Document:

EXH 10.2 Retention Award Agreement

Exhibit 10.2

GLOBAL HEADQUARTERS
530 Herman O. West Drive ∙ Exton, PA  19341
TEL 610-594-3327 ∙ FAX 610-594-3013
rick.luzzi@westpharma.com
RICHARD D. LUZZI                 
Senior Vice President, Human Resources        

April 24, 2015

Eric M. Green

Re:    Sign-On Retention Award
Dear Eric:
Pursuant to your Employment Agreement with the Company (“Employment Agreement”), the Compensation Committee of the Board approved an award under the 2011 Omnibus Incentive Compensation Plan (the “Plan”) to be made on April 24, 2015.  As used herein, the terms “Cause,” “Good Reason,” “Release Agreement,” and “Initial Term” have the meanings set forth in the Employment Agreement. 
	
			
	AWARD TYPE
	VALUE
	NUMBER OF SHARES

	 
	 
	 

	Retention Cash:
	$500,000
	N/A

	 
	 
	 

	Retention Options:
	$1,750,000
	164,320

	 
	 
	 

	Retention Shares:
	$1,750,000
	30,499

	 
	 
	 

	TOTAL
	$4,000,000
	194,819

The expected value is calculated using the fair market value and Black-Scholes option value on the date of the award.  The awards were made under the Plan.  We have attached a summary of the terms of your awards.  Please read it carefully.

I am pleased that you are a participant in this long-term incentive compensation program and trust that your participation will be beneficial to both you and the Company.

Sincerely,

/s/ Richard D. Luzzi            

Enclosures

Summary of Your Retention Cash

What is the value of the Retention Cash?

The total value of the Retention Cash is fixed.  It is $500,000.

When does the Retention Cash become vested?

The Retention Cash becomes vested on October 24, 2015, the date which is six months following your start date with the Company assuming you remain employed by the Company on that date.  The Retention Cash will also become immediately vested if your employment is terminated by the Company without Cause, you terminate for Good Reason, you die or you become disabled, provided that, in the case of termination by the Company without Cause or by you for Good Reason, you execute a Release Agreement.

When will the Retention Cash be paid?

The Retention Cash will be paid on the first normal pay date following the date that it becomes vested as described above.

When will the Retention Cash be forfeited?

The Retention Cash is forfeited immediately if you are terminated for Cause or you terminate employment with the Company for other than Good Reason.

Summary of Your Retention Options

What is a stock option?

A stock option is the right to purchase a fixed number of shares at a set exercise price.  The option granted by this award is a non-qualified stock option.  The stock option gains value when the price of our common stock exceeds the exercise price. 

How many shares may I purchase and what is the price?

The number of shares you may purchase and the exercise price are as follows:

	
			
	Exercise Price
	 
	Total shares that may be purchased upon exercise

	 
	 
	 

	$ 57.38
	 
	164,320

May I purchase the shares immediately?

No.  So long as your employment with us continues (except as described below), your Retention Option becomes exercisable - or “vests” - as per the schedule below.  At the end of the period, you may exercise the entire Retention Option.  

The following chart shows when and what portion of your option is exercisable each year.
	
		
	Date
	Portion of the Retention Option exercisable

	 
	 

	Hire date (grant date)
	0

	 
	 

	April 24, 2018
	93,897

	 
	 

	April 24, 2020 and thereafter
	164,320

However, in no event will your Retention Option be exercisable after the Expiration Date set forth below.

Will my Retention Options vest if I terminate employment?

Your Retention Options may become vested, depending on the reason for your termination.  Your Retention Options will not become vested if you are terminated by the Company with Cause or you terminate employment with the Company without Good Reason.  Subject to your execution of a Release Agreement, 93,897 of the Retention Options will vest immediately if you are terminated by the Company without Cause or you terminate employment for Good Reason before April 24, 2018.   The remaining 70,423 will be forfeited in the event of any termination of employment before April 24, 2020 for any reason other than death or disability.  For the avoidance of doubt, any notice to you by the Company of its intention not to renew the Employment Agreement beyond the Initial Term under Section 1 of the Employment Agreement shall not, in itself, preclude you from satisfying the April 24, 2018 vesting date requirement, provided you remain employed by the Company on the last day of the Initial Term and otherwise satisfy the eligibility requirements for this award.

Will my Retention Options vest if I die or become disabled?

Yes.  If you die or become disabled before the Retention Options are 100% vested, you will immediately become vested in any unvested portion of the Retention Options.  

When will my Retention Option expire?

If you remain employed, the Retention Option expires on the tenth anniversary of the grant date, which will be referred to as the “Expiration Date.”  This means that once it becomes exercisable, the Retention Option may be exercised until April 23, 2025.  In addition,

		
	•
	if you die, the Retention Option will remain exercisable for one year from your date of death;

		
	•
	if you terminate employment due to disability, the Retention Option will remain exercisable until the Expiration Date;

		
	•
	if your employment terminates for any reason other than a disability, death or termination for Cause, the Retention Option will expire 90 days after the termination date;

		
	•
	if we terminate your employment for Cause, the Retention Option will expire on the commencement of business on your date of termination.

How do I exercise my stock option?

There are four ways to exercise a stock option.
		
	•
	Cash.  You write a check to the Company for the exercise price, plus any applicable withholding taxes.

		
	•
	Already owned shares.  You may deliver or attest vested shares of common stock that you own with a fair market value equal to the exercise price, plus any applicable withholding taxes.

		
	•
	Combination of shares and cash.  You may use a combination of cash and stock.

		
	•
	Reduction of proceeds.  You may elect to have shares you would otherwise receive upon the exercise reduced by an amount equal to the total exercise cost divided by the fair market value of the shares at the time of your exercise.  In effect, you would receive the “net” shares otherwise due to you after deducting for the exercise cost, plus applicable withholding taxes.

When do I have to pay for the exercise?
The full exercise price and applicable taxes must be paid within three days of exercise.
Will I receive dividends on my unexercised options?
No.  Dividends are only payable to you after you exercise your option as long as you do so before the applicable dividend record date.
Summary of Your Retention Shares
What is a Retention Share?
Your Retention Shares are shares of time-vested restricted stock issued under the Plan.
Are the Retention Shares immediately vested?
No.  So long as your employment with us continues (except as described below), your retention shares vest - as per the schedule below.  
	
		
	Date
	Portion of the Retention Shares that are vested

	 
	 

	Hire date (grant date)
	0

	 
	 

	April 24, 2018
	17,428

	 
	 

	April 24, 2020 and thereafter
	30,499

Will my Retention Shares vest if I terminate employment?

Your Retention Shares may become vested, depending on the reason for your termination.  Your Retention Shares will not become vested if you are terminated by the Company with Cause or you terminate employment with the Company without Good Reason.  Subject to your execution of a Release Agreement, 17,428 Retention Shares will vest immediately if you are terminated by the Company without Cause or you terminate employment for Good Reason before April 24, 2018.  The remaining 13,071 will be forfeited in the event of any termination of employment before April 24, 2020 for any reason other than death or disability.  For the avoidance of doubt, any notice to you by the Company of its intention not to renew the Employment Agreement beyond the Initial Term under Section 1 of the Employment Agreement shall not, in itself, preclude you from satisfying the April 24, 2018 vesting date requirement, provided you remain employed by the Company on the last day of the Initial Term and otherwise satisfy the eligibility requirements for this award.

Will my Retention Shares vest if I die or become disabled?
Yes. If you die or become disabled before the Retention Shares are 100% vested, you will immediately become vested in any unvested portion of the Retention Shares.  
Will dividends be paid on the Retention Shares?
Yes.  Dividends will be paid on the Retention Shares.  These dividends will automatically be invested in additional shares.  The additional shares credited to you will be subject to the same vesting rules as apply to the underlying Retention Shares granted to you.
May I vote my Retention Shares before they are vested?
Yes, these shares will be issued to you, upon the grant date, with a restrictive legend.  Therefore, you will be permitted to vote these shares indirectly.
May I make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”) with respect to the Retention Shares?
Yes.  Because these shares are issued, Section 83 will apply to the shares.  Therefore, you are permitted to elect to include them in income upon the grant date and prior to vesting in accordance with Section 83(b) of the Code.  This election must be made within 30 days of the date of the award.  Please consult your attorney or tax advisor for more information.
May I defer receipt of my shares?
No.  These shares are not eligible for further deferral under our Non-Qualified Deferred Compensation Plan.
Additional Information Applicable to Your Retention Cash, Retention Option and Retention Shares

Are there other circumstances that would lead to a forfeiture of my award or the proceeds that I receive from exercising my award?

Yes.  All awards are subject to our Incentive Compensation Recovery Policy, which is attached to this award letter as Exhibit I.  You are encouraged to carefully read that policy and contact me or the Law Department if you have any questions.  The policy generally provides that in addition to forfeitures of all or part of your award due to your termination of employment discussed above, in certain other situations you will forfeit your award and may be required to reimburse us for the amounts you receive as a result of any option that you exercise or share of stock that you sell.   Your acceptance of this award is expressly conditioned on your agreement to be subject to the Incentive Compensation Recovery Policy, including the provisions that allow us to deduct any proceeds from other sources of income payable to you.  This award would not be made if you did not agree to be subject to that policy. 
The clawback period described in the Incentive Compensation Recovery policy is extended for the full duration of the period of continued vesting described in this award.  The Compensation Committee may determine in its sole and absolute discretion that if circumstances exist that would permit the recovery of incentive compensation paid to you during the vesting period, in addition to recovering this compensation, all vesting will immediately cease and the remainder of your awards will be forfeited immediately.

Does the Securities Trading Policy apply to my award?  
Yes.  All sales of shares of company stock (including Retention Shares and shares received upon exercise of the Retention Option) and all option exercise transactions are subject to our Securities Trading Policy.  Option exercises and stock sales by West’s officers who are subject to Section 16 of the Securities and Exchange Act of 1934 or on the designated persons list under our policy also must meet the review and written pre-approval by our General 

Counsel requirements of that policy.  For information and to access the required pre-clearance form, please go to IntraWest and look under the Legal & Compliance tab.
Does my acceptance of this award guarantee me any future awards, continued employment or additional severance pay?
No.  This award is granted at the sole discretion of West.  Your receipt of this award does not guarantee any future awards, nor does it guarantee your continued employment with the Company.  Subject to applicable law, your employment may be terminated for any reason.  Additionally, this award is not part of your base pay or compensation for determination of any severance pay or benefits you may be entitled to upon termination of employment unless that is specifically agreed to in writing between you and the Company.
Where can I find additional information about my award?
This is a summary of the terms of your Retention Cash, Retention Options and Retention Shares.  Your award is subject to the terms of the Plan. This award is being delivered with an Information Statement, which gives additional information about your award and the Plan under which it was granted.  We encourage you to read the Information Statement.  Additional terms and conditions may apply to your award under the terms of the Plan.  

EXHIBIT I
Incentive Compensation Recovery Policy

The Company may seek to recover incentive compensation awarded to any recipient in accordance with the terms of this policy.  Each award of annual or long-term equity-based or performance-based compensation must specify that the award is subject to this policy.

Restatement of Financial Results.  The Company will cancel or will seek to recover all or a portion of an award from any executive officer of the Company if the Company is required to significantly or materially restate its financial statements (other than to comply with changes to applicable accounting principles) with respect to any of the three fiscal years before the payment of the award.  The Company also will not pay or will seek to recover all or a portion of an award from any award recipient whose fraud or misconduct causes the restatement of the Company’s financial statements with respect to any of the three fiscal years before the payment of the award.
Calculation Errors.  Even if no financial results are restated, if an award is paid or distributed, and it is subsequently determined that the award should have been less than the amount calculated due to mathematical errors, fraud, misconduct or gross negligence, the Company may seek repayment of the award from any award recipient during the three-year period following the payment of the award.
Detrimental Conduct.  If an award recipient directly or indirectly engages in conduct that competes with the Company, or any conduct that is materially inimical, contrary, harmful to, or not in the best interests of the Company or if the award recipient fails to comply with any of the material terms and conditions of the award (unless the failure is remedied within ten days after having been notified of such failure), then the Company has the discretion to immediately cancel any and all outstanding awards and require that the award recipient repay all or any portion of an award, including the gain realized on the exercise of a stock option, stock appreciation right or the disposition of any other equity-based award.  To be subject to this policy, the detrimental conduct must have occurred during the six-month period following the later of (1) the date the recipient ceases rendering service to the Company or, (2) the date the award is paid (or an option or stock appreciation right is exercised).
Exercise of Discretion.  With respect to executive officers and members of the board of directors, the compensation committee has the sole and absolute authority (unless the board determines that the whole board should have such authority) to determine whether to exercise its discretion to seek repayment or cancel an award and what portion of an award should be recovered or canceled.  With respect to all other award recipients, the officers of the Company have sole and absolute authority.  The compensation committee, board or officers, as appropriate, will consider all relevant facts and circumstances in exercising their discretion.  These facts and circumstances include: (1) the materiality of any changes to calculations or financial results, (2) the potential windfall received by recipients, (3) the culpability and involvement of the award recipients, (4) the controls in place to limit misconduct or incorrect reporting, (5) the period during which any misconduct occurred, (6) any other negative repercussions experienced by the award recipient, (7) the period that has elapsed since the date of any misconduct and (8) the feasibility and costs of recovering the compensation.
Enforcement.  The board intends that this policy will be applied to the fullest extent permitted by applicable law.  The Company has the authority to seek recovery through any available means including litigation or the filing of liens, if necessary.  The Company also has the authority, to the extent permitted by law, to deduct the amount to be repaid from any amounts otherwise owed to the recipient, including wages or other compensation, fringe benefits, or vacation paid.  Whether or not the Company elects to make any deduction, if the Company does not recover the full amount that it has determined should be recovered, the recipient must immediately repay the unpaid balance.  By agreeing to accept an award, each award recipient consents to the Company’s right to make these deductions.EXHIBIT (4)(C)

 EXHIBIT (4)(c) 

FORM OF POLICY RIDER (RETIREMENT INCOME CHOICE – INCOME- 

SINGLE) 

			
	

		Home Office located at:
		[4 Manhattanville Road, Purchase, New York 10577]
		Adm. Office located at:
		[4333 Edgewood Road N.E. Cedar Rapids, Iowa 52499]
	A Stock Company (Hereafter called the Company, we, our or us)		[(319) 398-8511]

 GUARANTEED LIFETIME WITHDRAWAL BENEFIT RIDER 

This rider is issued as a part of the policy (contract) 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. 
 Rider Data
Specification 
  

											
	Policy Number:				 		12345		 		

	Rider Date:				 		09/01/2007		 	
	Growth Rate Percentage:						5.00%			
	Initial Rider Fee Percentage:				 		0.60%		 	
	Annuitant:						John Doe		 	
	Annuitant’s Issue Age/Sex:				 		65 / Male		 	

 ARTICLE I 
 You
may cancel this rider before midnight of the thirtieth day after you received it and no rider fees will be assessed. 
 This benefit provides a
minimum withdrawal benefit that guarantees, upon election, a series of withdrawals from the policy equal to the Withdrawal Percentage shown in Article II applied to the benefit base. The benefit base is established for the sole purpose of
determining the minimum withdrawal benefit and is not used in calculating the cash surrender value or other guaranteed benefits. 
 This rider will
terminate upon the annuitant’s death, if you surrender your policy, elect to upgrade (as described in Article III of this rider), or elect to receive annuity payments under your policy. This rider will also terminate if the policy to which this
rider is attached is assigned or if the owner is changed without our approval. You can terminate this rider within [30] days after the [fifth] rider anniversary and every [fifth] rider anniversary thereafter. Termination of the rider will result in
the loss of all benefits provided by the rider. 
 If you elect this rider, 100% of your policy value must be in one or more of the designated funds (shown
on the application which is attached and made part of the policy). You can generally transfer between the designated funds as permitted under your policy; however, you cannot make transfers as provided for in the policy to a non-designated fund
while this rider is in force. If you wish to make a transfer to a non-designated fund, this rider must be terminated, as described above, prior to making the transfer. 

A rider fee will be deducted on each rider anniversary and upon rider termination as described below. 

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

Investment options authorized for use with this rider and identified by us as designated funds. 

  

					
	RGMB 27 0108 (IS) (NY)		(1)		(Income - Single)

 ARTICLE I CONTINUED 

Excess Withdrawal 
 The excess of a gross partial
withdrawal over the rider withdrawal amount remaining prior to the withdrawal, if any. 
 Gross Partial Withdrawal 

The amount which will be deducted from your policy value as a result of each partial withdrawal. 

Rider Anniversary 
 The anniversary of the rider date.

 Rider Fee 
 The rider fee is the rider fee percentage
multiplied by the withdrawal base at the time the fee is deducted. This amount will change if the withdrawal base changes. The rider fee percentage will not change during the first five rider years, and will only change thereafter due to an
automatic step-up. You will be notified of any increase in the rider fee percentage. This fee will be deducted from each subaccount in proportion to the amount of policy value in that subaccount on each rider anniversary prior to any increase in the
withdrawal base. A portion of this fee will also be deducted when the rider is terminated based on the number of days that have elapsed since the previous rider anniversary. 

Rider Monthiversary 
 The same day of the month as the
rider date. For months not containing that day, we will use the first day of the following month. 
 Rider Withdrawal Amount 

The total amount that can be withdrawn from the policy each rider year without reducing the withdrawal base. This amount will change if the withdrawal base
changes. 
 Rider Year 
 Each twelve-month period
following the rider date. 
 Withdrawal Base 
 The
amount used to calculate the rider withdrawal amount and the rider fee. This amount cannot be taken as a lump sum. 
 ARTICLE II 

GUARANTEED LIFETIME WITHDRAWAL BENEFIT 
 Under this rider,
we guarantee that you can withdraw up to the rider withdrawal amount each rider year, regardless of the policy value, until the annuitant’s death. 

The withdrawal percentage is determined by the attained age (age at last birthday) of the annuitant at the time of the first withdrawal of any amount from the
policy value taken on or after the rider anniversary following the annuitant’s 59th birthday. Once the withdrawal percentage is established, it may only be changed by an upgrade and redetermined at that time. The withdrawal percentages are
shown in the table below. 
  

																											
	 Attained Age
	 	 Withdrawal

Percentage

		 		 				 		 		 		 		 		 		 		  		 		  	
		 	 	 	 	59	  	 	- 	 	 	 	69	 	 	 		 		 	 	  	5.0%	 	 	  	
		 		 				 		 		 		 		 		 		 		  		 	 	  	
		 		 	 	70	  	 	-	 		 	79	 	 	 		 		 		  	6.0%	 	 	  	
		 	 	 	 	80 +	 	 	 		 		 	 	  	7.0%	 	 	  	

 If the annuitant is not yet 59 on the rider date, the withdrawal percentage will be zero until the rider anniversary following
the annuitant’s 59th birthday. 
 Withdrawals will reduce the policy value 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. Withdrawals guaranteed by this rider can be continued by selecting an amount and frequency in accordance with the
policy provisions to which this rider attaches. Once the payment amount and frequency are established, they cannot be changed and no additional withdrawals will be allowed. 

  

					
	RGMB 27 0108 (IS) (NY)	  	(2)	  	(Income - Single)

 ARTICLE II CONTINUED 

We guarantee that you may withdraw up to the rider withdrawal amount each year regardless of the policy value until the annuitant’s death. Any amount you
withdraw in excess of the rider withdrawal amount may impact the withdrawal base on a greater than dollar-for-dollar basis. 
 Example

 Assume you are the owner and annuitant and make a single premium payment of $100,000 when you are 60 years old. Assume you do not make
any withdrawals or additional premium payments. Assume that after ten rider years, your policy value has declined to $50,000 solely because of negative investment performance. Assuming a withdrawal percentage of 6%, you could still withdraw up to
$9773 each rider year for the rest of your life (assuming that you do not withdraw more than $9773 in any one rider year). 
 Please see the Appendix
attached to this rider which illustrates the withdrawal benefit. 
 The Guaranteed Lifetime Withdrawal Benefit can only be taken as a withdrawal benefit and
it does not increase the policy value. 
 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. 
 If the annuitant’s age has been misstated, this rider’s fees and
benefits will be adjusted to the amounts which would have been calculated for the correct age. However, if this rider would not have been issued had the age not been misstated, the rider is treated as if it never existed. If withdrawals under the
provisions of the rider have already commenced and the misstatement caused the rider withdrawal amount to be overstated, any withdrawal in excess of the correct rider withdrawal amount will be considered an excess withdrawal and will impact the
withdrawal base and rider withdrawal amount. If overpayments occurred when the sum of the accumulated values in all the designated funds was zero, the amount of that overpayment will be deducted from one or more future payments until this amount is
paid in full. 
 RIDER WITHDRAWAL AMOUNT 
 The rider
withdrawal amount will be equal to the greater of 1) and 2), where: 
  

	1)	is the withdrawal percentage multiplied by the withdrawal base; 

  

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

  

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

  

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

  

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

 

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

 

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

  

	 	F)	the minimum required distributions are only for the current rider year. Amounts carried over from past rider years are not considered. 

If any of the above are not true, then 2) is equal to zero and it is not available as a rider withdrawal amount. An amount in addition to the amount described
in 2) above, may need to be taken to satisfy minimum required distributions, in certain situations. Such additional withdrawal amount will be considered an excess withdrawal. 

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. 

 

  

					
	RGMB 27 0108 (IS) (NY)		(3)		(Income - Single)

 ARTICLE II CONTINUED 

WITHDRAWAL BASE 
 The withdrawal base is used to calculate
the rider withdrawal amount. On the rider date, the initial withdrawal base is equal to the policy value (less any premium enhancements if the rider is added in the first policy year). During any rider year, the withdrawal base is increased by
subsequent premium payments (less any premium enhancements), and is reduced for excess withdrawals. 
 On each rider anniversary, the withdrawal base will
be set to the greatest of: 
  

	 	1)	The current withdrawal base; 

  

	 	2)	The policy value on the rider anniversary; 

  

	 	3)	The highest policy value on a rider [monthiversary;] or 

  

	 	4)	The current withdrawal base immediately prior to anniversary processing increased by the growth rate percentage. 

Item 3) above will be zero if there have been any excess withdrawals in the current rider year. Item 4) above will be zero after the [10th] rider
anniversary or if there have been any withdrawals in the current rider year. 
 AUTOMATIC STEP-UP FEATURE 

The rider receives an automatic step-up on the rider anniversary if the withdrawal base is set equal to the policy value or the highest policy value on a rider
[monthiversary.] This feature does not require the termination of the existing rider. This rider will continue with the same rider date and features. The rider fee percentage may be changed due to an automatic step-up, but there will be no increase
in the rider fee percentage during the first [five] rider years. Following the [fifth] rider anniversary, the rider fee percentage may be increased due to an automatic step-up, but will not increase more than [0.75%] from the initial rider fee
percentage shown on page 1. 
 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. Changes as a result of the automatic step-up feature will be reversed. And any increase in the rider fee 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. The withdrawal base adjustment is the greater of 1)
and 2), where: 
  

	1)	is the excess withdrawal amount; and 

  

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

  

	 	A)	is the excess withdrawal; 

  

	 	B)	is the withdrawal base prior to the excess withdrawal amount; and 

  

	 	C)	is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess withdrawal amount. 

  

					
	RGMB 27 0108 (IS) (NY)		(4)		(Income - Single)

 ARTICLE III 

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 surviving spouse may elect to continue the policy and rider. 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, you will have the option to receive lifetime income payments that are no less than your rider withdrawal amount each year. This option will also guarantee that the sum of all income payments received over time will equal or exceed
the policy value on the maximum annuity commencement date. If the annuitant should die before the sum of all income payments received equals or exceeds the policy value on the maximum annuity commencement date, the annuitant’s beneficiary will
receive a final payment equal to the difference. 
 RIDER UPGRADE 

You may elect, in writing, to upgrade the withdrawal base to the policy value within [30] days after the [fifth] rider anniversary and every [fifth] rider
anniversary thereafter, subject to the issue age restrictions on the new rider. If an upgrade is elected, this rider will terminate and a new rider with the same features will be issued with a new rider date. The new rider will have its own rider
fee percentage which may be higher than this rider’s rider fee percentage. Other riders with different features may be chosen, if available by the Company. 

At the time of upgrade, the rider withdrawal amount will be recalculated based on the new withdrawal base. 

The new rider date will be the date the Company receives all information necessary, in a written form acceptable to the Company, to process the upgrade. 

 

			
	Signed for us at our home office.
	

		

  

					
	RGMB 27 0108 (IS) (NY)		(5)		(Income - Single)

 APPENDIX 

EXAMPLE OF EFFECT OF WITHDRAWALS ON RIDER BENEFITS 
 The
following examples illustrate the effect of withdrawals on Rider benefits. A withdrawal greater than the rider withdrawal amount is assumed at the end of year 1. A withdrawal equal to the rider withdrawal amount is assumed at the end of year 2.

 The Withdrawal Base on the rider date is $100,000. For this example, hypothetical policy values prior to each annual withdrawal are assumed to be
$94,000 at the end of rider year 1, and $90,000 at the end of rider year 2. Assume the rider is added to the policy on 12/1/2007 and the age of the annuitant is 65 years old. Since the annuitant is age 66 when they take their first withdrawal, their
withdrawal percentage is assumed to be 5.0% in this example. 
 The effects on the withdrawal percentage, and on the Guaranteed Lifetime Withdrawal
Benefit are shown in succession in this example. 
 ADJUSTED PARTIAL WITHDRAWAL CALCULATIONS FOR GUARANTEED LIFETIME WITHDRAWAL BENEFITS: 

Withdrawal Base. Gross partial withdrawals up to the rider withdrawal amount will not reduce the withdrawal base. Gross partial withdrawals in excess of
the rider withdrawal amount will reduce the withdrawal base pro rata. The amount of the reduction due to the excess withdrawal is equal to the greater of: 
  

	 	1).	The excess gross partial withdrawal amount; and 

  

	 	2).	The result of (A / B) * C, where: 

  

	 	A	is the excess gross partial withdrawal (the amount in excess of the rider withdrawal amount remaining prior to the withdrawal); 

  

	 	B	is the policy value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and 

  

	 	C	is the withdrawal base prior to the withdrawal of the excess amount. 

 When a withdrawal is taken, two parts of
the guaranteed lifetime withdrawal benefit can be affected: 
  

	 	1.	Withdrawal base (“WB”) 

  

	 	2.	Rider withdrawal amount (“RWA”) 

 Effects on WB and RWA: 

Year 1: 
 WB = $100,000 

5% Withdrawal (WD) would be $5,000 (5% of WB $100,000) 

Assumed WD = $7,000 

Excess withdrawal (“EWD”) = $2,000 ($7,000 - $5,000) 

Assumed Policy Value (PV) = $94,000 
  

  

					
	RGMB 27 0108 (IS) (NY)		(A-1)		

 Withdrawal Base after WD: 

Step One. The withdrawal base is only reduced by amount of the excess or the pro rata amount if greater. 

Step Two. Calculate how much the withdrawal base is effected by the excess withdrawal. 

 

	 	1.	The formula is (EWD / (PV- 5% WD)) * WB before any adjustments 

  

	 	2.	($2,000 / ($94,000 - $5,000)) * $100,000 = $2,247.19 

 Step Three. Which is larger, the actual $2,000
excess withdrawal or the $2,247.19 pro rata amount? 
 $2,247.19 pro rata amount 

Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based? 

$100,000 - $2,247.19 = $97,752.81 
 Result. The
new withdrawal base is $97,752.81. 
 Rider Withdrawal Amount after WD: 

Because the withdrawal base was adjusted (due to excess withdrawal), we have to calculate a new rider withdrawal amount based on 5% for the guarantee that will
be available starting in the second rider year. 
 Step One. What is the rider withdrawal amount for rider year 2? 

$97,752.81 (the adjusted withdrawal base) * 5% = $4,887.64 

Result. Beginning in rider year 2, the maximum you can take out in a rider year is $4,887.64 annually without causing an excess withdrawal for the guarantee
and further reduction of the withdrawal base. 
 Year 2: 

WB = $97,752.81 
 5% WD would be
$4,887.64 (5% of WB $97,752.81) 
 Assumed WD = $4,887.64 

Excess withdrawal (“EWD”) = none 

Assumed PV = $90,000 
 Since no portion of the
total withdrawal exceeded the rider withdrawal amount, then the withdrawal base will stay at $97,752.81. 
  

  

					
	RGMB 27 0108 (IS) (NY)		(A-2)

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