Common use of Surrender Charge Clause in Contracts

Surrender Charge. A surrender charge may apply in the event You surrender part of or all of Your Contract Value during the surrender charge period. The Schedule of Surrender Charges for Your contract is shown under Contract Data. A surrender charge applies if You surrender purchase payments during in the surrender charge period. Refer to Waiver of Surrender Charges for situations when surrender charges are not deducted. Your surrender charge amount is determined by multiplying purchase payments surrendered which could be subject to a surrender charge by the applicable surrender charge percentage. The amount that represents purchase payments surrendered is calculated using a prorated formula based on the percentage of Your Contract Value being surrendered. As a result, the amount that represents purchase payments surrendered may be greater than Your Contract Value surrendered. We determine the amount that represents purchase payments surrendered (PPS), purchase payments not subject to a surrender charge (PPF), and purchase payments which could be subject to a surrender charge (PPSC) by the following formula: PPS = PPSC + PPF PPSC = ( PS - FA ) X (PP - PPF) CV - FA (but not less than zero) PPF = FA—“contract earnings”, but not less than zero PP = Purchase payments not previously surrendered (total purchase payments – PPS) PS = Amount the Contract Value is reduced by the surrender FA = the “total free amount” CV = Contract Value prior to the surrender Definition of “contract earnings” With respect to these surrender provisions, “contract earnings” is defined as the Contract Value, less purchase payments not previously surrendered, but not less than zero. With respect to these surrender provisions, “contract earnings” are surrendered first followed by purchase payments. Definition of “total free amount” The “total free amount” is the amount You are allowed to surrender each contract year without incurring a surrender charge. The “total free amount” calculation is described below and is recalculated on each Contract Anniversary during the surrender charge period. Any unused portion does not carry over to future contract years. During the first contract year the “total free amount” is the greater of:

Surrender Charge. A surrender charge may The Surrender Charge was established on the Issue Date and will not change. It is assessed for both surrenders and withdrawals in excess of any free withdrawal amount, but does not apply in to amounts paid as a death benefit, applied to an Annuity Option, or taken as a lump sum as of the event You surrender part of or all of Your Annuity Date. It will be deducted from the amount withdrawn from the Contract Value during to satisfy the surrender charge periodor withdrawal request. The Schedule of In order to assess the Surrender Charges for Your contract is shown under Contract Data. A surrender charge applies if You surrender purchase payments during in the surrender charge period. Refer to Waiver of Surrender Charges for situations when surrender charges are not deducted. Your surrender charge amount is determined by multiplying purchase payments surrendered which could be subject Charge, we must: 1) assign each Purchase Payment to a surrender charge by Surrender Charge schedule; 2) associate the applicable surrender charge percentage. The amount that represents purchase payments surrendered is calculated using a prorated formula withdrawn with one or more Purchase Payments; and 3) determine the Surrender Charge based on the percentage Surrender Charge schedule(s) assigned to the associated Purchase Payment(s). Each Purchase Payment is assigned to one specific Surrender Charge schedule that is tiered by cumulative Purchase Payments, as shown in the table below. The Surrender Charge tier assigned to each Purchase Payment is the one that includes the sum of Your Contract Value being surrenderedadding that Purchase Payment to all prior Purchase Payments applied to the Contract. As a resultSubsequent Purchase Payments do not change the Surrender Charge tier assigned to any prior Purchase Payment, with one exception: All Purchase Payments received on or before the Contract’s initial quarterly assessment date for the Premium Based Fee will be added together for the purpose of determining the Surrender Charge tier assigned to each of them. The entire amount withdrawn (in excess of any free withdrawal amount) is associated with one or more Purchase Payments as follows: We allocate the amount that represents purchase payments surrendered may be greater than Your Contract Value surrenderedwithdrawn (in excess of any free withdrawal amount) to Purchase Payments not previously assessed with a Surrender Charge using a “first-in, first-out” (FIFO) basis. We determine then allocate any remaining amount withdrawn pro rata to these Purchase Payments. If no amount withdrawn was allocated to Purchase Payments as described above, we will deem the entire amount withdrawn (in excess of any free withdrawal amount) to be allocated to the most recent Purchase Payment we accepted. The Surrender Charge percentage applicable to each allocated amount withdrawn is then determined, as shown in the table below, based on: 1) the Surrender Charge tier assigned to the allocated amount’s associated Purchase Payment; and 2) how many complete years have elapsed between the date that represents purchase payments surrendered (PPS), purchase payments not subject Purchase Payment was applied to a surrender charge (PPF), and purchase payments which could be subject to a surrender charge (PPSC) by the following formula: PPS = PPSC + PPF PPSC = ( PS - FA ) X (PP - PPF) CV - FA (but not less than zero) PPF = FA—“contract earnings”, but not less than zero PP = Purchase payments not previously surrendered (total purchase payments – PPS) PS = Amount the Contract Value and the withdrawal or surrender date. Each allocated amount is reduced multiplied by the surrender FA = the “its applicable Surrender Charge percentage to determine its Surrender Charge. The total free amount” CV = Contract Value prior to the surrender Definition of “contract earnings” With respect to these surrender provisions, “contract earnings” is defined as the Contract Value, less purchase payments not previously surrendered, but not less than zero. With respect to these surrender provisions, “contract earnings” are surrendered first followed by purchase payments. Definition of “total free amount” The “total free amount” Surrender Charge is the amount You are allowed to surrender sum of the Surrender Charges determined for each contract year without incurring a surrender charge. The “total free allocated amount” calculation is described below and is recalculated on each Contract Anniversary during the surrender charge period. Any unused portion does not carry over to future contract years. During the first contract year the “total free amount” is the greater of:.

Surrender Charge. A surrender charge may apply in the event You surrender part of or all of Your Contract Value during the surrender charge period. The Schedule of Surrender Charges for Your contract is shown under Contract Data. A surrender charge applies if You surrender purchase payments during in the surrender charge period. Refer to Waiver of Surrender Charges for situations when surrender charges are not deducted. Your surrender charge amount is determined by multiplying purchase payments surrendered which could be subject to a surrender charge by the applicable surrender charge percentage. The amount that represents purchase payments surrendered is calculated using a prorated formula based on the percentage of Your Contract Value being surrendered. As a result, the amount that represents purchase payments surrendered may be greater than Your Contract Value surrendered. We determine the amount that represents purchase payments surrendered (PPS), purchase payments not subject to a surrender charge (PPF), and purchase payments which could be subject to a surrender charge (PPSC) by the following formula: PPS = PPSC + PPF PPSC = ( PS - FA CV - FA ) X (PP - PPF) CV - FA (but not less than zero) PPF = FA—“contract FA - “contract earnings”, but not less than zero PP = Purchase payments not previously surrendered (total purchase payments – PPS) PS = Amount the Contract Value is reduced by the surrender FA = the “total free amount” CV = Contract Value prior to the surrender Definition of “contract earnings” With respect to these surrender provisions, “contract earnings” is defined as the Contract Value, less purchase payments not previously surrendered, but not less than zero. With respect to these surrender provisions, “contract earnings” are surrendered first followed by purchase payments. Definition of “total free amount” The “total free amount” is the amount You are allowed to surrender each contract year without incurring a surrender charge. The “total free amount” calculation is described below and is recalculated on each Contract Anniversary during the surrender charge period. Any unused portion does not carry over to future contract years. During the first contract year the “total free amount” is the greater of:surrender

Surrender Charge. A surrender charge may apply in the event You surrender part of or all of Your Contract Value during the surrender charge periodValue. The Schedule of Surrender Charges for Your contract is shown under Contract Data. A surrender charge applies if You surrender purchase payments during that are still in the surrender charge period. Refer to Waiver of Surrender Charges for situations when surrender charges are not deducted. We determine Your surrender charge amount is determined by multiplying the amount of each purchase payments payment surrendered which could be subject to a surrender charge by the applicable surrender charge percentage. The amount that represents purchase payments surrendered is calculated using a prorated formula based on the percentage of Your Contract Value being surrendered. As a result, the amount that represents purchase payments surrendered may be greater than Your Contract Value surrendered. We determine the amount that represents purchase payments surrendered (PPS), purchase payments not subject to a surrender charge (PPF), and purchase payments which could be subject to a surrender charge (PPSC) by the following formula: PPS = PPSC + PPF PPSC = ( (PS - FA FA) X (PP - PPF) CV - FA (but not less than zero) PPF = FA—“contract FA - “contract earnings”, but not less than zero PP = Purchase payments not previously surrendered (total purchase payments – PPS) PS = Amount the Contract Value is reduced by the surrender FA = the “total free amount” CV = Contract Value prior to the surrender Definition of “contract earnings” With respect to these surrender provisions, “contract earnings” is defined as the Contract Value, less purchase payments not previously surrendered, but not less than zero. With respect to these surrender provisions, “contract earnings” are surrendered first followed by purchase payments. After calculating the amount of purchase payments surrendered, We use the surrender order described below to determine the surrender charge. Definition of “total free amount” The “total free amount” is the amount You are allowed to surrender each contract year without incurring a surrender charge. The “total free amount” calculation is described below and is recalculated on each Contract Anniversary during the surrender charge period. Any unused portion does not carry over to future contract years. During the first contract year the “total free amount” is the greater of:

Surrender Charge. A surrender charge may apply in the event You surrender part of or all of Your Contract Value during the surrender charge periodValue. The Schedule of Surrender Charges for Your contract is shown under Contract Data. A surrender charge applies if You surrender purchase payments during that are still in the surrender charge period. Refer to Waiver of Surrender Charges for situations when surrender charges are not deducted. We determine Your surrender charge amount is determined by multiplying the amount of each purchase payments payment surrendered which could be subject to a surrender charge by the applicable surrender charge percentage. The amount that represents purchase payments surrendered is calculated using a prorated formula based on the percentage of Your Contract Value being surrendered. As a result, the amount that represents purchase payments surrendered may be greater than Your Contract Value surrendered. We determine the amount that represents purchase payments surrendered (PPS), purchase payments not subject to a surrender charge (PPF), and purchase payments which could be subject to a surrender charge (PPSC) by the following formula: PPS = PPSC + PPF PPSC = ( PS - FA CV - FA ) X (PP - PPF) CV - FA (but not less than zero) PPF = FA—“contract FA - “contract earnings”, but not less than zero PP = Purchase payments not previously surrendered (total purchase payments – PPS) PS = Amount the Contract Value is reduced by the surrender FA = the “total free amount” CV = Contract Value prior to the surrender Definition of “contract earnings” With respect to these surrender provisions, “contract earnings” is defined as the Contract Value, less purchase payments not previously surrendered, but not less than zero. With respect to these surrender provisions, “contract earnings” are surrendered first followed by purchase payments. After calculating the amount of purchase payments surrendered, We use the surrender order described below to determine the surrender charge. Definition of “total free amount” The “total free amount” is the amount You are allowed to surrender each contract year without incurring a surrender charge. The “total free amount” calculation is described below and is recalculated on each Contract Anniversary during the surrender charge period. Any unused portion does not carry over to future contract years. During the first contract year the “total free amount” is the greater of: