Contingent Deferred Sales Charges. 5.1. For Funds with Class B shares, for each purchase of Class B shares, the Class B shares will be converted to Class A shares in the ninth year of ownership.
5.2. For Funds with Class B shares, the Funds understand that if a shareholder redeems Class B shares before they are converted to Class A shares, the Distributor will impose a sales charge directly on the redemption proceeds to cover those distribution expenses (including pre-paid commissions) it has previously incurred on the sale of those shares.
5.3. For Funds with Class C shares, the Funds understand that if a shareholder redeems Class C shares in the first year of ownership, the Distributor will impose a sales charge directly on the redemption proceeds to cover those distribution expenses (including pre-paid commissions) it has previously incurred on the sale of those shares.
Contingent Deferred Sales Charges. SUBJECT TO THE ANNUAL WITHDRAWAL AMOUNT, SURRENDERS OF CONTRACT VALUES ATTRIBUTABLE TO PREMIUM PAYMENTS MAY BE SUBJECT TO A CONTINGENT DEFERRED SALES CHARGE ("CHARGE"). THE LENGTH OF TIME FROM RECEIPT OF THE PREMIUM PAYMENT TO THE TIME OF SURRENDER DETERMINES THE CHARGE. DURING THE FIRST SEVEN CONTRACT YEARS, ALL SURRENDERS WILL BE FIRST FROM PREMIUM PAYMENTS AND THEN FROM EARNINGS. IF AN AMOUNT EQUAL TO ALL PREMIUM PAYMENTS HAS BEEN SURRENDERED, A CHARGE WILL NOT BE ASSESSED AGAINST THE SURRENDER OF THE REMAINING CONTRACT VALUE. AFTER THE SEVENTH CONTRACT YEAR, ALL SURRENDERS WILL BE FIRST FROM EARNINGS AND THEN FROM PREMIUM PAYMENTS. A CHARGE WILL NOT BE ASSESSED AGAINST THE SURRENDER OF EARNINGS. IF AN AMOUNT EQUAL TO ALL EARNINGS HAS BEEN SURRENDERED, A CHARGE WILL NOT BE ASSESSED AGAINST PREMIUM PAYMENTS RECEIVED MORE THAN SEVEN YEARS PRIOR TO SURRENDER, BUT WILL BE ASSESSED AGAINST PREMIUM PAYMENTS RECEIVED LESS THAN SEVEN YEARS PRIOR TO SURRENDER. FOR THIS PURPOSE, PREMIUM PAYMENTS WILL BE DEEMED TO BE SURRENDERED IN THE ORDER IN WHICH THEY WERE RECEIVED. THE CHARGE IS A PERCENTAGE OF THE AMOUNT SURRENDERED (NOT TO EXCEED THE AGGREGATE AMOUNT OF THE PREMIUM PAYMENTS MADE) AND EQUALS: 6% 1 6% 2 5% 3 5% 4 4% 5 3% 6 2% 7 0% 8 AND THEREAFTER NO CONTINGENT DEFERRED SALES CHARGES WILL BE ASSESSED IN THE EVENT THE CONTRACT TERMINATES DUE TO THE DEATH OF THE ANNUITANT OR CONTRACT OWNER (AS APPLICABLE), OR IF CONTRACT VALUES ARE APPLIED TO AN ANNUITY OPTION PROVIDED FOR UNDER THIS CONTRACT (PROVIDED HOWEVER, ANY SURRENDER OUT OF OPTION 4 WILL BE SUBJECT TO CONTINGENT DEFERRED SALES CHARGES, IF APPLICABLE), OR IF THE CONTRACT IS SURRENDERED ON OR AFTER THE ANNUITANT’S 90TH BIRTHDAY, OR UPON THE EXERCISE OF THE ANNUAL WITHDRAWAL AMOUNT. HLVA94-3DIR Page 3 (Continued) Printed in U.S.A. DEFINITION OF Account - Any of the Sub-Accounts or the Fixed Account.
Contingent Deferred Sales Charges. (CDSC) The CDSC is calculated separately for each Contract Year's Purchase Payments to which a charge applies. Charges are applied as follows: Number of Contract Anniversaries CDSC as a percentage of the since a Purchase Payment has surrendered or withdrawn been invested Purchase Payment ------------------------ ------------------ None [ 8.5% ] At least 1 [ 8.5% ] At least 2 [ 8.0% ] At least 3 [ 7.0% ] At least 4 [ 6.0% ] At least 5 [ 5.0% ] At least 6 [ 4.0% ] At least 7 [ 3.0% ] At least 8 [ 2.0% ] At least 9 [ 0.0% ] A CDSC will be waived under certain circumstances (see Section 5.05 for details).
Contingent Deferred Sales Charges. Each Trust shall cause its transfer agent (the "Transfer Agent") to withhold, from redemption proceeds payable to holders of Class B Shares, all contingent deferred sales charges ("CDSCs") properly payable by such holders in accordance with the terms of the Prospectuses relating to such Class B Shares and shall cause the Transfer Agent to pay such amounts over as promptly as possible after the settlement date for each redemption of such Class B Shares. The Distributor's Allocable Portion (as defined in Schedule 1 to this Agreement) of such CDSC amounts shall be payable to the Distributor (or to persons to whom the Distributor directs the Trust to make payments).
Contingent Deferred Sales Charges. If you make a withdrawal or surrender the contract, we may assess a Contingent Deferred Sales Charge against each Chargeable Premium involved in the transaction according to the schedule of Contingent Deferred Sales Charges shown on the Contract Data page. We calculate the Contingent Deferred Sales Charge separately for each Chargeable Premium withdrawn. In the event this contract has been continued under spousal continuation, see the Spousal Continuation provision for information on calculating any applicable Contingent Deferred Sales Charges if there is a withdrawal or surrender after spousal continuation.
Contingent Deferred Sales Charges. A charge equal to 5% of the amount withdrawn will be made at the time of withdrawal, subject to the following provisions:
(1) If the Participant makes a total withdrawal of the Participant's Fixed Account Value as a result of termination of participation in this contract, the amount received will never be less than the total of all amounts allocated to the Participant's Fixed Account, less prior transfers and withdrawals from the Participant's Fixed Account.
(2) No charge will be made for withdrawal if the Participant has provided due proof of disability. Disability shall mean the inability, by reason of medically determinable physical or mental impairment which can be expected to result in death or be of long-continued and indefinite duration, to engage in the Participant's usual and customary occupation or in any other substantial gainful activity for which the Participant is reasonably suited by education, training or experience.
(3) No charge will be made for a withdrawal after the death of the Participant.
(4) No charge will be made for that portion of the first withdrawal made in a Participant's Enrollment Year after the first Participant's Enrollment Year which does not exceed 10% of the sum of the Participant's Variable Account and Fixed Account Values.
(5) No charge will be made for that portion of the first withdrawal, made in the Participant's Eighth Enrollment Year, which does not exceed 25% of the sum of the Participant's Variable Account and Fixed Account Values.
(6) No charge will be made for that portion of the first withdrawal, made in the Participant's Ninth Enrollment Year, which does not exceed 50% of the sum of the Participant's Variable Account and Fixed Account Values.
(7) No charge will be made for that portion of the first withdrawal, made in the Participant's Tenth Enrollment Year, which does not exceed 75% of the Participant's Variable Account and Fixed Account Values.
(8) No charge will be made for any withdrawal made after the Participant has been enrolled for ten years.
Contingent Deferred Sales Charges. A and C Class shares shall be subject to a contingent deferred sales charge in the circumstances and pursuant to the schedules as set forth in each Fund’s then-current prospectus.
Contingent Deferred Sales Charges. Surrenders and transfers from this contract shall be subject to a contingent deferred sales charge. The contingent deferred sales charge is a percentage of the Participant's account value transferred or surrendered. The number of Participant's certificate years completed prior to the surrender or transfer will determine the amount of the contingent deferred sales charge. For the purpose of calculating the contingent deferred sales charge only, the number of Participant's certificate years under this contract shall be deemed to have commenced with the Participant's date of coverage under a related contract, provided such related contract is so accepted by the Company for such purpose.
Contingent Deferred Sales Charges. A CDSC is imposed on
Contingent Deferred Sales Charges. Surrenders and transfers from this Contract shall be subject to a Contingent Deferred Sales Charge; provided, however, such Contingent Deferred Sales Charge shall apply only to the extent such surrenders or transfers constitute amounts contributed or earned under this Contract or any Related Contract. The Contingent Deferred Sales Charge is a percentage of the contract values transferred or surrendered. The number of Participant’s Contract Years completed prior to the surrender or transfer will determine the amount of the Contingent Deferred Sales Charge. For the purpose of calculating the Contingent Deferred Sales Charge only, the number of Participant’s Contract Years under this Contract shall be deemed to have commenced with the Participant’s Date of Coverage under a Related Contract, provided such Related Contract is so accepted by the Company for such purpose.
