Document:

Exhibit 10.2

         

         

        REGISTRATION RIGHTS AGREEMENT

        BETWEEN 

        DARWIN RESOURCES, INC.

        AND 

        APTEK COMMUNICATIONS PRODUCTS, INC.

        

        

        December __, 2010

         

         

         

         

         

         

        

        

        

        

        
             
        

        
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        Table of Contents

        

        	
                    ARTICLE 1.     DEFINITIONS

                	
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                    ARTICLE 2.     RESALE REGISTRATION

                	
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                    ARTICLE 3.     REGISTRATION PROCEDURES

                	
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                    ARTICLE 4.     REGISTRATION EXPENSES

                	
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                    ARTICLE 5.     INDEMNIFICATION

                	
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                    ARTICLE 6.     RULE 144

                	
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                    ARTICLE 7.     [RESERVED]

                	
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                    ARTICLE 8.     MISCELLANEOUS

                	
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        REGISTRATION RIGHTS AGREEMENT

        

        This REGISTRATION RIGHTS AGREEMENT (the “Agreement”) is dated as of December __, 2010 by and between Darwin Resources, Inc., a Delaware corporation (the
        “Company”), and Aptek Communications Products, Inc., a Florida corporation (the “Purchaser”).

        RECITAL

        

        This Agreement is being entered into pursuant to the Securities Purchase Agreement dated as of the date hereof between the Company and the Purchaser (the “Purchase Agreement”).

        NOW THEREFORE, in consideration of covenants and agreements set forth herein and other good and valuable consideration, the receipt and
        sufficiency of which is hereby acknowledged, the Parties hereto agree each with the other as follows:

        ARTICLE 1.      DEFINITIONS

        1.1       Capitalized terms used and not otherwise defined herein shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following
        terms shall have the following meanings:

        “Advice” shall have meaning set forth in Section 3(m).

        “Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls or is controlled by or under common control with such Person. For the purposes of this definition, “control,” when
        used with respect to any Person, means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms of “affiliated,” “controlling” and “controlled” have meanings correlative to the foregoing.

        “Board” shall have meaning set forth in Section 3(n).

        “Business Day” means any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the state of Florida generally are authorized or required by law or other government
        actions to close.

        “Closing Date” shall have the meaning set forth in the Purchase Agreement.

        “Commission” means the Securities and Exchange Commission.

        “Common Stock” means the Company’s Common Stock, par value $0.000001 per share.

        “Demand Notice” shall have the meaning set forth in Section 2A.

        
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        “Effectiveness Date” means, with respect to any Registration Statement the earlier of (A) the one hundred twentieth (120th) day following the Closing Date or the Additional Filing Date, as applicable, or (B) in the event the
        Registration Statement receives a “full review” by the Commission, the one hundred fiftieth (150th) day following the Closing Date or any Additional Filing Dates, as applicable, or (C) the date which is within three (3) Business Days after the date on which the Commission informs the Company that the (i) the Commission will not review a Registration Statement or (ii) the Company may request the acceleration of the effectiveness of a Registration Statement and the Company
        makes such request; provided, that, if the Effectiveness Date falls on a Saturday, Sunday or any other day which shall be a legal holiday or a day on which the Commission is authorized or required by law or other government actions to close, the Effectiveness Date shall be the following Business Day.

        “Effectiveness Period” shall have the meaning set forth in Section 2.

        “Event” shall have the meaning set forth in Section 8(e).

        “Event Date” shall have the meaning set forth in Section 8(e).

        “Exchange Act” means the Securities Exchange Act of 1934, as amended.

        “Filing Date” means the date on which the Initial Registration Statement is filed.

        “Holder” or “Holders” means the holder or holders, as the case may be, from time to time, of Registrable Securities.

        “Indemnified Party” shall have the meaning set forth in Section 5(c).

        “Indemnifying Party” shall have the meaning set forth in Section 5(c).

        “Initial Registration Statement” shall have the meaning set forth in Section 2(b).

        “Initiating Holders” shall have the meaning set forth in Section 2A.

        “Losses” shall have the meaning set forth in Section 5(a).

        “Person” means an individual or a corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or political subdivision
        thereof) or other entity of any kind.

        “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

        “Prospectus” means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration
        statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference in such Prospectus.

        
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        “Registrable Securities” means the shares of Common Stock issued pursuant to the Purchase Agreement.

        “Registration Statement” means the registration statements and any additional registration statements contemplated by Section 2, including (in each case) the Prospectus, amendments and supplements to such registration statement
        or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference in such registration statement.

        “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially
        the same effect as such Rule.

        “Rule 158” means Rule 158 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation
        hereafter adopted by the Commission having substantially the same effect as such Rule.

        “Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation
        hereafter adopted by the Commission having substantially the same effect as such Rule.

        “Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation
        hereafter adopted by the Commission having substantially the same effect as such Rule.

        “Securities Act” means the Securities Act of 1933, as amended.

        ARTICLE 2.      RESALE REGISTRATION

        (a)     On or prior to the Filing Date, the Company shall prepare and file with the Commission a “resale” Registration Statement providing for the
        resale of the Registrable Securities (collectively, the “Initial Registrable Securities”), for an offering to be made on a continuous basis pursuant to Rule 415. Such Registration Statement shall be on Form S-1. Such Registration Statement shall cover to the extent allowable under the Securities Act and the rules promulgated thereunder (including Rules 415 and 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or
        similar transactions with respect to the Conversion Shares. The Company shall use its best efforts to cause such Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event prior to the applicable Effectiveness Date, and to keep such Registration Statement continuously effective under the Securities Act until such date as is the earlier of (x) the date when all Initial Registrable Securities covered by such
        Registration Statement have been sold or (y) the date on which the Initial Registrable Securities may be sold without any restriction pursuant to Rule 144 as determined by the counsel to the Company pursuant to a written opinion letter, addressed to the Company’s transfer agent to such effect (the “Effectiveness Period”). The Company shall request that the effective time of any such Registration Statement is 5:00 p.m. Eastern Time on the effective
        date.

        
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        (b)     In the event that the Company is unable to register for resale under Rule 415 of Regulation C under the Securities Act all of the Initial Registrable
        Securities on the Registration Statement that it has agreed to file pursuant to the first sentence of Section 2(a) due to limits imposed by the Commission’s interpretation of Rule 415 of Regulation C under the Securities Act, then the Company shall be obligated to include in such Initial Registration Statement (which may be a subsequent Registration Statement if the Company needs to withdraw the Initial Registration Statement and refile a new Registration Statement in order to
        rely on Rule 415) only such limited portion of the Registrable Securities as the Commission shall permit.

        ARTICLE 3.      REGISTRATION PROCEDURES

        In connection with the Company’s registration obligations hereunder, the Company shall:

        (a)     Prepare and file with the Commission, on or prior to the Filing Date, a Registration Statement on Form S-1 or another appropriate form in accordance
        herewith and the Securities Act and the rules promulgated thereunder in accordance with applicable law, and cause such Registration Statement to become effective and remain effective as provided herein; provided, however, that not less than five (5) Business Days prior to the filing of such Registration Statement or any related Prospectus or any amendment or supplement thereto, the Company shall (i) furnish to the Holders copies of all such documents proposed to be filed, which
        documents will be subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent certified public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of Holder, to conduct a reasonable review of such documents. The Company shall not file any Registration Statement or any such Prospectus or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably
        object in writing within three (3) Business Days of their receipt thereof.

        (b)     (i) Prepare and file with the Commission such amendments, including post-effective amendments, to each Registration Statement as may be necessary to keep
        such Registration Statement continuously effective as to the applicable Registrable Securities for the applicable Effectiveness Period and prepare and file with the Commission such additional Registration Statements as necessary in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause any related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424
        (or any similar provisions then in force) promulgated under the Securities Act; (iii) respond as promptly as possible, but in no event later than ten (10) Business Days, to any comments received from the Commission with respect to any such Registration Statement or any amendment thereto; and (iv) file the final prospectus pursuant to Rule 424 of the Securities Act no later than 9:00 a.m. Eastern Time within three (3) Business Days following the date any such Registration Statement is
        declared effective by the Commission; and (v) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by any such Registration Statement during the Effectiveness Period in accordance with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus as so supplemented.

        
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        (c)     Notify the Holders of Registrable Securities as promptly as possible (and, in the case of (i)(A) below, not less than three (3) Business Days prior to
        such filing, and in the case of (iii) below, on the same day of receipt by the Company of such notice from the Commission) and (if requested by any such Person) confirm such notice in writing no later than one (1) Business Day following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to any Registration Statement is filed; (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and
        whenever the Commission comments in writing on such Registration Statement and (C) with respect to any Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to any Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of any
        Registration Statement covering any or all of the Registrable Securities or the initiation or threatening of any Proceedings for that purpose; (iv) if at any time any of the representations and warranties of the Company contained in any agreement contemplated hereby ceases to be true and correct in all material respects; (v) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable
        Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (vi) of the occurrence of any event that makes any statement made in any Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of any Registration Statement or the
        Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

        (d)     Use its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of, as promptly as possible, (i) any order suspending the
        effectiveness of any such Registration Statement or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction.

        (e)     If requested by the Holders of a majority in interest of the Registrable Securities, (i) promptly incorporate in a Prospectus supplement or amend any
        Registration Statement such information as the Company reasonably agrees should be included therein and (ii) make all required filings of such Prospectus supplement or such post-effective amendment as soon as practicable after the Company has received notification of the matters to be incorporated in such Prospectus supplement or post-effective amendment.

        (f)     If requested by any Holder, furnish to such Holder, without charge, at least one conformed copy of each Registration Statement and each amendment
        thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission, provided, that any such item which is available on the EDGAR system (or successor thereto) need not be furnished in physical
        form.(g)     Promptly deliver to each Holder, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request; and subject to the provisions of Sections 3(m) and 3(n), the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the
        selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto, provided, that any such item which is available on the EDGAR system (or successor thereto) need not be furnished in physical form.

        
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        (h)     Prior to any public offering of Registrable Securities, use its best efforts to register or qualify or cooperate with the selling Holders in connection
        with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder requests in writing, to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things necessary or advisable to enable the disposition in such
        jurisdictions of the Registrable Securities covered by a Registration Statement; provided, however, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or to take any action that would subject it to general service of process in any such jurisdiction where it is not then so subject or subject the Company to any material tax in any such jurisdiction where it is not then so subject.

        (i)     Cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold pursuant to a
        Registration Statement, which certificates, to the extent permitted by the Purchase Agreement and applicable federal and state securities laws, shall be free of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any Holder may request in connection with any sale of Registrable Securities.

        (j)     Upon the occurrence of any event contemplated by Section 3(c)(vi), as promptly as possible, prepare a supplement or amendment, including a post-effective
        amendment, to a Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, neither such Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under
        which they were made, not misleading.

        (k)     Use its best efforts to cause all Registrable Securities relating to any Registration Statement to continue to be listed or quoted on the OTC Bulletin
        Board or to be listed or quoted on any National Stock Exchange, if any, on which similar securities issued by the Company are then listed or traded as and when required pursuant to the Purchase Agreement.

        (l)     Comply in all material respects with all applicable rules and regulations of the Commission and make generally available to its security holders all
        documents filed or required to be filed with the Commission, including, but not limited, to, earning statements satisfying the provisions of Section 11(a) of the Securities Act and Rule 158 not later than 45 days after the end of any 12-month period (or 90 days after the end of any 12-month period if such period is a fiscal year) commencing on the first day of the first fiscal quarter of the Company after the effective date of each of the Registration Statements, which statement shall
        conform to the requirements of Rule 158.

        
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        (m)     Within three (3) Business Days after a Registration Statement which covers the Registrable Securities is ordered effective by the Commission, the Company
        shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with copies to the Holders whose Registrable Securities are included in such Registration Statement) confirmation that such Registration Statement has been declared effective by the Commission.

        (n)     The Company may require each selling Holder to furnish to the Company information regarding such Holder
        and the distribution of such Registrable Securities as is required by law to be disclosed in any Registration Statement, Prospectus, or any amendment or supplement thereto, and the Company may exclude from such registration the Registrable Securities of any such Holder who unreasonably fails to furnish such information within a reasonable time after receiving such request.

        
            If any Registration Statement refers to any Holder by name or otherwise as the holder of any securities of the Company, then such Holder shall have the right to require (if such reference to
            such Holder by name or otherwise is not required by the Securities Act or any similar federal statute then in force) the deletion of the reference to such Holder in any amendment or supplement to such Registration Statement filed or prepared subsequent to the time that such reference ceases to be required.

            Each Holder covenants and agrees that it will not sell any Registrable Securities under any Registration Statement until the Company has electronically filed the Prospectus as then amended or
            supplemented as contemplated in Section 3(g) and notice from the Company that such Registration Statement and any post-effective amendments thereto have become effective as contemplated by Section 3(c).

        

        
            Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section
            3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v), 3(c)(vi) or 3(n), such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until such Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement contemplated by Section 3(j), or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received
            copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement.

        

        (o)     If (i) there is material non-public information regarding the Company which the Company’s Board of Directors (the “Board”) determines
        not to be in the Company’s best interest to disclose and which the Company is not otherwise required to disclose, (ii) there is a significant business opportunity (including, but not limited to, the acquisition or disposition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer or other similar transaction) available to the Company which the Board determines not to be in the Company’s best interest to disclose, or (iii) the
        Company is required to file a post-effective amendment to a Registration Statement to incorporate the Company’s quarterly and annual reports and audited financial statements on Forms 10-Q and 10-K, then the Company may (x) postpone or suspend filing of a registration statement for a period not to exceed thirty (30) consecutive days or (y) postpone or suspend effectiveness of a registration statement for a period not to exceed twenty (20) consecutive days; provided, that the
        Company may not postpone or suspend effectiveness of a registration statement under this Section 3(n) for more than forty-five (45) days in the aggregate during any three hundred sixty (360) day period; provided, however, that no such postponement or suspension shall be permitted for consecutive twenty (20) day periods arising out of the same set of facts, circumstances or transactions.

        
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        ARTICLE 4.      REGISTRATION EXPENSES

        4.1       All fees and expenses incident to the performance of or compliance with this Agreement by the Company, except as and to the extent specified in this Section 4, shall
        be borne by the Company whether or not a Registration Statement is filed or becomes effective and whether or not any Registrable Securities are sold pursuant to such Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with each securities exchange or market on which Registrable Securities
        are required hereunder to be listed, if any, (B) with respect to filing fees required to be paid to the Financial Industry Regulatory Authority and the NASD Regulation, Inc. (including, without limitation, pursuant to NASD Rule 2710) and (C) in compliance with state securities or Blue Sky laws (including, without limitation, fees and disbursements of counsel for the Holders in connection with Blue Sky qualifications of the Registrable Securities and determination of the eligibility of
        the Registrable Securities for investment under the laws of such jurisdictions as the Holders of a majority of Registrable Securities may designate)), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is requested by the holders of a majority of the Registrable Securities included in a Registration Statement), (iii) messenger, telephone and delivery expenses,
        (iv) Securities Act liability insurance, if the Company so desires such insurance, and (v) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement, including, without limitation, the Company’s independent public accountants (including the expenses of any comfort letters or costs associated with the delivery by independent public accountants of a comfort letter or comfort letters). In
        addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange if required hereunder. The Company
        shall not be responsible for any discounts, commissions, transfer taxes or other similar fees incurred by the Holders in connection with the sale of the Registrable Securities.

        ARTICLE 5.      indemnification

        (a)     Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the
        officers, directors, managers, partners, members, shareholders, agents, brokers, investment advisors and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without
        limitation, costs of preparation and attorneys’ fees) and expenses (collectively, “Losses”) (as determined by a court of competent jurisdiction in a final judgment not subject to appeal or review), as incurred, arising out of or relating to any violation of securities laws or untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any
        preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that such untrue statements or omissions are based solely upon information regarding such Holder or such
        other Indemnified Party furnished in writing to the Company by such Holder expressly for use therein. The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.

        
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        (b)     Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and
        employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents and employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses (as determined by a court of competent jurisdiction in a final judgment not subject to appeal or review), as incurred, arising solely out of or based solely upon any untrue statement of a
        material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising solely out of or based solely upon any omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which they were made) not misleading, to the extent, but only to the extent, that
        such untrue statement or omission is contained in any information so furnished in writing by such Holder or other Indemnifying Party to the Company specifically for inclusion in any Registration Statement or such Prospectus. Notwithstanding anything to the contrary contained herein, each Holder shall be liable under this Section 5(b) for only that amount as does not exceed the net proceeds to such Holder as a result of the sale of Registrable Securities pursuant to such Registration
        Statement.

        (c)     Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person
        entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party promptly shall notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall be entitled to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any
        Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.

        
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                An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; or (2) the Indemnifying Party shall have failed promptly
                to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such parties shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which
                case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld or
                delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened Proceeding in respect of which any Indemnified Party is a party and indemnity has been sought hereunder, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.
            

            All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the
            Indemnified Party, as incurred, within ten (10) Business Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnified Party shall reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder).

        

        (d)     Contribution. If a claim for indemnification under Section 5(a) or 5(b) is due but unavailable
        to an Indemnified Party because of a failure or refusal of a governmental authority to enforce such indemnification in accordance with its terms (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative benefits received by the Indemnifying Party on the one hand and
        the Indemnified Party on the other from the offering of the Shares. If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault, as applicable, of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that
        resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’
        relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable attorneys’ or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the
        indemnification provided for in this Section was available to such party in accordance with its terms. In no event shall any selling Holder be required to contribute an amount under this Section 5(d) in excess of the net proceeds received by such Holder upon the sale of such Holder’s Registrable Securities pursuant to a Registration Statement giving rise to such contribution obligation.

        

        

        
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            The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of
            allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

            The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties pursuant to the
            law.

        

        ARTICLE 6.      RULE 144

        As long as any Holder owns Registrable Securities, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to Section 13(a) or 15(d) of the Exchange Act. As long as any Holder owns Registrable Securities, if the Company is not required to
        file reports pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and furnish to the Holders and make publicly available in accordance with Rule 144 promulgated under the Securities Act annual and quarterly financial statements, together with a discussion and analysis of such financial statements in form and substance substantially similar to those that would otherwise be required to be included in reports required by Section 13(a) or 15(d) of the Exchange Act, as
        well as any other information required thereby, in the time period that such filings would have been required to have been made under the Exchange Act. The Company further covenants that it will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Person to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the
        Securities Act, including providing any legal opinions reasonably requested relating to such sale pursuant to Rule 144 within five (5) Business Days from the date of such request. Upon the request of any Holder, the Company shall deliver to such Holder a written certification of a duly authorized officer as to whether it has complied with such requirements.

        ARTICLE 7.      [RESERVED]

        ARTICLE 8.      MISCELLANEOUS

        (a)     Remedies. In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, such Holder or the Company, as the
        case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance
        in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

        
            13
        

        
        

        (b)     No Inconsistent Agreements. Neither the Company nor any of its subsidiaries has, as of the date hereof entered into and currently in effect, nor shall
        the Company or any of its subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. Without limiting the generality of the foregoing, without the written consent of the Holders of a majority of the then outstanding Registrable Securities, the Company shall not grant to any Person the right to request the
        Company to register any securities of the Company under the Securities Act unless the rights so granted are subject in all respects to the prior rights in full of the Holders set forth herein, and are not otherwise in conflict with the provisions of this Agreement.

        (c)     No Piggyback on Registrations. Neither the Company nor any of its security holders (other than the Holders in such capacity pursuant hereto or holders of
        issued and outstanding securities of the Company immediately prior to the Reverse Merger Transaction) may include securities of the Company in the Initial Registration Statement, and the Company shall not after the date hereof enter into any agreement providing such right to any of its securityholders, unless the right so granted is subject in all respects to the prior rights in full of the Holders set forth herein, and is not otherwise in conflict with the provisions of this
        Agreement.

        (d)     Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and
        waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Holders of a majority of the Registrable Securities outstanding.

        (e)     Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be
        effective (a) upon hand delivery by telex (with correct answer back received), telecopy or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier
        service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

        If to the Company: 

        Darwin Resources, Inc. 

        
                                      

        Copy to:

        Legal & Compliance, LLC

        330 Clematis Street, Suite 214, 

        West Palm Beach, FL 33401 

        Facsimile: (561) 514-0832 

        Attn: Laura E. Anthony, Esq. 

        
            14
        

        
        

        If to Purchaser:      

        Aptek Communications Products, Inc.

                                 

         Any party hereto may from time to time change its address for notices by giving at least ten (10) days written notice of such changed address to the other party
        hereto.

        (f)     Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
        assigns and shall inure to the benefit of each Holder and its successors and assigns. The Company may not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of each Holder. Each Purchaser may assign its rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement.

        (g)     Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an
        original and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with
        the same force and effect as if such facsimile signature were the original thereof.

        (h)     Governing Law; Jurisdiction. This Agreement shall be governed by and
        construed in accordance with the internal laws of the State of Florida, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the party causing this Agreement to be drafted. The exclusive jurisdiction for the resolution of any conflicts regarding this Agreement shall be in the courts of Marion County, Florida.
        This exclusive jurisdiction is a material provision to this Agreement.

        (i)     Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any remedies provided by
        law.

        (j)     Severability. If any term, provision, covenant or restriction of this Agreement is held to be invalid, illegal, void or unenforceable in
        any respect, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
        they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

        
            15
        

        
        

        (k)     Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or
        affect any of the provisions hereof.

        IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights Agreement to be duly executed by their respective authorized persons as of the date first indicated above.

         

        Darwin Resources, Inc.:

        
        By:                              

        Name:                         

        Title:                         

         

        Aptek Communications Products, Inc.

        
        By:                              

        Name:                         

        Title:                         

        

        
            16exhibit4gg.htm

Exhibit 4gg

 

 

LONG-TERM CARE BENEFITS

The Lincoln National Life Insurance Company (the “Company”), in consideration of LTC Charges paid and the Owner’s affirmations and agreement to the statements on the Contract Amendment for LTC Benefits attached to this Contract, agrees to provide the benefits described in this Rider in accordance with all the terms and conditions of this Rider and the entire Contract to which it is attached including the Long-Term Care Coverage Endorsement and Contract Amendment for LTC Benefits. READ THIS RIDER AND THE ATTACHED LONG-TERM CARE COVERAGE ENDORSEMENT AND CONTRACT AMENDMENT FOR LTC BENEFITS CAREFULLY. This Rider is made part of the Contract to which it is attached. Except as stated below, this Rider is subject to all the terms and conditions of the Contract and the attached Long-Term Care Coverage Endorsement and Contract Amendment for LTC Benefits.

Long-Term Care Benefit: This long-term care coverage (“LTC”) Rider provides that the Owner will receive monthly payments (“LTC Benefits”), up to the Maximum Monthly LTC Benefit, if certain conditions are met as described in this Rider and in the Long-Term Care Coverage Endorsement. This LTC Rider does not provide any benefits prior to the LTC Coverage Effective Date.

NOTICE OF 30 DAY RIGHT TO EXAMINE. Within thirty (30) days after this Rider is first received, this Rider may be cancelled for any reason by contacting the Company In Writing at its Administrative Office at [1300 South Clinton Street, Fort Wayne, IN 46802]. Upon cancellation, this Rider will be void from the beginning. Any LTC Charges will be reversed. Cancellation of this Rider under this Right To Examine will not be treated as a cancellation of the entire Contract. Confirmation of this cancellation will be provided In Writing.

TAXATION: This Rider, together with the Long-Term Care Coverage Endorsement and the Contract Amendment for LTC Benefits to which it is attached, is intended to be a Qualified Long-Term Care Insurance Contract under Section 7702B(b) of the Internal Revenue Code of 1986, as amended (the “Code”). The Pension Protection Act of 2006 extends long-term care coverage rules to coverage described in this Rider to Contracts issued after December 31, 1996, effective for tax years beginning after December 31, 2009. The Company considers the Rider Charges that are deducted from the Annuity Contract to be charges paid for long-term care coverage, which are excluded from gross income under section 72(e)(11) of the Code. The Company also considers the benefits paid under this Rider that do not exceed the greater of: (A) the expenses actually incurred for Qualified Long-Term Care Services as described in the Long-Term Care Coverage Endorsement, or (B) a maximum per diem limit as prescribed by law, to be qualified long-term care coverage. The tax treatment of long-term care coverage may change, and you should always consult and rely on the advice of a qualified tax advisor.

NOTICE TO OWNER. This Rider may not cover all of the costs associated with Long-Term Care incurred by the Covered Life during the period of coverage. Carefully review all Contract, Rider, and Endorsement limitations.

Effective Date: This Rider takes effect on the Rider Date shown in the LTC Benefit Specifications.

Who is Covered. This Rider’s LTC Benefits cover the natural person who is the Annuitant on the Rider Date (“Covered Life”). This Rider’s LTC Benefits do not apply to any other person. The Covered Life may not be changed.

Renewability. The LTC coverage provided under this Rider is guaranteed renewable. This Rider will terminate as described in the Termination of Rider provision of this Rider. The Company cannot cancel or reduce LTC coverage provided by this Rider or change any terms of this Rider, except that in the future the Company may increase LTC Charges on a class basis in a nondiscriminatory manner.

Caution. The issuance of this Long-Term Care Benefits Rider is based upon your affirmations and agreement to the statements on the Contract Amendment for LTC Benefits. A copy of the contract amendment was attached to this Rider when it was delivered. If any statement(s) affirmed and agreed to is (are) incorrect or untrue, the Company has the right to deny benefits or rescind your Rider. The best time to clear up any questions is now, before a claim arises! If, for any reason, any of the statement(s) are incorrect, contact the company at this address: [1300 South Clinton Street, Fort Wayne, IN 46802].

  

  

  

BRIEF DESCRIPTION OF PRIMARY BENEFITS

The following paragraph describes the primary benefits provided by this Long-Term Care Benefits Rider. Please read and review this Rider, the Annuity Contract to which this Rider is attached, the attached Contract Amendment for LTC Benefits, and the attached Long-Term Care coverage Endorsement to understand fully the benefits provided, terms and conditions of coverage, and any limitations and exclusions.

This Rider provides for the payment of benefits (LTC Benefits) upon the Covered Life's receipt of qualified Long-Term Care services due to Chronic Illness. You have designated the amount of your Contract Value that will fund LTC Benefits when you elected this Rider. There are two (2) primary LTC Benefits provided in this Rider, the Acceleration Benefit and the Extension Benefit. The Acceleration Benefit is payment to you, first paid from your Contract Value. It is available during the Acceleration Benefit Duration and is the first benefit paid out once you are eligible for LTC Benefits. The Acceleration Benefit is payable by the Company even if your Contract Value has been reduced to zero ($0). After the Acceleration Benefit is reduced to zero ($0) the LTC Benefits will continue as Extension Benefits, which are payments provided by the Company, during the Extension Benefit Duration.

There is a total LTC Benefit limit that may be paid for each month and is referred to as the Maximum Monthly LTC Benefit. When you become eligible for benefits, up to the full Maximum Monthly LTC  Benefit is payable only if the Covered Life is in a Nursing Home or is receiving Hospice Care. Otherwise, up to fifty percent (50%) of the Maximum Monthly LTC Benefit is payable.

CONTRACT MODIFICATIONS

The following paragraph replaces the first paragraph in Article 10.01 THE CONTRACT.

The Contract and any riders, endorsements and amendments attached constitute the entire Contract. Only the President, a Vice President, the Secretary or an Assistant Secretary of the Company has the power, on behalf of the Company, to change, modify, or waive any provisions of this Contract. The following replaces the Maturity Date reference in the Contract Specifications.

MATURITY DATE: [95th] Birthday of the Covered Life.

The following applies if a Persistency Credit reference appears in the Contract Specifications.

The reference to “Contract Value” in the Persistency Credit provision in the Contract Specifications is replaced with “Contract Value, less any LTC Fixed Account Value.” The reference to “any Fixed Account” in the Article 2, Persistency  Credit provision in the Persistency Credit Rider is replaced with “any Fixed Account, except any LTC Fixed Account.”

The following applies if a Free Withdrawal Amount reference appears in the Contract

Specifications.

For purposes of calculating the Free Withdrawal Amount, all Withdrawals and Acceleration Benefit payments will be treated as Withdrawals, except as otherwise stated in this Rider. Therefore, Acceleration Benefit payments may reduce or eliminate the availability of Withdrawals free of CDSC.

DEFINITIONS

Benefit Eligibility means the Covered Life is eligible for LTC Benefits as described in the Long-Term Care Coverage Endorsement.

Covered Life is the natural person whose life will be used to determine the benefits under this Rider. The Covered Life may not be changed on or after the Rider Date. The  Annuitant will be the Covered Life.

Deductible Period is the days after initial Benefit Eligibility is established, during which LTC Benefits are not payable under this Rider pursuant to the Deductible Period provision.

  

  

  

Funding Amount is an amount used to calculate the Initial LTC GA as defined below. If the Rider Date is the Contract Date, the Funding Amount is the Purchase Payment received by the Company as of the Rider Date, plus Bonus Credits if any. If the Rider Date is after the Contract Date, the Funding Amount  s the Contract Value as of the Rider Date. The Funding Amount is shown in the LTC Benefit Specifications.

Target Funding Amount is used in determining the initial LTC Percentage. It is determined by the Owner upon election of this Rider. If the Rider Date is the Contract Date, it is the total of Purchase Payments, plus Bonus Credits if any, expected to be received by the Company before the LTC Funding  deadline. Subject to our approval, the Target Funding Amount may be changed by the  Owner. If the rider Date is after the Contract Date, the Target Funding Amount is the Contract Value on the Rider Date. The Target Funding Amount as of the Rider Date is shown in the LTC Benefit Specifications.

In Force means not cancelled, surrendered or terminated for any reason.

LTC Benefits are approved LTC payments provided under the terms of this Rider. Acceleration Benefit payments, Extension Benefit payments, and Nonforfeiture Benefit payments are all LTC Benefits. Such benefits are defined in provisions by the same names herein. LTC Benefits are subject to all conditions described herein or in any part of the Entire Contract, including the Long-Term Care Coverage Endorsement. Such conditions include the Limitations or Conditions on Eligibility for Benefits, applicable benefit amount limits, monthly benefit limits, the Deductible Period, and the LTC Coverage Effective  ate. LTC Benefits are not subject to Contingent Deferred Sales Charges.

LTC Coverage Effective Date is the earliest date that this Rider may provide LTC Benefits, subject to any Deductible Period, as shown in the LTC Benefit Specifications.

LTC Funding Deadline is the deadline for the Company’s receipt of Purchase Payments for calculation of the Acceleration Benefit and Extension Benefit. If the Rider Date is the Contract Date, the LTC Funding Deadline is the latest Valuation Date on or before the ninetieth (90th) day after the Rider Date. If the Rider Date is not the Contract Date, the LTC Funding Deadline is the Rider Date.

LTC Guaranteed Amount (“LTC GA”) refers to the Acceleration Benefit. Any adjustments to the Acceleration Benefit will also adjust the LTC GA.

Maximum Monthly LTC Benefit is a monthly benefit limit for LTC Benefit payments under this Rider, subject to all conditions described herein or in any part of the Entire Contract, including the Long-Term Care Coverage Endorsement. While this Rider is In Force, the Maximum Monthly LTC Benefit is the Maximum Monthly Level Benefit, which is the monthly benefit limit for Acceleration Benefits and Extension Benefits. After this Rider has terminated, the Maximum Monthly LTC Benefit is the Maximum Monthly Nonforfeiture Benefit, which is the monthly benefit limit for Nonforfeiture Benefits.

Target Maximum Monthly Level Benefit is the Maximum Monthly Level Benefit on the [fifth (5th) Rider  Date Anniversary] if (i) on the LTC Funding Deadline the LTC GA is the Target LTC GA and (ii) no Excess Withdrawals or LTC Benefits are paid prior to the [fifth (5th) Rider Date Anniversary].

Rider Charge Day is the Monthly Anniversary Day of every third (3rd) month following the Rider Date,

while this Rider is in effect. A Monthly Anniversary Day is the latest Valuation Date on or after the same day of the month as the Rider Date, as shown on the LTC Benefit Specifications.

Rider Date is the effective date of this Rider. It is shown on the LTC Benefit Specifications. A Rider ate Anniversary is the latest Valuation Date on or after the same day of the year as the Rider Date, as shown on the LTC Benefit Specifications. A Rider Year means each twelve (12) month period starting with the Rider Date and each Rider Date anniversary thereafter. A Rider Month means each one (1) month period starting with a Rider Date and each Monthly Anniversary Day thereafter.

  

  

  

Withdrawal, for the purposes of this Rider, means the gross amount of the Withdrawal before any applicable charges.

Conforming Withdrawals are all Withdrawals to the extent that the amount withdrawn is equal to or less than the greater of zero ($0) and (A) minus (B), where(A) is [five percent (5%)] of the excess, if any,  pf the Contract Value as of the most recent Rider Date Anniversary (or, prior to the first Rider Date Anniversary, the Rider Date) over the Acceleration Benefit as of the most recent Rider Date Anniversary (or, prior to the first Rider Date Anniversary, the Rider Date), and (B) is all prior Withdrawals in that Rider Year.

Excess Withdrawals are all Withdrawals to the extent that the cumulative dollar amount withdrawn (including the current Withdrawal) from the Contract in the then-current Rider Year is not a Conforming Withdrawal for that Rider Year.

LTC CHARGES

An LTC Charge is deducted from the Contract Value on each Rider Charge Day. The total LTC Charge may consist of an Acceleration Benefit Charge, an Extension Benefit Charge, and an Optional Nonforfeiture Benefit Charge. Such charges are expressed in the LTC Benefit Specifications as annual rates, although actual charges are the quarterly equivalent of such annual rates. An LTC Charge will not be taken if the Contract Value is zero ($0). LTC Charges will be proportionately deducted from each  Variable Subaccount and each Fixed Account. If the Contract or this Rider is terminated (unless pursuant  o the Right to Examine or due to the death of the Covered Life), a pro rata LTC Charge will be deducted  or the period of coverage prior to such termination for which no LTC Charge has already been made.

Acceleration Benefit Charge

On a Rider Charge Day, the Acceleration Benefit Charge is (a) the LTC GA, multiplied by (b) the annual Acceleration Benefit Charge rate, divided by (c) four (4). The initial annual Acceleration Benefit Charge rate is shown in the Rider Specifications.

Extension Benefit Charge

On a Rider Charge Day, the Extension Benefit Charge is (a) the Extension Benefit as of the Rider Charge Day, multiplied by (b) the annual Extension Benefit Charge rate, divided by (c) four (4). The initial annual Extension Benefit Charge rate is shown in the Rider Specifications.

Optional Nonforfeiture Benefit Charge

If an Optional Nonforfeiture Benefit Charge is shown in the LTC Benefit Specifications, then on a Rider Charge Day, the Optional Nonforfeiture Benefit Charge is (a) the Extension Benefit as of the Rider Charge Day, multiplied by (b) the annual Optional Nonforfeiture Benefit Charge rate, divided by (c) four (4).

If no Optional Nonforfeiture Benefit Charge is shown in the LTC Benefit Specifications, the Optional

Nonforfeiture subsection is not in effect and no Optional Nonforfeiture Benefit Charge will be assessed.

  

  

  

Basis of LTC Charge Rates

The Acceleration Benefit Charge rate, Extension Benefit Charge rate, and any Optional Nonforfeiture Benefit Charge rate on a Rider Charge Day are based on (i) the Covered Life’s [gender and] age as of  the Rider Date, and (ii) the combination of the Minimum Acceleration Benefit Duration and Minimum Extension Benefit Duration.

The Acceleration Benefit Charge rate, the Extension Benefit Charge rate, and any Optional Nonforfeiture Benefit Charge rate may change, at Our discretion, at any time after the Rider Date with at least thirty (30) days Written Notice from Us. Any change to such rates will be subject to any maximum rates shown in the LTC Benefit Specifications, and will be made on a class basis in a nondiscriminatory manner.

LTC FIXED ACCOUNT

Upon the Company’s determination of initial Benefit Eligibility, Contract Value sufficient to result in an LTC Fixed Account Value equal to the Acceleration Benefit will be transferred into the LTC Fixed Account, proportionally from all Variable Subaccounts and all other Fixed Accounts. If the Contract Value is less than the Acceleration Benefit, the entire Contract Value will be transferred into the LTC Fixed Account. While the Covered Life is Benefit Eligible, if the LTC Fixed Account Value is less than the remaining Acceleration Benefit, the difference will be automatically transferred to the LTC Fixed Account proportionally from all Variable Subaccounts and all other Fixed Accounts. If the LTC Fixed Account Value is greater than the remaining Acceleration Benefit, the excess will be automatically transferred to the Variable Subaccounts according to the Contract Owner’s future Variable Subaccount allocation instructions. The Company will make such transfers no less often than annually.

Acceleration Benefit payments made by Us will be paid to You from the LTC Fixed Account, until the LTC Fixed Account Value is zero ($0), then proportionally from all Variable Subaccounts and all other Fixed Accounts until the Contract Value is reduced to zero ($0). If the Contract Value is zero ($0), the Acceleration Benefit payments will be made by the Company until the LTC GA is zero ($0). If the Covered Life has not received any LTC Benefits in a consecutive twelve (12) month period, the Owner may elect to transfer the LTC Fixed Account Value systematically over a twelve (12) month period to the Variable Subaccounts according to the Contract Owner’s future Variable Subaccount allocation instructions. Whether or not this election is made, any subsequent determination of Benefit Eligibility will be treated as a determination of initial Benefit Eligibility for purposes of this Provision.

LTC GUARANTEED AMOUNT (LTC GA)

Target LTC GA

The Target LTC GA is specified by the Owner upon election of this Rider in order to establish a desired Acceleration Benefit assuming the Company’s receipt of expected Purchase Payments prior to the LTC Funding Deadline. Subject to our approval, the Target LTC GA and the Target Funding Amount may be changed by the Owner on or before the LTC Funding Deadline. If, on or prior to the LTC Funding Deadline, a Withdrawal occurs, the Target LTC GA will not be reduced by the amount of the Withdrawal.

Initial LTC GA

The Initial LTC GA will be equal to (i) the Funding Amount shown on the LTC Benefit Specifications multiplied by (ii) the LTC Percentage as of the Rider Date. The LTC Percentage as of the Rider Date is shown on the LTC Benefit Specifications Page.

  

  

  

Adjustment for Additional Purchase Payments

Additional Purchase Payments accepted by the Company on or before the LTC Funding Deadline may increase the LTC GA. The LTC GA will be increased by the product of (a) and (b), where (a) is the amount of any such additional Purchase Payment, plus Bonus Credits if any, and (b) is the current LTC Percentage. However, the LTC GA will not be increased above the Target LTC GA. Additional Purchase Payments accepted by the Company after the earlier of (a) the LTC Funding Deadline, and (b) the LTC GA equals the Target LTC GA, will not increase the LTC GA.

Adjustment for Withdrawals

Upon each Excess Withdrawal, the LTC GA will be reduced in the same proportion that the Withdrawal reduced the Contract Value. Upon each Conforming Withdrawal, the LTC GA will not be reduced.

Adjustment for LTC Benefits

The LTC GA will be reduced by the dollar amount of each Acceleration Benefit payment.

LTC PERCENTAGE

LTC Percentage on Rider Date

On the Rider Date, the LTC Percentage is (i) the Target LTC GA, divided by (ii), the Target Funding Amount. The LTC Percentage on the Rider Date is shown on the LTC Benefit Specifications.

Maximum LTC Percentage

The maximum LTC Percentage is 100%.

Target Adjustments On or Prior to the LTC Funding Deadline

If, on or prior to the LTC Funding Deadline, We approve Your request, if any, to change the Target LTC GA and/or Target Funding Amount, the LTC Percentage will be recalculated and made effective as of the Rider Date. Any such change to the LTC Percentage may result in a different Initial LTC GA. Every transaction will be recalculated and made effective as of the original transaction date, to reflect the change.

DEDUCTIBLE PERIOD

The Deductible Period is shown in the LTC Benefit Specifications. This Deductible Period must be

completely satisfied before LTC Benefits will be payable. The Deductible Period must be satisfied only

once. The Deductible Period will not begin until after the LTC Coverage Effective Date and must be

satisfied only by days during which the Covered Life would otherwise be eligible to receive LTC Benefits. Such eligibility need not be incurred over consecutive days.

ACCELERATION BENEFITS

Acceleration Benefit

The Acceleration Benefit is a portion of the LTC Benefits and may be paid from the Contract Value. The initial Acceleration Benefit equals the LTC GA on the Rider Date. As Acceleration Benefits are paid, the remaining Acceleration Benefit will be reduced by the Acceleration Benefit payment. Each Acceleration Benefit payment will be deducted from the LTC Fixed Account Value, if any, otherwise any other Contract Value. If the Contract Value is zero ($0), the Acceleration Benefit payments will be made by the Company until the Acceleration Benefit remaining is zero ($0).

  

  

  

Acceleration Benefit payments are limited by (i) Benefit Eligibility pursuant to the LTC Coverage Endorsement, (ii) Acceleration Benefits remaining, (iii) the Maximum Monthly Level Benefit, and (iv) the type of Qualified Long-Term Care Services received, pursuant to the LTC Benefits provision of the LTC Coverage Endorsement.

Adjustment for Withdrawals

Upon each Excess Withdrawal, the Acceleration Benefit will be reduced in the same proportion that the Withdrawal reduced the Contract Value. Upon each Conforming Withdrawal, the Acceleration Benefit will not be reduced.

Acceleration Benefit Duration

The Acceleration Benefit Duration is the period during which Acceleration Benefits are payable, expressed in months. Because [(a)] any calendar month’s LTC Benefits may be less than the Maximum Monthly Level Benefit, [and (b) the Maximum Monthly Level Benefit may be less than the Target Maximum Monthly Level Benefit due to payment of Acceleration Benefits before the fifth (5th) Rider Date Anniversary,] the Acceleration Benefit Duration may be greater than the Minimum Acceleration Benefit Duration. The Acceleration Benefit Duration will end and the Extension Benefit Duration will begin when  the entire Acceleration Benefit has been paid.

Minimum Acceleration Benefit Duration

The Minimum Acceleration Benefit Duration is used in determining the Maximum Monthly Level Benefit on the Rider Date [and the five (5) subsequent Rider Date Anniversaries]. The Minimum Acceleration Benefit Duration is shown in the LTC Benefit Specifications.

MAXIMUM MONTHLY LEVEL BENEFIT

Beginning on the Rider Date, [and continuing on each Rider Date Anniversary up to and concluding upon the fifth (5th) Rider Date Anniversary,] the Maximum Monthly Level Benefit is determined. It will equal A / (B + [C] – D), where A = Acceleration Benefit; B = Minimum Acceleration Benefit Duration shown on the LTC Rider Specifications (in months); [C = Number of Rider Months from the Rider Date to the fifth (5th) Rider Date Anniversary, or sixty (60);] D = Number of Rider Months elapsed since the Rider Date; [After the fifth (5th) Rider Date Anniversary,] the Maximum Monthly Level Benefit will not be  adjusted, unless there is an Excess Withdrawal. Upon each Excess Withdrawal [(before or after the fifth (5th) Rider Date Anniversary)], the Maximum Monthly Level Benefit will be reduced in the same proportion that the Excess Withdrawal reduced the Contract Value. The Maximum Monthly Level Benefit will not be reduced upon payment of LTC Benefits or upon a Conforming Withdrawal. The Maximum Monthly Level Benefit is determined using the Acceleration Benefit prior to payment of LTC Benefits and Withdrawals that may also occur on a Rider Date Anniversary.

EXTENSION BENEFITS

Extension Benefit

The Extension Benefit is an amount that may be paid as LTC Benefits after the Acceleration Benefit has been reduced to zero ($0). The initial Extension Benefit will equal the result of the following formula: [J *

(K / L)], where

  

  

  

J = the LTC GA on the LTC Funding Deadline,

K = the Minimum Extension Benefit Duration shown in the LTC Benefit Specifications, and

L = the Minimum Acceleration Benefit Duration shown in the LTC Benefit Specifications.

As Extension Benefits are paid, the remaining Extension Benefit will be reduced by the Extension Benefit payment. Extension Benefit payments are limited by (i) Benefit Eligibility pursuant to the LTC  Coverage Endorsement, (ii) Extension Benefits remaining, (iii) the Maximum Monthly Level Benefit, and (iv) the type of Qualified Long-Term Care Services received, pursuant to the LTC Benefits provision of the LTC Coverage Endorsement.

Adjustments for Withdrawals

Upon each Excess Withdrawal, the Extension Benefit will be reduced in the same proportion that the Excess Withdrawal reduced the Contract Value. The Extension Benefit will not be reduced upon a Conforming Withdrawal.

Extension Benefit Duration

The Extension Benefit Duration is the period, expressed in months, beginning after the entire Acceleration Benefit has been reduced to zero ($0) and during which Extension Benefits are payable. The Minimum Extension Benefit Duration is shown in the LTC Benefit Specifications, expressed in years. Because [(a)] any calendar month’s LTC Benefits may be less than the Maximum Monthly Level Benefit, [and (b) the Maximum Monthly Level Benefit may be less than the Target Maximum Monthly Level Benefit due to payment of Acceleration Benefits before the fifth (5th) Rider Date Anniversary,] the Extension Benefit Duration may be greater than the Minimum Extension Benefit Duration. The Extension Benefit Duration will end when the entire Extension Benefit has been paid.

NONFORFEITURE BENEFIT

If either Optional Nonforfeiture or Contingent Nonforfeiture apply, this Nonforfeiture Benefit provision will remain in effect after termination of this Rider whether or not the Contract to which this Rider is  attached remains In Force. The Nonforfeiture Benefit is the total amount available under this section to pay LTC Benefits for the Covered Life. The Nonforfeiture Benefit will be an amount equal to the greater of:

a. One (1) month’s Maximum Monthly Level Benefit in effect as of the date this Rider is terminated, not to exceed the remaining Extension Benefits; or

b. An amount equal to the sum of all Extension Benefit Charges and Optional Nonforfeiture Benefit Charges, if any, paid for this Rider, less any Extension Benefits paid prior to the date this Rider is terminated.

No Nonforfeiture Benefits are payable prior to the [seventh (7th) Rider Date Anniversary and] satisfaction of any remaining Deductible Period. All claims for Nonforfeiture Benefits are subject to the terms of the attached LTC Coverage Endorsement. The Maximum Monthly Nonforfeiture Benefit under this section will be the Maximum Monthly Level Benefit in effect as of the date this Rider is terminated, subject to the LTC Benefits provision in the LTC Coverage Endorsement.

This Nonforfeiture Benefit will continue as paid-up long-term care coverage until the earlier of the death of the Covered Life or the date the Nonforfeiture Benefit has been paid. The Nonforfeiture Benefit will not  exceed the remaining Extension Benefits which would have been paid if this Rider had remained In

Force.

  

  

  

Optional Nonforfeiture

If the Optional Nonforfeiture Benefit Charge is not shown in the LTC Benefit Specifications, this Optional Nonforfeiture subsection is void and will have no effect upon this Rider. If Optional Nonforfeiture is elected on the Rider Date, as shown in the LTC Benefit Specifications, the Nonforfeiture Benefit will be provided after this Rider has been terminated for any of the following reasons in addition to the reasons stated in the Contingent Nonforfeiture subsection:

a. The Contract is surrendered at least three (3) years after the Rider Date;

b. The Owner requests In Writing to terminate this Rider after the [third (3rd) Rider Date Anniversary];

c. The Owner elects an Annuity Commencement Date prior to the Maturity Date and after the [third (3rd) Rider Date Anniversary].

Contingent Nonforfeiture

Whether or not the Optional Nonforfeiture Benefit Charge is shown in the LTC Benefit Specifications, this Contingent Nonforfeiture subsection is effective. The Company will provide the Nonforfeiture Benefit  if both of the following conditions are met:

a. The Company increases the current Extension Benefit Charge rate to a level which results in a cumulative increase equal to or greater than the percentage shown in the Percent Over Initial  Charges table below for the Covered Life’s age on the Rider Date; and

b. This Contract is surrendered, or the Owner elects to terminate this Rider, within one hundred twenty (120) days after the first Rider Charge Day subsequent to the Extension Benefit Charge rate increase.

	
Issue Age

	
Percent Over Initial Charges

	  	
Issue Age

	
Percent Over Initial Charges

	  	
Issue Age

	
Percent Over Initial Charges

	
29 and under

	
200%

	  	
66

	
48%

	  	
79

	
22%

	
30-34

	
190%

	  	
67

	
46%

	  	
80

	
20%

	
35-39

	
170%

	  	
68

	
44%

	  	
81

	
19%

	
40-44

	
150%

	  	
69

	
42%

	  	
82

	
18%

	
45-49

	
130%

	  	
70

	
40%

	  	
83

	
17%

	
50-54

	
110%

	  	
71

	
38%

	  	
84

	
16%

	
55-59

	
90%

	  	
72

	
36%

	  	
85

	
15%

	
60

	
70%

	  	
73

	
34%

	  	
86

	
14%

	
61

	
66%

	  	
74

	
32%

	  	
87

	
13%

	
62

	
62%

	  	
75

	
30%

	  	
88

	
12%

	
63

	
58%

	  	
76

	
28%

	  	
89

	
11%

	
64

	
54%

	  	
77

	
26%

	  	
90

	
Plus 10%

	
65

	
50%

	  	
78

	
24%

	  	  	  

  

  

  

LTC BENEFITS AS OF MATURITY DATE

(COVERED LIFE’S [95TH] BIRTHDAY)

If the Contract has reached the Maturity Date and the Owner is not receiving LTC Benefits as of that date, the Owner must elect an Annuity Payment Option guaranteed under the Contract or any other annuity payment option made available as agreed upon in writing by the Company. Unless otherwise agreed by the Company, LTC Charges will end, the remaining Extension Benefit will be in force paid-up long-term care coverage, and all other LTC Benefits will be terminated.

If the Contract has reached the Maturity Date and the Owner is receiving LTC Benefits under this Rider, the Company will extend the Maturity Date and will continue to pay LTC Benefits. LTC Charges and LTC Benefits will continue until the earlier of: (i) the death of the Covered Life; (ii) all LTC Benefits have been reduced to zero ($0); (iii)  Benefit Eligibility ends; (iv) the Contract is terminated, or (v) the Owner elects an Annuity Payment Option guaranteed under the Contract or any other annuity payment option made  available as agreed upon in writing by the Company.

Within ninety (90) days after LTC Benefits end due to (ii) or (iii) above, the Owner must elect an Annuity Payment Option guaranteed under the Contract or any other annuity payment option made available as agreed upon in writing by the Company. Any remaining Extension Benefit will be paid-up long-term care coverage.

Any LTC Benefit paid pursuant to this provision will be subject to all the terms, provisions and conditions

of this Rider and the attached Long-Term Care Coverage Endorsement.

GENERAL INFORMATION

References to Annuity Commencement Date will be understood to include a Variable Annuity Payment Option Rider ‘Periodic Income Commencement Date,’ a CPI Adjusted Fixed Immediate Annuity Payment Option Rider ‘Initial Scheduled Payment Date,’ and any similar Payment Option Rider’s annuity commencement date.

Effect of LTC Benefits on Annuity Contract Values. If as a result of Acceleration Benefit payments or LTC Charges, the Contract Value is reduced such that the Company has the right to terminate the contract under Article 5.03 of the Contract, such right to terminate the Contract is void if this Rider is In Force.

Additional Purchase Payments. In addition to any limitations on amount and frequency of additional  Purchase Payments shown in the Contract Specifications, the Company may not accept additional Purchase Payments after the LTC Funding Deadline while this Rider is in force. No additional Purchase Payments may be made after the Contract Value is reduced to zero ($0) while this Rider is in force.

Availability of Annuity Death Benefit. If the Owner or Covered Life dies while the Covered Life is receiving LTC Benefits under this Rider, the Company reserves the right to recoup LTC Benefits paid for months after Benefit Eligibility ceased due to death, and to withhold the portion of any Death Benefit that would otherwise be payable until the Company has verified that it has received all remaining claims for LTC Benefits.

Contract Value Reduces to Zero ($0). After the Contract Value is reduced to zero ($0), if the Contract terminates due to death no Death Benefit will be paid. The Company will not terminate LTC Benefits because the Contract Value is reduced to zero ($0) before the Maturity Date, unless the Contract is surrendered.

If the Contract Value is reduced to zero ($0) by an Excess Withdrawal, the Contract is deemed surrendered and both the Contract and this Rider terminate, and no LTC Benefits shall be paid except as provided for under the Nonforfeiture Benefit provision. If the Contract Value is reduced to zero ($0) other than by an Excess Withdrawal, the Contract will not be deemed surrendered.

If upon the Maturity Date the Contract Value is zero ($0) and the Owner is not receiving LTC Benefits, the remaining Extension Benefit will be in force paid-up long-term care coverage and all other LTC Benefits will be terminated.

  

  

  

If upon the Maturity Date the Contract Value is zero ($0) and the Owner is receiving LTC Benefits, the Company will extend the Maturity Date and will continue to pay LTC Benefits. LTC Benefits will continue until the earlier of: (i) the death of the Covered Life; (ii) all LTC Benefits have been reduced to zero ($0); or (iii) Benefit Eligibility ends. If Benefit Eligibility ends, the remaining Extension Benefit will be in force paid-up long-term care coverage and all other LTC Benefits will be terminated.

No additional Purchase Payments may be made after the Contract Value is reduced to zero ($0) while this Rider is in force.

Misstatement of Age or Sex. If the Covered Life’s age or sex has been misstated, the Company will adjust the LTC Charges to the amounts that would have applied based on the Covered Life’s correct age or sex. If this Rider would not have been issued at the correct age and sex, this Rider will be cancelled and the Company will refund all LTC Charges paid less any LTC Benefits paid.

GOP Death Benefit Amount. A GOP death benefit is provided under the Guarantee of Principal (GOP) and Enhanced Guaranteed Minimum Death Benefit (EGMDB) Death Benefit, one of which may be applicable to the Contract as shown in the Contract Specifications.

If the Contract includes a Death Benefit, including any Death Benefit Rider, that has a Death Benefit amount defined as the sum of all Purchase Payments minus all death benefit reductions, then each Acceleration Benefit payment will [be treated as a Withdrawal for purposes of the calculation of death benefit reductions].

Continuation of Annuity Contract by Eligible Beneficiary. If the Beneficiary designated at the time of the original Owner’s death or original Covered Life’s death elects to continue the Contract, pursuant to Code §72, as the Owner and Covered Life, this Rider will terminate without value.

Representations. In the absence of fraud, any statement made by the Owner or by the Covered Life in an application for this Rider, or any statement agreed to by the Owner or by the Covered Life in a contract amendment, will be deemed to be a representation and not a warranty. Such statement may not be used in defense of a claim, unless it is contained in a signed, written application for this Rider or in a signed, written contract amendment attached to this Contract.

Incontestability. A misrepresentation by the Owner or by the Covered Life in any application or contract amendment for long-term care coverage may be used to void or cancel this Long-Term Care Benefits Rider. During the first six (6) months following the Rider Date shown on the LTC Benefit Specifications, the Company may void or cancel this Rider only if the misrepresentation was material to the issuance of this Rider. After the first six (6) months but before the end of the first twenty-four (24) months, the Company may void or cancel this Rider only if the misrepresentation was material to both the issuance of this Rider and the claim for which benefits are being sought. After this Rider has been In Force for twenty-four (24) months following the Rider Date shown on the LTC Benefit Specifications, the Company can void or cancel this Rider only if the Company can show that the relevant facts relating to the health of the Covered Life were knowingly and intentionally misrepresented. No benefits will be paid under this Rider if voided or cancelled.

Conformity With State and Federal Statutes. If any feature of this Rider is in conflict with the statutes of the state in which the Entire Contract was delivered or with the Federal statutes which pertain to Qualified Long-Term Care insurance, such feature is automatically amended to meet the minimum

requirements of the state or Federal statute.

Assignments. While this Rider is in effect, the Owner may not sell or assign the Contract, nor may it be discounted or pledged as collateral for a loan or as a security for the performance of an obligation or any other purpose.

TERMINATION OF RIDER

Coverage under this Rider is contingent upon the Company’s receipt of a completed and signed Contract Amendment for LTC Benefits. This Rider will terminate [forty-five (45)] days after the Rider Date of the duplicate copy of the Contract Amendment for LTC Benefits is not signed by the Owner and the Covered Life (if different) and returned to and received by the Company at its Administrative Office.

This Rider will terminate on the date the Contract to which this Rider is attached terminates. The Owner may terminate this Rider upon Written Request any time after the [third (3rd) Rider Date

  

  

  

Anniversary]. The Owner may not terminate this Rider upon Written Request prior to the [third (3rd) Rider Date Anniversary]. The Rider will also terminate as follows:

a. on the date the Owner exercises the Contingent Nonforfeiture provision option to terminate this Rider or surrender the Contract;

b. on the date the Owner is changed due to death or divorce;

c. on the death of the Covered Life.

Upon termination of this Rider, all benefits (except benefits provided under the Nonforfeiture Benefit provision) and charges within this Rider will terminate, any LTC Fixed Account Value will be transferred to the Variable Subaccounts according to the Contract Owner’s future Variable Subaccount allocation instructions, and a proportional amount of the LTC Charge will be deducted.

Signed for the Company

/s/ Charles A. Brawley, III

Charles A Brawley, III

Secretary

AR 518 3-10 Level

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