Document:

Exhibit 4.(r)

 

PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY • P. O. BOX 10648 • BIRMINGHAM, ALABAMA 35202-0648

 

RIDER SCHEDULE

 

	
  Contract #

  	
   

  	
  Rider Effective Date:

  
	
   

  	
   

  	
   

  
	
  Owner 1 Name:

  	
   

  	
  Benefit Cost on the Rider Effective Date: [ % ]

  
	
   

  	
   

  	
   

  
	
  Maximum Benefit Cost: [ 1.40% or 1.60% ]

  	
   

  	
  Benefit Base on the Rider Effective Date: [ $ ]

  

 

 

LIFETIME GUARANTEED MINIMUM
WITHDRAWAL BENEFIT RIDER

with SecurePayR72®

 

We
are amending the Contract to which this rider is attached to add a lifetime
Guaranteed Minimum Withdrawal Benefit (“GMWB”, or “the Benefit”). The terms and
conditions in this rider supersede any conflicting provision in the Contact
beginning on the Rider Effective Date and continuing until the rider is
terminated. Contract provisions not expressly modified by this rider remain in
full force and effect.

 

Lifetime Guaranteed Minimum Withdrawal
Benefit: Subject to the terms and conditions of this rider,
beginning on the Benefit Election Date and continuing on each Contract
Anniversary thereafter during the lifetime of a Covered Person, you may take
aggregate annual withdrawals from the Contract that do not exceed the Annual
Withdrawal Amount regardless of the Contract Value at that time.

 

DEFINITIONS

 

Annual Withdrawal Amount - The maximum
amount that may be withdrawn from the Contract each Contract Year after the
Benefit Election Date without reducing the Benefit Base.

 

Benefit Base - The amount
determined according to the terms of this rider and used to calculate the
Annual Withdrawal Amount and the monthly fee. The maximum Benefit Base is
$5,000,000 (5 million dollars).

 

Benefit Election Date - The date as of
which we first calculate the Annual Withdrawal Amount and the date on which
guaranteed withdrawals may begin.

 

Benefit Period - The period of
time between the Benefit Election Date and the earlier of the Annuity
Commencement Date or the rider termination date.

 

Covered Person - The person or
persons upon whose lives the benefits of this rider are based. There may not be
more than two Covered Persons.

 

RightTime® - The option to purchase the
Benefit after the Contract’s Effective Date, if we are offering it at that
time.

 

GMWB COST AND FEES

 

Benefit Cost - On the Rider
Effective Date, the annualized Benefit Cost as a percentage of the Benefit Base
is shown in the ‘Schedule’ of this rider. We have the right to change the
Benefit Cost at any time. The new Benefit Cost will be the Benefit Cost in
effect on that date for that option. The annualized Benefit Cost as a
percentage of the Benefit Base will never exceed the Maximum Benefit Cost shown
in the ‘Schedule’ of this rider. We will notify you of the new Benefit Cost in
writing at the address contained in our records not less than 30 days prior to
the date on which the new Benefit Cost becomes effective.

 

1

 

You
may avoid changes in the Benefit Cost. We must receive your Written Notice
declining the change before the end of the Valuation Period during which the
new Benefit Cost becomes effective. However if you decline a Benefit Cost
change, the SecurePay
Anniversary Value on all future Contract Anniversaries will equal $0 and the
Roll-up Period associated with SecurePay R72® will terminate immediately.

 

Monthly Fee - Beginning on
the Rider Effective Date and continuing monthly until the Benefit terminates,
we will calculate the fee for this rider and deduct that amount from the
Contract Value. The monthly fee is calculated as of the end of the Valuation
Period that includes the same day of the month as the Contract Effective Date,
or the last Valuation Period of the month if that date does not occur during
the month. We calculate the monthly fee using the formula:

 

Monthly Fee = [1 – (1 – Benefit Cost)1/12] x Benefit
Base as of the calculation date.

 

Deducting the Monthly Fee - We deduct the
monthly fee as of the Valuation Period immediately following the Valuation
Period during which it was calculated. The monthly fee is deducted from the
Allocation Options in the same proportion that the value of each bears to the
total Contract Value on that date. Deduction of the monthly fee is a partial
surrender for the purpose of determining the Contract Value, but we will not
assess a surrender charge on these deductions and the monthly fee will not
reduce any penalty free surrender amount available under the Contract.

 

GENERAL PROVISIONS

 

Restrictions on Allocation, Transfer and
Surrender of Contract Value - While this rider is in
force, your Contract allocation is restricted by the Allocation by Investment
Category (“AIC”) program guidelines. The AIC program divides the Allocation
Options into categories and specifies range of percentages that must be
allocated to each category. Within each category, you select the Sub-Accounts
and amounts allocated to them, provided the total percentage in each category
is not less than the minimum required, nor more than the maximum permitted. The
AIC guidelines on the Rider Effective Date were set out on the application you
completed to purchase the rider. We may change the AIC guidelines from time to
time but if we do, we will not require you to re-allocate your Contract Value.

 

You
may transfer Contract Value among the Allocation Options by Written Notice
provided the Contract Value immediately after the transfer meets the AIC
guidelines in effect at that time. Your instruction to transfer Contract Value
among the Allocation Options changes the Contract allocation as of the
Valuation Period during which the transfer occurs. Purchase Payment allocation
instructions also change the Contract allocation and must meet the AIC
guidelines in effect at that time. Purchase Payments applied to the Contract
and automatic transfers to facilitate dollar cost averaging made after any such
instruction will use the new Contract allocation.

 

We
rebalance the Variable Account Value each time the Contract allocation is
changed, and semi-annually based on the Rider Effective Date, unless you
instruct us to rebalance quarterly or annually.

 

Partial
surrenders and withdrawals including applicable surrender charges, if any, are
deducted from the Allocation Options in the same proportion that the value of
each bears to the total Contract Value on that date.

 

Determining the Benefit Base Prior to the
Benefit Election Date - On the Rider Effective Date, the Benefit Base
is equal to the initial Purchase Payment, or the Contract Value as of the end
of the Valuation Period that includes the Rider Effective Date if you purchased
the Benefit by exercising the RightTime®
option. Thereafter, we increase the Benefit Base dollar-for-dollar for Purchase
Payments credited to the Contract within 2 years of the Rider Effective Date,
if any. We reduce the Benefit Base pro-rata for each partial surrender. The
pro-rata reduction for each partial surrender is the amount that reduces the
Benefit Base in the same proportion that the partial surrender including
applicable surrender charges, if any, reduced the Contract Value as of the
Valuation Period during which the partial surrender was deducted.

 

2

 

SecurePay Anniversary Value - If you have not declined a
Benefit Cost change, we calculate a SecurePay Anniversary Value for each Contract
Anniversary after the Rider Effective Date. The SecurePay Anniversary Value is equal to the
Contract Value as of that Contract Anniversary minus Purchase Payments credited
to the Contract on or after the 2nd anniversary of the Rider Effective Date.

 

SecurePay R72® - On each Contract Anniversary
following the Rider Effective Date, we compare the Benefit Base to the SecurePay Anniversary
Value and the R72
Anniversary Value (if one is calculated). The greatest of these three will
become the new Benefit Base as of that date.

 

We
calculate an R72
Anniversary Value for each Contract Anniversary that occurs during the Roll-up Period.
The R72
Anniversary Value is equal to the Benefit Base as of the end of the Valuation
Period immediately prior to the Contract Anniversary, plus the Roll-up Amount
applicable to that Contract Anniversary.

 

If
on a Contract Anniversary for which an R72 Anniversary Value is being calculated, the
Contract Value is greater than or equal to 50% of the Benefit Base immediately
prior to that Contract Anniversary, the Roll-up Amount is equal to 7.2% of the
Benefit Base on the prior Contract Anniversary reduced proportionally for
partial surrenders made since the prior Contract Anniversary. If on that
Contract Anniversary the Contract Value is less than 50% of the Benefit Base
immediately prior to that Contract Anniversary, the Roll-up Amount is equal to
$0.

 

The
Roll-up Period begins on the Rider Effective Date and ends on the Valuation
Period immediately following the 10th Contract Anniversary on which we increase the
Benefit Base to equal either the SecurePay or R72 Anniversary Value. When determining the Roll-up
Period, we will not count Contract Anniversaries on which the Benefit Base does
not increase.

 

We
will also terminate the Roll-up Period if any of the following occur before the
date described in the paragraph above:

 

1.     you decline a change in the
Benefit Cost; or,

2.     you establish the Benefit
Election Date; or,

3.     the GMWB rider terminates.

 

Termination - This rider,
every benefit it provides, and deduction of the monthly fee terminate at the
end of the Valuation Period during which any of the following first occur.

 

1.               We receive your
instruction to:

a)              allocate any purchase
payment; or,

b)             dollar cost average; or,

c)              transfer any Contract Value;
or,

d)             deduct any partial surrender
or withdrawal;

in
a manner inconsistent with the AIC guidelines or the provisions of this rider.

 

2.               We receive your
instruction to stop Portfolio Rebalancing.

3.               We receive your
instruction to terminate this rider more than 10 years after its Rider
Effective Date.

4.               We receive your
instruction to change a Covered Person after the Benefit Election Date.

5.               We receive your
instruction to annuitize the Contract.

6.               We receive any
instruction that terminates the Contract to which this rider is attached.

 

We
will notify you in writing that the rider has terminated and identify the
cause. If this rider terminated as a result of a prohibited instruction
described in items 1 or 2 of this provision, you may reinstate it within 30
days of the rider termination date unless the rider terminated after the Benefit
Election Date and a Purchase Payment was applied to the Contract since the
rider termination date.

 

3

 

We must receive your Written Notice requesting
reinstatement and providing allocation instructions that meet current AIC guidelines,
and/or resume portfolio rebalancing within 30 days of this rider’s termination
date. We will deduct any fees and make any other adjustments that were
scheduled during the period of termination so that after the reinstatement, the
Contract and this rider will be as though the termination never occurred.

 

Exercising the RightTime® Option After the Rider Terminates - If the rider terminates as a result of any of the reasons in the ‘Terminations’
provision other than annuitization or termination of the Contract to which it
is attached, you may purchase the Benefit using the RightTime®
option, if:

 

1.       we
are offering the RightTime® option when we receive your
request to purchase it; and,

2.       5
years or more have elapsed since this rider terminated; and,

3.       the
oldest Owner or Annuitant will not be older than age 85 on the new Rider
Effective Date; and,

4.       the
Contract has not reached the Annuity Commencement Date.

 

If this rider terminates because you instruct us to change
a Covered Person, we will waive the 5-year waiting period as described in item
#2 of this provision.

 

BENEFIT PERIOD

 

Establishing the Benefit Election Date - You must establish the Benefit Election Date to start the Benefit Period
and access the guaranteed withdrawals provided by this rider. To establish the
Benefit Election Date, you must send a Written Notice that instructs us to
calculate the Annual Withdrawal Amount based on either one or two lives, and
include proof of age for each Covered Person. The Benefit Election Date may not
be earlier than the date on which the Covered Person (or the younger of the two
Covered Persons) attains age 591/2, nor later than the Annuity Commencement Date.

 

We will not accept additional Purchase Payments on or
after the Benefit Election Date. Therefore, any Automatic Purchase Payment Plan
in effect on the Benefit Election Date will be terminated as of that date.

 

Partial Automatic Withdrawals established prior to the
Benefit Period terminate as of the Benefit Election Date.

 

Individuals Eligible to be a Covered Person - A Covered Person must be a living person who is either:

 

1.       an
Owner of the Contract; or,

2.       if the spouse of the sole Owner of the Contract, the sole Primary
Beneficiary.

 

If there is one Owner, the Owner is the Covered Person.

 

If there is one Owner and the sole Primary Beneficiary is
the Owner’s spouse, the Owner is the Covered Person if the Annual Withdrawal
Amount is based on one life. If there is one Owner and the sole Primary
Beneficiary is the Owner’s spouse, both are Covered Persons if the Annual
Withdrawal Amount is based on two lives.

 

If there are two Owners and they are married to each
other, the older of the two is the Covered Person if the Annual Withdrawal
Amount is based on one life. If there are two Owners and they are married to
each other, both are Covered Persons if the Annual Withdrawal Amount is based
on two lives.

 

If there are two Owners and they are not married to each
other, only the older of the two is the Covered Person.

 

For the purposes of the GMWB, the terms ‘married’ and ‘spouse’
include bona fide domestic partners in states that afford legal recognition to
same-sex Civil Unions.

 

4

 

Calculating the Annual Withdrawal Amount
- We calculate the initial Annual Withdrawal Amount as of the end of the
Valuation Period during which we receive your Written Notice establishing the
Benefit Election Date.  The initial
Annual Withdrawal Amount is equal to the Benefit Base on that date multiplied
by the applicable GMWB withdrawal percentage from the table below. The GMWB
withdrawal percentage is based on the number and age(s) of the Covered
Person(s) on the Benefit Election Date.

 

GMWB WITHDRAWAL PERCENTAGES

 

	
  Age of (younger) Covered Person

  	
   

  	
  GMWB Withdrawal %

  	
   

  	
  GMWB Withdrawal %

  	
   

  
	
  on the Benefit Election Date

  	
   

  	
  (One Covered Person)

  	
   

  	
  (Two Covered Persons)

  	
   

  
	
  at least 59 1/2 but less than 75 years old

  	
   

  	
  5.00

  	
  %

  	
  4.50

  	
  %

  
	
  75 years old or more

  	
   

  	
  6.00

  	
  %

  	
  5.50

  	
  %

  

 

During
the Benefit Period, aggregate withdrawals in any Contract Year that do not
exceed the Annual Withdrawal Amount do not reduce the Benefit Base.

 

We
re-calculate the Annual Withdrawal Amount only on a Contract Anniversary and
only if the Benefit Base changed since the prior Contract Anniversary. The new
Annual Withdrawal Amount is equal to the Benefit Base on the Contract
Anniversary multiplied by the GMWB withdrawal percentage established on the
Benefit Election Date.

 

Accessing the Annual Withdrawal Amount - During the
Benefit Period, you may request withdrawals individually or instruct us to send
you specific amounts periodically. Your Written Notice must include all the
information necessary for us to complete and remit the requested amounts.

 

Withdrawals
made during the Benefit Period reduce the Contract Value in the same manner as
partial surrenders made prior to the Benefit Election Date. We do not assess
surrender charges on aggregate withdrawals during a Contract Year that do not
exceed the Annual Withdrawal Amount. However, withdrawals count against any
penalty free surrender amounts that would otherwise be available.

 

The
Annual Withdrawal Amount is not cumulative. You may take the entire Annual
Withdrawal Amount each Contract Year, but if you do not, the remaining portion
does not carry forward.

 

Excess Withdrawals - During the
Benefit Period any portion of a withdrawal that, when aggregated with all prior
withdrawals during that Contract Year, exceeds the Annual Withdrawal Amount
constitutes an excess withdrawal. We will not recalculate the Annual Withdrawal
Amount until the next Contract Anniversary, so any subsequent withdrawal taken
that Contract Year is also an excess withdrawal. We assess applicable surrender
charges, if any, on excess withdrawals.

 

Each
excess withdrawal results in an immediate reduction of the Benefit Base. If,
immediately after the excess withdrawal, the Contract Value minus any
non-excess portion of the withdrawal is greater than the Benefit Base, we
reduce the Benefit Base by the amount of the excess withdrawal including
applicable surrender charges, if any. Otherwise, we reduce the Benefit Base by
the same proportion that the excess withdrawal including applicable surrender
charges, if any, reduced the Contract Value as of the Valuation Period during
which the excess withdrawal request was processed. If the excess withdrawal
including applicable surrender charges, if any, reduces the Contract Value to
$0, the Contract will terminate as of that date.

 

If
you have instructed us to send you all or a portion of the Annual Withdrawal
Amount periodically in specific amounts, an excess withdrawal automatically
terminates those periodic withdrawals. If any Contract Value remains after the
excess withdrawal, you may resume periodic withdrawals beginning on the next
Contract Anniversary based on the recalculated Annual Withdrawal Amount by
sending us instructions in a Written Notice.

 

5

 

Death of a Covered Person After the
Benefit Election Date - If the Annual Withdrawal Amount is based on
the life of one Covered Person, this rider terminates upon the Covered Person’s
death. If the Annual Withdrawal Amount is based on the lives of two Covered
Persons, this rider terminates upon the death of the last surviving Covered
Person.

 

Spousal Continuation After the Benefit Election
Date - The surviving spouse of a sole Covered Person who, pursuant to the
Contract’s ‘Payment of the Death Benefit’ provision, continues the Contract and
becomes the new sole Owner may purchase a new rider immediately using the RightTime® option, if we are offering it
at that time. If not purchased immediately, we will waive the 5-year waiting
period described in item #2 of the ‘Exercising the RightTime®
Option After the Rider Terminates’ provision. However, regardless of when the RightTime® option is exercised, only the
surviving spouse is eligible to be a Covered Person under the new rider.

 

Annuity Commencement Date - You must
begin periodic distributions of the entire interest in the Contract not later
than the Annuity Commencement Date. If the Benefit Period has begun but you are
not taking periodic withdrawals, we will begin monthly withdrawals of the
Annual Withdrawal Amount on the Annuity Commencement Date. You may change the
frequency of the withdrawals, but must take the entire Annual Withdrawal Amount
available each Contract Year.

 

If
this rider is in force on the Maximum Annuity Commencement Date, in addition to
the other Annuity Options available to you under the Contract, you may select
the Annuity Option that will pay monthly payments for life equal to the Annual
Withdrawal Amount divided by 12. If we have not received your Written Notice
with the necessary information and proof of age for the Covered Person(s) by
the Maximum Annuity Commencement Date and you have not selected an Annuity
Option, we will begin monthly payments on that date. The monthly payments will
be an amount equal to the greater of:

 

1.               the Annual Withdrawal Amount
as of the Maximum Annuity Commencement Date divided by 12, where the Annual
Withdrawal Amount is determined by using the withdrawal percentage associated
with One Covered Person and Owner 1’s age (or the younger of Owner 1 and Owner
2 if there are two Owners of the Contract); or,

 

2.               the results of
applying the Contract Value plus any applicable annuitization bonus to Annuity
Option B with a 10-year Certain Period based on the life of the named
Annuitant.

 

If
we have not received your Written Notice with the information and proof of age
for the Covered Person(s) by the Maximum Annuity Commencement Date but you
have previously selected an Annuity Option, we will begin distributing the
entire interest in the Contract according to the Annuity Option you have
selected.

 

Signed
for the Company and made a part of the Contract as of the Rider Effective Date.

 

PROTECTIVE
LIFE AND ANNUITY INSURANCE COMPANY

 

	
   

  	
  

  
	
   

  	
              Secretary

  

 

6Exhibit 4.(s)

 

PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY • P. O.
BOX 10648 • BIRMINGHAM, ALABAMA 35202-0648

 

RIDER SCHEDULE

 

	
  Contract #

  	
  Rider Effective Date:

  
	
   

  	
   

  
	
  Owner 1 Name:

  	
  Benefit Cost on the Rider Effective Date: [ % ]

  
	
   

  	
   

  
	
  GMWB Withdrawal Percentage:

  	
  Benefit Base on the Rider Effective Date: [ $ ]

  
	
  One Covered Person:  
  5.00%

  	
   

  
	
  Two Covered Persons: 4.50%

  	
   

  

 

 

LIFETIME GUARANTEED MINIMUM
WITHDRAWAL BENEFIT RIDER

with SecurePay® ANNUAL STEP-UP

 

We
are amending the Contract to which this rider is attached to add a lifetime
Guaranteed Minimum Withdrawal Benefit (“GMWB”, or “the Benefit”). The terms and
conditions in this rider supersede any conflicting provision in the Contact
beginning on the Rider Effective Date and continuing until the rider is terminated.
Contract provisions not expressly modified by this rider remain in full force
and effect.

 

Lifetime Guaranteed Minimum Withdrawal
Benefit: Subject to the terms and conditions of this rider,
beginning on the Benefit Election Date and continuing on each Contract
Anniversary thereafter during the lifetime of a Covered Person, you may take
aggregate annual withdrawals from the Contract that do not exceed the Annual
Withdrawal Amount regardless of the Contract Value at that time.

 

DEFINITIONS

 

Annual Withdrawal Amount - The maximum
amount that may be withdrawn from the Contract each Contract Year after the
Benefit Election Date without reducing the Benefit Base.

 

Benefit Base - The amount
determined according to the terms of this rider and used to calculate the
Annual Withdrawal Amount and the monthly fee. The maximum Benefit Base is
$5,000,000 (5 million dollars).

 

Benefit Election Date - The date as of
which we first calculate the Annual Withdrawal Amount and the date on which
guaranteed withdrawals may begin.

 

Benefit Period - The period of
time between the Benefit Election Date and the earlier of the Annuity
Commencement Date or the rider termination date.

 

Covered Person - The person or
persons upon whose lives the benefits of this rider are based. There may not be
more than two Covered Persons.

 

RightTime® - The option to purchase the
Benefit after the Contract’s Effective Date, if we are offering it at that
time.

 

SecurePay® Anniversary Value - After the Rider Effective
Date, the Contract Value as of each Contract Anniversary minus Purchase
Payments credited to the Contract on or after the 2nd anniversary of the Rider Effective Date.

 

1

 

GMWB COST AND FEES

 

Benefit Cost - On the Rider
Effective Date, the annualized Benefit Cost as a percentage of the Benefit Base
is shown in the ‘Schedule’ of this rider. We have the right to change the
Benefit Cost at any time. The new Benefit Cost will be the Benefit Cost in
effect on that date for that option. The annualized Benefit Cost will never
exceed 0.95% of the Benefit Base. We will notify you of the new Benefit Cost in
writing at the address contained in our records not less than 30 days prior to
the date on which the new Benefit Cost becomes effective.

 

You
may avoid changes in the Benefit Cost. We must receive your Written Notice
declining the change before the end of the Valuation Period during which the
new Benefit Cost becomes effective. However if you decline a Benefit Cost
change, the SecurePay®
Anniversary Value on all future Contract Anniversaries will equal $0.

 

Monthly Fee - Beginning on
the Rider Effective Date and continuing monthly until the Benefit terminates,
we will calculate the fee for this rider and deduct that amount from the
Contract Value. The monthly fee is calculated as of the end of the Valuation
Period that includes the same day of the month as the Contract Effective Date,
or the last Valuation Period of the month if that date does not occur during
the month. We calculate the monthly fee using the formula:

 

Monthly Fee = [1 – (1 – Benefit Cost)1/12] x Benefit
Base as of the calculation date.

 

Deducting the Monthly Fee - We deduct the
monthly fee as of the Valuation Period immediately following the Valuation
Period during which it was calculated. The monthly fee is deducted from the
Allocation Options in the same proportion that the value of each bears to the
total Contract Value on that date. Deduction of the monthly fee is a partial
surrender for the purpose of determining the Contract Value, but we will not
assess a surrender charge on these deductions and the monthly fee will not
reduce any penalty free surrender amount available under the Contract.

 

GENERAL PROVISIONS

 

Restrictions on Allocation, Transfer and
Surrender of Contract Value - While this rider is in
force, your Contract allocation is restricted by the Allocation by Investment
Category (“AIC”) program guidelines. The AIC program divides the Allocation
Options into categories and specifies range of percentages that must be
allocated to each category. Within each category, you select the Sub-Accounts
and amounts allocated to them, provided the total percentage in each category
is not less than the minimum required, nor more than the maximum permitted. The
AIC guidelines on the Rider Effective Date were set out on the application you
completed to purchase the rider.

 

We
may change the AIC guidelines from time to time but if we do, we will not
require you to re-allocate your Contract Value. We will continue to apply
Purchase Payments you remit without allocation instructions, and process
automatic transfers that facilitate dollar cost averaging according to the
Contract allocation established before the AIC guidelines changed.

 

Allocation
instructions that accompany a Purchase Payment and instructions to transfer
Contract Value among the Allocation Options change the Contract allocation as
of the end of the Valuation Period during which we receive the instruction, and
must meet the AIC guidelines in effect at that time. Anytime the Contract
allocation changes, we re-allocate the Contract Value according to the new
Contract allocation. Purchase Payments applied to the Contract and transfers
that facilitate dollar cost averaging after that date will be made according to
that Contract allocation until you send a subsequent instruction that changes
the Contract allocation and that satisfies the AIC guidelines then in effect.

 

In
addition to the re-allocation of Contract Value that occurs each time the
Contract allocation is changed, we rebalance the Variable Account Value to the
current Contract semi-annually based on the Rider Effective Date, unless you
instruct us to rebalance quarterly or annually.

 

Partial
surrenders and withdrawals including applicable surrender charges, if any, are
deducted from the Allocation Options in the same proportion that the value of
each bears to the total Contract Value on that date.

 

2

 

Determining the Benefit Base Prior to the
Benefit Election Date - On the Rider Effective Date, the Benefit Base
is equal to the initial Purchase Payment, or the Contract Value as of the end
of the Valuation Period that includes the Rider Effective Date if you purchased
the Benefit by exercising the RightTime®
option. Thereafter, we increase the Benefit Base dollar-for-dollar for Purchase
Payments credited to the Contract within 2 years of the Rider Effective Date,
if any. We reduce the Benefit Base pro-rata for each partial surrender. The
pro-rata reduction for each partial surrender is the amount that reduces the
Benefit Base in the same proportion that the partial surrender including
applicable surrender charges, if any, reduced the Contract Value as of the
Valuation Period during which the partial surrender was deducted.

 

On
each Contract Anniversary following the Rider Effective Date, we calculate a SecurePay® Anniversary
Value and compare it to the Benefit Base. If the SecurePay® Anniversary Value is greater than
the Benefit Base, we increase the Benefit Base to equal the SecurePay® Anniversary
Value as of the end of the Valuation Period that contains that Contract
Anniversary.

 

Termination - This rider,
every benefit it provides, and deduction of the monthly fee terminate at the
end of the Valuation Period during which any of the following first occur.

 

1.               We receive your
instruction to:

a)              allocate any purchase
payment; or,

b)             dollar cost average; or,

c)              transfer any Contract Value;
or,

d)             deduct any partial surrender
or withdrawal;

in
a manner inconsistent with the AIC guidelines or the provisions of this rider.

 

2.               We receive your
instruction to stop Portfolio Rebalancing.

 

3.               We receive your
instruction to terminate this rider more than 10 years after its Rider
Effective Date.

 

4.               We receive your
instruction to change a Covered Person after the Benefit Election Date.

 

5.               We receive your
instruction to annuitize the Contract.

 

6.               We receive any
instruction that terminates the Contract to which this rider is attached.

 

We
will notify you in writing that the rider has terminated and identify the
cause. If this rider terminated as a result of a prohibited instruction
described in items 1 or 2 of this provision, you may reinstate it within 30
days of the rider termination date unless the rider terminated after the Benefit
Election Date and a Purchase Payment was applied to the Contract since the
rider termination date.

 

We
must receive your Written Notice requesting reinstatement and providing
allocation instructions that meet current AIC guidelines, and/or resume
portfolio rebalancing within 30 days of this rider’s termination date. We will
deduct any fees and make any other adjustments that were scheduled during the
period of termination so that after the reinstatement, the Contract and this
rider will be as though the termination never occurred.

 

Exercising the RightTime® Option After the Rider Terminates - If the rider
terminates as a result of any of the reasons in the ‘Terminations’ provision
other than annuitization or termination of the Contract to which it is
attached, you may purchase the Benefit using the RightTime®
option, if:

 

1.               we are offering
the RightTime® option when we receive your
request to purchase it; and,

 

2.               5 years or more
have elapsed since this rider terminated; and,

 

3.               the oldest
Owner or Annuitant will not be older than age 85 on the new Rider Effective
Date; and,

 

4.               the Contract
has not reached the Annuity Commencement Date.

 

If
this rider terminates because you instruct us to change a Covered Person, we
will waive the 5-year waiting period as described in item #2 of this provision.

 

3

 

BENEFIT PERIOD

 

Establishing the Benefit Election Date - You must
establish the Benefit Election Date to start the Benefit Period and access the
guaranteed withdrawals provided by this rider. To establish the Benefit
Election Date, you must send a Written Notice that instructs us to calculate
the Annual Withdrawal Amount based on either one or two lives, and include
proof of age for each Covered Person. The Benefit Election Date may not be
earlier than the date on which the Covered Person (or the younger of the two
Covered Persons) attains age 591/2, nor later than the Annuity Commencement Date.

 

We
will not accept additional Purchase Payments on or after the Benefit Election
Date. Therefore, any Automatic Purchase Payment Plan in effect on the Benefit
Election Date will be terminated as of that date.

 

Partial
Automatic Withdrawals established prior to the Benefit Period terminate as of
the Benefit Election Date.

 

Individuals Eligible to be a Covered Person - A Covered
Person must be a living person who is either:

 

1.     an Owner of the Contract;
or,

 

2.     if the spouse
of the sole Owner of the Contract, the sole Primary Beneficiary.

 

If
there is one Owner, the Owner is the Covered Person.

 

If
there is one Owner and the sole Primary Beneficiary is the Owner’s spouse, the
Owner is the Covered Person if the Annual Withdrawal Amount is based on one
life. If there is one Owner and the sole Primary Beneficiary is the Owner’s
spouse, both are Covered Persons if the Annual Withdrawal Amount is based on
two lives.

 

If
there are two Owners and they are married to each other, the older of the two
is the Covered Person if the Annual Withdrawal Amount is based on one life. If
there are two Owners and they are married to each other, both are Covered
Persons if the Annual Withdrawal Amount is based on two lives.

 

If
there are two Owners and they are not married to each other, only the older of
the two is the Covered Person.

 

For
the purposes of the GMWB, the terms ‘married’ and ‘spouse’ include bona fide
domestic partners in states that afford legal recognition to same-sex Civil
Unions.

 

Calculating the Annual Withdrawal Amount - We calculate
the initial Annual Withdrawal Amount as of the end of the Valuation Period
during which we receive your Written Notice establishing the Benefit Election
Date. The initial Annual Withdrawal Amount is equal to the Benefit Base on that
date multiplied by the applicable GMWB withdrawal percentage. The GMWB
withdrawal percentage depends upon the number of Covered Person(s) on the
Benefit Election Date and is shown in the Rider Schedule.

 

During
the Benefit Period, aggregate withdrawals in any Contract Year that do not
exceed the Annual Withdrawal Amount do not reduce the Benefit Base.

 

We
re-calculate the Annual Withdrawal Amount only on a Contract Anniversary and
only if the Benefit Base changed since the prior Contract Anniversary. The new
Annual Withdrawal Amount is equal to the Benefit Base on the Contract
Anniversary multiplied by the GMWB withdrawal percentage established on the
Benefit Election Date.

 

4

 

Accessing the Annual Withdrawal Amount - During the
Benefit Period, you may request withdrawals individually or instruct us to send
you specific amounts periodically. Your Written Notice must include all the
information necessary for us to complete and remit the requested amounts.

 

Withdrawals
made during the Benefit Period reduce the Contract Value in the same manner as
partial surrenders made prior to the Benefit Election Date. We do not assess
surrender charges on aggregate withdrawals during a Contract Year that do not
exceed the Annual Withdrawal Amount. However, withdrawals count against any
penalty free surrender amounts that would otherwise be available.

 

The
Annual Withdrawal Amount is not cumulative. You may take the entire Annual
Withdrawal Amount each Contract Year, but if you do not, the remaining portion
does not carry forward.

 

Excess Withdrawals - During the Benefit
Period any portion of a withdrawal that, when aggregated with all prior
withdrawals during that Contract Year, exceeds the Annual Withdrawal Amount
constitutes an excess withdrawal. We will not recalculate the Annual Withdrawal
Amount until the next Contract Anniversary, so any subsequent withdrawal taken
that Contract Year is also an excess withdrawal. We assess applicable surrender
charges, if any, on excess withdrawals.

 

Each
excess withdrawal results in an immediate reduction of the Benefit Base. If,
immediately after the excess withdrawal, the Contract Value minus any
non-excess portion of the withdrawal is greater than the Benefit Base, we
reduce the Benefit Base by the amount of the excess withdrawal including
applicable surrender charges, if any. Otherwise, we reduce the Benefit Base by
the same proportion that the excess withdrawal including applicable surrender
charges, if any, reduced the Contract Value as of the Valuation Period during
which the excess withdrawal request was processed. If the excess withdrawal
including applicable surrender charges, if any, reduces the Contract Value to
$0, the Contract will terminate as of that date.

 

If
you have instructed us to send you all or a portion of the Annual Withdrawal
Amount periodically in specific amounts, an excess withdrawal automatically
terminates those periodic withdrawals. If any Contract Value remains after the
excess withdrawal, you may resume periodic withdrawals beginning on the next
Contract Anniversary based on the recalculated Annual Withdrawal Amount by
sending us instructions in a Written Notice.

 

Death of a Covered Person After the
Benefit Election Date - If the Annual Withdrawal Amount is based on
the life of one Covered Person, this rider terminates upon the Covered Person’s
death. If the Annual Withdrawal Amount is based on the lives of two Covered
Persons, this rider terminates upon the death of the last surviving Covered
Person.

 

Spousal Continuation After the Benefit
Election Date - The surviving spouse of a sole Covered Person who,
pursuant to the Contract’s ‘Payment of the Death Benefit’ provision, continues
the Contract and becomes the new sole Owner may purchase a new rider
immediately using the RightTime® option, if we are offering it
at that time. If not purchased immediately, we will waive the 5-year waiting
period described in item #2 of the ‘Exercising the RightTime®
Option After the Rider Terminates’ provision. However, regardless of when the RightTime® option is exercised, only the
surviving spouse is eligible to be a Covered Person under the new rider.

 

Annuity Commencement Date - You must
begin periodic distributions of the entire interest in the Contract not later
than the Annuity Commencement Date. If the Benefit Period has begun but you are
not taking periodic withdrawals, we will begin monthly withdrawals of the
Annual Withdrawal Amount on the Annuity Commencement Date. You may change the
frequency of the withdrawals, but must take the entire Annual Withdrawal Amount
available each Contract Year.

 

5

 

If this rider is in force on the Maximum Annuity
Commencement Date, in addition to the other Annuity Options available to you
under the Contract, you may select the Annuity Option that will pay monthly
payments for life equal to the Annual Withdrawal Amount divided by 12. If we
have not received your Written Notice with the necessary information and proof
of age for the Covered Person(s) by the Maximum Annuity Commencement Date
and you have not selected an Annuity Option, we will begin monthly payments on
that date. The monthly payments will be an amount equal to the greater of:

 

1.               the Annual Withdrawal Amount as of the Maximum Annuity Commencement Date
divided by 12, where the Annual Withdrawal Amount is determined by using the
withdrawal percentage associated with One Covered Person and Owner 1’s age (or
the younger of Owner 1 and Owner 2 if there are two Owners of the Contract);
or,

 

2.               the results of applying the Contract Value plus any applicable
annuitization bonus to Annuity Option B with a 10-year Certain Period based on
the life of the named Annuitant.

 

If we have not received your Written Notice with the
information and proof of age for the Covered Person(s) by the Maximum
Annuity Commencement Date but you have previously selected an Annuity Option,
we will begin distributing the entire interest in the Contract according to the
Annuity Option you have selected.

 

Signed for the Company and made a part of the Contract as
of the Rider Effective Date. 

 

PROTECTIVE LIFE AND ANNUITY INSURANCE COMPANY

 

	
   

  	
  

  
	
   

  	
              Secretary

  

 

6

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