Document:

exhibit10_4.htm

Exhibit 10.4

 

AGREEMENT REGARDING OUTSTANDING PROMISSORY NOTES

THIS AGREEMENT REGARDING OUTSTANDING PROMISSORY NOTES (the "Agreement") is made effective as of the 12th day of February 2015 by and among REO Plus, Inc., a Texas corporation ("REO"), Richard J. Church (“Church”), and Ananda Holding, LLC, a Texas limited liability company ("AHLLC").

Recitals

WHEREAS, Church has previously loaned amounts and provided REO financing to REO, and the current outstanding balance of these loans and REO financing is $509,960; and

WHEREAS, the loans and REO financing are represented by the following four promissory notes (collectively, the “Outstanding Notes”):

	
  

	
*

	
Promissory note dated January 2, 2010 in the original principal amount of $190,000 made payable by REO to Church

	
  

	
*

	
Consolidation Balloon Promissory Note dated February 10, 2014 in the original principal amount of $290,960 made payable by REO to Church

	
  

	
*

	
Consolidation Balloon (sic) Promissory Note dated May 5, 2014 in the original principal amount of $10,000 made payable by REO to Church

	
  

	
*

	
Consolidation Balloon (sic) Promissory Note dated January 22, 2015 in the original principal amount of $19,000 made payable by REO to Church; and

WHEREAS, accrued interest on the Outstanding Notes as of January 31, 2015 equals $23,758.59, resulting in a total of $533,718.59 in outstanding principal and accrued interest on the Outstanding Notes; and

WHEREAS, the parties hereto wish to make certain modifications regarding the Outstanding Notes;

Agreements

NOW, THEREFORE, in consideration of the mutual agreements contained herein, $10.00, and other good and valuable consideration (the receipt, adequacy and sufficiency of which is hereby acknowledged and confessed by each party hereto), each of the parties hereto hereby agrees as follows:

1.           Modification of Outstanding Notes.  REO and Church hereby agree that the Outstanding Notes be and hereby are modified in the following manner:

	
  

	
(a)

	
$298,224.45 of the outstanding principal amount of the Outstanding Notes shall henceforth be governed by the terms, provisions and conditions of, and shall be

  

1

  

	
  

	
represented by that certain promissory note in the form of which is attached hereto as Exhibit 1(a); and

	
  

	
(b)

	
$100,000.00 of the outstanding principal amount of the Outstanding Notes shall henceforth be governed by the terms, provisions and conditions of, and shall be represented by that certain promissory note in the form of which is attached hereto as Exhibit 1(b); and

	
  

	
(c)

	
The remaining $135,494.14 balance (the “Retained Promissory”) of the outstanding principal amount of the Outstanding Notes shall initially hereafter not be represented by any written instrument, but REO hereby acknowledges that it duly owes the Retained Promissory to Church.

.           2.           Assignment, Assumption and Securing of the Retained Promissory.

(a)           AHLLC hereby (i) assumes REO’s obligations with respect to the Retained Promissory, (ii) agrees to pay timely and faithfully the Retained Promissory to Church as provided hereinafter, and (iii) agrees to perform timely and faithfully all of REO’s liabilities and obligations with respect to the Retained Promissory.  AHLLC hereby expressly agrees that all terms, provisions, covenants, conditions, restrictions, duties, obligations, res­ponsibilities, representations and warranties with respect to the Retained Promissory (as the same may be modified hereby) shall apply to AHLLC as if AHLLC had contracted directly with Church with respect to the Retained Promissory. AHLLC hereby agrees to protect, indemnify and hold harmless REO from any losses or damages, including without limitation, reasonable attorneys' fees and court costs, arising out of any claim, action, suit or proceeding, brought against REO or in which REO is a party because of AHLLC's failure to perform the agreements contained herein with respect to the Retained Promissory.

(b)           Church, and his successors and assigns, have this day released and by these presents do release, acquit and forever discharge REO and its officers, directors, shareholders, employees, subsidiaries, affiliates (other than AHLLC), successors and assigns, from any and all Claims.  For purposes of this Agreement, "Claims" means all demands, complaints, claims, rights, actions, causes of actions, suits, proceedings, damages, judgments, costs, expenses, compensation, promises, agreements, debts, liabilities and obligations of any kind whatsoever, at common law, by statute, contract, or otherwise which Church has, might have, had or might have had in the past, against any person released hereby, known or unknown, directly or indirectly arising out of, resulting from or relating in any way to, the Retained Promissory.

(c)           (i)           AHLLC and Church hereby agree that the Retained Promissory shall henceforth be represented by, and shall be governed by the terms, provisions and conditions of the promissory note in the form of which is attached hereto as Exhibit 2(c)(i) (the “Retained Promissory Note”).

(ii)           AHLLC and Church hereby agree that the Retained Promissory Note shall be secured by a pledge of and a security interest in the 400 units of membership interest in Ananda

  

2

  

Investments, LLC, a Texas limited liability company, now or soon to be owned by AHLLC (such 400 units are referred to hereinafter as the "Interest"), said pledge and security interest being created pursuant to that certain pledge and security agreement attached hereto as Exhibit 2(c)(ii).  Such pledge and security interest shall be non-recourse to AHLLC, and Church shall look solely to the Interest to satisfy the debt represented by the Retained Promissory Note.

(iii)           To perfect the pledge of and a security interest in the Interest, AHLLC executed and delivered to Church, and Church is hereby authorized to file the UCC-1 Financing Statement attached hereto as Exhibit 2(c)(iii).  Alternatively, Church is hereby authorized to file electronically a document containing similar information and effectuating such purposes as the UCC-1 Financing Statement attached hereto as Exhibit 2(c)(iii).

3.           Miscellaneous.  This Agreement may be executed in any number of counterparts and each such counterpart shall be deemed to be an original instrument, but all such coun­terparts together shall constitute but one and the same instrument.  This Agreement may not be modified or amended other than by an agreement in writing signed by all parties affected.  Any waiver of the terms, provisions, cove­nants, representations, warranties, or conditions hereof shall be made only by a written instrument executed and delivered by the party waiving compliance.  The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the right to enforce the same.  No waiver by any party of any condition, or of the breach of any term, provision, covenant, representation, or warranty contained in this Agreement in one or more instances shall be deemed to be or construed as a further or continuing waiver of any such condition or breach or a waiver of any other condition or the breach of any other term, provision, covenant, representation, or warranty.  This Agreement sets forth the entire agreement and understanding of the parties with respect to the transactions contemplated hereby, and super­sedes all prior agreements, arrangements, and understandings relating to the subject matter hereof.  All of the terms, provi­sions, covenants, representations, warranties, and condi­tions of this Agreement shall be binding upon and shall inure to the benefit of and be enforceable by the parties hereto and their respective heirs, legal representatives, assigns, and successors.  THIS AGREEMENT AND ALL QUESTIONS RELATING TO ITS VALIDITY, INTERPRETATION, PERFORMANCE, AND ENFORCEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.  If any term, provision, covenant, or restriction of this Agreement is held by a court of compe­tent jurisdiction to be invalid, void, or unenforce­able, the remainder of the terms, provisions, covenants and restric­tions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated.

IN WITNESS WHEREOF, the undersigned have set their hands hereunto as of the first date written above.

"REO"                                                                                             "ANANDA"

REO PLUS, INC.,                                                                           ANANDA HOLDING, LLC,

a Texas corporation                                                                      a Texas limited liability company

  

3

  

By: /s/ Richard J. Church                                                                By: /s/ Richard J. Church

             Richard J. Church, President                                                          Richard J. Church, President

 

“CHURCH”

____________________________________

Richard J. Church, individually

THIS DOCUMENT IS APPROVED AS TO

FORM AND SUBSTANCE BY:

	
Boulderado Partners, LLC

	
Magnolia Capital Fund, LP

	
By:  Boulderado Group, LLC, Manager

	
By:  The Magnolia Group, LLC, its General Partner

	  	  
	  	  
	
By: /s/ Alex B. Rozek

	
By: /s/ Adam Peterson

	  	  
	
Name: Alex B. Rozek

	
Name: Adam Peterson

	  	  
	
Title: Manager

	
Title: Manager

 

  

4EXHIBIT 4(H)

 EXHIBIT 4(h) 

FORM OF POLICY RIDER (RETIREMENT INCOME MAX 2.0) 

													
		 	 

	 		  		 		 		 	
		 	 		  		 	 Home Office:
	 		 	
		 	 	 	  	 	 		 	 	 	
		 	 	 	  		 	 4333 Edgewood Road N.E.
	 		 	
		 	 	 	  		 	 Cedar Rapids, Iowa 52499
	 		 	
		 	 	 	  		 	 (319)355-8511
	 		 	
		 	 A Stock Company (Hereafter called the Company, we, our or us)
	 	 	  		 	 www.transamerica.com
	 		 	
		 		 	 	  	 	 		 	 	 	

 [RETIREMENT INCOME MAXSM]RIDER 

GUARANTEED LIFETIME WITHDRAWAL BENEFIT 

This rider is issued as a part of the policy to which it is attached. All provisions of the policy that do not conflict with this rider apply
to this rider. In the event of any conflict between the provisions of this rider and the provisions of the policy, the provisions of this rider shall prevail over the provisions of the policy. 

The purpose of the guaranteed living benefit provided under this rider is to provide security through a stream of income payments to the
Owner. This rider will terminate upon assignment or change in ownership of the policy unless the new assignee or Owner meets the qualifications specified in the Termination provision on page 5 of this rider. 

You may cancel this rider before midnight of the thirtieth calendar day after You receive it and no Rider Fees will be assessed. 

Rider Data Specification 
  

													
		 	 Policy Number:
	 	 	 	 	  	12345	 	 	  	
		 	 Rider Date:
	 	 	 		  	12/01/2014	 		  	
		 	 Growth Rate Percentage:
	 	 	 		  	5.50%	 		  	
		 	 Initial Rider Fee Percentage*:
	 	 	 		  	1.25%	 		  	
		 	 Annuitant:
	 	 	 		  	John Doe	 		  	
		 		 	 	 		  		 		  	
		 	 Annuitant’s Issue Age/Sex:
	 	 	 	 	  	35 / Male	 	 	  	

 *The initial rider fee percentage is also the maximum rider fee percentage for the life of the policy,
provided there are no automatic step-ups. When an automatic step-up is utilized, the maximum rider fee percentage will be
[0.75%] greater than the initial rider fee percentage shown above. The initial rider fee percentage will never exceed the maximum rider fee percentage. 

Designated Allocations: If You elect this rider, 100% of Your Policy Value must be in one or more of the Designated Investment Options.

 You can generally transfer between the Designated Investment Options as permitted under Your policy; however, You cannot make transfers
as provided for in the policy to a non-designated investment option while this rider is in force. If You wish to make a transfer to a non-designated investment option, this rider must be terminated, as described in Article IV, prior to making the
transfer. You will be notified if there are any changes to the Designated Allocations. 
 Guaranteed Lifetime Withdrawal Benefit: The
withdrawal percentage is determined by the attained age and is used to determine the Rider Withdrawal Amount as described in Article III of this rider. The withdrawal percentages are shown in the table below: 

 

																	
		 		  	  
 Attained Age
	 		  		 		 	 Withdrawal Percentage
  
	 		  	
	 	 	 	  	0  -   58	 	 	  	 	 	 	 	0.0%	 	 	  	
	 	 		  	59  -  64	 		  	 	 		 	4.3%	 		  	
	 	 		  	65  -   79	 		  	 	 		 	5.3%	 		  	
	 	 	 	  	80  +	 	 	  	 	 	 	 	6.3%	 	 	  	

  

  

					
	 ICC14 RGMB500515(IS)
	  	(1)	  	(Income-Single)

 ARTICLE I 

DEFINITIONS: 
 Terms used that are not defined in this
rider shall have the same meaning as those in Your policy. 
 Designated Investment Options 

Investment Options authorized for use with this rider and identified by us as Designated Investment Options. 

Excess Withdrawal 
 The excess of a Gross Partial
Withdrawal over the Rider Withdrawal Amount remaining prior to the withdrawal, if any. 
 Gross Partial Withdrawal 

The amount which will be deducted from Your Policy Value as a result of each partial withdrawal. 

Rider Anniversary 
 The anniversary of the rider date.

 Rider Fee 
 The fees charged for the benefits under
this rider. The fees will be charged on a rider quarterly basis by the Company. 
 Rider Monthiversary 

The same day of the month as the rider date, or the next business day if our Administrative Office or the New York Stock Exchange are closed.
If a certain date does not exist in a given month, the first day of the following month will be used. 
 Rider Quarter 

Each three-month period beginning on the rider date. 
 Rider
Withdrawal Amount 
 The maximum amount that can be withdrawn from the policy each Rider Year without causing an Excess Withdrawal under
the terms of this rider and thus reducing the Withdrawal Base. This amount will change if the Withdrawal Base changes. 
 Rider Year 

Each twelve-month period following the rider date. 

Withdrawal Base 
 The amount used
to calculate the Rider Withdrawal Amount and the Rider Fee. This amount cannot be taken as a surrender and is not payable as a death benefit. 

ARTICLE II 
 RIDER FEE 

The Rider Fee is deducted on each Rider Quarter in arrears. The fee is calculated and stored at issue and at each subsequent Rider Quarter for
the upcoming quarter. It will be deducted automatically from each Investment Option on a pro rata basis at the end of each Rider Quarter. The initial rider fee percentage and the maximum rider fee percentage are described on page 1, in the Rider
Data Specification section. The rider fee percentage will not change during the first Rider Year, and will only change thereafter due to an automatic step-up. You will be notified of any increase in the rider fee percentage. A portion of this fee
will also be deducted when the rider is terminated based on the number of days that have elapsed since the previous Rider Quarter. 
 The
stored fee will be adjusted if the Withdrawal Base is adjusted during the Rider Quarter. 
 The quarterly fee is calculated as follows: 

Multiply (1) by (2) by (3). 
  

	1)	 Withdrawal Base; 

	2)	 Rider fee percentage; 

	3)	 Number of days remaining in the Rider Quarter divided by the number of days within the applicable Rider Year. 

  

					
	 ICC14 RGMB500515(IS)
	  	(2)	  	(Income-Single)

 ARTICLE III 

GUARANTEED LIFETIME WITHDRAWAL BENEFIT 

Under this rider, we guarantee that You can receive up to the Rider Withdrawal Amount each Rider Year, regardless of the Policy Value, (first
as withdrawals from Your Policy Value and, if necessary, as payments from us) until the Annuitant’s death. 
 The withdrawal percentage
is determined by the attained age (age at last birthday) of the Annuitant at the time of the first withdrawal of any amount from the Policy Value taken on or after the Rider Anniversary following the Annuitant’s [59th] birthday. Once the withdrawal percentage is established, it may only be changed by an automatic step-up. Upon automatic step-up, the withdrawal percentage will be reset based on the attained age
at the time of the automatic step-up. The withdrawal percentages are shown in the table in the Rider Data Specification section. 

If the Annuitant is not yet [59] on the rider date, the withdrawal percentage will be zero until
the Rider Anniversary following the Annuitant’s [59th] birthday. Withdrawals prior to age 59 1/2 will be subject to the IRS 10% early withdrawal penalty. 

Withdrawals will reduce the Policy Value and death benefit of the policy to which this rider is attached. If the Policy Value equals zero, You
cannot make subsequent Premium Payments and all other policy features, benefits and guarantees are no longer available. Also, if the Policy Value equals zero, You will need to request payments by selecting the amount and frequency in accordance with
the policy provisions to which this rider attaches, equal to the Rider Withdrawal Amount. Once the payment amount and frequency are established, they cannot be changed and no additional withdrawals will be allowed. 

ISSUE AGE AND SURVIVAL 
 The benefits
under this rider depend on the Annuitant being alive at the time of withdrawal and the amount of the benefit depends on the issue age of the Annuitant. Proof of survival and the issue ages may be required by the Company. 

If the Annuitant’s age has been misstated, this rider’s fees and benefits will be adjusted to the amounts which would have been
calculated for the correct age. However, if this rider would not have been issued had the age not been misstated, the rider is treated as if it never existed, and any fees charged for this rider would be returned. If withdrawals under the provisions
of the rider have already commenced and the misstatement caused the Rider Withdrawal Amount to be overstated, any withdrawal in excess of the correct Rider Withdrawal Amount will be considered an Excess Withdrawal and will impact the Withdrawal Base
and Rider Withdrawal Amount. If overpayments occurred when the sum of the accumulated values in all the Investment Options was zero, the amount of that overpayment will be deducted from one or more future payments until this amount is paid in full.

 RIDER WITHDRAWAL AMOUNT 
 The Rider
Withdrawal Amount will be equal to the greater of 1) and 2), where: 
  

	1)	 is the withdrawal percentage multiplied by the Withdrawal Base; 

	2)	 is an amount equal to the minimum required distribution amount, if any. Prior to the 1st Rider Anniversary, this amount is based on the initial
Policy Value on the rider date. After this time, the minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all of the following are true: 

	 	A)	 the policy to which this rider is attached is a tax-qualified policy for which IRS minimum required distributions are required,

	 	B)	 the minimum required distributions do not start prior to the Annuitant’s attained age 70 1/2, 

	 	C)	 the minimum required distributions are based on either the Uniform Lifetime table or the Joint Life and Last Survivor Expectancy table,

	 	D)	 the minimum required distributions are based on age of the living Annuitant. The minimum required distributions can not be based on the age of
someone who is deceased, 

	 	E)	 the minimum required distributions are based only on the policy to which this rider is attached, and 

	 	F)	 the minimum required distributions are only for the current Rider Year. Amounts carried over from past Rider Years are not considered.

  

					
	 ICC14 RGMB500515(IS)
	  	(3)	  	(Income-Single)

 ARTICLE III CONTINUED 

If any of the above are not true, then 2) is equal to zero and it is not available as a Rider Withdrawal Amount. 

If You withdraw less than the Rider Withdrawal Amount in a Rider Year, the unused portion cannot be carried over to the next Rider Year. 

Surrender charges may apply if Your Rider Withdrawal Amount exceeds your surrender charge-free amount. 

WITHDRAWAL BASE 
 The Withdrawal Base is
used to calculate the Rider Withdrawal Amount. On the rider date, the initial Withdrawal Base is equal to the Policy Value (less any applicable premium enhancements if the rider is added in the first Policy Year). During any Rider Year, the
Withdrawal Base is increased by subsequent Premium Payments (not including premium enhancements, if any), and is reduced for Excess Withdrawals. 
 On each
Rider Anniversary, the Withdrawal Base will be set to the greatest of: 
  

			
	 1)
	    	 The current Withdrawal Base;

	 2)
	    	 The Policy Value on the Rider Anniversary;

	 3)
	    	 The highest Policy Value on a Rider [Monthiversary] for the current Rider Year;
and

	 4)
	    	 The current Withdrawal Base immediately prior to Rider Anniversary processing increased by the growth rate percentage.

	 	

 Item 3) above will be zero if there have been any Excess Withdrawals in the
current Rider Year. Item 4) above will be zero after the [10th] Rider Anniversary or if there have been any withdrawals in the current Rider Year. 

AUTOMATIC STEP-UP FEATURE 
 The rider
receives an automatic step-up on the Rider Anniversary if the Withdrawal Base is set equal to the Policy Value or the highest Policy Value on a Rider [Monthiversary.] This feature does not require the termination of
the existing rider. This rider will continue with the same rider date and features. The Rider Fee and withdrawal percentages may be changed due to an automatic step-up. Beginning with the [first] Rider Anniversary, the rider fee percentage may be increased if there is an automatic step-up, but will not exceed the maximum rider fee percentage described in the Rider Data Specification
section. 
 You have the right to reject an automatic step-up within
[30] days following a Rider Anniversary, if the rider fee percentage increases. If You reject an automatic step-up, You must notify us in a manner which is acceptable to us, however You are eligible
for future automatic step-ups. Changes as a result of the automatic step-up feature will be reversed. Any increase in the Rider Fee or withdrawal percentages will also be reversed. 

WITHDRAWAL BASE ADJUSTMENTS 
 Gross
Partial Withdrawals, taken in a Rider Year, less than or equal to the Rider Withdrawal Amount will not reduce the Withdrawal Base. Excess Withdrawals will reduce the Withdrawal Base by the withdrawal base adjustment which may be more than the
dollar amount of the Excess Withdrawal. The withdrawal base adjustment is the greater of 1) and 2), where: 
  

	1)	 is the Excess Withdrawal amount; and 

	2)	 is the result of A) multiplied by B), divided by C, where: 

 

	 	A)	 is the Excess Withdrawal; 

	 	B)	 is the Withdrawal Base prior to the Excess Withdrawal amount; and 

	 	C)	 is the Policy Value after the Rider Withdrawal Amount has been withdrawn, but prior to the withdrawal of the Excess Withdrawal amount.

  

					
	 ICC14 RGMB500515(IS)
	  	(4)	  	(Income-Single)

 ARTICLE IV 

CONTINUATION 
 In the case of spousal
joint Owners where one spouse is the Annuitant, if the spouse who is not the Annuitant dies and the surviving spouse is the sole beneficiary, the rider continues with the same rider values. In the case of spousal joint Owners where one spouse is the
Annuitant, if the spouse who is the Annuitant dies, this rider will terminate. 
 In the case of non-spousal joint Owners where an Owner who
is not the Annuitant dies, the surviving Owner (who is also the sole designated beneficiary) may elect to receive lifetime income payments under this rider instead of receiving any benefits applicable to the policy. The lifetime income payments must
begin no later than 1 year after the Owner’s death and will be equal to the Rider Withdrawal Amount divided by the number of payments made per year. Once the payments begin, no additional Premium Payments will be accepted and no additional
withdrawals will be paid. 
 ANNUITIZATION 

On the maximum Annuity Commencement Date, as described in Your policy, You will have the option to receive lifetime income payments that are
no less than Your Rider Withdrawal Amount each year. 
 TERMINATION 

This rider will terminate upon the earliest of: 
  

	1)	 the date the policy to which this rider is attached terminates; 

	2)	 the date the policy to which this rider is attached is assigned or if the Owner is changed without our approval; 

	3)	 the date of the Annuitant’s death; 

	4)	 the date You elect to receive annuity payments under Your policy; 

	5)	 the date You notify us in writing of Your intention to terminate this rider (this date must be within [30] days after the [fifth] Rider Anniversary and every [fifth] Rider
Anniversary thereafter); and 

	6)	 the date any of Your Policy Value is not invested in one of the Designated Investment Options. 

Termination of the rider will result in the loss of all benefits provided by the rider. After termination, rider fees will no longer be
assessed. 
 REPORTS TO OWNER 
 We will
give You a report at least once each Policy Year. Before You are eligible to receive the Rider Withdrawal Amount, the report will direct You to contact the Company for information regarding Your Rider Withdrawal Amount. After You are eligible for
Your Rider Withdrawal Amount, this amount will be included in the report. 
 Signed for us at our home office. 

 

			
	

	  	

	SECRETARY	  	PRESIDENT

  

					
	 ICC14 RGMB500515(IS)
	  	(5)	  	(Income-Single)

													
			 

						 Home Office:
				
				 		 				 		
				 				 4333 Edgewood Road N.E.
				
				 				 Cedar Rapids, Iowa 52499
				
				 				 (319)355-8511
				
			 A Stock Company (Hereafter called the Company, we, our or us)
		 				 www.transamerica.com
				
					 		 				 		

 [RETIREMENT INCOME MAXSM]RIDER 
 GUARANTEED LIFETIME WITHDRAWAL BENEFIT 

This rider is issued as a part of the policy to which it is attached. All provisions of the policy that do not conflict with this rider apply
to this rider. In the event of any conflict between the provisions of this rider and the provisions of the policy, the provisions of this rider shall prevail over the provisions of the policy. 

The purpose of the guaranteed living benefit provided under this rider is to provide security through a stream of income payments to the
Owner. This rider will terminate upon assignment or change in ownership of the policy unless the new assignee or Owner meets the qualifications specified in the Termination provision on page 5 of this rider. 

You may cancel this rider before midnight of the thirtieth calendar day after You receive it and no Rider Fees will be assessed. 

Rider Data Specification 
  

													
			 Policy Number:
		 		 		12345		 		
			 Rider Date:
		 				12/01/2014				
			 Growth Rate Percentage:
		 				5.50%				
			 Initial Rider Fee Percentage*:
		 				1.25%				
			 Annuitant:
		 				John Doe				
					 								
			 Annuitant’s Issue Age/Sex:
		 				35  /  Male				
			 Annuitant’s Spouse:
		 				Jane Doe				
	 Annuitant’s Spouse’s Issue Age/Sex:
		 		 		35   /  Female		 		

 *The initial rider fee percentage is also the maximum rider fee percentage for the life of the policy,
provided there are no automatic step-ups. When an automatic step-up is utilized, the maximum rider fee percentage will be
[0.75%] greater than the initial rider fee percentage shown above. The initial rider fee percentage will never exceed the maximum rider fee percentage. 

Designated Allocations: If You elect this rider, 100% of Your Policy Value must be in one or more of the Designated Investment Options.

 You can generally transfer between the Designated Investment Options as permitted under Your policy; however, You cannot make transfers
as provided for in the policy to a non-designated investment option while this rider is in force. If You wish to make a transfer to a non-designated investment option, this rider must be terminated, as described in Article IV, prior to making the
transfer. You will be notified if there are any changes to the Designated Allocations. 
 Guaranteed Lifetime Withdrawal Benefit: The
withdrawal percentage is determined by the attained age and is used to determine the Rider Withdrawal Amount as described in Article III of this rider. The withdrawal percentages are shown in the table below: 

 

																	
					  
 Attained Age
								 Withdrawal Percentage
  
				
	 		 		0  -   58		 		 		 		0.0%		 		
	 				59  -  64				 				4.0%				
	 				65  -   79				 				5.0%				
	 		 		80  +		 		 		 		6.0%		 		

  

					
	 ICC14 RGMB500515(IJ)
		(1)		(Income-Joint)

 ARTICLE I 

The Annuitant’s spouse as of the rider date is hereafter referred to as the Annuitant’s spouse. As it pertains to the benefits of
this rider, the Annuitant’s spouse cannot be changed. The Annuitant’s spouse must be the sole primary beneficiary and/or a joint Owner. The only living Owners allowed on the policy to which this rider is attached are the Annuitant and the
Annuitant’s spouse. 
 DEFINITIONS: 
 Terms used
that are not defined in this rider shall have the same meaning as those in Your policy. 
 Designated Investment Options 

Investment Options authorized for use with this rider and identified by us as Designated Investment Options. 

Excess Withdrawal 
 The excess of a Gross Partial
Withdrawal over the Rider Withdrawal Amount remaining prior to the withdrawal, if any. 
 Gross Partial Withdrawal 

The amount which will be deducted from Your Policy Value as a result of each partial withdrawal. 

Rider Anniversary 
 The anniversary of the rider date. 

Rider Fee 
 The fees charged for the benefits under this
rider. The fees will be charged on a rider quarterly basis by the Company. 
 Rider Monthiversary 

The same day of the month as the rider date, or the next business day if our Administrative Office or the New York Stock Exchange are closed.
If a certain date does not exist in a given month, the first day of the following month will be used. 
 Rider Quarter 

Each three-month period beginning on the rider date. 
 Rider
Withdrawal Amount 
 The maximum amount that can be withdrawn from the policy each Rider Year without causing an Excess Withdrawal under
the terms of this rider and thus reducing the Withdrawal Base. This amount will change if the Withdrawal Base changes. 
 Rider Year 

Each twelve-month period following the rider date. 
 Withdrawal
Base 
 The amount used to calculate the Rider Withdrawal Amount and the Rider Fee. This amount cannot be taken as a surrender
and is not payable as a death benefit. 
 ARTICLE II 

RIDER FEE 
 The Rider Fee is deducted on
each Rider Quarter in arrears. The fee is calculated and stored at issue and at each subsequent Rider Quarter for the upcoming quarter. It will be deducted automatically from each Investment Option on a pro rata basis at the end of each Rider
Quarter. The initial rider fee percentage and the maximum rider fee percentage are described on page 1, in the Rider Data Specification section. The rider fee percentage will not change during the first Rider Year, and will only change thereafter
due to an automatic step-up. You will be notified of any increase in the rider fee percentage. A portion of this fee will also be deducted when the rider is terminated based on the number of days that have elapsed since the previous Rider Quarter.

 The stored fee will be adjusted if the Withdrawal Base is adjusted during the Rider Quarter. 

The quarterly fee is calculated as follows: 

Multiply (1) by (2) by (3). 
  

	1)	 Withdrawal Base; 

	2)	 Rider fee percentage; 

	3)	 Number of days remaining in the Rider Quarter divided by the number of days within the applicable Rider Year. 

  

					
	 ICC14 RGMB500515(IJ)
	  	(2)	  	(Income-Joint)

 ARTICLE III 

GUARANTEED LIFETIME WITHDRAWAL BENEFIT 

Under this rider, we guarantee that You can receive up to the Rider Withdrawal Amount each Rider Year, regardless of the Policy Value, (first
as withdrawals from Your Policy Value and, if necessary, as payments from us) until the Annuitant’s or the Annuitant’s spouse’s death, whichever is later. 

The withdrawal percentage is determined by the attained age (age at last birthday) of the younger of the living spouses at the time of the
first withdrawal of any amount from the Policy Value taken on or after the Rider Anniversary following the younger of the living spouse’s [59th] birthday. Once the withdrawal percentage is established, it
may only be changed by an automatic step-up. Upon automatic step-up, the withdrawal percentage will be reset based on the attained age of the younger of the living spouses at the time of the automatic step-up. The withdrawal percentages are shown in
the table in the Rider Data Specification section. 
 If the younger of the Annuitant and the Annuitant’s spouse is not yet [59] on
 the rider date, the withdrawal percentage will be zero until the Rider Anniversary following the younger of the living spouse’s [59th] birthday. Withdrawals prior to age 59 1/2 will be subject to
the IRS 10% early withdrawal penalty. 
 Withdrawals will reduce the Policy Value and death benefit of the policy to which this rider
is attached. If the Policy Value equals zero, You cannot make subsequent Premium Payments and all other policy features, benefits and guarantees are no longer available. Also, if the Policy Value equals zero, You will need to request payments by
selecting the amount and frequency in accordance with the policy provisions to which this rider attaches, equal to the Rider Withdrawal Amount. Once the payment amount and frequency are established, they cannot be changed and no additional
withdrawals will be allowed. 
 ISSUE AGE AND SURVIVAL 

The benefits under this rider depend on the Annuitant or Annuitant’s spouse being alive at the time of withdrawal and the amount of the
benefit depends on the issue age of the Annuitant and Annuitant’s spouse. Proof of survival and the issue ages may be required by the Company. 

If the younger of the spouses’ ages has been misstated, this rider’s fees and benefits will be adjusted to the amounts which would
have been calculated for the correct age. However, if this rider would not have been issued had the age not been misstated, the rider is treated as if it never existed, and any fees charged for this rider would be returned. If withdrawals under the
provisions of the rider have already commenced and the misstatement caused the Rider Withdrawal Amount to be overstated, any withdrawal in excess of the correct Rider Withdrawal Amount will be considered an Excess Withdrawal and will impact the
Withdrawal Base and Rider Withdrawal Amount. If overpayments occurred when the sum of the accumulated values in all the Investment Options was zero, the amount of that overpayment will be deducted from one or more future payments until this amount
is paid in full. 
 RIDER WITHDRAWAL AMOUNT 

The Rider Withdrawal Amount will be equal to the greater of 1) and 2), where: 

 

	1)	 is the withdrawal percentage multiplied by the Withdrawal Base; 

	2)	 is an amount equal to the minimum required distribution amount, if any. Prior to the 1st Rider Anniversary, this amount is based on the initial
Policy Value on the rider date. After this time, the minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all of the following are true: 

	 	A)	 the policy to which this rider is attached is a tax-qualified policy for which IRS minimum required distributions are required,

	 	B)	 the minimum required distributions do not start prior to the Annuitant’s attained age 70 1/2, 

	 	C)	 the minimum required distributions are based on either the Uniform Lifetime table or the Joint Life and Last Survivor Expectancy table,

  

					
	 ICC14 RGMB500515(IJ)
	  	(3)	  	(Income-Joint)

 ARTICLE III CONTINUED 
  

	 	D)	 the minimum required distributions are based on age of the living Annuitant or the Annuitant’s spouse if the Annuitant is deceased. The
minimum required distributions can not be based on the age of someone who is deceased, 

	 	E)	 the minimum required distributions are based only on the policy to which this rider is attached, and 

	 	F)	 the minimum required distributions are only for the current Rider Year. Amounts carried over from past Rider Years are not considered.

 If any of the above are not true, then 2) is equal to zero and it is not available as a Rider Withdrawal Amount. 

If You withdraw less than the Rider Withdrawal Amount in a Rider Year, the unused portion cannot be carried over to the next Rider Year. 

Surrender charges may apply if Your Rider Withdrawal Amount exceeds Your surrender charge-free amount. 

WITHDRAWAL BASE 
 The Withdrawal Base is
used to calculate the Rider Withdrawal Amount. On the rider date, the initial Withdrawal Base is equal to the Policy Value (less any applicable premium enhancements if the rider is added in the first Policy Year). During any Rider Year, the
Withdrawal Base is increased by subsequent Premium Payments (not including premium enhancements, if any), and is reduced for Excess Withdrawals. 
 On each
Rider Anniversary, the Withdrawal Base will be set to the greatest of: 
  

	 	1)	 The current Withdrawal Base; 

	 	2)	 The Policy Value on the Rider Anniversary; 

	 	3)	 The highest Policy Value on a Rider [Monthiversary] for the current Rider
Year; and 

	 	4)	 The current Withdrawal Base immediately prior to Rider Anniversary processing increased by the growth rate percentage. 

Item 3) above will be zero if there have been any Excess Withdrawals in the current Rider Year. Item 4) above will be zero after the [10th] Rider Anniversary or if there have been any withdrawals in the current Rider Year. 

AUTOMATIC STEP-UP FEATURE 
 The rider
receives an automatic step-up on the Rider Anniversary if the Withdrawal Base is set equal to the Policy Value or the highest Policy Value on a Rider [Monthiversary.] This feature does not require the termination of
the existing rider. This rider will continue with the same rider date and features. The Rider Fee and withdrawal percentages may be changed due to an automatic step-up. Beginning with the [first] Rider Anniversary, the rider fee percentage may be increased if there is an automatic step-up, but will not exceed the maximum rider fee percentage described in the Rider Data Specification
section. 
 You have the right to reject an automatic step-up within
[30] days following a Rider Anniversary, if the rider fee percentage increases. If You reject an automatic step-up, You must notify us in a manner which is acceptable to us, however You are eligible
for future automatic step-ups. Changes as a result of the automatic step-up feature will be reversed. Any increase in the Rider Fee or withdrawal percentages will also be reversed. 

WITHDRAWAL BASE ADJUSTMENTS 
 Gross Partial
Withdrawals, taken in a Rider Year, less than or equal to the Rider Withdrawal Amount will not reduce the Withdrawal Base. Excess Withdrawals will reduce the Withdrawal Base by the withdrawal base adjustment which may be more than the dollar
amount of the Excess Withdrawal. The withdrawal base adjustment is the greater of 1) and 2), where: 
  

	1)	 is the Excess Withdrawal amount; and 

	2)	 is the result of (A multiplied by B), divided by C, where: 

 

	 	A)	 is the Excess Withdrawal; 

	 	B)	 is the Withdrawal Base prior to the Excess Withdrawal amount; and 

	 	C)	 is the Policy Value after the Rider Withdrawal Amount has been withdrawn, but prior to the withdrawal of the Excess Withdrawal amount.

  

					
	 ICC14 RGMB500515(IJ)
	  	(4)	  	(Income-Joint)

 ARTICLE IV 

CONTINUATION 
 In the case of spousal
joint Owners where one spouse is the Annuitant, if the spouse who is not the Annuitant dies and the surviving spouse is the sole beneficiary, the rider continues with the same rider values. In the case of spousal joint Owners where one spouse is the
Annuitant, if the spouse who is the Annuitant dies and the surviving spouse is the sole beneficiary, the rider continues with the same rider values if the policy to which this rider is attached is continued until the death of the surviving spouse.

 ANNUITIZATION 
 On the maximum
Annuity Commencement Date, as described in Your policy, You will have the option to receive lifetime income payments that are no less than Your Rider Withdrawal Amount each year. 

TERMINATION 
 This rider will terminate upon the earliest
of: 
  

	1)	 the date the policy to which this rider is attached terminates; 

	2)	 the date the policy to which this rider is attached is assigned or if the Owner is changed without our approval; 

	3)	 the later of the Annuitant’s or Annuitant’s spouse’s death; 

	4)	 the date You elect to receive annuity payments under Your policy; 

	5)	 the date You notify us in writing of Your intention to terminate this rider (this date must be within [30] days after the [fifth] Rider Anniversary and every [fifth] Rider
Anniversary thereafter); and 

	6)	 the date any of Your Policy Value is not invested in one of the Designated Investment Options. 

Termination of the rider will result in the loss of all benefits provided by the rider. After termination, rider fees will no longer be
assessed. 
 REPORTS TO OWNER 
 We will
give You a report at least once each Policy Year. Before You are eligible to receive the Rider Withdrawal Amount, the report will direct You to contact the Company for information regarding Your Rider Withdrawal Amount. After You are eligible for
Your Rider Withdrawal Amount, this amount will be included in the report. 
 Signed for us at our home office. 

 

			
	

	  	

	SECRETARY	  	PRESIDENT

  

					
	 ICC14 RGMB500515(IJ)
	  	(5)	  	(Income-Joint)

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