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LIFETIME PLUS BENEFIT RIDER
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THE LIFETIME PLUS BENEFIT IS DESIGNED TO PROVIDE A PAYMENT STREAM FOR LIFE.
This rider forms a part of the Base Contract to which it is attached and is
effective as of the Rider Effective Date. In the case of a conflict with any
provision in the Base Contract, the provisions of this rider control. Defined
terms and contractual provisions are set forth in the Base Contract or are added
in this rider. This rider terminates as indicated under the "Conditions for
Termination of the Lifetime Plus Benefit Rider" section.
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DEFINITIONS
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DEFINITIONS Definitions specific to this rider that are not in the Base Contract follow.
5% ANNUAL A calculation we use in determining the Benefit Base under the Lifetime Plus Benefit.
INCREASE
5% ANNUAL A calculation we use in determining the maximum amount that we increase the Benefit Base under the Lifetime Plus
INCREASE Benefit.
CAP
BASE The contract to which this rider is attached.
CONTRACT
BENEFIT A 12-month anniversary of the Benefit Date.
ANNIVERSARY
BENEFIT The date you exercise the Lifetime Plus Benefit and Lifetime Plus Payments begin. It is also the date we first
DATE establish the maximum Lifetime Plus Payment.
BENEFIT Any period of 12 months commencing with the Benefit Date and each Benefit Anniversary thereafter.
YEAR
COVERED The person(s) on whose lives we base Lifetime Plus Payments. We determine the Covered Person(s) on the Rider Effective
PERSON(S) Date.
For single Lifetime Plus Payments.
(a)If the contract is solely owned, the Covered Person is the Owner.
(b)If the contract is owned by a non-individual, the Covered Person is the Annuitant.
(c)If the contract is jointly owned, you may be able to choose which Joint Owner is the Covered Person subject to the
maximum age restriction for adding the Lifetime Plus Benefit to your contract. The maximum age is shown on the
Contract Schedule.
For joint Lifetime Plus Payments, you and your spouse are the Covered Persons.
For joint Lifetime Plus Payments under contracts that are not qualified under the tax code:
(a)spouses must be Joint Owners; or
(b)one spouse must be the Annuitant and the other spouse must be the sole primary Beneficiary if the sole Owner is a
non-individual; or
(c)one spouse must be the sole Owner and Annuitant and the other spouse must be the sole primary Beneficiary.
For joint Lifetime Plus Payments under contracts that are qualified under the tax code:
(a)one spouse must be the sole Owner and Annuitant and the other spouse must be the sole primary Beneficiary; or
(b)one spouse must be the Annuitant and the other spouse must be the sole primary Beneficiary if the sole Owner is a
non-individual; or
(c)if we require a non-individual owner to be the beneficiary, then one spouse must be the Annuitant and the other
spouse must be the sole contingent Beneficiary solely for the purpose of determining the Lifetime Plus Payment.
Spouses must qualify as such under federal law until the Lifetime Plus Benefit terminates. If at any time before the
Lifetime Plus Benefit terminates you are no longer spouses you must send us notice.
S40742-02
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DEFINITIONS (CONTINUED)
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COVERED A person no longer qualifies as a Covered Person and is removed from the contract if that person is no longer an Owner,
PERSON(S) Joint Owner, Annuitant, or Beneficiary as required above.
(CONTINUED)
After we issue the Lifetime Plus Benefit you cannot add or replace a Covered Person. You can remove a Covered Person if
you select joint Lifetime Plus Payments. You can only make this change once.
Before the Benefit Date, you can request the removal of a Covered Person within 30 days before a Contract Anniversary by
completing the appropriate form. After the Benefit Date you can request the removal of a Covered Person within 30 days
before a Benefit Anniversary by completing the appropriate form. We process your request on the Contract Anniversary,
or Benefit Anniversary if applicable, that occurs immediately after we receive your request in good order at our Service
Center. If the Contract Anniversary or Benefit Anniversary does not occur on a Business Day, we process your request on
the next Business Day.
If you remove a Covered Person from your contract, we change the additional Mortality and Expense Risk (M&E) Charge for
joint Lifetime Plus Payments to the additional M&E Charge for single Lifetime Plus Payments that is in effect for newly
issued contracts as of the date we process your request if we are still offering the Lifetime Plus Benefit. However, if
we are no longer offering the Lifetime Plus Benefit we reserve the right to declare a new additional M&E charge. We
make this change only if this new M&E Charge differs from the current additional M&E Charge you are paying. We
guarantee that if we increase the additional M&E Charge it will not exceed the maximum additional M&E Charge for single
Lifetime Plus Payments that is shown on the Contract Schedule. If we change the additional M&E Charge, we also adjust
the number of Accumulation Units so that the Contract Value on the day we process your request remains the same.
If you remove a Covered Person after the Benefit Date we compare your current annual maximum Lifetime Plus Payment to a
payment based on the appropriate age-based percentage for single Lifetime Plus Payments for the remaining Covered
Person's current age and the current Contract Value as of the Benefit Anniversary that we process your removal request.
The age-based payment percentage(s) and age band(s) for single Lifetime Plus Payments are shown on the Contract
Schedule. If the payment based on the appropriate age-based percentage for the remaining Covered Person's current age
and the current Contract Value is greater, we increase your annual maximum Lifetime Plus Payment to this new amount.
Joint Lifetime Plus Payments may not be available for some contracts that are owned by a non-individual.
CUMULATIVE If you choose to take less than the maximum Lifetime Plus Payment you are entitled to, the difference between the
WITHDRAWAL maximum Lifetime Plus Payment and the actual Lifetime Plus Payment you received is available for withdrawal at any time.
VALUE The Cumulative Withdrawal Value is not available to your Beneficiary upon death.
CUMULATIVE On or after the Benefit Date, if you take a withdrawal while you are receiving Lifetime Plus Payments, this is the
WITHDRAWALS portion of the withdrawal that is less than or equal to the Cumulative Withdrawal Value. Cumulative Withdrawals are not
subject to a withdrawal charge and do not reduce any future Lifetime Plus Payments. However, Cumulative Withdrawals
reduce the Contract Value, the Cumulative Withdrawal Value, and the Traditional Death Benefit or the Quarterly Value
Death Benefit, if applicable.
EXCESS On or after the Benefit Date, if you take a withdrawal while you are receiving Lifetime Plus Payments, this is the
WITHDRAWAL portion of the withdrawal that is greater than the Cumulative Withdrawal Value. An Excess Withdrawal is subject to a
withdrawal charge and reduces the Contract Value, future Lifetime Plus Payments, and the Traditional Death Benefit or
the Quarterly Value Death Benefit, if applicable.
S40742-02 2
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DEFINITIONS (CONTINUED)
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LIFETIME The payment we make to you under the Lifetime Plus Benefit.
PLUS PAYMENT
QUARTERLY The day that occurs three, six, and nine calendar months after the Issue Date or any Contract Anniversary. Quarterly
ANNIVERSARY Anniversaries also include Contract Anniversaries. If the Quarterly Anniversary does not occur on a Business Day, we
consider it to occur on the next Business Day.
QUARTERLY A calculation we use in determining the Benefit Base under the Lifetime Plus Benefit.
ANNIVERSARY
VALUE
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LIFETIME PLUS BENEFIT
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EXERCISING To begin receiving Lifetime Plus Payments, all Covered Person(s) must meet the age restrictions shown on the Contract
THE Schedule on the Benefit Date and we must receive a Lifetime Plus Payment election form at our Service Center. Lifetime
LIFETIME Plus Payments begin on the Benefit Date.
PLUS
BENEFIT If you begin receiving Lifetime Plus Payments, then beginning on the Benefit Date, the following applies.
(a)Partial Annuitizations are no longer available.
(b)You can no longer make additional Purchase Payments to the contract.
(c)The free withdrawal privilege is no longer available to you.
(d)You can only change the ownership of the Base Contract if you selected joint Lifetime Plus Payments, and:
1) an Owner dies, and the spouse continues the contract; or
2) you remove a Covered Person from the Base Contract who is also an Owner. In this case the remaining Covered
Person must become the new sole Owner.
(e)The additional M&E Charge for the Lifetime Plus Benefit continues until the Lifetime Plus Benefit terminates or the
Contract Value is reduced to zero.
(f)If you have the Quarterly Value Death Benefit Rider, the additional M&E Charge for the Quarterly Value Death Benefit
continues as long as the Quarterly Value Death Benefit is greater than zero.
(g)Each Lifetime Plus Payment, Cumulative Withdrawal, and Excess Withdrawal, including any withdrawal charge, reduces
the Traditional Death Benefit or the Quarterly Value Death Benefit, if applicable, proportionately by the percentage
of Contract Value withdrawn.
(h)The Contract Value continues to fluctuate as a result of market performance.
(i)Each Lifetime Plus Payment, Cumulative Withdrawal, and Excess Withdrawal, including any withdrawal charge, reduces
the Contract Value on a dollar for dollar basis.
LIFETIME We base the initial annual maximum Lifetime Plus Payment on the Benefit Base and the age band percentage of the Covered
PLUS Person, or younger Covered Person if you select joint Lifetime Plus Payments. The age band percentages for both single
PAYMENTS and joint annual maximum Lifetime Plus Payments are shown on the Contract Schedule.
On the Benefit Date and on each subsequent Benefit Anniversary, you may request to receive less than the annual maximum
Lifetime Plus Payment by completing the appropriate form within 30 days before the Benefit Date or before a Benefit
Anniversary. We process your request on the Benefit Date or on the Benefit Anniversary that occurs immediately after we
receive your request in good order at our Service Center. If the Benefit Date or Benefit Anniversary does not occur on
a Business Day, we process your request on the next Business Day.
The amount you request to receive is the annual actual Lifetime Plus Payment. Lifetime Plus Payments are not subject to
a withdrawal charge.
S40742-02 3
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LIFETIME PLUS BENEFIT (CONTINUED)
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LIFETIME On the Benefit Date and on each subsequent Benefit Anniversary, each maximum and actual Lifetime Plus Payment for the
PLUS Benefit Year is equal to the annual maximum and actual Lifetime Plus Payment divided by the number of payments you
PAYMENTS selected to receive each year.
(CONTINUED)
Each maximum Lifetime Plus Payment must meet the minimum shown on the Contract Schedule. Each actual Lifetime Plus
Payment must either be zero or meet the minimum shown on the Contract Schedule. If the Lifetime Plus Payment date does
not fall on a Business Day, we make the payment to you on the next Business Day.
While your Contract Value is positive, you can change the frequency and/or amount of Lifetime Plus Payments on each
Benefit Anniversary for the following Benefit Year. You must provide notice of any requested change to the frequency
and/or amount of your Lifetime Plus Payment to our Service Center at least 30 days before the Benefit Anniversary. We
change the payment frequency and/or amount on the Benefit Anniversary and the change remains in effect until the Benefit
Anniversary you request another change to your Lifetime Plus Payments. You cannot change the frequency or amount of
Lifetime Plus Payments on or after your Contract Value is reduced to zero.
If you take less than the maximum Lifetime Plus Payment, for each Lifetime Plus Payment we add the difference of the
maximum Lifetime Plus Payment minus the actual Lifetime Plus Payment to the Cumulative Withdrawal Value.
If you take a withdrawal while you are receiving Lifetime Plus Payments, any portion that is less than or equal to the
Cumulative Withdrawal Value is a Cumulative Withdrawal, and any portion that is greater than the Cumulative Withdrawal
Value is an Excess Withdrawal.
You may take all or a portion of the Cumulative Withdrawal Value at any time. A Cumulative Withdrawal reduces the
Contract Value and the Cumulative Withdrawal Value on a dollar for dollar basis.
Any Excess Withdrawal reduces your annual maximum and annual actual Lifetime Plus Payment proportionately by the
percentage of Contract Value withdrawn, including any withdrawal charge, on the Benefit Anniversary following the Excess
Withdrawal. If you take an Excess Withdrawal that reduces your actual Lifetime Plus Payment so that it fails to meet
the minimum shown on the Contract Schedule, and we cannot restructure your actual Lifetime Plus Payment to meet this
minimum, you must take an Excess Withdrawal of the entire Contract Value. Lifetime Plus Payments then stop, and the
Lifetime Plus Benefit and the Base Contract terminate as of the Business Day you took the Excess Withdrawal.
We deduct each actual Lifetime Plus Payment, each Cumulative Withdrawal, and any Excess Withdrawal, including any
withdrawal charge, proportionately from the Investment Options. We continue to allocate the Contract Value among the
Investment Options according to your instructions while the Contract Value is positive. You can continue to make
transfers between the Investment Options while the Contract Value is positive subject to the provisions set out in the
Transfers section of the Base Contract and in the Asset Allocation Rider.
When a Lifetime Plus Payment is due, if the Contract Value is positive, but less than the actual Lifetime Plus Payment,
we credit your Contract Value with (a) - (b), where:
(a)is the actual Lifetime Plus Payment, and
(b)is the Contract Value immediately before we make the actual Lifetime Plus Payment.
We then make the actual Lifetime Plus Payment and reduce the Contract Value to zero.
S40742-02 4
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LIFETIME PLUS BENEFIT (CONTINUED)
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LIFETIME If your Contract Value is reduced to zero for any reason other than an Excess Withdrawal while the Lifetime Plus Benefit
PLUS is in effect:
PAYMENTS (a)we pay any remaining Cumulative Withdrawal Value in a single payment;
(CONTINUED) (b)you can no longer request to receive less than the maximum Lifetime Plus Payment;
(c)you can no longer change the frequency of the Lifetime Plus Payments; and
(d)you receive the maximum Lifetime Plus Payment at the frequency you previously selected, as follows.
(i)For single Lifetime Plus Payments where the Contract is solely owned or owned by a non-individual, Lifetime
Plus Payments continue until the death of the Covered Person.
(ii)For single Lifetime Plus Payments where the contract is jointly owned and the Joint Owners are not spouses,
Lifetime Plus Payments continue until the death of any Joint Owner.
(iii)For single Lifetime Plus Payments where the contract is jointly owned by spouses, Lifetime Plus Payments
continue until the death of any Joint Owner unless the surviving spouse is the Covered Person and continues
the contract. If the surviving spouse who is also the Covered Person continues the contract, Lifetime Plus
Payments continue until the death of the surviving Covered Person.
(iv)For joint Lifetime Plus Payments, Lifetime Plus Payments continue until the deaths of both Covered Persons.
Upon the death of an Owner who was also a Covered Person, or the death of the Annuitant who was also a
Covered Person, if the surviving spouse continues the contract Lifetime Plus Payments continue at 100% of the
amount that we were paying when both Covered Persons were alive. If, instead, the surviving spouse receives
the death benefit, then Lifetime Plus Payments stop.
If you take an Excess Withdrawal of the entire Contract Value while you are receiving Lifetime Plus Payments, we pay you
any remaining Cumulative Withdrawal Value in a single Cumulative Withdrawal payment, Lifetime Plus Payments stop, and
the Lifetime Plus Benefit and the Base Contract terminate as of the Business Day you took the Excess Withdrawal.
On or after the Benefit Date, you cannot terminate your Lifetime Plus Payments except by:
(a)taking an Excess Withdrawal of the entire remaining Contract Value; or
(b)requesting Annuity Payments under a Full Annuitization based on the greater of the entire remaining Contract Value or
the Cumulative Withdrawal Value. The Annuity Payments must meet the minimum shown on the Contract Schedule.
THE BENEFIT You can only access the Benefit Base by taking single or joint Lifetime Plus Payments.
BASE
On the Benefit Date, the Benefit Base is equal to the greatest of:
(a)the Contract Value; or
(b)the Quarterly Anniversary Value; or
(c)the 5% Annual Increase.
After the Benefit Date, we no longer calculate the Quarterly Anniversary Value, the 5% Annual Increase, or the 5% Annual
Increase Cap, and they cease to exist.
AUTOMATIC Beginning on the Benefit Date, your Lifetime Plus Payment only increases through the automatic annual payment increase
ANNUAL feature. We apply any annual payment increase on each Benefit Anniversary after the Benefit Date. Annual Payment
PAYMENT increases are only available before the older Covered Person's 91st birthday.
INCREASES
TO THE On each Benefit Anniversary, if you took the entire annual maximum Lifetime Plus Payment during the previous year
LIFETIME (either as Lifetime Plus Payments or Cumulative Withdrawals), you receive an increase to your Lifetime Plus Payment if
PLUS the Contract Value on the current Benefit Anniversary is greater than the Contract Value from the previous Benefit
PAYMENTS Anniversary. If the Contract Value has increased we calculate the percentage of growth between these two Contract
Values and increase your annual maximum Lifetime Plus Payment by this percentage.
S40742-02 5
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LIFETIME PLUS BENEFIT (CONTINUED)
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AUTOMATIC On each Benefit Anniversary, regardless of whether or not you take the entire annual maximum Lifetime Plus Payment
ANNUAL during the previous year, you receive an increase to your Lifetime Plus Payment if the age-based percentage for the
PAYMENT current age of the Covered Person, or younger Covered Person in the case of joint Lifetime Plus Payments, multiplied by
INCREASES the Contract Value as of the Benefit Anniversary results in a higher annual maximum Lifetime Plus Payment.
TO THE
LIFETIME If you requested a dollar amount that is less than the maximum Lifetime Plus Payment, any automatic annual payment
PLUS increase does not increase the actual Lifetime Plus Payment. If you requested a percentage of less than 100% of the
PAYMENTS maximum Lifetime Plus Payment, any automatic annual payment increase increases the actual Lifetime Plus Payment, but
(CONTINUED) does not increase the requested percentage.
Automatic annual payment increases are no longer available when your Contract Value is reduced to zero.
If we apply an annual payment increase to your annual maximum Lifetime Plus Payment, we reserve the right to change the
additional M&E Charge for the Lifetime Plus Benefit on every fifth Benefit Anniversary. We can only make this change 60
days after any fifth Benefit Anniversary if you received an annual payment increase on the current Benefit Anniversary
or any of the past four Benefit Anniversaries.
If you have not received an increase to your annual maximum Lifetime Plus Payment on the current Benefit Anniversary or
any of the past four Benefit Anniversaries, we do not change the additional M&E Charge for the Lifetime Plus Benefit.
If you received an increase on the current Benefit Anniversary or any of the past four Benefit Anniversaries, we change
the additional M&E Charge for single or joint Lifetime Plus Payments to the additional M&E Charge that is in effect for
a newly issued contract as of the most recent fifth Benefit Anniversary if we are still offering the Lifetime Plus
Benefit. However, if we are no longer offering the Lifetime Plus Benefit we reserve the right to declare a new
additional M&E charge. We make this change only if this new M&E charge differs from the current additional M&E Charge
you are paying.
We make any change as of the 60th day after the most recent fifth Benefit Anniversary, or on the next Business Day if
the 60th day is not a Business Day. If we change the additional M&E Charge, we also adjust the number of Accumulation
Units so that the Contract Value on the 60th day remains the same.
If this change decreases the additional M&E Charge for the Lifetime Plus Benefit, then we make the change and send you a
confirmation letter.
If this change increases the additional M&E Charge for the Lifetime Plus Benefit, then we send you written notice of the
intended increase and provide you at least a 30-day notice period to decline the increase. If you decline the increase:
(a)you no longer receive annual payment increases to your annual maximum Lifetime Plus Payments; and
(b)your annual maximum Lifetime Plus Payment amount equals the annual maximum amount that we established on the most
recent fifth Benefit Anniversary. Your annual maximum Lifetime Plus Payments do not change until the Lifetime Plus
Benefit terminates, unless you take an Excess Withdrawal.
If you do not decline the increase during the 30-day notice period, we increase the additional M&E Charge for the
Lifetime Plus Benefit. We guarantee that if we increase the additional M&E Charge it will not exceed the maximum
additional M&E Charge for single or joint Lifetime Plus Payments shown on the Contract Schedule.
S40742-02 6
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ANNUITY PROVISIONS
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ANNUITIZATION If you take a Partial Annuitization of the Base Contract at any time before the latest Income Date specified in Base
Contract, we determine your Annuity Payments in accordance with the terms of the Base Contract. If you take a Full
Annuitization of the Base Contract at any time before the latest Income Date specified in the Base Contract, we
determine your Annuity Payments based on the greater of the Contract Value or the Cumulative Withdrawal Value. We do
not use the Benefit Base for Lifetime Plus Payments in determining any Annuity Payments.
If on the latest Income Date specified in the Base Contract, or on such subsequent date as may be authorized by us at
our discretion, you have begun receiving Lifetime Plus Payments, your Contract Value is positive and you choose to
take fixed Annuity Payments as a Full Annuitization of the Base Contract under either Annuity Option 1 or 3, we make
the following guarantees. However, if on the latest Income Date you select any other Annuity Option, or if you choose
variable Annuity Payments, these guarantees will not apply. You will not be required to take a Full Annuitization on
the latest Income Date if your Contract Value has been reduced to zero.
If you selected single Lifetime Plus Payments and you choose ANNUITY OPTION 1 - LIFE ANNUITY where the sole Annuitant
is the sole Covered Person, then the fixed Annuity Payments will be equal to the greatest of:
(a)the Option 1 annual payment based on the terms of the Base Contract; or
(b)the Option 1 annual payment based on the Cumulative Withdrawal Value; or
(c)the current annual maximum Lifetime Plus Payment available to you.
If you selected joint Lifetime Plus Payments and you choose ANNUITY OPTION 3 - JOINT AND LAST SURVIVOR LIFE ANNUITY
with payments to continue at a level of 100% to the surviving Joint Annuitant and both Joint Annuitants are the Joint
Covered Persons, then the fixed Annuity Payments will be equal to the greatest of:
(a)the Option 3 annual payment based on the terms of the Base Contract; or
(b)the Option 3 annual payment based on the Cumulative Withdrawal Value; or
(c)the current annual maximum Lifetime Plus Payment available to you.
In addition, if on the latest Income Date the current annual maximum Lifetime Plus Payment is greater than the fixed
Annuity Payments based on the terms of the Base Contract, we send you any remaining Cumulative Withdrawal Value.
The Annuity Payments must meet the minimum shown on the Contract Schedule.
An annuitization as referred to in the above paragraphs shall result in the termination of the death benefit.
S40742-02 7
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QUARTERLY ANNIVERSARY VALUE
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QUARTERLY We only calculate the Quarterly Anniversary Value before the older Covered Person's 91st birthday and before the
ANNIVERSARY Benefit Date. If you have not begun receiving Lifetime Plus Payments before the older Covered Person's 91st birthday,
VALUE the Quarterly Anniversary Value ceases to exist and the Lifetime Plus Benefit is no longer available to you.
If the Rider Effective Date is the Issue Date, the Quarterly Anniversary Value on the Issue Date is equal to the
Purchase Payment received on the Issue Date.
If the Rider Effective Date occurs after the Issue Date, the Quarterly Anniversary Value on the Rider Effective Date is
equal to the Contract Value on that date.
On each Business Day we:
(a)increase the Quarterly Anniversary Value by the amount of any additional Purchase Payments received that day, and
(b)reduce the Quarterly Anniversary Value proportionately by the percentage of Contract Value applied to a Partial
Annuitization or Contract Value withdrawn that day, including any withdrawal charge.
We then process any increase or decrease to the Quarterly Anniversary Value due to an additional Purchase Payment
received on that Quarterly Anniversary, or a Partial Annuitization or withdrawal taken on that Quarterly Anniversary,
after we do the following calculation. On each Quarterly Anniversary, the Quarterly Anniversary Value is equal to the
greater of its value on the immediately preceding Business Day, or the Contract Value as of that Quarterly Anniversary.
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5% ANNUAL INCREASE
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5% We only calculate the 5% Annual Increase before the older Covered Person's 91st birthday and before the Benefit Date. If
ANNUAL you have not begun receiving Lifetime Plus Payments before the older Covered Person's 91st birthday, the 5% Annual Increase
INCREASE ceases to exist and the Lifetime Plus Benefit is no longer available to you.
If the Rider Effective Date is the Issue Date, then the 5% Annual Increase on the Issue Date is the Purchase Payment
received on the Issue Date.
If the Rider Effective Date occurs after the Issue Date or if you reset the 5% Annual Increase, then the 5% Annual Increase
on the Rider Effective Date or on a reset anniversary, as applicable, is the Contract Value as of the Rider Effective Date
or as of a reset anniversary, as applicable.
On each Business Day before the tenth Contract Anniversary (or, if applicable, before the tenth Contract Anniversary that
occurs after the Rider Effective Date or after a reset anniversary, as applicable), we:
(a)increase the 5% Annual Increase by the amount of any additional Purchase Payments received that day; and
(b)reduce the 5% Annual Increase proportionately by the percentage of Contract Value applied to a Partial Annuitization or
Contract Value withdrawn that day, including any withdrawal charge.
S40742-02 8
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5% ANNUAL INCREASE (CONTINUED)
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5% ANNUAL On each Contract Anniversary on or before the tenth Contract Anniversary (or, if applicable, on or before the tenth
INCREASE Contract Anniversary that occurs after the Rider Effective Date or after a reset anniversary, as applicable), we process
(CONTINUED) any increase or decrease to the 5% Annual Increase due to a Purchase Payment received that day, or a Partial
Annuitization or withdrawal taken that day, after we do the following anniversary calculations.
On the first Contract Anniversary (or, if applicable, on the first Contract Anniversary that occurs after the Rider
Effective Date or after a reset anniversary, as applicable), the 5% Annual Increase is equal to:
b + [ 1.05 x (a - b) ], where:
a =the 5% Annual Increase as of the immediately preceding Business Day.
b =Purchase Payments received during the last Contract Year. If the Rider Effective Date is the Issue Date and you
did not reset the 5% Annual Increase, then we exclude any Purchase Payments received within 90 days of the Issue
Date. We reduce each of these Purchase Payments proportionately by the percentage of Contract Value applied to a
Partial Annuitization or Contract Value withdrawn, including any withdrawal charge, for each annuitization or
withdrawal taken since we received that payment.
On the second through ninth Contract Anniversaries (or, if applicable, on the second through ninth Contract
Anniversaries that occur after the Rider Effective Date or after a reset anniversary, as applicable), the 5% Annual
Increase is equal to:
d + [ 1.05 x (c - d + (0.05 x e)) ], where:
c =the 5% Annual Increase as of the immediately preceding Business Day.
d =Purchase Payments received during the last Contract Year. We reduce each of these Purchase Payments
proportionately by the percentage of Contract Value applied to a Partial Annuitization or Contract Value withdrawn,
including any withdrawal charge, for each annuitization or withdrawal taken since we received that payment.
e =Purchase Payments received during the Contract Year that began two years ago. If the Rider Effective Date is the
Issue Date and you did not reset the 5% Annual Increase, then on the second Contract Anniversary we exclude any
Purchase Payments received within 90 days of the Issue Date. We reduce each of these Purchase Payments
proportionately by the percentage of Contract Value applied to a Partial Annuitization or Contract Value withdrawn,
including any withdrawal charge, for each annuitization or withdrawal taken since we received that payment.
On each Business Day on or after the tenth Contract Anniversary (or, if applicable, on or after the tenth Contract
Anniversary after the Rider Effective Date or after a reset anniversary, as applicable), the 5% Annual Increase is equal
to the 5% Annual Increase Cap.
The 5% Annual Increase will never exceed the 5% Annual Increase Cap.
5% ANNUAL We only calculate the 5% Annual Increase Cap before the older Covered Person's 91st birthday and before the Benefit
INCREASE Date. If you have not begun receiving Lifetime Plus Payments before the older Covered Person's 91st birthday, the 5%
CAP Annual Increase Cap ceases to exist and the Lifetime Plus Benefit is no longer available to you.
If the Rider Effective Date is the Issue Date, then the 5% Annual Increase Cap on the Issue Date is two times the
Purchase Payment received on the Issue Date.
S40742-02 9
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5% ANNUAL INCREASE (CONTINUED)
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5% ANNUAL If the Rider Effective Date occurs after the Issue Date or if you reset the 5% Annual Increase, then the 5% Annual
INCREASE Increase Cap on the Rider Effective Date or on a reset anniversary, as applicable, is two times the Contract Value as of
CAP the Rider Effective Date or as of a reset anniversary, as applicable.
(CONTINUED)
On each Business Day we:
(a)increase the 5% Annual Increase Cap by the amount of any additional Purchase Payments received that day; and
(b)reduce the 5% Annual Increase Cap proportionately by the percentage of Contract Value applied to a Partial
Annuitization or Contract Value withdrawn that day, including any withdrawal charge.
On each Contract Anniversary, we process any increase or decrease to the 5% Annual Increase Cap due to a Purchase
Payment received that day, or a Partial Annuitization or withdrawal taken that day, after we do the following
anniversary calculations.
If the Rider Effective Date is the Issue Date and you do not reset the 5% Annual Increase, then on the first Contract
Anniversary the 5% Annual Increase Cap is equal to (a) + (b), where:
(a) = the value of the 5% Annual Increase Cap on the immediately preceding Business Day.
(b) = Purchase Payments received within 90 days of the Issue Date excluding the payment received on the Issue Date. We
reduce each of these Purchase Payments proportionately by the percentage of Contract Value applied to a Partial
Annuitization or Contract Value withdrawn, including any withdrawal charge, for each annuitization or withdrawal
taken since we received that payment.
On the second through tenth Contract Anniversaries (or, if applicable, on the first through tenth Contract Anniversaries
that occur after the Rider Effective Date or after a reset anniversary, as applicable), we calculate the 5% Annual
Increase Cap in the same way that we do on each Business Day other than a Contract Anniversary.
On the eleventh and later Contract Anniversaries (or, if applicable, on the eleventh and later Contract Anniversaries
that occur after the Rider Effective Date or after a reset anniversary, if applicable), the 5% Annual Increase Cap is
equal to (a) + (b), where:
(a) = the value of the 5% Annual Increase Cap on the immediately preceding Business Day.
(b) = Purchase Payments received during the Contract Year that began eleven years ago. If the Rider Effective Date is
the Issue Date and you did not reset the 5% Annual Increase, then on the eleventh Contract Anniversary only we
exclude Purchase Payments received within 90 days of the Issue Date. We reduce each of these Purchase Payments
proportionately by the percentage of Contract Value applied to a Partial Annuitization or Contract Value withdrawn,
including any withdrawal charge, for each annuitization or withdrawal taken since we received that payment.
RESETTING On each Contract Anniversary before the older Covered Person's 81st birthday and before the Benefit Date, you can reset
THE 5% the 5% Annual Increase to equal the Contract Value. You can request a reset within 30 days following a Contract
ANNUAL Anniversary by completing the appropriate form. We process your reset request as of the immediately preceding Contract
INCREASE Anniversary after your request is received in good order at our Service Center. We call this Contract Anniversary the
reset anniversary. If the reset anniversary does not occur on a Business Day, we process your request on the next
Business Day.
When we process your reset request, we change the 5% Annual Increase to equal the Contract Value as of the reset
anniversary. We also increase the 5% Annual Increase Cap to equal two times the Contract Value as of the reset
anniversary.
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5% ANNUAL INCREASE (CONTINUED)
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RESETTING If you reset the 5% Annual Increase, we reserve the right to change the additional M&E charge for the single or joint
THE 5% Lifetime Plus Benefit to the additional M&E charge that is in effect for a newly issued Contract as of the reset
ANNUAL anniversary if we are still offering the Lifetime Plus Benefit. However, if we are no longer offering the Lifetime Plus
INCREASE Benefit we reserve the right to declare a new additional M&E charge. We make this change only if this new M&E charge
(CONTINUED) differs from the current additional M&E Charge you are paying.
We change the additional M&E Charge on the 30th day following the reset anniversary, or the next Business Day if the
30th day is not a Business Day. We guarantee that if we increase the additional M&E Charge it will not exceed the
maximum additional M&E Charge for single or joint Lifetime Plus Payments that is shown on the Contract Schedule. If we
change the additional M&E Charge, then we also adjust the number of Accumulation Units so that the Contract Value on the
30th day remains the same.
You cannot request a reset of the 5% Annual Increase:
(a)on or after the older Covered Person's 81st birthday;
(b)on or after the Benefit Date that you begin receiving Lifetime Plus Payments;
(c)on or after the Income Date that you take a Full Annuitization; or
(d)if the Contract Value is less than the 5% Annual Increase on the Contract Anniversary plus 5% of all Purchase
Payments received during the last Contract Year. On the first Contract Anniversary, we exclude Purchase Payments
received within 90 days of the Issue Date.
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GENERAL PROVISIONS
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REMOVING THE After the Rider Effective Date, you can remove the Lifetime Plus Benefit Rider from the contract at any time before the
LIFETIME Benefit Date. You can request the removal of the rider within 30 days before a Contract Anniversary by completing the
PLUS BENEFIT appropriate form. We process your request on the Contract Anniversary, or on the next Business Day if the Contract
RIDER FROM Anniversary is not a Business Day, that occurs immediately after we receive your request in good order at our Service
YOUR Center. We call this date the Rider Termination Date and it is shown on the Contract Schedule Addendum.
CONTRACT
If you remove the Lifetime Plus Benefit from your contract, we no longer assess the additional M&E Charge for the
Lifetime Plus Benefit as of the Rider Termination Date. Because we decrease the M&E Charge, we adjust the number of
Accumulation Units so that the Contract Value on the Rider Termination Date remains the same.
If you remove the Lifetime Plus Benefit from the contract, then it is no longer available for future selection.
CONDITIONS Before the Benefit Date, the Lifetime Plus Benefit terminates upon the earliest of the following.
FOR (a)The Rider Termination Date if you remove the Lifetime Plus Benefit from the contract.
TERMINATION (b)The date of death of all Covered Persons.
OF THE (c)The older Covered Person's 91st birthday.
LIFETIME (d)The Business Day before the Income Date that you take a Full Annuitization.
PLUS BENEFIT (e)The Business Day we process your request for a full withdrawal.
(f)The Business Day that the Base Contract terminates.
On or after the Benefit Date that you begin receiving Lifetime Plus Payments, the Lifetime Plus Benefit terminates upon
the earliest of the following.
(a)The Business Day you take an Excess Withdrawal of the entire Contract Value. If you take an Excess Withdrawal that
reduces Lifetime Plus Payments to a level where we are unable to structure the Lifetime Plus Payment so that it is
at least the minimum shown on the Contract Schedule, you must take an Excess Withdrawal of the entire Contract
Value.
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GENERAL PROVISIONS (CONTINUED)
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CONDITIONS (b)The Business Day before the Income Date that you take a Full Annuitization.
FOR (c)For single Lifetime Plus Payments where the contract is solely owned or owned by a non-individual, the date of death
TERMINATION of the Covered Person.
OF THE (d)For single Lifetime Plus Payments where the contract is jointly owned and the Joint Owners are not spouses, the date
LIFETIME of death of any Joint Owner.
PLUS BENEFIT (e)For single Lifetime Plus Payments where the contract is jointly owned by spouses, the date of death of any Joint
(CONTINUED) Owner unless the surviving spouse is the Covered Person and continues the contract. If the surviving spouse who is
also the Covered Person continues the contract, the Lifetime Plus Benefit terminates on the date of death of the
Covered Person.
(f)For joint Lifetime Plus Payments, the date of death of both Covered Persons. If upon the death of one Covered
Person, the surviving spouse, who is also a Covered Person, selects to receive the death benefit, then Lifetime Plus
Payments stop and the Lifetime Plus Benefit terminates as of the end of the Business Day during which we receive in
good order at the Service Center both due proof of death and an election of the death benefit payment option.
(g)The Business Day that the Base Contract terminates.
RIDER CHARGE The additional M&E Charge for this rider is shown on the Contract Schedule.
In all other respects the provisions, conditions, exceptions and limitations
contained in the Base Contract remain unchanged.
Signed for the Company at its home office.
ALLIANZ LIFE INSURANCE COMPANY
OF NORTH AMERICA
[ ]
Xxxxxxx X. Xxxxxxxxx Xxxx Xxxxxxxx
Secretary
President
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