Document:

EX-4.D

 EXHIBIT 4(d) 

FORM OF POLICY RIDER (TRANSAMERICA INCOME EDGE) 

							
	

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

 [TRANSAMERICA INCOME EDGE] RIDER 

GUARANTEED LIFETIME WITHDRAWAL BENEFIT 

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

The purpose of this guaranteed living benefit provided under this annuity rider is to provide security through a stream of income payments to the Owner.
The guaranteed living benefit rider will terminate upon assignment or change in ownership of the policy unless the new assignee or Owner meets the qualifications specified in Article III on page 4 of this rider. 

You may cancel this rider before midnight of the thirtieth calendar day after You receive it and no Rider Fees will be assessed. Upon cancellation, all
Policy Value in the Stable Account will be transferred to the Money Market Subaccount available in Your policy. 
 RIDER DATA
SPECIFICATION 
  

											
		 	 Policy Number:  
	  	 	  	12345	  	 	  	
		 	 Rider Date:  
	  		  	07-01-2016	  	 	  	
		 	 Initial Rider Fee Percentage*:  
	  	 	  	1.50%	  	 	  	

  

																																																													
	 	 	Required Allocations	 
	 	 	Premium	 	  	  
	 	  	Rebalance	 
	 	 	Minimum	 	  	 	 	  	Maximum	 	  	 	 	  	Minimum	 	  	 	 	  	Maximum	 
	 Stable Account:  
	 	 	 	 	  	 	20%	  	  	 	 	 	  				  	 	 	 	  	 	20%	  	  	 	 	 	  				  				  	 	N/A	  	  				  				  				  	 	N/A	  	  			
	 Select Investment Options:  
	 				  	 	20%	  	  			 	  				  				  	 	80%	  	  			 	  				  	 	 	 	  	 	25%	  	  	 	 	 	  				  	 	 	 	  	 	100%	  	  	 	 	 
	 Flexible Investment Options:  
	 	 	 	 	  	 	0%	  	  	 	 	 	  				  	 	 	 	  	 	60%	  	  	 	 	 	  				  	 	 	 	  	 	0%	  	  	 	 	 	  				  	 	 	 	  	 	75%	  	  	 	 	 
	 Guaranteed Minimum Effective Annual Interest Rate for Stable
Account:  
	 	 	[0.25%]	  	  				  				  				  				  				  				  				  				  				  				  				  			
	 Annuitant:  
	 	 	[John Doe]	  	  				  				  				  				  				  				  				  				  				  				  				  			
	 Annuitant’s Issue Age/Sex:  
	 	 	[35 / Male]	  	  				  				  				  				  				  				  				  				  				  				  				  			
	 Minimum Benefit Age:  
	 	 	[59]	  	  				  				  				  				  				  				  				  				  				  				  				  			

  

	*	The initial rider fee percentage is for the life of the rider, provided there are no automatic step-ups. When an automatic step-up occurs, the rider fee percentage will never be increased by more than [0.75%] greater
than the initial rider fee percentage shown above. Therefore, the maximum rider fee percentage will never be greater than the initial rider fee percentage, plus [0.75%]. 

Guaranteed Lifetime Withdrawal Benefit: The withdrawal percentage is used to determine the Rider Withdrawal Amount as described in Article III of this
rider. The withdrawal percentages are shown in the table below. 
 Withdrawal Percentage 

 

																																													
	 Attained Age
	  	 	  	 [Rider Years 1-5]
	 	  	 	  	
[Rider Years 6-10]
	 	  	 	  	 [Rider Years 11+]
	 
	 	  	0-58	  	 	  		  		  	 	0.0	% 	 				  		  				  	 	0.0	% 	 				  		  				  	 	0.0	% 	 			
	 	  	59-64	  	 	  		  	 	  	 	4.0	% 	 	 	 	 	  		  	 	 	 	  	 	5.0	% 	 	 	 	 	  		  	 	 	 	  	 	6.0	% 	 	 	 	 
	 	  	65-79	  	 	  		  		  	 	5.0	% 	 			 	  		  				  	 	6.0	% 	 			 	  		  				  	 	7.0	% 	 			 
	 	  	80+	  	 	  		  	 	  	 	6.0	% 	 	 	 	 	  		  	 	 	 	  	 	7.0	% 	 	 	 	 	  		  	 	 	 	  	 	8.0	% 	 	 	 	 

  

					
	ICC16 RGMB510616(IS)	  	(1)	  	(Income-Single)

 ARTICLE I 

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

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

Flexible Investment Options 
 A designated group of
Investment Options identified by us to which You must allocate a portion of Your Premium Payments and Policy Value as shown in the Rider Data Specification section and as described in Article II. You will be notified if there are changes made to the
Investment Options within the designated group. 
 Gross Partial Withdrawal 

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

Rider Anniversary 
 The anniversary of the rider date.

 Rider Fee 
 The fees charged for the benefits under
this rider. 
 Rider Quarter 
 Each successive
three-month period beginning on the rider date. 
 Rider Withdrawal Amount 

The maximum amount that can be withdrawn from the policy each Rider Year without causing an Excess Withdrawal under the terms of this rider and thus reducing
the Withdrawal Base. This amount will change if the Withdrawal Base or Withdrawal Percentage changes. 
 Rider Year 

Each twelve-month period following the rider date. 
 Stable
Account 
 The Stable Account is a Fixed Account Option under Your policy, only available if You elect this rider, to which You must allocate a portion
of Your Premium Payments and Policy Value shown in the Rider Data Specification section. Allocations applied to the Stable Account will be credited interest based on a fixed rate. The interest rates will be credited for increments of at least one
year measured from each Premium Payment date and will automatically renew and remain in the Stable Account. These rates will never be less than the Guaranteed Minimum Effective Annual Interest Rate shown in the Rider Data Specification section.
Withdrawals, Surrenders, or Transfers (upon termination) from the Stable Account will not be subject to an Excess Interest Adjustment. 
 Select
Investment Options 
 A designated group of Investment Options identified by us to which You must allocate a portion of Your Premium Payments and Policy
Value shown in the Rider Data Specification section and as described in Article II. You will be notified if there are changes made to the Investment Options within the designated group. 

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

  

					
	ICC16 RGMB510616(IS)	  	(2)	  	(Income-Single)

 ARTICLE II 

REQUIRED ALLOCATIONS 
 If You elect this rider, a certain
percentage of Your Policy Value on the rider date must be allocated to the Stable Account, the Select Investment Options and the Flexible Investment Options, as specified for premiums in the Required Allocations shown on page 1, in the Rider Data
Specification section. Any transfers to and from the Select Investment Options and Flexible Investment Options will be validated using the prior day’s Policy Values to ensure compliance as specified for rebalancing in the Required Allocations
shown on page 1, in the Rider Data Specification section, at the time of the request. Changes in Policy Values due to market movements on other dates will not be treated as a violation of the Required Allocations. After the rider date, the
allocation of all Premium Payments made (and any Premium Enhancements, if applicable to Your policy) must also comply with the Required Allocations, so long as this rider is effective. 

Transfers to and from the Stable Account are not permitted. Withdrawals from the Stable Account are not permitted until all other Investment Options are
depleted of value. Withdrawals from the Flexible Investment Options and Select Investment Options will be deducted on a pro-rata basis. If You do not wish to maintain the Required Allocations shown on page 1, in the Rider Data Specification section,
this rider must be terminated, subject to the restrictions and requirements as described in Article IV, prior to making any transfer. 
 Enrollment in
Dollar Cost Averaging is not available while this rider is in effect. 
 REBALANCING 

While this rider is effective, quarterly Rebalancing is required and will take place at the end of each successive Rider Quarter on the same date Your Rider
Fee is deducted. If the day Rebalancing takes place is not a Market Day, the value of accumulation units redeemed or purchased due to Rebalancing will be determined as of the next Market Day. We will automatically transfer amounts among Subaccounts
according to the most recent rebalancing allocation instructions on file that comply with the Required Allocations for Rebalancing as shown on page 1, in the Rider Data Specification section. On the rider date, Your rebalancing allocation
instructions will be established by applying a ratio of Your current investment allocation instructions for new premium. Because the Stable Account is not included in the quarterly rebalancing process and whole percentages are required, it may be
necessary for the company to make adjustments (positive or negative) to the calculated rebalance allocation percentages to accommodate for rounding to the nearest whole percent. Adjustments needed will be applied to the Select Investment Options and
Flexible Investment Options individually to ensure the requirements for each designated group are met. Any adjustments will first be made to the Subaccount with the greatest percentage allocation. If more than one Subaccount has the greatest
percentage allocation, the adjustment will be divided equally among those Subaccounts with the greatest percentage allocation. If the adjustment cannot be divided equally, we will make adjustments in alphabetical order to the Subaccount(s) with the
greatest percentage allocation. You will be notified in writing of the calculated rebalance allocation percentages prior to the first quarter Rebalancing. You may request changes to Your rebalancing allocation instructions while this rider remains
effective as long as they comply with the required rebalance allocations. Rebalancing will not cease upon the request of any transfer. 
 Please see the
Appendix attached to this rider which illustrates the initial calculation of rebalancing allocation percentages as well as the rebalancing process. 

RIDER FEE 
 The Rider Fee is deducted at the end of each
successive Rider Quarter, on the same day of the month as the rider date. If a day does not exist in a given month, the first day of the following month will be used. If a Rider Fee is deducted from the Separate Account on a day which is not a
Market Day, the value of accumulation units redeemed will be determined as of the next Market Day. The Rider Fee is calculated and stored at issue and at each subsequent Rider Quarter for the upcoming quarter. It will be deducted automatically from
Flexible Investment Options and Select Investment Options, on a pro rata basis at the end of each Rider Quarter. After those Investment Options are depleted of value, the Rider Fee will be deducted from the Stable Account. The initial rider fee
percentage is shown and the maximum rider fee percentage is described on page 1, in the Rider Data Specification section. The rider fee percentage will not change during the first Rider Year, and will only change thereafter due to an automatic
step-up. You will be notified of any increase in the rider fee percentage. If this rider terminated prior to the end of a Rider Quarter, a portion of the Rider Fee will also be deducted based on the number of days that have elapsed since the end of
the previous Rider Quarter. 
 The quarterly Rider Fee is calculated as follows: 

Multiply (1) by (2) by (3), where: 
  

	1)	is Withdrawal Base; 

  

	2)	is rider fee percentage; 

  

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

  

					
	ICC16 RGMB510616(IS)	  	(3)	  	(Income-Single)

 ARTICLE II CONTINUED 

The stored fee will be adjusted if the Withdrawal Base is adjusted during the Rider Quarter. The fee adjustments are calculated as follows: 

Multiply (1) by (2) by (3), where: 
  

	1)	is the change in Withdrawal Base; 

  

	2)	is rider fee percentage; 

  

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

Please see the Appendix attached to this rider which illustrates how the Rider Fee is calculated. 

ARTICLE III 
 GUARANTEED LIFETIME WITHDRAWAL
BENEFIT 
 Under this rider, we guarantee that You can receive up to the Rider Withdrawal Amount each Rider Year, regardless of the Policy Value, (first
as withdrawals from Your Policy Value and, if necessary, as payments from us) until the Annuitant’s death. This rider requires the Annuitant to also be an Owner, except in the case of non-natural Owners. Such non-natural Owners must be
established for the benefit of the Annuitant. Once this rider is issued the Annuitant cannot be changed, except when the underlying Individual Retirement Annuity (IRA) policy is transferred pursuant to a divorce. In the event of a divorce, this
rider will continue provided the Annuitant remains an Owner. 
 Withdrawals will reduce the Policy Value and death benefit of the policy to which this rider
is attached. If the Policy Value equals zero, You cannot make subsequent Premium Payments and all other policy features, benefits and guarantees are no longer available. Also, if the Policy Value equals zero and the rider remains inforce, we will,
unless instructed otherwise, make payments using the current payment instructions on file with us equal to the Rider Withdrawal Amount divided by the frequency of payments. If the Annuitant has attained the minimum benefit age and a systematic
payout option is not active at the time the Policy Value equals zero, a monthly payment will begin. If the minimum benefit age has not been attained, the monthly payment will begin on the Rider Anniversary following the attainment of the minimum
benefit age. Once the payment amount and frequency are established, they cannot be changed and no additional withdrawals will be allowed. Furthermore, any remaining Minimum Required Cash Value will be paid on the Annuitant’s death. We have the
right to require satisfactory evidence a person is alive if payment is based on that person being alive. 
 While this rider is in-force, we will not invoke
the Involuntary Cashout provision of the policy to which this rider is attached if this rider has a Withdrawal Base of $2,000 or greater. 
 WITHDRAWAL
PERCENTAGE 
 The Withdrawal Percentage is used to calculate the Rider Withdrawal Amount. The percentage is determined using the number of Rider Years
and the attained age (age at last birthday) of the Annuitant at the time of the first withdrawal of any amount from the Policy Value taken on or after the Rider Anniversary following the Annuitant’s attainment of the minimum benefit age. Once
the Withdrawal Percentage is established, it may only be changed by an automatic step-up. Upon automatic step-up, the Withdrawal Percentage will be reset based on using the number of Rider Years and the attained age of the Annuitant at the time of
the automatic step-up. The Withdrawal Percentages are shown in the table in the Rider Data Specification section. 
 If the Annuitant is not yet the minimum
benefit age on the rider date, the Withdrawal Percentage will be zero until the Rider Anniversary following the Annuitant’s birthday in which they attain the minimum benefit age. Withdrawals prior to age 59 1/2 may be subject to the IRS 10%
early withdrawal penalty. 
 RIDER WITHDRAWAL AMOUNT 

The Rider Withdrawal Amount will be equal to the greater of: 
  

	1)	The withdrawal percentage multiplied by the Withdrawal Base; or 

  

	2)	An amount equal to the minimum required distribution amount, if any. The minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all
of the following are true: 

  

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

  

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

  

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

  

					
	ICC16 RGMB510616(IS)	  	(4)	  	(Income-Single)

 ARTICLE III CONTINUED 
  

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

 

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

  

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

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

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

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

WITHDRAWAL BASE 
 The Withdrawal Base is used to calculate
the Rider Withdrawal Amount and the Rider Fee. On the rider date, the Withdrawal Base is equal to the Policy Value (less any premium enhancements, if applicable to Your policy, if the rider is added in the first Policy Year). During any Rider Year,
the Withdrawal Base is increased by subsequent Premium Payments (not including premium enhancements, if applicable to Your policy), and is reduced for Excess Withdrawals. 

On each Rider Anniversary, the Withdrawal Base will be set to the greater of: 
  

	 	1)	The current Withdrawal Base; or 

  

	 	2)	The Policy Value on the Rider Anniversary. 

 AUTOMATIC STEP-UP FEATURE 

The rider receives an automatic step-up if the Withdrawal Base is equal to the Policy Value on the Rider Anniversary. This feature does not require the
termination of the existing rider. This rider will continue with the same rider date and features. The rider fee percentage and withdrawal percentage may be changed due to an automatic step-up. Beginning with the [first] Rider Anniversary, the rider
fee percentage may be increased if there is an automatic step-up, but will not exceed the maximum rider fee percentage described in the Rider Data Specification section. 

You have the right to reject an automatic step-up within [30] days following a Rider Anniversary, if the rider fee percentage increases. If You reject an
automatic step-up, You must notify us in a manner which is acceptable to us, however You are eligible for future automatic step-ups. Changes as a result of the automatic step-up feature will be reversed upon rejection. Any increase in the rider fee
percentage or withdrawal percentage will also be reversed. 
 WITHDRAWAL BASE ADJUSTMENTS 

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

 

	1)	is the Excess Withdrawal amount; and 

  

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

  

	 	A)	is the Excess Withdrawal amount; 

  

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

  

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

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

  

					
	ICC16 RGMB510616(IS)	  	(5)	  	(Income-Single)

 ARTICLE III CONTINUED 

If the Annuitant’s age has been misstated, this rider’s fees and benefits will be adjusted to the amounts which would have been calculated for the
correct age. If withdrawals under the provisions of this rider have already commenced and the misstatement caused the Rider Withdrawal Amount to be overstated, any withdrawal in excess of the correct Rider Withdrawal Amount will be considered an
Excess Withdrawal and will impact the Withdrawal Base and Rider Withdrawal Amount. If overpayments occurred when the sum of the accumulated values in all the Investment Options was zero, the amount of that overpayment will be deducted from one or
more future payments until this amount is paid in full. 
 However, if this rider would not have been issued had the age not been misstated, You will lose
all of the benefits provided by this rider and any fees charged for this rider will be returned. Your current Policy Value will be re-allocated to Your current investment allocations for the Select Investment Options and Flexible Investment Options,
if any, as of the date we are notified of the misstatement of age. 
 ARTICLE IV 

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

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

TERMINATION 
 This rider will terminate upon the earliest
of: 
  

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

  

	2)	a change in ownership or assignment which violates the Owner and Annuitant relationship requirements as set forth in Article III; 

  

	3)	prior to Your Policy Value reaching zero, the date we receive, in Good Order, required information to process death claim for the Annuitant’s death; 

 

	4)	on or after Your Policy Value equals zero, and the Annuitant’s date of death; 

  

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

  

	6)	the date You notify us in writing of Your intention to terminate this rider (this date must be within [30] days after the [fifth] Rider Anniversary or any [fifth] Rider Anniversary thereafter). 

Termination of the rider will result in the loss of all benefits provided by the rider. After termination, Rider Fees will no longer be assessed and
rebalancing will be stopped. Upon termination, all Policy Value in the Stable Account will be transferred to the Money Market Subaccount available in Your policy and no additional Premium Payments will be allowed into the Stable Account. 

REPORTS TO OWNER 
 We will give You a report at least once
each Policy Year. Before You are eligible to receive the Rider Withdrawal Amount, the report will direct You to contact the Company for information regarding Your Rider Withdrawal Amount. After You are eligible for Your Rider Withdrawal Amount, this
amount will be included in the report. 
 Signed for us at our home office. 

 

													
	 	 	

	 	 	  		 	 	  	

	 	 
		 	[Jay Orlandi]	 		  		 		  	[Blake Bostwick]	 	
		 	Secretary	 		  		 		  	President	 	

  

					
	ICC16 RGMB510616(IS)	  	(6)	  	(Income-Single)

 APPENDIX 

The following demonstrates, on a purely hypothetical basis, the rebalancing mechanics and quarterly fee calculations of this guaranteed lifetime withdrawal
benefit. The investment restrictions, rider fee percentages, and withdrawal percentages for Your rider may vary from the percentages used below. 

Rebalancing Examples 
 The following examples assume the
initial premium allocations listed in the table below, which we assume satisfy the premium investment requirements. 
  

									
	 	  	Initial Premium	 	  	Initial Premium	 
	 Investment Option Allocations:
	  	Allocations	 	  	Allocation Percentages	 
	 Stable Account
	  	$	 20,000	  	  	 	20	% 
	 Select Investment Option Fund A
	  	$	13,000	  	  	 	13	% 
	 Select Investment Option Fund B
	  	$	13,000	  	  	 	13	% 
	 Select Investment Option Fund C
	  	$	4,000	  	  	 	4	% 
	 Total Select Investment Options
	  	$	30,000	  	  	 	30	% 
	 Flexible Investment Option Fund A
	  	$	14,000	  	  	 	14	% 
	 Flexible Investment Option Fund B
	  	$	14,000	  	  	 	14	% 
	 Flexible Investment Option Fund C
	  	$	22,000	  	  	 	22	% 
	 Total Flexible Investment Options
	  	$	50,000	  	  	 	50	% 
		  	  
	  
	 	  	  
	  
	 
	 Total Investments
	  	$	100,000	  	  	 	100	% 

 Example 1: Calculation at rider issue for the rebalance allocations: 

The Stable Account portion of the Policy Value is not included in the quarterly Rebalance, therefore the rebalancing allocation percentages are calculated by
multiplying the initial premium allocation percentages for the Select Investment Options and Flexible Investment Options by a ratio. The ratio is calculated by taking 100%, divided by 100% less the Stable Account premium allocation percentage. The
ratio for this example would be 100% / (100% - 20%) = 1.25. 
  

													
	 	  	 	 	  	 	 	 	Unrounded	 
	 	  	Initial Premium	 	  	Initial Premium	 	 	Rebalancing	 
	 Investment Option Allocations:
	  	Allocations	 	  	Percentages	 	 	Percentages	 
	 Stable Account
	  	$	20,000	  	  	 	20	% 	 	 	N/A	  
	 Total Select Investment Options
	  	$	30,000	  	  	 	30	% 	 	 	37.5	% 
	 Total Flexible Investment Options
	  	$	50,000	  	  	 	50	% 	 	 	62.5	% 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total Investments
	  	$	100,000	  	  	 	100	% 	 	 	100.0	% 

 Whole percentages are required for the rebalancing percentages and must sum up to equal 100%. To satisfy this requirement and
ensure the rebalance allocation requirement is met for each of the investment options, the sum of the Select Investment Options rebalancing percentage is rounded to the nearest whole percent (hereafter referred to as Select Rebalance Total) but no
less than the minimum allocation for rebalance. The Select Rebalance Total is deducted from 100% to get the total Flexible Investment Options rebalancing percentage (hereafter referred to as Flexible Rebalance Total). The Select Rebalance Total and
Flexible Rebalance Total percentages are the end result which will be achieved by the quarterly Rebalance. 
 Table 1 

 

									
	 	  	Unrounded	 	 	Rounded	 
	 	  	Rebalancing	 	 	Rebalancing	 
	 Investment Option Allocations:
	  	Percentages	 	 	Percentages	 
	 Stable Account
	  	 	N/A	  	 	 	N/A	  
	 Total Select Investment Options
	  	 	37.5	% 	 	 	38	% 
	 Total Flexible Investment Options
	  	 	62.5	% 	 	 	62	% 
		  	  
	  
	 	 	  
	  
	 
	 Total Investments
	  	 	100.0	% 	 	 	100	% 

  

  

					
	ICC16 RGMB510616(IS)	  	(A-1)	  	(Income-Single)

 APPENDIX 
 We
apply the same ratio and rounding to each individual investment option chosen and sum up the total Select and total Flexible Investment Options separately. The totals are compared to Select Rebalance Total and Flexible Rebalance Total to determine
where any adjustments need to be made. In the example below, adjustments will need to be made to the Select Investment Options to bring the total percentage up to 38% and the Flexible Investment Options down to 62%, per the result from Table 1.

 Table 2 
  

													
	 Investment Option Allocations:
	  	Initial Premium
Allocations	 	  	Initial Premium
Percentages	 	 	Pre-Adjusted
Rebalancing
Percentages	 
	 Stable Account
	  	$	 20,000	  	  	 	20	% 	 	 	N/A	  
	 Select Investment Option Fund A
	  	$	13,000	  	  	 	13	% 	 	 	16	% 
	 Select Investment Option Fund B
	  	$	13,000	  	  	 	13	% 	 	 	16	% 
	 Select Investment Option Fund C
	  	$	4,000	  	  	 	4	% 	 	 	5	% 
	 Total Select Investment Options
	  	$	30,000	  	  	 	30	% 	 	 	37	% 
	 Flexible Investment Option Fund A
	  	$	14,000	  	  	 	14	% 	 	 	18	% 
	 Flexible Investment Option Fund B
	  	$	14,000	  	  	 	14	% 	 	 	18	% 
	 Flexible Investment Option Fund C
	  	$	22,000	  	  	 	22	% 	 	 	28	% 
	 Total Flexible Investment Options
	  	$	50,000	  	  	 	50	% 	 	 	64	% 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total Investments
	  	$	100,000	  	  	 	100	% 	 	 	101	% 

 To get the total Select Investment Options rebalancing percent to equal 38%, we must add 1% to one of the funds. Any
adjustments will first be made equally to the fund(s) with the greatest allocation. If there are multiple funds with the greatest allocation and the adjustments cannot be divided equally, we will adjust in alphabetical order the fund(s) with the
greatest allocation. In the example below, we made the adjustment to the Select Invesment Option Fund A. 
 To get the total Flexible Investment Options
rebalancing percent to 62%, we must subtract 2% from one or more funds. Since there is only one fund with the greatest allocation, we have made the adjustment to the Flexible Investment Option Fund C. 

Table 3 
  

									
	 Investment Option Allocations:
	  	Pre-Adjusted Rebalancing
Percentages	 	 	Rebalancing
Percentages	 
	 Stable Account
	  	 	N/A	  	 	 	N/A	  
	 Select Investment Option Fund A
	  	 	16	% 	 	 	17	% 
	 Select Investment Option Fund B
	  	 	16	% 	 	 	16	% 
	 Select Investment Option Fund C
	  	 	5	% 	 	 	5	% 
	 Total Select Investment Options
	  	 	37	% 	 	 	38	% 
	 Flexible Investment Option Fund A
	  	 	18	% 	 	 	18	% 
	 Flexible Investment Option Fund B
	  	 	18	% 	 	 	18	% 
	 Flexible Investment Option Fund C
	  	 	28	% 	 	 	26	% 
	 Total Flexible Investment Options
	  	 	64	% 	 	 	62	% 
		  	  
	  
	 	 	  
	  
	 
	 Total Investments
	  	 	101	% 	 	 	100	% 

 Example 2: Calculation for first quarter Rebalance: 

At the end of the first Rider Quarter, assume that the investment options have the following values: 

Table 4 
  

									
	 Investment Option Allocations:
	  	Allocation Amounts
Prior to Rebalance	 	  	Allocation Percentage
of Rebalancing Funds
Prior to Rebalance	 
	 Stable Account
	  	$	20,050	  	  	 	N/A	  
	 Select Investment Option Fund A
	  	$	13,090	  	  	 	17	% 
	 Select Investment Option Fund B
	  	$	11,550	  	  	 	15	% 
	 Select Investment Option Fund C
	  	$	3,850	  	  	 	5	% 
	 Total Select Investment Options
	  	$	28,490	  	  	 	37	% 
	 Flexible Investment Option Fund A
	  	$	13,090	  	  	 	17	% 
	 Flexible Investment Option Fund B
	  	$	14,630	  	  	 	19	% 
	 Flexible Investment Option Fund C
	  	$	20,790	  	  	 	27	% 
	 Total Flexible Investment Options
	  	$	48,510	  	  	 	63	% 
		  	  
	  
	 	  	  
	  
	 
	 Total Investments
	  	$	97,050	  	  	 	100	% 

  

					
	ICC16 RGMB510616(IS)	  	(A-2)	  	(Income-Single)

 APPENDIX 

The result of the Rebalance back to the rebalancing percentages from Table 3 is: 

Table 5 
  

													
	 	  	 	 	  	Allocation
Percentage	 	 	Allocation
Percentage	 
	 	  	Allocation Amounts	 	  	of Rebalancing Funds	 	 	of Policy Value	 
	 Investment Option Allocations:
	  	After Rebalancing	 	  	After Rebalance	 	 	After Rebalance	 
	 Stable Account
	  	$	20,050	  	  	 	N/A	  	 	 	21	% 
	 Select Investment Option Fund A
	  	$	13,090	  	  	 	17	% 	 	 	13	% 
	 Select Investment Option Fund B
	  	$	12,320	  	  	 	16	% 	 	 	13	% 
	 Select Investment Option Fund C
	  	$	3,850	  	  	 	5	% 	 	 	4	% 
	 Total Select Investment Options
	  	$	29,260	  	  	 	38	% 	 	 	30	% 
	 Flexible Investment Option Fund A
	  	$	13,860	  	  	 	18	% 	 	 	14	% 
	 Flexible Investment Option Fund B
	  	$	13,860	  	  	 	18	% 	 	 	14	% 
	 Flexible Investment Option Fund C
	  	$	20,020	  	  	 	26	% 	 	 	21	% 
	 Total Flexible Investment Options
	  	$	47,740	  	  	 	62	% 	 	 	49	% 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total Investments
	  	$	97,050	  	  	 	100	% 	 	 	100	% 

 This rebalancing process will continue on a quarterly basis while this rider is in force. 

Rider Fee Calculation Examples 
 The quarterly fee
is calculated as follows: 
 Multiply (1) by (2) by (3), where: 
  

	1)	is Withdrawal Base 

  

	2)	is rider fee percentage 

  

	3)	is number of days in the Rider Quarter divided by the number of days within the applicable Rider Year 

 The fee
adjustment for additional Premium Payments and Excess Withdrawals is calculated as follows: Multiply (1) by (2) by (3), where: 
  

	1)	is Withdrawal Base change (i.e. Withdrawal Base after the transaction minus the Withdrawal Base before the transaction) 

  

	2)	is rider fee percentage 

  

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

The following two examples use assumed fees and values. The assumed Rider Year is not a leap year. 

Example 1: Calculation at rider issue for first quarter fee assuming an initial Withdrawal Base of $100,000 and an initial fee percentage of 1.50%.

 = 100,000 * 0.0150 * (91/365) 
 = 1,500 * (91/365) 

= $373.97 
 Example 2: Calculation for first quarter fee
assuming initial Withdrawal Base from Example 1 above, plus adjustment for additional Premium Payment of $10,000 made with 20 days remaining in the first Rider Quarter. The Withdrawal Base change and total transaction amount equal $10,000. 

Fee adjustment as follows: 
 = 10,000 * 0.0150 * (20/365) 

= 150 * (20/365) 
 = $8.22 

  

					
	ICC16 RGMB510616(IS)	  	(A-3)	  	(Income-Single)

 APPENDIX 

Rider Fee Calculation Examples continued 
 Total fee
assessed at end of first Rider Quarter (assuming no further Rider Fee adjustments): 
 = 8.22 + 373.97 

= $382.19 
 The following two examples use assumed fees and
values. The assumed Rider Year is not a leap year. 
 Example 3: Calculation for second quarter fee at beginning of second Rider Quarter, assuming
Withdrawal Base of $110,000 and a fee percentage of 1.50%. 
 = 110,000 * 0.0150 * (91/365) 

= 1,650 * (91/365) 
 = $411.37 

Example 4: Calculation for second quarter fee assuming beginning values as in Example 3 above, plus adjustment for Gross Partial Withdrawal of $10,000
taken with 40 days remaining in the second Rider Quarter. Assumes withdrawal percentage of 5%, Policy Value of $93,500 prior to the transaction and change in Withdrawal Base as follows: 

Rider Withdrawal Amount (RWA) = Withdrawal Base * Withdrawal Percentage = $110,000 * .05 = $5,500 

Excess Withdrawal = Difference between Gross Partial Withdrawal and RWA = $10,000 - $5,500 = $4,500 

Withdrawal Base Adjustment = Max (Excess Withdrawal, Excess Withdrawal * Withdrawal Base prior to withdrawal / Policy Value after RWA has been withdrawn but
before Excess Withdrawal) = Max [$4,500, $4,500 * $110,000 / ($93,500-$5,500)] = Max ($4,500, $5,625) = $5,625 
 Fee adjustment as follows: 

= -5,625 * 0.0150 * (40/365) 
 = -84.38 * (40/365) 

= $-9.25 
 Total fee assessed at end of second Rider Quarter
(assuming no further Rider Fee adjustments): 
 = 411.37 – 9.25 

= $402.12 
 The new Withdrawal Base = $110,000 - $5,625 =
$104,375 

  

					
	ICC16 RGMB510616(IS)	  	(A-4)	  	(Income-Single)

  

							
	

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

 [TRANSAMERICA INCOME EDGE] RIDER 

GUARANTEED LIFETIME WITHDRAWAL BENEFIT 

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

The purpose of this guaranteed living benefit provided under this annuity rider is to provide security through a stream of income payments to the Owner.
The guaranteed living benefit rider will terminate upon assignment or change in ownership of the policy unless the new assignee or Owner meets the qualifications specified in Article III on page 4 of this rider. 

You may cancel this rider before midnight of the thirtieth calendar day after You receive it and no Rider Fees will be assessed. Upon cancellation, all
Policy Value in the Stable Account will be transferred to the Money Market Subaccount available in Your policy. 
 RIDER DATA
SPECIFICATION 
  

											
		 	 Policy Number:  
	  	 	  	12345	  	 	  	
		 	 Rider Date:  
	  		  	07-01-2016	  	 	  	
		 	 Initial Rider Fee Percentage*:  
	  	 	  	1.50%	  	 	  	

  

																																																													
	 	 	Required Allocations	 
	 	 	Premium	 	  	 	 	  	Rebalance	 
	 	 	Minimum	 	  	 	 	  	Maximum	 	  	 	 	  	Minimum	 	  	 	 	  	Maximum	 
	 Stable Account:  
	 	 	 	 	  	 	20%	  	  	 	 	 	  				  	 	 	 	  	 	20%	  	  	 	 	 	  				  				  	 	N/A	  	  				  				  				  	 	N/A	  	  			
	 Select Investment Options:  
	 				  	 	20%	  	  			 	  				  				  	 	80%	  	  			 	  				  	 	 	 	  	 	25%	  	  	 	 	 	  				  	 	 	 	  	 	100%	  	  	 	 	 
	 Flexible Investment Options:  
	 	 	 	 	  	 	0%	  	  	 	 	 	  				  	 	 	 	  	 	60%	  	  	 	 	 	  				  	 	 	 	  	 	0%	  	  	 	 	 	  				  	 	 	 	  	 	75%	  	  	 	 	 
	 Guaranteed Minimum Effective Annual Interest Rate for Stable
Account:  
	 	 	[0.25%]	  	  				  				  				  				  				  				  				  				  				  				  				  			
	 Annuitant:  
	 	 	[John Doe]	  	  				  				  				  				  				  				  				  				  				  				  				  			
	 Annuitant’s Issue Age/Sex:  
	 	 	[35 / Male]	  	  				  				  				  				  				  				  				  				  				  				  				  			
	 Annuitant’s Spouse:  
	 	 	[Jane Doe]	  	  				  				  				  				  				  				  				  				  				  				  				  			
	 Annuitant’s Spouse’s Issue Age/Sex:  
	 	 	[35 / Female]	  	  				  				  				  				  				  				  				  				  				  				  				  			
	 Minimum Benefit Age:  
	 	 	[59]	  	  				  				  				  				  				  				  				  				  				  				  				  			

  

	*	The initial rider fee percentage is for the life of the rider, provided there are no automatic step-ups. When an automatic step-up occurs, the rider fee percentage will never be increased by more than [0.75%] greater
than the initial rider fee percentage shown above. Therefore, the maximum rider fee percentage will never be greater than the initial rider fee percentage, plus [0.75%]. 

Guaranteed Lifetime Withdrawal Benefit: The withdrawal percentage is used to determine the Rider Withdrawal Amount as described in Article III of this
rider. The withdrawal percentages are shown in the table below. 
 Withdrawal Percentage 

 

																																													
	 Attained Age
	  	 	  	
[Rider Years 1-5]
	 	  	 	  	
[Rider Years 6-10]
	 	  	 	  	 [Rider Years 11+]
	 
	 	  	0-58	  	 	  		  		  	 	0.0%	  	  				  		  				  	 	0.0%	  	  				  		  				  	 	0.0%	  	  			
	 	  	59-64	  	 	  		  	 	  	 	3.5%	  	  	 	 	 	  		  	 	 	 	  	 	4.5%	  	  	 	 	 	  		  	 	 	 	  	 	5.5%	  	  	 	 	 
	 	  	65-79	  	 	  		  		  	 	4.5%	  	  			 	  		  				  	 	5.5%	  	  			 	  		  				  	 	6.5%	  	  			 
	 	  	80+	  	 	  		  	 	  	 	5.5%	  	  	 	 	 	  		  	 	 	 	  	 	6.5%	  	  	 	 	 	  		  	 	 	 	  	 	7.5%	  	  	 	 	 

  

					
	ICC16 RGMB510616(IJ)	  	(1)	  	(Income-Joint)

 ARTICLE I 

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

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

Flexible Investment Options 
 A designated group of
Investment Options identified by us to which You must allocate a portion of Your Premium Payments and Policy Value as shown in the Rider Data Specification section and as described in Article II. You will be notified if there are changes made to the
Investment Options within the designated group. 
 Gross Partial Withdrawal 

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

Rider Anniversary 
 The anniversary of the rider date.

 Rider Fee 
 The fees charged for the benefits under
this rider. 
 Rider Quarter 
 Each successive
three-month period beginning on the rider date. 
 Rider Withdrawal Amount 

The maximum amount that can be withdrawn from the policy each Rider Year without causing an Excess Withdrawal under the terms of this rider and thus reducing
the Withdrawal Base. This amount will change if the Withdrawal Base or Withdrawal Percentage changes. 
 Rider Year 

Each twelve-month period following the rider date. 
 Stable
Account 
 The Stable Account is a Fixed Account Option under Your policy, only available if You elect this rider, to which You must allocate a portion
of Your Premium Payments and Policy Value shown in the Rider Data Specification section. Allocations applied to the Stable Account will be credited interest based on a fixed rate. The interest rates will be credited for increments of at least one
year measured from each Premium Payment date and will automatically renew and remain in the Stable Account. These rates will never be less than the Guaranteed Minimum Effective Annual Interest Rate shown in the Rider Data Specification section.
Withdrawals, Surrenders, or Transfers (upon termination) from the Stable Account will not be subject to an Excess Interest Adjustment. 
 Select
Investment Options 
 A designated group of Investment Options identified by us to which You must allocate a portion of Your Premium Payments and Policy
Value shown in the Rider Data Specification section and as described in Article II. You will be notified if there are changes made to the Investment Options within the designated group. 

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

  

					
	ICC16 RGMB510616(IJ)	  	(2)	  	(Income-Joint)

 ARTICLE II 

REQUIRED ALLOCATIONS 
 If You elect this rider, a certain
percentage of Your Policy Value on the rider date must be allocated to the Stable Account, the Select Investment Options and the Flexible Investment Options, as specified for premiums in the Required Allocations shown on page 1, in the Rider Data
Specification section. Any transfers to and from the Select Investment Options and Flexible Investment Options will be validated using the prior day’s Policy Values to ensure compliance as specified for rebalancing in the Required Allocations
shown on page 1, in the Rider Data Specification section, at the time of the request. Changes in Policy Values due to market movements on other dates will not be treated as a violation of the Required Allocations. After the rider date, the
allocation of all Premium Payments made (and any Premium Enhancements, if applicable to Your policy) must also comply with the Required Allocations, so long as this rider is effective. 

Transfers to and from the Stable Account are not permitted. Withdrawals from the Stable Account are not permitted until all other Investment Options are
depleted of value. Withdrawals from the Flexible Investment Options and Select Investment Options will be deducted on a pro-rata basis. If You do not wish to maintain the Required Allocations shown on page 1, in the Rider Data Specification section,
this rider must be terminated, subject to the restrictions and requirements as described in Article IV, prior to making any transfer. 
 Enrollment in
Dollar Cost Averaging is not available while this rider is in effect. 
 REBALANCING 

While this rider is effective, quarterly Rebalancing is required and will take place at the end of each successive Rider Quarter on the same date Your Rider
Fee is deducted. If the day Rebalancing takes place is not a Market Day, the value of accumulation units redeemed or purchased due to Rebalancing will be determined as of the next Market Day. We will automatically transfer amounts among Subaccounts
according to the most recent rebalancing allocation instructions on file that comply with the Required Allocations for Rebalancing as shown on page 1, in the Rider Data Specification section. On the rider date, Your rebalancing allocation
instructions will be established by applying a ratio of Your current investment allocation instructions for new premium. Because the Stable Account is not included in the quarterly rebalancing process and whole percentages are required, it may be
necessary for the company to make adjustments (positive or negative) to the calculated rebalance allocation percentages to accommodate for rounding to the nearest whole percent. Adjustments needed will be applied to the Select Investment Options and
Flexible Investment Options individually to ensure the requirements for each designated group are met. Any adjustments will first be made to the Subaccount with the greatest percentage allocation. If more than one Subaccount has the greatest
percentage allocation, the adjustment will be divided equally among those Subaccounts with the greatest percentage allocation. If the adjustment cannot be divided equally, we will make adjustments in alphabetical order to the Subaccount(s) with the
greatest percentage allocation. You will be notified in writing of the calculated rebalance allocation percentages prior to the first quarter Rebalancing. You may request changes to Your rebalancing allocation instructions while this rider remains
effective as long as they comply with the required rebalance allocations. Rebalancing will not cease upon the request of any transfer. 
 Please see the
Appendix attached to this rider which illustrates the initial calculation of rebalancing allocation percentages as well as the rebalancing process. 

RIDER FEE 
 The Rider Fee is deducted at the end of each
successive Rider Quarter, on the same day of the month as the rider date. If a day does not exist in a given month, the first day of the following month will be used. If a Rider Fee is deducted from the Separate Account on a day which is not a
Market Day, the value of accumulation units redeemed will be determined as of the next Market Day. The Rider Fee is calculated and stored at issue and at each subsequent Rider Quarter for the upcoming quarter. It will be deducted automatically from
Flexible Investment Options and Select Investment Options, on a pro rata basis at the end of each Rider Quarter. After those Investment Options are depleted of value, the Rider Fee will be deducted from the Stable Account. The initial rider fee
percentage is shown and the maximum rider fee percentage is described on page 1, in the Rider Data Specification section. The rider fee percentage will not change during the first Rider Year, and will only change thereafter due to an automatic
step-up. You will be notified of any increase in the rider fee percentage. If this rider is terminated prior to the end of a Rider Quarter, a portion of the Rider Fee will also be deducted based on the number of days that have elapsed since the end
of the previous Rider Quarter. 
 The quarterly Rider Fee is calculated as follows: 

Multiply (1) by (2) by (3), where: 
  

	1)	is Withdrawal Base; 

  

	2)	is rider fee percentage; 

  

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

  

					
	ICC16 RGMB510616(IJ)	  	(3)	  	(Income-Joint)

 ARTICLE II CONTINUED 

The stored fee will be adjusted if the Withdrawal Base is adjusted during the Rider Quarter. The fee adjustments are calculated as follows: 

Multiply (1) by (2) by (3), where: 
  

	1)	is the change in Withdrawal Base; 

  

	2)	is rider fee percentage; 

  

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

Please see the Appendix attached to this rider which illustrates how the Rider Fee is calculated. 

ARTICLE III 
 GUARANTEED LIFETIME WITHDRAWAL
BENEFIT 
 Under this rider, we guarantee that You can receive up to the Rider Withdrawal Amount each Rider Year, regardless of the Policy Value, (first
as withdrawals from Your Policy Value and, if necessary, as payments from us) until the Annuitant’s or the Annuitant’s spouse’s death, whichever is later. The Annuitant’s spouse as of the rider date is hereafter referred to as
the Annuitant’s spouse. As it pertains to the benefits of this rider, the Annuitant’s spouse cannot be changed. The Annuitant’s spouse must be the sole primary beneficiary and/or a joint Owner on the policy to which this rider is
attached. The only living Owners allowed on the policy to which this rider is attached are the Annuitant and the Annuitant’s spouse. This rider requires the Annuitant to also be an Owner, except in the case of non-natural Owners. Such
non-natural Owners must be established for the benefit of the Annuitant. Once this rider is issued the Annuitant cannot be changed, except when the underlying Individual Retirement Annuity (IRA) policy is transferred pursuant to a divorce, or a
surviving spouse continues the policy pursuant to the Continuation provision in Article IV. In the event of a divorce, this rider will continue during the life of the Annuitant provided the Annuitant remains an Owner. Upon divorce, the Annuitant and
former spouse may also mutually agree to remove the former spouse as joint Owner or primary beneficiary and by doing so will forfeit any benefits for the former spouse. 

Withdrawals will reduce the Policy Value and death benefit of the policy to which this rider is attached. If the Policy Value equals zero, You cannot make
subsequent Premium Payments and all other policy features, benefits and guarantees are no longer available. Also, if the Policy Value equals zero and the rider remains inforce, we will, unless instructed otherwise, make payments using the current
payment instructions on file with us equal to the Rider Withdrawal Amount divided by the frequency of payments. If the younger of the Annuitant or Annuitant’s spouse has attained the minimum benefit age and a systematic payout option is not
active at the time the Policy Value equals zero, a monthly payment will begin. If the minimum benefit age has not been attained, the monthly payment will begin on the Rider Anniversary following the attainment of the minimum benefit age. Once the
payment amount and frequency are established, they cannot be changed and no additional withdrawals will be allowed. Furthermore, any remaining Minimum Required Cash Value will be paid on the later of the Annuitant’s or Annuitant’s
spouse’s death. We have the right to require satisfactory evidence a person is alive if payment is based on that person being alive. 
 While this
rider is in-force, we will not invoke the Involuntary Cashout provision of the policy to which this rider is attached if this rider has a Withdrawal Base of $2,000 or greater. 

WITHDRAWAL PERCENTAGE 
 The Withdrawal Percentage is used
to calculate the Rider Withdrawal Amount. The percentage is determined using the number of Rider Years and the attained age (age at last birthday) of the younger of the living spouses at the time of the first withdrawal of any amount from the Policy
Value taken on or after the Rider Anniversary following the younger of the living spouse’s attainment of the minimum benefit age. Once the Withdrawal Percentage is established, it may only be changed by an automatic step-up. Upon automatic
step-up, the Withdrawal Percentage will be reset based on using the number of Rider Years and the attained age of the younger of the living spouses at the time of the automatic step-up. The Withdrawal Percentages are shown in the table in the Rider
Data Specification section. 
 If the younger of the Annuitant and the Annuitant’s spouse is not yet the minimum benefit age on the rider date, the
Withdrawal Percentage will be zero until the Rider Anniversary following the younger of the living spouse’s birthday in which they attain the minimum benefit age. Withdrawals prior to age 59 1/2 may be subject to the IRS 10% early withdrawal
penalty. 

  

					
	ICC16 RGMB510616(IJ)	  	(4)	  	(Income-Joint)

 ARTICLE III CONTINUED 

RIDER WITHDRAWAL AMOUNT 
 The Rider Withdrawal Amount will
be equal to the greater of: 
  

	1)	The withdrawal percentage multiplied by the Withdrawal Base; or 

  

	2)	An amount equal to the minimum required distribution amount, if any. The minimum required distribution is calculated based on the rules established by the IRS. The minimum required distribution may only be used if all
of the following are true: 

  

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

  

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

  

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

 

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

  

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

  

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

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

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

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

WITHDRAWAL BASE 
 The Withdrawal Base is used to calculate
the Rider Withdrawal Amount and the Rider Fee. On the rider date, the Withdrawal Base is equal to the Policy Value (less any premium enhancements, if applicable to Your policy, if the rider is added in the first Policy Year). During any Rider Year,
the Withdrawal Base is increased by subsequent Premium Payments (not including premium enhancements, if applicable to Your policy), and is reduced for Excess Withdrawals. 

On each Rider Anniversary, the Withdrawal Base will be set to the greater of: 
  

	 	1)	The current Withdrawal Base; or 

  

	 	2)	The Policy Value on the Rider Anniversary. 

 AUTOMATIC STEP-UP FEATURE 

The rider receives an automatic step-up if the Withdrawal Base is equal to the Policy Value on the Rider Anniversary. This feature does not require the
termination of the existing rider. This rider will continue with the same rider date and features. The rider fee percentage and withdrawal percentage may be changed due to an automatic step-up. Beginning with the [first] Rider Anniversary, the rider
fee percentage may be increased if there is an automatic step-up, but will not exceed the maximum rider fee percentage described in the Rider Data Specification section. 

You have the right to reject an automatic step-up within [30] days following a Rider Anniversary, if the rider fee percentage increases. If You reject an
automatic step-up, You must notify us in a manner which is acceptable to us, however You are eligible for future automatic step-ups. Changes as a result of the automatic step-up feature will be reversed upon rejection. Any increase in the rider fee
percentage or withdrawal percentage will also be reversed. 
 WITHDRAWAL BASE ADJUSTMENTS 

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

 

	1)	is the Excess Withdrawal amount; and 

  

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

  

					
	ICC16 RGMB510616(IJ)	  	(5)	  	(Income-Joint)

 ARTICLE III CONTINUED 
  

	 	A)	is the Excess Withdrawal amount; 

  

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

  

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

ISSUE AGE AND SURVIVAL 
 The benefits under this rider
depend on the Annuitant or Annuitant’s spouse being alive at the time of withdrawal and the amount of the benefit depends on the issue age of the Annuitant and Annuitant’s spouse. Proof of survival and the issue ages may be required by the
Company 
 If the younger of the spouses’ ages has been misstated, this rider’s fees and benefits will be adjusted to the amounts which would have
been calculated for the correct age. If withdrawals under the provisions of this rider have already commenced and the misstatement caused the Rider Withdrawal Amount to be overstated, any withdrawal in excess of the correct Rider Withdrawal Amount
will be considered an Excess Withdrawal and will impact the Withdrawal Base and Rider Withdrawal Amount. If overpayments occurred when the sum of the accumulated values in all the Investment Options was zero, the amount of that overpayment will be
deducted from one or more future payments until this amount is paid in full. 
 However, if this rider would not have been issued had the age not been
misstated, You will lose all of the benefits provided by this rider and any fees charged for this rider will be returned. Your current Policy Value will be re-allocated to Your current investment allocations for the Select Investment Options and
Flexible Investment Options, if any, as of the date we are notified of the misstatement of age. 
 ARTICLE IV 

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

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

TERMINATION 
 This rider will terminate upon the earliest
of: 
  

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

  

	2)	a change in ownership or assignment which violates the Owner and Annuitant relationship requirements as set forth in Article III; 

  

	3)	prior to Your Policy Value reaching zero, the date we receive, in Good Order, required information to process death claim upon the later of Annuitant’s or Annuitant’s spouse’s death; 

 

	4)	on or after Your Policy Value equals zero, and the later of the Annuitant’s or Annuitant’s Spouse’s date of death; 

  

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

  

	6)	the date You notify us in writing of Your intention to terminate this rider (this date must be within [30] days after the [fifth] Rider Anniversary or any [fifth] Rider Anniversary thereafter). 

Termination of the rider will result in the loss of all benefits provided by the rider. After termination, Rider Fees will no longer be assessed and
rebalancing will be stopped. Upon termination, all Policy Value in the Stable Account will be transferred to the Money Market Subaccount available in Your policy and no additional Premium Payments will be allowed into the Stable Account. 

  

					
	ICC16 RGMB510616(IJ)	  	(6)	  	(Income-Joint)

 ARTICLE IV CONTINUED 

REPORTS TO OWNER 
 We will give You a report at least once
each Policy Year. Before You are eligible to receive the Rider Withdrawal Amount, the report will direct You to contact the Company for information regarding Your Rider Withdrawal Amount. After You are eligible for Your Rider Withdrawal Amount, this
amount will be included in the report. 
 Signed for us at our home office. 

 

													
	 	 	

	 	 	  		 	 	  	

	 	 
		 	[Jay Orlandi]	 		  		 		  	[Blake Bostwick]	 	
		 	Secretary	 		  		 		  	President	 	

  

					
	ICC16 RGMB510616(IJ)	  	(7)	  	(Income-Joint)

 APPENDIX 

The following demonstrates, on a purely hypothetical basis, the rebalancing mechanics and quarterly fee calculations of this guaranteed lifetime withdrawal
benefit. The investment restrictions, rider fee percentages, and withdrawal percentages for Your rider may vary from the percentages used below. 

Rebalancing Examples 
 The following examples assume the
initial premium allocations listed in the table below, which we assume satisfy the premium investment requirements. 
  

									
	 	  	Initial Premium	 	  	Initial Premium	 
	 Investment Option Allocations:
	  	Allocations	 	  	Allocation Percentages	 
	 Stable Account
	  	$	 20,000	  	  	 	20	% 
	 Select Investment Option Fund A
	  	$	13,000	  	  	 	13	% 
	 Select Investment Option Fund B
	  	$	13,000	  	  	 	13	% 
	 Select Investment Option Fund C
	  	$	4,000	  	  	 	4	% 
	 Total Select Investment Options
	  	$	30,000	  	  	 	30	% 
	 Flexible Investment Option Fund A
	  	$	14,000	  	  	 	14	% 
	 Flexible Investment Option Fund B
	  	$	14,000	  	  	 	14	% 
	 Flexible Investment Option Fund C
	  	$	22,000	  	  	 	22	% 
	 Total Flexible Investment Options
	  	$	50,000	  	  	 	50	% 
		  	  
	  
	 	  	  
	  
	 
	 Total Investments
	  	$	100,000	  	  	 	100	% 

 Example 1: Calculation at rider issue for the rebalance allocations: 

The Stable Account portion of the Policy Value is not included in the quarterly Rebalance, therefore the rebalancing allocation percentages are calculated by
multiplying the initial premium allocation percentages for the Select Investment Options and Flexible Investment Options by a ratio. The ratio is calculated by taking 100%, divided by 100% less the Stable Account premium allocation percentage. The
ratio for this example would be 100% / (100%—20%) = 1.25. 
  

													
	 	  	 	 	  	 	 	 	Unrounded	 
	 	  	Initial Premium	 	  	Initial Premium	 	 	Rebalancing	 
	 Investment Option Allocations:
	  	Allocations	 	  	Percentages	 	 	Percentages	 
	 Stable Account
	  	$	20,000	  	  	 	20	% 	 	 	N/A	  
	 Total Select Investment Options
	  	$	30,000	  	  	 	30	% 	 	 	37.5	% 
	 Total Flexible Investment Options
	  	$	50,000	  	  	 	50	% 	 	 	62.5	% 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total Investments
	  	$	100,000	  	  	 	100	% 	 	 	100.0	% 

 Whole percentages are required for the rebalancing percentages and must sum up to equal 100%. To satisfy this requirement and
ensure the rebalance allocation requirement is met for each of the investment options, the sum of the Select Investment Options rebalancing percentage is rounded to the nearest whole percent (hereafter referred to as Select Rebalance Total) but no
less than the minimum allocation for rebalance. The Select Rebalance Total is deducted from 100% to get the total Flexible Investment Options rebalancing percentage (hereafter referred to as Flexible Rebalance Total). The Select Rebalance Total and
Flexible Rebalance Total percentages are the end result which will be achieved by the quarterly Rebalance. 
 Table 1 

 

									
	 	  	Unrounded	 	 	Rounded	 
	 	  	Rebalancing	 	 	Rebalancing	 
	 Investment Option Allocations:
	  	Percentages	 	 	Percentages	 
	 Stable Account
	  	 	N/A	  	 	 	N/A	  
	 Total Select Investment Options
	  	 	37.5	% 	 	 	38	% 
	 Total Flexible Investment Options
	  	 	62.5	% 	 	 	62	% 
		  	  
	  
	 	 	  
	  
	 
	 Total Investments
	  	 	100.0	% 	 	 	100	% 

  

					
	ICC16 RGMB510616(IJ)	  	(A-1)	  	(Income-Joint)

 APPENDIX 
 We
apply the same ratio and rounding to each individual investment option chosen and sum up the total Select and total Flexible Investment Options separately. The totals are compared to Select Rebalance Total and Flexible Rebalance Total to determine
where any adjustments need to be made. In the example below, adjustments will need to be made to the Select Investment Options to bring the total percentage up to 38% and the Flexible Investment Options down to 62%, per the result from Table 1.

 Table 2 
  

													
	 	  	 	 	  	 	 	 	Pre-Adjusted	 
	 	  	Initial Premium	 	  	Initial Premium	 	 	Rebalancing	 
	 Investment Option Allocations:
	  	Allocations	 	  	Percentages	 	 	Percentages	 
	 Stable Account
	  	$	 20,000	  	  	 	20	% 	 	 	N/A	  
	 Select Investment Option Fund A
	  	$	13,000	  	  	 	13	% 	 	 	16	% 
	 Select Investment Option Fund B
	  	$	13,000	  	  	 	13	% 	 	 	16	% 
	 Select Investment Option Fund C
	  	$	4,000	  	  	 	4	% 	 	 	5	% 
	 Total Select Investment Options
	  	$	30,000	  	  	 	30	% 	 	 	37	% 
	 Flexible Investment Option Fund A
	  	$	14,000	  	  	 	14	% 	 	 	18	% 
	 Flexible Investment Option Fund B
	  	$	14,000	  	  	 	14	% 	 	 	18	% 
	 Flexible Investment Option Fund C
	  	$	22,000	  	  	 	22	% 	 	 	28	% 
	 Total Flexible Investment Options
	  	$	50,000	  	  	 	50	% 	 	 	64	% 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total Investments
	  	$	100,000	  	  	 	100	% 	 	 	101	% 

 To get the total Select Investment Options rebalancing percent to equal 38%, we must add 1% to one of the funds. Any
adjustments will first be made equally to the fund(s) with the greatest allocation. If there are multiple funds with the greatest allocation and the adjustments cannot be divided equally, we will adjust in alphabetical order the fund(s) with the
greatest allocation. In the example below, we made the adjustment to the Select Invesment Option Fund A. 
 To get the total Flexible Investment Options
rebalancing percent to 62%, we must subtract 2% from one or more funds. Since there is only one fund with the greatest allocation, we have made the adjustment to the Flexible Investment Option Fund C. 

Table 3 
  

									
	 	  	Pre-Adjusted Rebalancing	 	 	Rebalancing	 
	 Investment Option Allocations:
	  	Percentages	 	 	Percentages	 
	 Stable Account
	  	 	N/A	  	 	 	N/A	  
	 Select Investment Option Fund A
	  	 	16	% 	 	 	17	% 
	 Select Investment Option Fund B
	  	 	16	% 	 	 	16	% 
	 Select Investment Option Fund C
	  	 	5	% 	 	 	5	% 
	 Total Select Investment Options
	  	 	37	% 	 	 	38	% 
	 Flexible Investment Option Fund A
	  	 	18	% 	 	 	18	% 
	 Flexible Investment Option Fund B
	  	 	18	% 	 	 	18	% 
	 Flexible Investment Option Fund C
	  	 	28	% 	 	 	26	% 
	 Total Flexible Investment Options
	  	 	64	% 	 	 	62	% 
		  	  
	  
	 	 	  
	  
	 
	 Total Investments
	  	 	101	% 	 	 	100	% 

 Example 2: Calculation for first quarter Rebalance: 

At the end of the first Rider Quarter, assume that the investment options have the following values: 

Table 4 
  

									
	 	  	 	 	  	Allocation Percentage	 
	 	  	Allocation Amounts	 	  	of Rebalancing Funds	 
	 Investment Option Allocations:
	  	Prior to Rebalance	 	  	Prior to Rebalance	 
	 Stable Account
	  	$	20,050	  	  	 	N/A	  
	 Select Investment Option Fund A
	  	$	13,090	  	  	 	17	% 
	 Select Investment Option Fund B
	  	$	11,550	  	  	 	15	% 
	 Select Investment Option Fund C
	  	$	3,850	  	  	 	5	% 
	 Total Select Investment Options
	  	$	28,490	  	  	 	37	% 
	 Flexible Investment Option Fund A
	  	$	13,090	  	  	 	17	% 
	 Flexible Investment Option Fund B
	  	$	14,630	  	  	 	19	% 
	 Flexible Investment Option Fund C
	  	$	20,790	  	  	 	27	% 
	 Total Flexible Investment Options
	  	$	48,510	  	  	 	63	% 
		  	  
	  
	 	  	  
	  
	 
	 Total Investments
	  	$	97,050	  	  	 	100	% 

  

					
	ICC16 RGMB510616(IJ)	  	(A-2)	  	(Income-Joint)

 APPENDIX 

The result of the Rebalance back to the rebalancing percentages from Table 3 is: 

Table 5 
  

													
	 	  	 	 	  	Allocation Percentage	 	 	Allocation Percentage	 
	 	  	Allocation Amounts	 	  	of Rebalancing Funds	 	 	of Policy Value	 
	 Investment Option Allocations:
	  	After Rebalancing	 	  	After Rebalance	 	 	After Rebalance	 
	 Stable Account
	  	$	20,050	  	  	 	N/A	  	 	 	21	% 
	 Select Investment Option Fund A
	  	$	13,090	  	  	 	17	% 	 	 	13	% 
	 Select Investment Option Fund B
	  	$	12,320	  	  	 	16	% 	 	 	13	% 
	 Select Investment Option Fund C
	  	$	3,850	  	  	 	5	% 	 	 	4	% 
	 Total Select Investment Options
	  	$	29,260	  	  	 	38	% 	 	 	30	% 
	 Flexible Investment Option Fund A
	  	$	13,860	  	  	 	18	% 	 	 	14	% 
	 Flexible Investment Option Fund B
	  	$	13,860	  	  	 	18	% 	 	 	14	% 
	 Flexible Investment Option Fund C
	  	$	20,020	  	  	 	26	% 	 	 	21	% 
	 Total Flexible Investment Options
	  	$	47,740	  	  	 	62	% 	 	 	49	% 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Total Investments
	  	$	97,050	  	  	 	100	% 	 	 	100	% 

 This rebalancing process will continue on a quarterly basis while this rider is in force. 

Rider Fee Calculation Examples 
 The quarterly fee
is calculated as follows: 
 Multiply (1) by (2) by (3), where: 
  

	1)	is Withdrawal Base 

  

	2)	is rider fee percentage 

  

	3)	is number of days in the Rider Quarter divided by the number of days within the applicable Rider Year 

 The fee
adjustment for additional Premium Payments and Excess Withdrawals is calculated as follows: Multiply (1) by (2) by (3), where: 
  

	1)	is Withdrawal Base change (i.e. Withdrawal Base after the transaction minus the Withdrawal Base before the transaction) 

  

	2)	is rider fee percentage 

  

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

The following two examples use assumed fees and values. The assumed Rider Year is not a leap year. 

Example 1: Calculation at rider issue for first quarter fee assuming an initial Withdrawal Base of $100,000 and an initial fee percentage of 1.50%.

 = 100,000 * 0.0150 * (91/365) 
 = 1,500 * (91/365) 

= $373.97 
 Example 2: Calculation for first quarter fee
assuming initial Withdrawal Base from Example 1 above, plus adjustment for additional Premium Payment of $10,000 made with 20 days remaining in the first Rider Quarter. The Withdrawal Base change and total transaction amount equal $10,000. 

Fee adjustment as follows: 
 = 10,000 * 0.0150 * (20/365) 

= 150 * (20/365) 
 = $8.22 

  

					
	ICC16 RGMB510616(IJ)	  	(A-3)	  	(Income-Joint)

 APPENDIX 

Rider Fee Calculation Examples continued 
 Total fee
assessed at end of first Rider Quarter (assuming no further Rider Fee adjustments): 
 = 8.22 + 373.97 

= $382.19 
 The following two examples use assumed fees and
values. The assumed Rider Year is not a leap year. 
 Example 3: Calculation for second quarter fee at beginning of second Rider Quarter, assuming
Withdrawal Base of $110,000 and a fee percentage of 1.50%. 
 = 110,000 * 0.0150 * (91/365) 

= 1,650 * (91/365) 
 = $411.37 

Example 4: Calculation for second quarter fee assuming beginning values as in Example 3 above, plus adjustment for Gross Partial Withdrawal of $10,000
taken with 40 days remaining in the second Rider Quarter. Assumes withdrawal percentage of 5%, Policy Value of $93,500 prior to the transaction and change in Withdrawal Base as follows: 

Rider Withdrawal Amount (RWA) = Withdrawal Base * Withdrawal Percentage = $110,000 * .05 = $5,500 

Excess Withdrawal = Difference between Gross Partial Withdrawal and RWA = $10,000 - $5,500 = $4,500 

Withdrawal Base Adjustment = Max (Excess Withdrawal, Excess Withdrawal * Withdrawal Base prior to withdrawal / Policy Value after RWA has been withdrawn but
before Excess Withdrawal) = Max [$4,500, $4,500 * $110,000 / ($93,500-$5,500)] = Max ($4,500, $5,625) = $5,625 
 Fee adjustment as follows: 

= -5,625 * 0.0150 * (40/365) 
 = -84.38 * (40/365) 

= $-9.25 
 Total fee assessed at end of second Rider Quarter
(assuming no further Rider Fee adjustments): 
 = 411.37 – 9.25 

= $402.12 
 The new Withdrawal Base = $110,000 - $5,625 =
$104,375 

  

					
	ICC16 RGMB510616(IJ)	  	(A-4)	  	(Income-Joint)fision_ex105.htm

EXHIBIT 10.5
 
EMPLOYMENT, CONFIDENTIALITY
AND NON-SOLICITATION AGREEMENT
 
THIS EMPLOYMENT, CONFIDENTIALITY AND NON-SOLICITATION AGREEMENT dated as of April 20, 2016 is by and between Fision Holdings, Inc., a Minnesota corporation, a wholly owned subsidiary of FISION Corporation (hereinafter “Company” or “FISION”) and Wade Anderson (“Employee” or “Anderson”), whose social security number is xxx-xx-xxxx.
 
WHEREAS, FISION desires to have the availability of Employee’s expertise in general and technology management and business leadership as an Employee; and
 
WHEREAS, Employee desires to be employed by Employer to provide such services; and
 
WHEREAS, Employer and Employee have reached this Agreement in good faith and in arm’s length negotiations, separate and apart from any other agreements.
 
NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual covenants set forth below, the parties hereto agree as follows:
 
1. Duration of Employment. Effective May 1, 2016, Employee is hired by FISION in the capacity of Chief Technology Officer (“CTO”) & Chief Product Officer (“CPO”) and shall remain employed until terminated as provided herein.
 
2. Duties of Employee. In accepting employment by FISION, Employee shall undertake and assume the responsibilities and duties as follows:
 
	 
	a.	Employee to perform in the function of Chief Technology Officer (“CTO”) & Chief Product Officer (“CPO”) of FISION effective officially as of May 1, 2016 on a full-time basis;
	 
	 
	 

	 
	b.	CTO/CPO to report to the Chief Executive Officer of FISION;
	 
	 
	 

	 
	c.	CTO/CPO has direct responsibility for all Fision platform/software development, architecture and completion, testing and acceptance of existing and future releases of the Fision platform, on-going maintenance of the Fision platform & related systems, successful daily operation, including resource identification and allocation of the FISION cloud based solution(s) in accordance with the collective input of the leadership team and final approval of the CEO and Board of Directors.
	 
	 
	 

	 
	d.	Employee to use best efforts in the maintenance and development of the FISION products, technology and services;
	 
	 
	 

	 
	e.	Employee to perform all responsibilities and duties in a professional manner;
	 
	 
	 

	 
	f.	Employee to promptly comply with all policies, rules and regulations that may be issued from time to time by FISION; and
	 
	 
	 

	 
	g.	Employee agrees to devote his best efforts and all necessary time, energy and efforts to the position set forth above. Employee will not engage in any consulting, freelance or part-time position or work without the prior written consent of FISION, which would limit in any respect Employee’s ability to devote time, energy and efforts as required herein. Such written consent shall not be unreasonably withheld by FISION. Notwithstanding the foregoing, Employee shall be entitled to perform non-competitive consulting and freelance work during evenings and weekends without the prior written consent of FISION, provided the same does not interfere with Employees normal job duties. The Employee shall also be free to serve on non-profit boards and do volunteer work without FISION’s prior written consent.

 
	 
	1

	

	 

 
3. Compensation. Employee’s compensation plan is set out in Addendum “A” attached hereto and by reference made a part hereof.
 
4. Additional Benefits. In addition to the compensation referred to in Section 3 above, Employee shall be entitled, during the term of this Agreement, to participate in the fringe benefits programs provided by Employer to its employees, including without limitation, participation in any medical, dental or other group health plans (including coverage for Employee’s immediate family) or accident benefits, disability benefits, life insurance benefits of a minimum policy of $500,000 payable to Employee’s designated beneficiaries (including key man insurance), pension or profit-sharing plans, shall be instituted by Employer, in its sole discretion, 401K matching program and health club membership, including Lifetime Fitness - Onyx Executive. Employee shall be entitled to and FISION agrees to grant Employee twenty (20) days of paid personal time off (PTO) per year. Such PTO shall be used for vacation, sick leave and all other non-working absences while employed by FISION. 
 
Any of the additional benefits referenced in this Section 4 and provided by Employer to its Employees may not be terminated or amended by Employer. In the event that any benefit referenced above is terminated or amended on a company-wide basis, such termination or amendment shall in no way affect Employee’s covenants, agreements and obligations pursuant to this Agreement.
 
In addition to the compensation and benefits set forth herein, FISION shall reimburse Employee for all reasonable and necessary business expenses incurred by Employee within the guidelines established, from time to time by the Officers of the Company. All approved business expenses and reimbursements will be paid to Employee after Employee submits a timely general expense report with supporting documents of actual expenses incurred.
 
5. Term and Termination of Employment. The employment of Employee is effective on the date set out in Paragraph 1 and shall remain in effect until terminated as set forth below. 
 
The term of the employment agreement shall be for an initial term of twenty-four (24) months. (the “Term”). On each anniversary date hereof following the Term, this Agreement shall automatically renew for an additional Term of one (1) year, unless the Company has notified the Employee in writing in accordance with this Section 5. below. Upon termination for any reason, Employee shall concurrently resign as an officer of the company. 
 
Upon termination for any reason, Employee would have up to 90 days from termination date to exercise any vested stock options. FISION would at its option also be able to repurchase any FISION stock owned by Employee at the then prevailing fair market value within 91 days of termination. At the time of termination, if there is a pending merger, sale, IPO or liquidation transaction, then Employee, at his option, may elect to have the fair market value be determined by the subsequent valuation at any time prior to the closing of such transaction.
 
A “for cause” termination by FISION shall be defined as: (a) violation of the Company’s Code of Conduct, or any policy prohibiting harassment, discrimination, disclosure of confidential information, alcohol or drug use, or retaliation, which is not corrected or remedied within thirty (30) days after a demand for performance has been delivered to Employee in writing, which writing must specify in reasonable detail the steps needed to correct the same and that failure to do so will result in a “for cause” termination of employment, in each case related to FISION or its business, (b) Employee’s conviction of a criminal offense that would be classified as a felony under the applicable criminal code or involving moral turpitude, dishonesty, or breach of trust, in which case no prior written notice shall be required, (c). Employee’s failure to satisfactorily perform Employee’s reasonably assigned and reasonably attainable duties (other than as a result of incapacity due to physical or mental condition) which failure is not corrected or remedied within thirty (30) days after a demand for performance has been delivered to Employee in writing, which writing must specify in reasonable detail the manner in which Employee is not performing Employee’s duties and the steps needed for the Employee to correct the same and that failure to do so will result in a “for cause” termination of employment.
 
	 
	2

	

	 

 
If the Company terminates employee not “for cause” as defined above, Employee shall be entitled to and FISION agrees to pay Employee the following severance pay based upon Employee’s base salary then in place as set forth on Addendum A hereto: A) after the first year anniversary of employment, six (6) month’s severance pay; B) after the second year anniversary of employment and each subsequent year thereafter, an additional two (2) month’s severance pay up to a maximum total severance of twelve (12) months. In the event of a change of control of the Company, the severance package to the Employee in the event of termination for any reason will be a minimum of twelve (12) months and up to fifteen (15) months, if earned by Employee as set forth above.
 
Those provisions of this Agreement which, by their terms, continue after termination of the engagement relationship (including, without limitation, paragraphs 6, 7, 8, 9 and 13) shall survive termination and remain in full force and effect. 
 
6. Confidential Information and Trade Secrets. Employee recognizes that Employee’s position with FISION is one of trust and confidence. During the course of Employee’s employment with FISION, Employee will become acquainted with confidential information relating to FISION’s business including, without limitation, information relating to FISION’s vendor relationships, to FISION’s business allies, to FISION’s customers, to FISION’s strategic and marketing plans, to FISION’s finances and pricing, to FISION’s software applications, and to FISION’s proprietary processes and methods of doing business. Employee understands and agrees that there is independent economic value in not having FISION’s confidential and proprietary information known to others in the industry.
 
Therefore, by accepting employment with FISION, Employee agrees to respect all confidences and not to, directly or indirectly, use any of FISION’s confidential or proprietary information for its own benefit or divulge any of FISION’s confidential or proprietary information to any third party. Employee further agrees to cooperate in all efforts to see that the confidentiality of the information with which Employee deals, and to which Employee has access, will be maintained. 
 
7. Inventions and Intellectual Property. Employee agrees that all copyrightable materials, trademarks, inventions, discoveries, designs, product developments, computer software, and any other intellectual property which are, or have been developed or conceived by Employee, either solely or jointly with others (a) in the course of performance of its duties on behalf of FISION, or (b) utilizing the equipment, supplies, facility or information of FISION, or (c) relating to, or capable of being used or adopted for use in connection with the business of FISION, shall inure to, and be the property of FISION. Any such copyrightable material, trademark, invention, discovery, design, product development, computer software, or other similar property must be promptly disclosed to FISION.
 
Employee agrees to execute such documents and provide such assistance as FISION may reasonably request in order to enable it (a) to apply for a copyright, registered design, registered trademark, patent, or other protection for any copyrightable material, trademark, invention, discovery, design, product development, computer software, or other similar property described above, or (b) to be vested with exclusive title, free and clear of any liens or encumbrances, to any such copyrights, trademarks, trade names, inventions, discoveries, designs, product developments, patents, and any similar property. If any such request for assistance occurs after termination of Employee's employment with FISION, Employee shall be entitled to reimbursement of all reasonable expenses incurred by it as a consequence of that assistance, including reimbursement for the value of its time at a reasonable hourly rate.
 
	 
	3

	

	 

 
NOTICE: This paragraph does not apply to a past or future invention for which (1) no equipment, supplies, facilities or trade secret information of FISION was used and (2) which was developed entirely on Employee's own time, and (3) which does not relate (i) directly to the business of FISION, or (ii) to FISION’s actual or demonstratively anticipated research or development and (4) which does not result from any work performed by Employee for FISION.
 
8. Non-Solicitation. In view of the unique value to FISION of the services to be performed by Employee, the Confidential Information to be acquired, obtained by or disclosed to Employee, and as a material inducement to FISION to enter into this Agreement and to pay and provide to Employee the compensation and benefits referred to in this Agreement, Employee covenants and agrees that, during the term of Employee’s employment with FISION, and for a period of one (1) year thereafter, Employee will not, on behalf of anyone other than FISION (including Employee);
 
(a) directly or indirectly solicit, contact, sell to, service, or assist in the solicitation, contact, sales or services to customers,, vendors, referral sources, or strategic allies of FISION with whom Employee had any contact during Employee’s engagement with FISION if that solicitation, contact, sales, or service, or assistance with solicitation, contract, or sales relates to a product or service which is offered by and is in competition with FISION, except for those customers, vendors, referral sources or strategic allies Employee is bringing to the Company as set forth on Addendum B hereto, or 
 
(b) directly or indirectly, induce, encourage, solicit, or assist in the inducement, encouragement, or solicitation of Employees, vendors, customers, or business allies to terminate their relationships with FISION. 
 
9. Breach of Covenants. The terms of paragraphs 6, 7 and 8 shall be enforceable in both law and equity, including by temporary restraining order or injunction, notwithstanding the existence of any claim or cause of action between the parties, whether predicated on this Agreement or otherwise. The parties agree that in the event of a breach by Employee of any of the terms of paragraphs 6, 7 and 8, FISION would suffer irreparable harm. In the event FISION brings any proceedings to enforce the provisions of paragraphs 6, 7 and 8 of this Agreement, the prevailing party shall be entitled to recover costs, including reasonable attorneys’ fees.
 
10. Waiver. The waiver by FISION of due performance of, or compliance with any provisions of this Agreement shall not operate or be construed as a waiver of its right to demand due performance or compliance by Employee thereafter.
 
11. Severability. In the event that any term or portion of this Agreement is determined to be invalid or unenforceable, the parties intend and agree that the remaining terms shall continue to be valid and enforceable in all respects. Moreover, the parties intend and agree that the non-solicitation provisions of paragraph 8 of this Agreement may be judicially modified so as to make them enforceable should a court believe that they are overbroad in any respect.
 
12. Assignment and Modification. The rights and obligations of FISION under this Agreement shall inure to the benefit of, and be binding upon the successors and assigns of FISION. The rights and obligations of Employee under this Agreement, however, shall not be assigned to others. 
 
13. Arbitration. This Agreement is deemed to have been made in the State of Minnesota and shall be interpreted pursuant to Minnesota law. The parties shall make good faith efforts to work through any disputes over the language or intent of this Agreement or over the performance of obligations hereunder. However, any unresolved disputes arising from, or relating to this Agreement or the relationship between the parties shall be resolved through binding arbitration conducted under the auspices of the American Arbitration Association at its Minneapolis, Minnesota office. The parties shall equally split the cost of any arbitration but the arbitrator is empowered to award to the prevailing party reimbursement of those costs and other reasonable attorney’s fees and costs related to the arbitration. The existence of this arbitration clause shall not prevent FISION from initiating suit to seek injunctive relief in the manner contemplated in paragraph 9 above. However, any damage claim, including damage claims arising from the same alleged breach, which resulted in a suit for injunctive relief, shall be resolved through binding arbitration. Either party shall be entitled to docket an arbitration award in any court of competent jurisdiction. 
 
	 
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14. Governing Law. The parties agree that this Agreement has been executed in the State of Minnesota and shall be governed in all respects by the laws of said state.
 
15. Entire Agreement. This document contains the entire agreement of the parties relating to the subject matter hereof. No waiver, change or modification of any of the terms hereof shall be binding on either party unless executed in a writing signed by both parties.
 
16. Opportunity to Review. Employee acknowledges that Employee has had the opportunity to review this Agreement, and to have Employee’s attorney, if Employee is represented by any such attorney, do the same, before executing the Agreement. The Agreement accurately recites the product of negotiations between the parties.
 
17. Good Faith. The parties hereto shall exercise good faith in the undertaking of all the duties, obligations, rights and responsibilities set forth herein.
 
IN WITNESS WHEREOF, the parties hereto have executed this Agreement, intending to be bound hereby.
 
	 
	FISION Holdings, Inc.
	 

	 	 	 	 
		By:		
	 
	 
		 
	 	Its:		 
	 	 	 	 
	 
	EMPLOYEE: 
	 

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Wade Anderson
	 

 
	 
	5

	

	 

 
ADDENDUM
 
THIS ADDENDUM, is effective April 20, 2016, by and between FISION Holdings, Inc., a Minnesota corporation (hereinafter “FISION” or “Company”) and Wade Anderson (hereinafter “Employee”).
 
WHEREAS, this Addendum is fully incorporated into the EMPLOYMENT, CONFIDENTIALITY AND NON-SOLICITATION AGREEMENT effective May 1, 2016 (“Agreement”) between FISION and Employee and specifically addresses Employee’s compensation and benefits per Sections 3 and 4 of that Agreement.
 
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereby agree to as follows:
 
	1.	BASE SALARY COMPENSATION - Effective May 1, 2016, Employee shall be paid a base salary compensation of SIXTEEN THOUSAND SIX HUNDRED SIXTY SIX DOLLARS AND 67/100 ($16,666.67) per month in accordance with the Company’s payroll policy, if any. 

 
		·	Employee will earn compensation of SIXTEEN THOUSAND SIX HUNDRED SIXTY SIX DOLLARS AND 67/100 ($16,666.67) per month, ($200,000 annually).
		 
	 

		·	Future increases in base salary compensation shall be reviewed at least annually for potential increase relative to company performance and compensation levels at comparative companies.

 
	2.	PAID-TIME-OFF and OTHER BENEFITS - FISION agrees to grant Employee twenty (20) days of paid personal time off (PTO) per year, vested in advance with accruals for unused PTO, from the original start date. Such PTO shall be used for vacation, sick leave and all other non-working absences from FISION. Employee will be eligible to participate in all other company benefits available to any other FISION employee. Upon termination of employment, Employee shall receive payment for any earned and unused PTO.
	 
	 

	3.	FISION BONUS, STOCK AWARDS,STOCK OPTIONS AND COMMISSIONS - Employee will receive performance pay bonuses, up to $60,000.00 annually, bringing Employee’s total gross base salary and bonus compensation to a target of $260,000. The foregoing bonus compensation will be paid quarterly. Within the first month of employment, Employee and the CEO will jointly determine and memorialize in writing a performance bonus program for Employee based on milestones achieved, both individually and the company meeting its goals. Employee will also earn an additional sales commission of 5% of any recurring revenue for new customers identified by Employee, of the initial contract length, up to three (3) years.
	 
	 

		FISION also awards to Employee 1,600,000 stock options, to be vested over four years, with a quarterly vesting schedule, after an initial six-month period, with a strike price of $0.35 per share, as long as Anderson is an employee of the Company, to purchase common stock of the Company, as detailed in the non-qualified stock option agreement provided herewith. On each year end, based on company performance and C-level position, Employee shall receive a grant of stock options based on agreement from the Board of Directors. Employee will also have a cashless provision upon the exercise of any stock option granted to Employee. In addition to the foregoing, FISION also awards to Employee 50,000 common shares of stock as a signing bonus.
	 
	 

	4.	TERMINATION OF ADDENDUM - This Addendum shall terminate upon execution of a new Addendum A or by termination of the Agreement and any extensions.

 
IN WITNESS WHEREOF, the parties have made and entered into this Addendum effective as of the date first written above.
 
	EMPLOYEE:	 	FISION HOLDINGS, INC. 	 
		 
	 
	 
	 
	 

	By:		 	By:		 
	 
	Wade Anderson 
	 
	 
	 
	 

			 	Title:		 
	 
	 
	 
	 
	 
	 

	Date:		 	Date:		 

 
 
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