the sale of the Variable Products or Fund shares; or (ii) arise out of or as a result of statements or representations (other than statements or representations contained in the registration statement, prospectus or sales literature of the Fund not supplied by the Company, or persons under its control and other than statements or representations authorized by the Fund or an Adviser) or unlawful conduct of the Company or persons under its control, with respect to the sale or distribution of the Variable Products or Fund shares; or (iii) arise out of or as a result of any untrue statement or alleged untrue statement of material fact contained in a registration statement, prospectus, or sales literature of the Fund or any amendment thereof or supplement thereto or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, if such a statement or omission was made in reliance upon and in conformity with information furnished to the Fund by or on behalf of the Company; or (iv) arise as a result of any failure by the Company to provide the services and furnish the materials under the terms of this Agreement; or (v) arise out of or result from any material breach of any representation and/or warranty made by the Company in this Agreement or arise out of or result from any other material breach of this Agreement by the Company, as limited by and in accordance with the provisions of Sections 8.l(b) and 8.1(c) hereof; or (vi) arise out of or result from the failure to register the Variable Products if such registration was required by applicable federal or state laws, or arise .out of or result from any offer or sale of Variable Products by or on behalf of the Company or its designee. 8.l (b). The Company shall not be liable under this indemnification provision with respect to any losses, claims, damages, liabilities or litigation incurred or assessed against an Indemnified Party as such may arise from such Indemnified Party's willful misfeasance, bad faith, or gross negligence in the performance of such Indemnified Party's duties or by reason of such Indemnified Party's reckless disregard of obligations or duties under this Agreement 8.1(c). The Company shall not be liable under this indemnification provision with respect to any claim made against an Indemnified Party unless such Indemnified Party shall have notified the Company in writing within a reasonable time after the summons or other first legal process giving information of the nature of the claim shall have been served upon such Indemnified Party (or after such Indemnified Party shall have received notice of such service on any designated agent), but failure to notify the Company of any such claim shall not relieve the Company from any liability which it may have to the Indemnified Party against whom such action is brought otherwise than on account of this indemnification provision. In case any such action is brought against the Indemnified Parties, the Company shall be entitled to participate, at its own expense, in the defense of such action. The Company also shall be entitled to assume the defense thereof, with counsel satisfactory to the party named in the action. After notice from the Company to such party of the Company's election to assume the defense thereof, the Indemnified Party shall bear the fees and expenses of any additional counsel retained by it, and the Company will not be liable to such party under this Agreement for any legal or other expenses subsequently incurred by such party independently in connection with the defense thereof other than reasonable costs of investigation. 8.1(d). The Indemnified Parties will promptly notify the Company of the commencement of any litigation or proceedings against them in connection with the issuance or sale of the Fund shares or the Variable Products or the operation of the Fund. 8.2. Indemnification by the Adviser 8.2(a). The Adviser agrees, with respect to each Portfolio that it manages, to indemnify and hold harmless the Company, each of its directors, officers, and employees, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act (collectively, the "Indemnified Parties" and individually, "Indemnified Party," for purposes of this Section 8.2) against any and all losses, claims, damages, liabilities (including amounts paid in settlement with the written consent of the Adviser) or litigation (including legal and other expenses) to which the Indemnified Parties may become subject under any statute, regulation, at common law or otherwise, insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof) or settlements are related to the sale or acquisition of shares of the Portfolio that it manages or the Variable Products and: (i) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration statement or prospectus or sales literature of the Fund (or any amendment or supplement to any of the foregoing), or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, provided that this agreement to indemnify shall not apply as to any Indemnified Party if such statement or omission or such alleged statement or omission was made in reliance upon and in conformity with information furnished to the Fund by or on behalf of the Company for use in the registration statement or prospectus to the Fund or in sales literature (or any amendment or supplement) or otherwise for use in connection with the sale of the Variable Products or Portfolio shares; or (ii) arise out of or as a result of statements or representations (other than statements or representations contained in the registration statement, prospectus, Private Placement Memorandum or sales literature for the Variable Products not supplied by the Fund or persons under its control and other than statements or representations authorized by the Company) or unlawful conduct of the Fund, Adviser(s) or Underwriter or persons under their control, with respect to the sale or distribution of the Variable Products or Portfolio shares; or (iii) arise out of or as a result of any untrue statement or alleged untrue statement of a material fact contained in a registration statement, prospectus, Private Placement Memorandum or sales literature covering the Variable Products, or any amendment thereof or supplement thereto, or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statement or statements therein not misleading, if such statement or omission was made in reliance upon information furnished to the Company by or on behalf of the Fund; or (iv) arise as a result of any material failure by the Adviser to provide the services and furnish the materials under the terms of this Agreement; or (v) arise out of or result from any material breach of any representation and/or warrant made by the Adviser in this Agreement or arise out of or result from any other material breach of this Agreement by the Adviser; as limited by and in accordance with the provisions of Sections 8.2(b) and 8.2(c) hereof. 8.2(b). The Adviser shall not be liable under this indemnification provision with respect to any losses, claims, damages, liabilities or litigation incurred or assessed against an Indemnified Party as such may arise from such Indemnified Party's willful misfeasance, bad faith, or gross negligence in the performance of such Indemnified Party's duties or by reason of such Indemnified Party's reckless disregard of obligations and duties under this Agreement. 8.2(c). The Adviser shall not be liable under this indemnification provision with respect to any claim made against an Indemnified Party unless such Indemnified Party shall have notified the Adviser in writing within a reasonable time after the summons or other first legal process giving information of the nature of the claim shall have been served upon such Indemnified Party (or after such Indemnified Party shall have received notice of such service on any designated agent), but failure to notify the Adviser of any such claim ,shall not relieve the Adviser from any liability which it may have to the Indemnified Party against whom such action is brought otherwise than on account of this indemnification provision: In case any such action is brought against the Indemnified Parties, the Adviser will be entitled to participate, at its own expense, in the defense thereof. The Adviser also shall be entitled to assume the defense thereof, with counsel satisfactory to the party named in the action. After notice from the Adviser to such party of the Adviser's election to assume the defense thereof, the Indemnified Party shall bear the fees and expenses of any additional counsel retained by it, and the Adviser will not be liable to such party under this Agreement for any legal or other expenses subsequently incurred by such party independently in connection with the defense thereof other than reasonable costs of investigation. 8.2(d). The Company agrees promptly to notify the Adviser of the commencement of any litigation or proceedings against it or any of its officers or directors in connection with the issuance or sale of the Variable Products or the operation of each Account. 8.3. Indemnification by the Fund 8.3(a). The Fund agrees to indemnify and hold harmless the Company, and each of its directors and officers and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act (hereinafter collectively, the "Indemnified Parties" and individually, "Indemnified Party," for purposes of this Section 8.3) against any and all losses, claims, damages, liabilities (including amounts paid in settlement with the written consent of the Fund) or litigation (including legal and other expenses) to which the Indemnified Parties may become subject under any statute, regulation, at common law or otherwise, insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof), litigation or settlements result from the gross negligence, bad faith or willful misconduct of the Board or any member thereof, are related to the operations of the Fund and: (i) arise as a result of any material failure by the Fund to provide the services and furnish the materials under the terms of this Agreement; or (ii) arise out of or result from any material breach of any representation and/or warranty made by the Fund in this Agreement or arise out of or result from any other material breach of this Agreement by the Fund, as limited and in accordance with the provisions of Sections 8.3(b) and 8.3(a); 8.3(b). The Fund shall not be liable under this indemnification provision with respect to Party as may arise from such Indemnified Party's gross negligence, bad faith, or willful misconduct the performance of such Indemnified Party's duties or by reason of such Indemnified Party's reckless disregard of obligations and duties under this Agreement. 8.3(c). The Fund shall not be liable under this indemnification provision with respect to any claim made against an Indemnified Party unless such Indemnified Party shall have notified the Fund in writing within a reasonable time after the summons or other first legal process giving information of the nature of the claim shall have been served upon such Indemnified Party (or after such Indemnified Party shall have received notice of such service on any designated agent), but failure to notify the Fund of any such claim shall not relieve the Fund from any liability which it may have to the Indemnified Party against whom such action is brought otherwise than on account of this indemnification provision. In case any such action is brought against the Indemnified Parties, the Fund will be entitled to participate, at its own expense, in the defense thereof. The Fund also shall be entitled to assume the defense thereof, with counsel satisfactory to the party named in the action. After notice from the Fund to such party of the Fund's election to assume the defense thereof, the Indemnified Party shall bear the fees and expenses of any additional counsel retained by it, and the Fund will not be liable to such party under this Agreement for any legal or other expenses subsequently incurred by such party independently in connection with the defense thereof other than reasonable costs of investigation. 8.3(d) The Company agrees promptly to notify the Fund of the commencement of any litigation or proceedings against it or any of its respective officers or directors in connection with this Agreement, the issuance or sale of the Variable Products, with respect to the operation of either Account, or the sale or acquisition of shares of the Fund. ARTICLE IX. APPLICABLE LAW 9.1. This Agreement shall be construed and the provisions hereof interpreted under and in accordance with the laws of the Commonwealth of Massachusetts. 9.2. This Agreement shall be subject to the provisions of the 1933, 1934 and 1940 Acts, and the rules and regulations and rulings thereunder, including such exemptions from those statutes, rules and regulations as the Securities and Exchange Commission may grant (including, but not limited to, the Shared Funding Exemptive Order) and the terms hereof shall be interpreted and construed in accordance therewith. ARTICLE X. TERMINATION 10.1. This Agreement shall continue in full force and effect until the first to occur of: 10.1(a) termination by any party for any reason by at least sixty (60) days advance written notice delivered to the other parties; or 10.l (b) termination by the Company by written notice to the Fund and the Adviser with respect to any Portfolio based upon the Company's determination that shares of such Portfolio are not reasonably available to meet the requirements of the Variable Products; or 10.1(c) termination by the Company by written notice to the Fund and the Adviser with respect to any Portfolio in the event any of the Portfolio's shares are not registered, issued or sold in accordance with applicable state and/or federal law or such law precludes the use of such shares as the underlying investment media of the Variable Products issued or to be issued by the Company; or 10.1(d) termination by the Company by written notice to the Fund and the Adviser with respect to any Portfolio in the event that such Portfolio ceases to qualify as a Registered Investment Company under Subchapter M of the Code or under any successor or similar provision, or if the Company reasonably believes that the Fund may fail to so qualify; or 10.1(e) termination by the Company by written notice to the Fund and the Adviser with respect to any Portfolio in the event that such Portfolio fails to meet the diversification requirements specified in Article VI hereof; or 10.1(f) termination by the Fund and/or the Adviser by written notice to the Company if (i) the Fund and/or the Adviser shall determine, in its sole judgment exercised in good faith, that the Company and/or its affiliated companies has suffered a material adverse change in its is business , operations, financial condition or prospects since the date of this Agreement, the subject of material adverse publicity, (ii) upon institution of formal proceedings against the Company by the NASO, the Securities and Exchange Commission, any state insurance regulator or any other regulatory body regarding the Company's duties under this Agreement or related to the sale of the Variable Products, the administration of the Variable Products, the operation of the Account, or the purchase of Fund shares, which would have a material adverse effect on the Company's ability to perform its obligations under this Agreement, (iii) upon a determination by a majority of the Board, or a majority of the disinterested Board members, that an material irreconcilable conflict exists among the interests of (a) all contract owners of variable insurance products of all separate accounts or (b) the interests of the Participating Insurance Companies investing in the Fund as delineated in Article VII hereof, or (iv) upon the Company's material breach of any provision of this Agreement. 10.1(g) termination by the Company by written notice to the Fund and the Adviser, if the Company shall determine, in its sole judgment exercised in good faith, that either the Fund or the Adviser has suffered a material adverse change in its business, operations, financial condition or prospects since the date of this Agreement or is the subject of material adverse publicity; or 10.2. Notwithstanding any termination of this Agreement, the Fund shall, at the option of the Company, continue to make available additional shares of the Fund pursuant to the terms and conditions of this Agreement, for all Variable Products in effect on the effective date of termination of this Agreement (hereinafter referred to as "Existing Variable Products"). Specifically, without limitation, the owners of the Existing Variable Products shall be permitted to direct reallocation of investments in the Portfolios of the Fund, redemption of investments in the Portfolios of the Fund and/or investment in the Portfolios of the Fund upon the making of additional purchase payments under the Existing Variable Products. The parties agree that this Section 10.2 shall not apply to any termination under Article VII and the effect of such Article VII termination shall be governed by Article VII of this Agreement. l0.3. The Company shall not redeem Fund shares attributable to the Variable Products (as distinct from Fund shares attributable to the Company's assets held in the Account) except (i) as necessary to implement contract owner initiated or approved transactions, or (ii) as required by state and/or federal laws or regulations or judicial or other legal precedent of general application (hereinafter referred to as a "Legally Required Redemption") or (iii) as permitted by an order of the Securities and Exchange Commission pursuant to Section 26(b) of the 1940 Act. Upon request, the Company will promptly furnish to the Fund the opinion of counsel for the Company (which counsel shall be reasonably satisfactory to the Fund) to the effect that any redemption pursuant to clause (ii) above is a Legally Required Redemption. Furthermore, except in cases where permitted under the terms of the Variable Products, the Company shall not prevent contract owners from allocating payments to a Portfolio that was otherwise available under the Variable Products without first giving the Fund 90 days prior written notice of its intention to do so. ARTICLE XI. NOTICES Any notice shall be sufficiently given when hand delivered or sent by registered or certified mail to the other party at the address of such party set forth below or at such other address as such party may from time to time specify in writing to the other party. If to the Fund: Oppenheimer Variable Account Funds 6803 South Tuscon Way Englewood, CO 80112 Attn: Brian W. Wixted, Treasurer If to the Adviser: OppenheimerFunds, Inc. 2 World Trade Center Suite 3400 New York, NY 10048-0203 Attn: Andrew J. Donohue, Esq. Executive Vice President and General Counsel If to the Company: Allmerica Financial Life Insurance & Annuity Company 440 Lincoln Street Worcester, Massachusetts 01653 Attention: Richard M. Reilly, President ARTICLE XII. Miscellaneous 12.1. A copy of the Fund's Declaration of Trust, as may be amended from time to time, is on file with the Secretary of the Commonwealth of Massachusetts. Notice is hereby given that this instrument is executed by the Fund's Trustees as Trustees and not individually, and the Fund's obligations under this Agreement are not binding upon any of the Trustees or Shareholders of the Fund, but bind only the Fund and the Fund's property; the Company and the Adviser each represent that it has notice of the provisions of the Declaration of Trust of the Fund disclaiming shareholder and trustee liability for acts or obligations of the Trust. 12.2. Subject to the requirements of legal process and regulatory authority, each party hereto shall treat as confidential the names and addresses of the owners of the Variable Products and all information reasonably identified as confidential in writing by any other party hereto and, except as permitted by this Agreement, shall not disclose, disseminate or utilize such names and addresses and other confidential information until such time as it may come into the public domain without the express written consent of the affected party. 12.3. The captions in this Agreement are included for convenience of reference only and in no way define or delineate any of the provisions hereof or otherwise affect their construction or effect. 12.4. This Agreement may be executed simultaneously in two or more counterparts, each of which taken together shall constitute one and the same instrument. 12.5. If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule or otherwise, the remainder of the Agreement shall not be affected thereby. 12.6. Each party hereto shall cooperate with each other party and all appropriate governmental authorities (including without limitation the Securities and Exchange Commission, the National Association of Securities Dealers and state insurance regulators) and shall permit such authorities reasonable access to its books and records in connection with any investigation or inquiry relating to this Agreement or the transactions contemplated hereby. Notwithstanding the generality of the foregoing, each party hereto further agrees to furnish the California Insurance Commissioner with any information or reports in connection with services provided under this Agreement which such Commissioner may request in order to ascertain whether the insurance operations of the Company are being conducted in a manner consistent with the California Insurance Regulations and any other applicable law or regulations. 12.7. The rights, remedies and obligations contained in this Agreement are cumulative and are in addition to any and all rights, remedies and obligations at law or in equity, which the parties hereto are entitled to under state and federal laws. 12.8. This Agreement or any of the rights and obligations hereunder may not be assigned by any party without the prior written consent of all parties hereto; provided, however, that the Adviser may assign this Agreement or any rights or obligations hereunder to any affiliate of or company controlled by or under common control with the Adviser, if such assignee is duly licensed and registered to perform the obligations of the Adviser under this Agreement. 12.9 As of May 1, 2000, the Agreement initially entered into as of August 1, 1998 by the parties hereto is replaced in its entirety by this Agreement. IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed in its name and on its behalf by its duly authorized representative and its seal to be hereunder affixed hereto as of the date specified above. ALLMERICA FINANCIAL LIFE INSURANCE & ANNUITY COMPANY By: /S/ RICHARD M. REILLY ----------------------------- Name: Richard M. Reilly Title: President OPPENHEIMER VARIABLE ACCOUNT FUNDS By: /S/ ANDREW J. DONOHUE ----------------------------- Name: Andrew J. Donohue Title: Secretary and Vice President OPPENHEIMERFUNDS, INC. By: /S/ ANDREW J. DONOHUE ----------------------------- Name: Andrew J. Donohue Title: Secretary and Vice President SCHEDULE A SEPARATE ACCOUNTS AND VARIABLE PRODUCTS
SEPARATE ACCOUNT PRODUCT NAME 1933 ACT# 1940 ACT# -------------------------------------------- --------------------------- --------------------------- --------------------------- Fulcrum Separate Account Fulcrum Annuity 333-16929 811-07947 Fulcrum Variable Life Separate Account Fulcrum SPVUL 333-15569 811-07913 VARIABLE LIFE PRODUCTS ----------------------
SEPARATE ACCOUNT PRODUCT NAME 1933 ACT# 1940 ACT# --------------------------------------------------------- ---------------------------- -------------------- -------------------- Fulcrum Separate Account Fulcrum Annuity 333-11377 811-7799 FUVUL Separate Account of Allmerica Financial Life ValuePlus Assurance 333-93031 811-09731 Insurance and Annuity Company FR1 Separate Account of Allmerica Financial Life PremierFocus N/A N/A Insurance and Annuity Company FR2 Separate Account of Allmerica Financial Life PremierFocus N/A N/A Insurance and Annuity Company FR3 Separate Account of Allmerica Financial Life PremierFocus N/A N/A Insurance and Annuity Company FR4 Separate Account of Allmerica Financial Life PremierFocus N/A N/A Insurance and Annuity Company FQ1 Separate Account of Allmerica Financial Life PremierFocus N/A N/A Insurance and Annuity Company UR1 Separate Account of Allmerica Financial Life PremierFocus N/A N/A Insurance and Annuity Company UR2 Separate Account of Allmerica Financial Life PremierFocus N/A N/A Insurance and Annuity Company
UR4 Separate Account of Allmerica Financial Life PremierFocus N/A N/A Insurance and Annuity Company UQ1 Separate Account of Allmerica Financial Life PremierFocus N/A N/A Insurance and Annuity Company VA-K Separate Account of Allmerica Financial Life TBD TBD 811-6293 Insurance and Annuity Company
SCHEDULE B PORTFOLIOS OF OPPENHEIMER VARIABLE ACCOUNT FUNDS Oppenheimer Aggressive Growth Fund/NA Oppenheimer Main Street Growth & Income Fund/NA Oppenheimer Small Cap Growth Fund/NA Oppenheimer Strategic Bond Fund/NA SCHEDULE C PROXY VOTING PROCEDURES The following is a list of procedures and corresponding responsibilities for the handling of proxies and voting instructions relating to the Fund. The defined terms herein shall have the meanings assigned in the Participation Agreement except that the term "Company" shall also include the department or third party assigned by the Company to perform the steps delineated below. The proxy proposals are given to the Company by the Fund as early as possible before the date set by the Fund for the shareholder meeting to enable the Company to consider and prepare for the solicitation of voting instructions from owners of the Variable Products and to facilitate the establishment of tabulation procedures. At this time the Fund will inform the Company of the Record, Mailing and Meeting dates. This will be done verbally approximately two months before meeting. Promptly after the Record Date, the Company will perform a "tape run," or other activity, which will generate the names, addresses and number of units which are attributed to each contract owner/policyholder (the "Customer") as of the Record Date. Allowance should be made for account adjustments made after this date that could affect the status of the Customers' accounts as of the Record Date. Note: The number of proxy statements is determined by the activities described above. The Company will use its best efforts to call in the number of Customers to the Fund, as soon as possible, but no later than two weeks after the Record Date. The Fund's Annual Report must be sent to each Customer by the Company either before or together with the Customers' receipt of voting instruction solicitation material. The Fund will provide the last Annual Report to the Company pursuant to the terms of Section 3.43 of the Agreement to which this Schedule relates. The text and format for the Voting Instruction Cards (''Cards" or "Card") is provided to the Company by the Fund. The Company at its expense, shall produce and personalize the Voting Instruction Cards. The Fund or its affiliate must approve the Card before it is printed. Allow approximately 2-4 business days for printing information on the Cards. Information commonly found on the Cards includes: - name (legal name as found on account registration) - address - fund or account number - coding to state number of units - individual Card number for use in tracking and verification of votes (already on Cards as printed by the Fund). (This and related steps may occur later in the chronological process due to possible uncertainties relating to the proposals.) During this time, the Fund will develop, produce and pay for the Notice of Proxy and the Proxy Statement (one document). Printed and folded notices and statements will be sent to Company for insertion into envelopes (envelopes and return envelopes are provided and paid for by the Company). Contents of envelope sent to Customers by the Company will include: - Voting Instruction Card(s) - One proxy notice and statement (one document) - return envelope (postage pre-paid by Company) addressed to the Company or its tabulation agent - "urge buckslip" - optional, but recommended. (This is a small, single sheet of paper that requests Customers to vote as quickly as possible and that their vote is important. One copy will be supplied by the Fund.) - cover letter - optional, supplied by Company and reviewed and approved in advance by the Fund. The above contents should be received by the Company approximately 3-5 business days before mail date. Individual in charge at Company reviews and approves the contents of the mailing package to ensure correctness and completeness. Copy of this approval sent to the Fund. Package mailed by the Company, which shall complete and sign the Fund's Affidavit of Mailing. *Fund must allow at least a 15-day solicitation time to the Company as the shareowner. (A 5-week period is recommended.) Solicitation time is calculated as calendar days from (but not including,) the meeting, counting backwards. Collection and tabulation of Cards begins. Tabulation usually takes place in another department or another vendor depending on process used. An often used procedure is to sort Cards on arrival by proposal into vote categories of all yes, no, or mixed replies, and to begin data entry. Note: Postmarks are not generally needed. A need for postmark information would be due to an insurance company's internal procedure and has not been required by the Fund in the past. Signatures on Card checked against legal name on account registration, which was printed on the Card. Note: For Example, if the account registration is under "John A. Smith, Trustee," then that is the exact legal name to be printed on the Card and is the signature needed on the Card. If Cards are mutilated, or for any reason are illegible or are not signed properly, they are sent back to Customer with an explanatory letter and a new Card and return envelope. The mutilated or illegible Card is disregarded and considered to be not received for purposes of vote tabulation. Any Cards that have been "kicked out" (e.g. mutilated, illegible) of the procedure are "hand verified," i.e., examined as to why they did not complete the system. Any questions on those Cards are usually remedied individually. There are various control procedures used to ensure proper tabulation of votes and accuracy of that tabulation. The most prevalent is to sort the Cards as they first arrive into categories depending upon their vote; an estimate of how the vote is progressing may then be calculated. If the initial estimates and the actual vote do not coincide, then an internal audit of that vote should occur. This may entail a recount. The actual tabulation of votes is done in units, which is then converted to shares. (It is very important that the Fund receives the tabulations stated in terms of a percentage and the number of shares.) The Fund must review and approve tabulation format. Final tabulation in shares is verbally given by the Company to the Fund on the morning of the meeting not later than 10:00 a.m. Eastern Time. The Fund may request an earlier deadline if reasonable and if required to calculate the vote in time for the meeting. A Certification of Mailing and Authorization to Vote Shares will be required from the Company as well as an original copy of the final vote. The Fund will provide a standard form for each Certification. The Company will be required to box and archive the Cards received from the Customers. In the event that any vote is challenged or if otherwise necessary for legal, regulatory, or accounting purposes, the Fund will be permitted reasonable access to such Cards. All approvals and "signing-off may be done orally, but must always be followed up in writing. AMENDMENT TO PARTICIPATION AGREEMENT The Amended and Restated Participation Agreement dated as of May 1, 2000, by and among OPPENHEIMER VARIABLE ACCOUNT FUNDS, OPPENHEIMERFUNDS, INC. and COMMONWEALTH ANNUITY AND LIFE INSURANCE COMPANY (formerly known as ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY (the "Agreement"), as amended effective May 1, 2002 and August 28, 2007, is hereby further amended as follows: Schedules A and B of the Agreement are hereby deleted in their entirety and replaced with the Schedules A and B attached hereto, respectively. All other terms and provisions of the Agreement not amended herein shall remain in full force and effect. Effective Date: June 1, 2009 OPPENHEIMER VARIABLE ACCOUNT FUNDS By: --------------------------------------- Name: --------------------------------------- Title: --------------------------------------- OPPENHEIMERFUNDS, INC. By: --------------------------------------- Name: --------------------------------------- Title: --------------------------------------- COMMONWEALTH ANNUITY AND LIFE INSURANCE COMPANY By: --------------------------------------- Name: --------------------------------------- Title: --------------------------------------- SCHEDULE A SEPARATE ACCOUNTS AND VARIABLE PRODUCTS VARIABLE LIFE PRODUCTS
SEPARATE ACCOUNT PRODUCT NAME 1933 ACT # 1940 ACT # ------------------------------------------------------- --------------------------- -------------------- --------------------- FUVUL ValuePlus Assurance 333-93031 811-09731 (First Union) IMO Select Life Plus 333-84879 811-09529 VUL 2001 (Agency) IMO VUL 2001 Survivorship 333-90995 811-09529 SPVL Select SPL II 333-84306 811-08859
VARIABLE ANNUITY PRODUCTS
SEPARATE ACCOUNT PRODUCT NAME 1933 ACT # 1940 ACT # ------------------------------------------------------- -------------------------- -------------------- --------------------- VA-K ExecAnnuity Plus 33-39702 811-6293 Allmerica Advantage VA-K Immediate Advantage 333-81861 811-6293 VA-K Agency C- Share 333-38274 811-6293 (Premier Choice) Commonwealth Annuity Select Select Resource 33-47216 811-6632 Commonwealth Annuity Select Select Charter 333-63093 811-6632 Commonwealth Annuity Select Select Reward 333-78245 811-6632 Commonwealth Annuity Select Select Acclaim 333-92115 811-6632 Commonwealth Annuity Separate Account A Preferred Plus 333-141019 811-22024 Commonwealth Annuity Separate Account A Advantage IV 333-141045 811-22024 Commonwealth Annuity Separate Account A Horizon 333-157121 811-22024
SCHEDULE B PORTFOLIOS OF OPPENHEIMER VARIABLE ACCOUNT FUNDS Oppenheimer Mid-Cap Growth Fund/VA Oppenheimer Main Street Fund/VA Oppenheimer Main Street Small Cap Growth Fund/VA Oppenheimer Strategic Bond Fund/VA SERVICE SHARES Oppenheimer Balanced Fund/VA Svc Oppenheimer Capital Appreciation Fund VA Svc Oppenheimer Global Securities Fund VA Svc Oppenheimer High Income Fund VA Svc Oppenheimer Main Street Fund VA Svc Oppenheimer Main Street Small Cap Fund/VA Svc Oppenheimer Strategic Bond Fund/VA Svc