Document:

Exhibit

Exhibit 4(b)

THE SOUTHERN COMPANY

TO

WELLS FARGO BANK, NATIONAL ASSOCIATION,
TRUSTEE

_______________

FIFTH SUPPLEMENTAL INDENTURE

DATED AS OF NOVEMBER 22, 2017

_______________

$450,000,000

SERIES 2017B 5.25% JUNIOR SUBORDINATED NOTES

DUE DECEMBER 1, 2077

TABLE OF CONTENTS1 

	
				
	 
	 
	PAGE

	 
	 
	 

	ARTICLE 1
	1
	

	 
	SECTION 101.  Establishment
	1
	

	 
	SECTION 102.  Definitions
	2
	

	 
	SECTION 103.  Payment of Principal and Interest
	3
	

	 
	SECTION 104.  Deferral of Interest Payments
	4
	

	 
	SECTION 105.  Denominations
	5
	

	 
	SECTION 106.  Global Securities
	5
	

	 
	SECTION 107.  Transfer
	6
	

	 
	SECTION 108.  Redemption at the Company’s Option
	6
	

	 
	SECTION 109.  Events of Default
	7
	

	 
	 
	 

	ARTICLE 2
	7
	

	 
	SECTION 201.  Recitals by Company
	7
	

	 
	SECTION 202.  Ratification and Incorporation of Original Indenture
	8
	

	 
	SECTION 203.  Executed in Counterparts
	8
	

	
			
	EXHIBIT A
	Form of Series 2017B Note
	A-1

	EXHIBIT B
	Certificate of Authentication
	B-1

___________________________
1This Table of Contents does not constitute part of the Indenture or have any bearing upon the interpretation of any of its terms and provisions.

i

THIS FIFTH SUPPLEMENTAL INDENTURE is made as of the 22nd day of November, 2017, by and between THE SOUTHERN COMPANY, a Delaware corporation, 30 Ivan Allen Jr. Blvd., N.W., Atlanta, Georgia  30308 (the “Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, 150 East 42nd Street, 40th Floor, New York, New York 10017 (the “Trustee”).
W I T N E S S E T H:
WHEREAS, the Company has heretofore entered into a Subordinated Note Indenture, dated as of October 1, 2015 (the “Original Indenture”), with Wells Fargo Bank, National Association;
WHEREAS, the Original Indenture is incorporated herein by this reference and the Original Indenture, as heretofore supplemented and as further supplemented by this Fifth Supplemental Indenture, is herein called the “Indenture”;
WHEREAS, under the Original Indenture, a new series of Junior Subordinated Notes may at any time be established pursuant to a supplemental indenture executed by the Company and the Trustee;
WHEREAS, the Company proposes to create under the Indenture a new series of Junior Subordinated Notes;
WHEREAS, additional Junior Subordinated Notes of other series hereafter established, except as may be limited in the Original Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Indenture as at the time supplemented and modified; and
WHEREAS, all conditions necessary to authorize the execution and delivery of this Fifth Supplemental Indenture and to make it a valid and binding obligation of the Company have been done or performed.
NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:
ARTICLE 1
Series 2017B Junior Subordinated Notes
SECTION 101.  Establishment.  There is hereby established a new series of Junior Subordinated Notes to be issued under the Indenture, to be designated as the Company’s Series 2017B 5.25% Junior Subordinated Notes due December 1, 2077 (the “Series 2017B Notes”).
There are to be authenticated and delivered $450,000,000 principal amount of Series 2017B Notes, and such principal amount of the Series 2017B Notes may be increased from time to time pursuant to Section 301 of the Original Indenture.  All Series 2017B Notes need not be issued at the same time and such series may be reopened at any time, without the consent of any Holder, for issuances of additional Series 2017B Notes.  Any such additional Series 2017B Notes will have the same interest rate, maturity and other terms as those initially issued (except for the public offering price and issue date and the initial interest accrual date and initial Interest Payment Date (as defined 

below), if applicable).  No Series 2017B Notes shall be authenticated and delivered in excess of the principal amount as so increased except as provided by Sections 203, 303, 304, 907 or 1107 of the Original Indenture.  The Series 2017B Notes shall be issued in fully registered form.
The Series 2017B Notes shall be issued in the form of one or more Global Securities in substantially the form set out in Exhibit A hereto.  The Depositary with respect to the Series 2017B Notes shall be The Depository Trust Company.  
The form of the Trustee’s Certificate of Authentication for the Series 2017B Notes shall be in substantially the form set forth in Exhibit B hereto.
Each Series 2017B Note shall be dated the date of authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent Interest Payment Date to which interest has been paid or duly provided for.
SECTION 102.  Definitions.  The following defined terms used herein shall, unless the context otherwise requires, have the meanings specified below.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Original Indenture.
“Additional Interest” has the meaning set forth in Section 104 of this Fifth Supplemental Indenture.
“Administrative Action” means any judicial decision or any official administrative pronouncement, ruling, regulatory procedure, notice or announcement including any notice or announcement of intent to issue or adopt any administrative pronouncement, ruling, regulatory procedure or regulation.
“Applicable Rating Agency” means any Rating Agency that (i)(a) published a rating for the Company on the date of initial issuance of the Series 2017B Notes and (b) publishes a rating for the Company at such time as a Rating Agency Event occurs, or (ii) any successor to a Rating Agency described in the preceding clause (i).
“Interest Payment Dates” means March 1, June 1, September 1 and December 1 of each year, commencing March 1, 2018.
“Optional Deferral Period” has the meaning set forth in Section 104 of this Fifth Supplemental Indenture.
“Original Issue Date” means November 22, 2017.
“Rating Agency” means any nationally recognized statistical rating organization (within the meaning of Section 3(a)(62) of the Securities Exchange Act of 1934, as amended).
“Rating Agency Event” means a change to the methodology or criteria that were employed by an Applicable Rating Agency for purposes of assigning equity credit to securities such as the Series 2017B Notes on the date of initial issuance of the Series 2017B Notes, which change reduces the amount of equity credit assigned to the Series 2017B Notes by the Applicable Rating Agency as compared with the amount of equity credit that such Rating Agency assigned to the Series 2017B Notes as of the date of initial issuance of the Series 2017B Notes.
“Regular Record Date” means, with respect to each Interest Payment Date, the close of business (i) on the Business Day immediately preceding such Interest Payment Date if any Series 

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2017B Notes are issuable in the form of one or more Global Securities or (ii) on the 15th calendar day preceding such Interest Payment Date if no Series 2017B Notes are issuable in the form of one or more Global Securities (whether or not a Business Day).
“Securities Rate” has the meaning set forth in Section 103 of this Fifth Supplemental Indenture.
“Stated Maturity” means December 1, 2077.
“Tax Event” means that the Company shall have received an Opinion of Counsel experienced in such matters to the effect that, as a result of: 
(a) any amendment to, clarification of, or change, including any announced prospective change, in the laws or treaties of the United States or any of its political subdivisions or taxing authorities, or any regulations under those laws or treaties; 
(b) an Administrative Action; 
(c) any amendment to, clarification of, or change in the official position or the interpretation of any Administrative Action or any interpretation or pronouncement that provides for a position with respect to an Administrative Action that differs from the previously generally accepted position, in each case by any legislative body, court, governmental authority or regulatory body, regardless of the time or manner in which that amendment, clarification or change is introduced or made known; or
(d) a threatened challenge asserted in writing in connection with an audit of the Company or an audit of any of the subsidiaries of the Company, or a publicly-known threatened challenge asserted in writing against any other taxpayer that has raised capital through the issuance of securities that are substantially similar to the Series 2017B Notes, 
which amendment, clarification or change is effective or the Administrative Action is taken or issued, or interpretation or pronouncement is issued or threatened challenge is asserted or becomes publicly-known after the date of original issuance of the Series 2017B Notes, there is more than an insubstantial risk that interest payable by the Company on the Series 2017B Notes is not deductible, or within 90 days of the date of such opinion would not be deductible, in whole or in part, by the Company for United States federal income tax purposes.
SECTION 103.  Payment of Principal and Interest.  The principal of the Series 2017B Notes shall be due at the Stated Maturity (unless earlier redeemed).  The unpaid principal amount of the Series 2017B Notes shall bear interest at the rate of 5.25% per annum (the “Securities Rate”) until paid or duly provided for. Interest shall be paid quarterly in arrears on each Interest Payment Date to the Person in whose name the Series 2017B Notes are registered at the close of business on the Regular Record Date for such Interest Payment Date, provided that interest payable at the Stated Maturity or on a Redemption Date as provided herein will be paid to the Person to whom principal is payable. So long as an Optional Deferral Period is not occurring, any such interest that is not so punctually paid or duly provided for will forthwith cease to be payable to the Holders on such Regular Record Date and may either be paid to the Person or Persons in whose name the Series 2017B Notes are registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of the Series 2017B Notes not less than ten (10) days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, 

3

if any, on which the Series 2017B Notes shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Original Indenture.
Payments of interest on the Series 2017B Notes will include interest accrued to but excluding the respective Interest Payment Dates. Interest payments for the Series 2017B Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on the Series 2017B Notes is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.
Payment of the principal and interest (including Additional Interest) due at the Stated Maturity or earlier redemption of the Series 2017B Notes shall be made upon surrender of the Series 2017B Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2017B Notes (including Additional Interest) shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payments of interest (including interest on any Interest Payment Date)(including Additional Interest) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least sixteen (16) days prior to the date for payment by the Person entitled thereto.
SECTION 104.  Deferral of Interest Payments.  So long as no Event of Default has occurred and is continuing, the Company may, at its option, on one or more occasions, defer payment of all or part of the current and accrued interest otherwise due on the Series 2017B Notes by extending the interest payment period for up to forty (40) consecutive quarterly periods (each period, commencing on the date that the first such interest payment would otherwise have been made, an “Optional Deferral Period”).  A deferral of interest payments may not extend beyond the Stated Maturity or end on a day other than an Interest Payment Date.  Any deferred interest on the Series 2017B Notes will accrue additional interest at the Securities Rate from the applicable Interest Payment Date to the date of payment, compounded quarterly (such deferred interest and additional interest accrued thereon, “Additional Interest”), to the extent permitted under applicable law. No interest shall be due and payable during an Optional Deferral Period, except at the end of such Optional Deferral Period or upon a redemption of the Series 2017B Notes during such Optional Deferral Period.
So long as no Event of Default has occurred and is continuing, prior to the termination of any Optional Deferral Period, the Company may further defer the payment of interest by extending such Optional Deferral Period; provided that such Optional Deferral Period together with all such previous and further deferrals of interest payments shall not exceed forty (40) consecutive quarterly periods at any one time or extend beyond the Stated Maturity.  Upon the termination of any Optional Deferral Period, which shall be an Interest Payment Date, the Company shall pay all interest accrued and unpaid on the Series 2017B Notes, including any Additional Interest, to the Person in whose name the Series 2017B Notes are registered on the Regular Record Date for such Interest Payment Date, provided that interest accrued and unpaid on the Series 2017B Notes, including any Additional Interest, payable at Stated Maturity or on any Redemption Date will be paid to the Person to whom principal is payable.  Once the Company pays all interest accrued and unpaid on the Series 2017B 

4

Notes, including any Additional Interest, it shall be entitled again to defer interest payments on the Series 2017B Notes as described above. 
During an Optional Deferral Period, subject to the next succeeding sentence, the Company (a) shall not declare or pay any dividend or make any distributions with respect to, or redeem, purchase, acquire or make a liquidation payment with respect to, any of its capital stock, and (b) shall not make any payment of interest, principal or premium, if any, on or repay, repurchase or redeem any debt securities (including guarantees) issued by the Company which rank pari passu with or junior to the Series 2017B Notes.  The preceding sentence, however, shall not restrict (i) any of the actions described in the preceding sentence resulting from any reclassification of the Company’s capital stock or the exchange or conversion of one class or series of the Company’s capital stock for another class or series of the Company’s capital stock, (ii) the purchase of fractional interests in shares of the Company’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (iii) dividends, payments or distributions payable in shares of capital stock, (iv) redemptions, purchases or other acquisitions of shares of capital stock in connection with any employment contract, incentive plan, benefit plan or other similar arrangement of the Company or any of its subsidiaries or in connection with a dividend reinvestment or stock purchase plan, or (v) any declaration of a dividend in connection with implementation of any stockholders’ rights plan, or the issuance of rights, stock or other property under any such plan, or the redemption, repurchase or other acquisition of any such rights pursuant thereto.
The Company shall provide to the Trustee notice, as provided in Section 105 of the Original Indenture, of its selection or extension of an Optional Deferral Period at least 10 Business Days and not more than 60 Business Days prior to the earlier of (a) the next applicable Interest Payment Date or (b) the date, if any, upon which the Company is required to give notice of such Interest Payment Date or the Regular Record Date thereof to the New York Stock Exchange or any applicable self-regulatory organization.  In addition, the Company shall deliver to the Trustee an Officers’ Certificate stating that no default or Event of Default shall have occurred and be continuing.  Subject to receipt of such Officers’ Certificate, the Trustee shall forward such notice promptly to the Holders of the Series 2017B Notes as provided in Section 106 of the Original Indenture.
SECTION 105.  Denominations.  The Series 2017B Notes may be issued in the denominations of $25.00 and integral multiples of $25.00 in excess thereof.
SECTION 106.  Global Securities.  The Series 2017B Notes will be issued in the form of one or more Global Securities registered in the name of the Depositary (which shall be The Depository Trust Company) or its nominee. Except under the limited circumstances described below, Series 2017B Notes represented by one or more Global Securities will not be exchangeable for, and will not otherwise be issuable as, Series 2017B Notes in definitive form. The Global Securities described above may not be transferred except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee.
Owners of beneficial interests in such a Global Security will not be considered the Holders thereof for any purpose under the Indenture, and no Global Security representing a Series 2017B Note shall be exchangeable, except for another Global Security of like denomination and tenor to be registered in the name of the Depositary or its nominee or to a successor Depositary or its nominee. The rights of Holders of such Global Security shall be exercised only through the Depositary.

5

Subject to the procedures of the Depositary, a Global Security shall be exchangeable for Series 2017B Notes registered in the names of persons other than the Depositary or its nominee only if (i) the Depositary notifies the Company that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary shall have been appointed by the Company, or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, at a time when the Depositary is required to be so registered to act as such Depositary and no successor Depositary shall have been appointed by the Company, in each case within 90 days after the Company receives such notice or becomes aware of such cessation, (ii) the Company in its sole discretion determines that such Global Security shall be so exchangeable, or (iii) there shall have occurred an Event of Default with respect to the Series 2017B Notes. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Series 2017B Notes registered in such names as the Depositary shall direct.
Neither the Company, the Trustee nor any agent of the Company or the Trustee shall have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.
SECTION 107.  Transfer.  No service charge will be made for any transfer or exchange of Series 2017B Notes, but payment will be required of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection therewith.
The Company shall not be required (a) to issue, register the transfer of or exchange any Series 2017B Notes during a period beginning at the opening of business fifteen (15) days before the date of the mailing of a notice pursuant to Section 1104 of the Original Indenture identifying the serial numbers of the Series 2017B Notes to be called for redemption, and ending at the close of business on the date of the mailing, or (b) to issue, register the  transfer of or exchange any Series 2017B Notes theretofore selected for redemption in whole or in part, except the unredeemed portion of any Series 2017B Notes redeemed in part.
SECTION 108.  Redemption at the Company’s Option.  At any time and from time to time on or after December 1, 2022, the Series 2017B Notes will be subject to redemption at the option of the Company in whole or in part upon not less than 30 nor more than 60 days’ notice, at a Redemption Price equal to 100% of the principal amount of the Series 2017B Notes being redeemed plus accrued and unpaid interest (including any Additional Interest) on the Series 2017B Notes being redeemed to the Redemption Date.  
In addition, before December 1, 2022, if a Tax Event shall occur and be continuing, the Company may redeem the Series 2017B Notes following the occurrence  of that Tax Event, in whole, but not in part, at a Redemption Price equal to 101% of the principal amount to be redeemed plus any accrued but unpaid interest (including any Additional Interest) to the Redemption Date.
In addition, before December 1, 2022, if a Rating Agency Event shall occur and be continuing, the Company may redeem the Series 2017B Notes following the occurrence of that Rating Agency Event, in whole, but not in part, at a Redemption Price equal to 102% of the principal amount to be redeemed plus any accrued but unpaid interest (including any Additional Interest) to the Redemption Date.

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In the event of redemption of the Series 2017B Notes in part only, a new Series 2017B Note or Notes for the unredeemed portion will be issued in the name or names of the Holders thereof upon the surrender thereof.
The Series 2017B Notes will not have a sinking fund.
Notice of redemption shall be given as provided in Section 1104 of the Original Indenture.
Any redemption of less than all of the Series 2017B Notes shall, with respect to the principal thereof, be divisible by $25.00.
SECTION 109.  Events of Default.
The Event of Default set forth in Section 501(5) of the Original Indenture shall not apply to the Series 2017B Notes.  The Events of Default set forth in paragraphs (1), (3), (6) and (7) shall apply to the Series 2017B Notes.  
For purposes of this Section 109, the term “Default” means the following event:  default in the performance or breach of any covenant or warranty of the Company in the Indenture (other than a covenant or warranty (i) a default in whose performance or whose breach is addressed in any paragraph of Section 501 of the Original Indenture (other than Section 501(5)) or (ii) which has expressly been included in the Indenture solely for the benefit of one or more series of Junior Subordinated Notes other than the Series 2017B Notes), and continuance of such default or breach for a period of 90 days after there has been given, by registered or certified mail, to the Company by the Trustee, or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Series 2017B Notes, a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Covenant Default” hereunder.
Upon the occurrence and continuance of a Default, the Trustee and the Holders of the Series 2017B Notes shall have the same rights and remedies, and shall be subject to the same limitations, restrictions, protections and exculpations, and the Company shall be subject to the same obligations and restrictions, in each case, as would apply if such Default was an Event of Default or an event which after notice or lapse of time or both would become an Event of Default; provided, that the principal of and accrued interest on the Series 2017B Notes may not be declared immediately due and payable by reason of the occurrence and continuation of a Default, and any notice of declaration or acceleration based on such Default shall be null and void with respect to the Series 2017B Notes; provided, further that in case a Default has occurred and is continuing, the Trustee shall not be subject to Section 601(b) of the Original Indenture unless an Event of Default has occurred and is continuing.  
ARTICLE 2
Miscellaneous Provisions
SECTION 201.  Recitals by Company.  The recitals in this Fifth Supplemental Indenture are made by the Company only and not by the Trustee, and all of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of Series 2017B Notes and of this Fifth Supplemental Indenture as fully and with like effect as if set forth herein in full.

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SECTION 202.  Ratification and Incorporation of Original Indenture.  As supplemented hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture, as supplemented by this Fifth Supplemental Indenture shall be read, taken and construed as one and the same instrument.
SECTION 203.  Executed in Counterparts.  This Fifth Supplemental Indenture may be simultaneously executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument.

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IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name and behalf by its duly authorized officer, all as of the day and year first above written.

	
				
	 
	THE SOUTHERN COMPANY
	 

	 
	 
	

	 

	 
	By:
	 
	 

	 
	 
	Art P. Beattie
Executive Vice President and Chief Financial Officer
	 

	 
	 
	

	 

	 
	WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Trustee

	 
	 
	

	 

	 
	By:
	 
	 

	 
	 
	Stefan Victory
Vice President
	 

EXHIBIT A

FORM OF SERIES 2017B NOTE

	
		
	NO. __
	CUSIP NO.                       842587 404

THE SOUTHERN COMPANY
SERIES 2017B 5.25% JUNIOR SUBORDINATED NOTE
DUE DECEMBER 1, 2077

	
			
	 
	Principal Amount:
	$__________

	 
	 
	 

	 
	Regular Record Date:
	One Business Day prior to Interest Payment Date (if any Series 2017B Notes are issuable in the form of one or more Global Securities) or 15th calendar day prior to Interest Payment Date (if no Series 2017B Notes are issuable in the form of one or more Global Securities) 

	 
	 
	 

	 
	Original Issue Date:
	November 22, 2017

	 
	 
	 

	 
	Stated Maturity:
	December 1, 2077

	 
	 
	 

	 
	Interest Payment Dates:
	March 1, June 1, September 1 and December 1 

	 
	 
	 

	 
	Interest Rate:
	5.25% per annum

	 
	 
	 

	 
	Authorized Denomination:
	$25.00 and integral multiples of $25.00 in excess thereof

The Southern Company, a Delaware corporation (the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to _____________________________________, or registered assigns, the principal sum of _________ DOLLARS ($__________) on the Stated Maturity shown above (or upon earlier redemption), and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for quarterly in arrears on each Interest Payment Date as specified above, commencing on March 1, 2018 and on the Stated Maturity (or upon earlier redemption) at the rate per annum shown above until the principal hereof is paid or made available for payment and at such rate on any overdue principal and on any overdue installment of interest.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date (other than an Interest Payment Date that is the Stated Maturity or on a Redemption Date) will, as provided in such Indenture, be paid to the Person in whose name this Note (the “Note”) is registered at the close of business on the Regular Record Date as specified above next preceding such Interest Payment Date, provided that any interest payable at the Stated Maturity or on any Redemption Date will be paid to the Person to whom principal is payable.  Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes of this series not less than 10 days prior 

A-1

to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange, if any, on which the Notes of this series shall be listed, and upon such notice as may be required by any such exchange, all as more fully provided in the Indenture.
Payments of interest on this Note will include interest accrued to but excluding the respective Interest Payment Dates.  Interest payments for this Note shall be computed and paid on the basis of a 360-day year of twelve 30-day months.  In the event that any date on which interest is payable on this Note is not a Business Day, then payment of the interest payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or other payment in respect of any such delay), with the same force and effect as if made on the date the payment was originally payable.  A “Business Day” shall mean any day other than a Saturday or a Sunday or a day on which banking institutions in New York City are authorized or required by law or executive order to remain closed or a day on which the Corporate Trust Office of the Trustee is closed for business.
So long as no Event of Default shall have occurred and be continuing, the Company may, at its option, on one or more occasions, defer payment of all or part of the current and accrued interest otherwise due on the Series 2017B Notes by extending the interest payment period for up to forty (40) consecutive quarterly periods (each period, commencing on the date that the first such interest payment would otherwise have been made, an “Optional Deferral Period”).  A deferral of interest payments may not extend beyond the Stated Maturity or end on a day other than an Interest Payment Date.  As provided in the Indenture, Additional Interest on the Series 2017B Notes will accrue to the extent permitted by law.  No interest shall be due and payable during an Optional Deferral Period, except at the end of such Optional Deferral Period or upon a redemption of the Series 2017B Notes during such Optional Deferral Period.
So long as no Event of Default shall have occurred and be continuing, prior to the termination of any Optional Deferral Period, the Company may further defer the payment of interest by extending such Optional Deferral Period; provided that such Optional Deferral Period together with all such previous and further deferrals of interest payments shall not exceed forty (40) consecutive quarterly periods at any one time or extend beyond the Stated Maturity.  Upon the termination of any Optional Deferral Period, which shall be an Interest Payment Date, the Company shall pay all interest accrued and unpaid on the Series 2017B Notes, including any Additional Interest, to the Person in whose name the Series 2017B Notes are registered on the Regular Record Date for such Interest Payment Date, provided that interest accrued and unpaid on the Series 2017B Notes, including any Additional Interest, payable at Stated Maturity or on any Redemption Date will be paid to the Person to whom principal is payable.  Once the Company pays all interest accrued and unpaid on the Series 2017B Notes, including any Additional Interest, it shall be entitled again to defer interest payments on the Series 2017B Notes as described above.  
During an Optional Deferral Period, subject to the next succeeding sentence, (a) the Company shall not declare or pay any dividend or make any distributions with respect to, or redeem, purchase, acquire or make a liquidation payment with respect to, any of its capital stock, and (b) the Company shall not make any payment of interest, principal or premium, if any, on or repay, repurchase or redeem any debt securities (including guarantees) issued by the Company which rank pari passu with or junior to the Series 2017B Notes.  The preceding sentence, however, shall not restrict (i) any of the actions described in the preceding sentence resulting from any reclassification of the Company’s capital stock or the exchange or conversion of one class or series of the Company’s capital stock for another class or series of the Company’s capital stock, (ii) the purchase of fractional interests in shares of the Company’s capital stock pursuant to the conversion or exchange provisions 

A-2

of such capital stock or the security being converted or exchanged, (iii) dividends, payments or distributions payable in shares of capital stock, (iv) redemptions, purchases or other acquisitions of shares of capital stock in connection with any employment contract, incentive plan, benefit plan or other similar arrangement of the Company or any of its subsidiaries or in connection with a dividend reinvestment or stock purchase plan, or (v) any declaration of a dividend in connection with implementation of any stockholders’ rights plan, or the issuance of rights, stock or other property under any such plan, or the redemption, repurchase or other acquisition of any such rights pursuant thereto.
The Company shall provide to the Trustee written notice of its selection or extension of an Optional Deferral Period at least 10 Business Days and not more than 60 Business Days prior to the earlier of (a) the next applicable Interest Payment Date or (b) the date, if any, upon which the Company is required to give notice of such Interest Payment Date or the Regular Record Date thereof to the New York Stock Exchange or any applicable self-regulatory organization.  The Trustee shall forward such notice promptly to the Holders of the Series 2017B Notes.
Payment of the principal of and interest (including Additional Interest) due at the Stated Maturity or earlier redemption of the Series 2017B Notes shall be made upon surrender of the Series 2017B Notes at the Corporate Trust Office of the Trustee.  The principal of and interest on the Series 2017B Notes (including Additional Interest) shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payment of interest (including interest on an Interest Payment Date)(including Additional Interest) will be made, subject to such surrender where applicable, at the option of the Company, (i) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (ii) by wire transfer or other electronic transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 16 days prior to the date for payment by the Person entitled thereto.
The indebtedness evidenced by this Note, including the principal hereof and interest hereon, is, to the extent provided in the Indenture, subordinate and junior in right of payment  and upon liquidation to the prior payment in full of all Senior Indebtedness (as defined in the Indenture), and this Note is issued subject to the provisions of the Indenture with respect thereto.  Each Holder of this Note, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the subordination so provided, and (c) appoints the Trustee his attorney-in-fact for any and all such purposes.  Each Holder hereof, by his acceptance hereof, waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each holder of Senior Indebtedness, whether now outstanding or hereafter incurred, and waives reliance by each such holder upon said provisions.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.
Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

A-3

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

Dated:  

	
				
	 
	THE SOUTHERN COMPANY

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	Title:
	 
	 

	 
	 
	 
	 

	Attest:
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	Title:
	 
	 
	 

	 
	 
	 
	 

{Seal of THE SOUTHERN COMPANY appears here}

A-4

CERTIFICATE OF AUTHENTICATION

This is one of the Junior Subordinated Notes referred to in the within-mentioned Indenture.

	
			
	Dated:
	WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Trustee

	 
	 
	 

	 
	By:
	 

	 
	 
	Authorized Signatory

A-5

(Reverse Side of Note)

This Note is one of a duly authorized issue of Junior Subordinated Notes of the Company (the “Notes”), issued and issuable in one or more series under a Subordinated Note Indenture, dated as of October 1, 2015, as supplemented (the “Indenture”), between the Company and Wells Fargo Bank, National Association, as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures incidental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes issued thereunder and of the terms upon which said Notes are, and are to be, authenticated and delivered.  This Note is one of the series designated on the face hereof as Series 2017B 5.25% Junior Subordinated Notes due December 1, 2077 (the “Series 2017B Notes”) which is unlimited in principal amount.  Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture.
The Series 2017B Notes will not have a sinking fund.
At any time and from time to time on or after December 1, 2022, the Series 2017B Notes will be subject to redemption at the option of the Company in whole or in part upon not less than 30 nor more than 60 days’ notice, at a Redemption Price equal to 100% of the principal amount of the Series 2017B Notes being redeemed plus accrued and unpaid interest (including any Additional Interest) on the Series 2017B Notes being redeemed to the Redemption Date.  
In addition, if a Tax Event shall occur and be continuing, the Company may redeem the Series 2017B Notes following the occurrence of that Tax Event, in whole, but not in part, before December 1, 2022, at a Redemption Price equal to 101% of the principal amount to be redeemed plus any accrued but unpaid interest (including any Additional Interest) to the Redemption Date.
“Administrative Action” means any judicial decision or any official administrative pronouncement, ruling, regulatory procedure, notice or announcement including any notice or announcement of intent to issue or adopt any administrative pronouncement, ruling, regulatory procedure or regulation.
“Tax Event” means that the Company shall have received an Opinion of Counsel experienced in such matters to the effect that, as a result of: 
(a) any amendment to, clarification of, or change, including any announced prospective change, in the laws or treaties of the United States or any of its political subdivisions or taxing authorities, or any regulations under those laws or treaties; 
(b) an Administrative Action; 
(c) any amendment to, clarification of, or change in the official position or the interpretation of any Administrative Action or any interpretation or pronouncement that provides for a position with respect to an Administrative Action that differs from the previously generally accepted position, in each case by any legislative body, court, governmental authority or regulatory body, regardless of the time or manner in which that amendment, clarification or change is introduced or made known; or
(d) a threatened challenge asserted in writing in connection with an audit of the Company or an audit of any of the subsidiaries of the Company, or a publicly-known threatened challenge 

A-6

asserted in writing against any other taxpayer that has raised capital through the issuance of securities that are substantially similar to the Series 2017B Notes,
which amendment, clarification or change is effective or the Administrative Action is taken or issued, or interpretation or pronouncement is issued or threatened challenge is asserted or becomes publicly-known after the date of original issuance of the Series 2017B Notes, there is more than an insubstantial risk that interest payable by the Company on the Series 2017B Notes is not deductible, or within 90 days of the date of such opinion would not be deductible, in whole or in part, by the Company for United States federal income tax purposes.
In addition, if a Rating Agency Event shall occur and be continuing, the Company may redeem the Series 2017B Notes following the occurrence  of that Rating Agency Event, in whole, but not in part, before December 1, 2022, at a Redemption Price equal to 102% of the principal amount to be redeemed plus any accrued but unpaid interest (including any Additional Interest) to the Redemption Date.
“Applicable Rating Agency” means any Rating Agency that (i)(a) published a rating for the Company on the date of initial issuance of the Series 2017B Notes and (b) publishes a rating for the Company at such time as a Rating Agency Event occurs, or (ii) any successor to a Rating Agency described in the preceding clause (i).
“Rating Agency” means any nationally recognized statistical rating organization (within the meaning of Section 3(a)(62) of the Securities Exchange Act of 1934, as amended).
“Rating Agency Event” means a change to the methodology or criteria that were employed by an Applicable Rating Agency for purposes of assigning equity credit to securities such as the Series 2017B Notes on the date of initial issuance of the Series 2017B Notes, which change reduces the amount of equity credit assigned to the Series 2017B Notes by the Applicable Rating Agency as compared with the amount of equity credit that such Rating Agency has assigned to the Series 2017B Notes as of the date of initial issuance of the Series 2017B Notes.
In the event of redemption of this Note in part only, a new Note or Notes of this series for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the surrender hereof.  The Series 2017B Notes will not have a sinking fund.
If an Event of Default with respect to the Notes of this series shall occur and be continuing, the principal of the Notes of this series may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Notes at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Notes of each series at the time Outstanding, on behalf of the Holders of all Notes of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon 

A-7

the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.
No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar and duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series, of authorized denominations and of like tenor and for the same aggregate principal amount, will be issued to the designated transferee or transferees.  No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.
The Notes of this series are issuable only in registered form without coupons in denominations of $25.00 and integral multiples of $25.00 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Notes of this series are exchangeable for a like aggregate principal amount of Notes of this series of a different authorized denomination, as requested by the Holder surrendering the same upon surrender of the Note or Notes to be exchanged at the office or agency of the Company.
The Company and, by acceptance of this Series 2017B Note or a beneficial interest in this Series 2017B Note, each Holder hereof and any person acquiring a beneficial interest herein, agree that for United States federal, state and local tax purposes it is intended that this Series 2017B Note constitute indebtedness.
This Note shall be governed by, and construed in accordance with, the internal laws of the State of New York.

A-8

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

	
			
	TEN COM-  as tenants in common
	UNIF GIFT MIN ACT- _______ Custodian ________
                                         (Cust)                     (Minor)

	TEN ENT-   as tenants by the entireties
	 
	 

	JT TEN-       as joint tenants with right of survivorship and not as tenants in common
	under Uniform Gifts to
Minors Act

___________________
            (State)

Additional abbreviations may also be used
though not on the above list.

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto
_____________________________________________________________________________
(please insert Social Security or other identifying number of assignee)

_____________________________________________________________________________
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING POSTAL ZIP CODE OF ASSIGNEE
_____________________________________________________________________________

_____________________________________________________________________________
the within Note and all rights thereunder, hereby irrevocably constituting and appointing
_____________________________________________________________________________

_____________________________________________________________________________
agent to transfer said Note on the books of the Company, with full power of substitution in the premises.

	
				
	Dated:
	 
	 
	 

	 
	 
	 
	

NOTICE:  The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or enlargement, or any change whatever.

A-9

EXHIBIT B

CERTIFICATE OF AUTHENTICATION

This is one of the Junior Subordinated Notes referred to in the within-mentioned Indenture.

	
			
	Dated:
	WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Trustee

	 
	 
	 

	 
	By:
	 

	 
	 
	Authorized Signatory

B-1galicposam32017-ex4a1

P1822317NW      Home Office:  Cincinnati, Ohio [Administrative Office:  P.O. Box 5423, Cincinnati, Ohio 45201-5423]  [Marketing Name] Individual Deferred Annuity Contract [Tax Qualification] Indexed and Declared Rate Crediting Strategies Flexible Purchase Payments for Limited Period Nonparticipating – No Dividends  This is your annuity contract.  It is a legally binding agreement between you and us.  It provides that we will pay the Annuity Payout Benefit to you in exchange for your Purchase Payment(s).  PLEASE READ THIS CONTRACT WITH CARE.  As you read through this contract, please note that the words "we", "us", "our", and "Company" refer to Great American Life Insurance Company.  The words "you" and "your" refer to the Owner, including a joint owner, if any.  The word “Contract” refers to this annuity contract.  Other capitalized terms are defined on the Contract Specifications page or by a specific provision of this Contract.  This Contract is a deferred annuity, which means the Annuity Payout Benefit is to begin on a future date. It offers one or more Indexed Strategies that may increase or decrease based in part by the change in an external market index, rate, or value over a specified Term. However, this Contract does not directly participate in any equity, debt, or other investments.  It also offers a Declared Rate Strategy that earns interest at a fixed rate we set before the Term starts.  This Contract allows flexible Purchase Payments for a limited period, which means you may make one or more Purchase Payments during the Purchase Payment Period.  It is nonparticipating, which means it does not pay dividends or share in the Company's divisible surplus.  This Contract is a [tax qualification].  [Please refer to the tax qualification endorsement for important provisions.]  [ ]  [ ] [Mark F. Muething]  [John P. Gruber] [Executive Vice President]  [Secretary]  TWENTY DAY EXAMINATION – RIGHT TO CANCEL You may cancel this Contract by returning it and giving written notice of cancellation.  You have until midnight of the 20th day following the date you receive it, or such longer period as may be provided by law.  If you purchased this Contract to replace an existing annuity contract or life insurance policy, you have until midnight of the 30th day following the date you receive it.  To cancel, you must return this Contract and give the required notice either to us or to the producer who sold it to you, in person or by mail.  If by mail, the return of this Contract or notice is effective on the date it is postmarked, with the proper address and with postage paid.  If you cancel this Contract as set forth above, this Contract shall be void and we will refund the Account Value, or if required by law, the Purchase Payments made for it.  If we are required to refund the Purchase Payments, we reserve the right to hold Purchase Payments in the Purchase Payment Account until the first Strategy Application Date on or after the end of the examination period. 

 

P1822317NW 2    TABLE OF CONTENTS        Page HOW TO CONTACT US ................................................................................................................. 2 CONTRACT SPECIFICATIONS ..................................................................................................... 3 OWNER........................................................................................................................................... 6 ANNUITANT .................................................................................................................................... 7 BENEFICIARY ................................................................................................................................ 7 PURCHASE PAYMENTS ............................................................................................................... 8 CONTRACT VALUES ..................................................................................................................... 8 INTEREST AND GAIN OR LOSS .................................................................................................10 CHARGES ....................................................................................................................................11 CASH BENEFIT ............................................................................................................................12 ANNUITY PAYOUT BENEFIT ......................................................................................................13 DEATH BENEFIT ..........................................................................................................................14 PAYOUT OPTIONS ......................................................................................................................16 GENERAL PROVISIONS..............................................................................................................18 ENDORSEMENTS AND RIDERS (IF ANY)    HOW TO CONTACT US  Administrative Office: For information and assistance, or to make a complaint, election, or request, call or write:  [Policy Administration] Great American Life Insurance Company® [P.O. Box 5423 Cincinnati, Ohio 45201-5423 1-800-789-6771]  If you prefer, you may visit us at our website, [www.GAIGannuities.com]  Request in Good Order:  Any election or request you make to us under this Contract must be a Request in Good Order.  A Request in Good Order is an election or request that is: 1) complete and satisfactory to us; 2) sent to us on our form or in a manner satisfactory to us, which may, at our discretion, be by telephone or electronic means; and 3) received by us at our Administrative Office.  We are not bound by a request until we acknowledge it.  We will deem a Request in Good Order to be a standing order.  It may be modified or revoked only by a subsequent Request in Good Order, when permitted by the provisions of this Contract.  You may be required to return this Contract to us in connection with a request.  If a Request in Good Order is received by us on a day that is not a Market Day, or after the first Market Close of a Market Day, we will treat it as if it were received at the start of the next Market Day.   

 

P1822317NW 3    CONTRACT SPECIFICATIONS  CONTRACT Contract Number:  [000000000] Contract Effective Date: [May 1, 2015] Contract Anniversary:  [May 1] of each year after the Contract Effective Date Contract Year: A 12-month period that starts on the Contract Effective Date or on a Contract Anniversary. Annuity Payout Initiation Date Earliest Permitted Date: [May 1, 2016] Latest Permitted Date:  [May 1, 2075] The latest permitted date may change if an Owner of this Contract changes. Minimum Required Value: [$5,000] Minimum Fixed Period Payout: [10 years]  OWNER[S] [JOHN DOE]  [JANE DOE]   ANNUITANT[S] [JOHN DOE]  [JANE DOE]   [BENEFICIARY [NONE] [Primary Beneficiar[y][(ies)]] [NONE] [JANE DOE. Spouse] [50% JIMMY DOE, Son] [50% JUNE DOE, Daughter] [Contingent Beneficiar[y][(ies)]] [50% JIMMY DOE, Son] [50% JUNE DOE, Daughter]  Beneficiary designations are subject to the rights of a Joint Owner, if any, and to a change of Beneficiary made after the date this Contract was printed, and to other Contract rules.  Beneficiary designations do not apply after the Annuity Payout Initiation Date.]   

 

P1822317NW 4    PURCHASE PAYMENTS Initial Purchase Payment: [$25,000.00] Additional Purchase Payment Minimum: [$10,000.00] Total Purchase Payment Maximum: [$1,000,000.00] Purchase Payment Period: [First Two Months of Contract]  CREDITNG STRATEGIES Strategy Application Date: [the 6th and 20th day of each month]  Strategies Maximum Loss Each Term Initial  Bailout Trigger Initial Selection  [Declared Rate Strategy] NA NA [20%]  [Secure S&P 500®  Indexed Strategy] [Maximum Loss 0%] [1.5%] [20%]  [Reach S&P 500®  Indexed Strategy] [Maximum Loss 10%] [8.0%] [20%]  [Secure iShares US Real Estate ETF Indexed Strategy [Maximum Loss 0%] [1.5%] [10%]  [Reach iShares US Real Estate ETF Indexed Strategy [Maximum Loss 10%] [8%] [10%]  [Secure SPDR Gold Shares ETF Indexed Strategy [Maximum Loss 0%] [1.5%] [10%]  [Reach SPDR Gold Shares ETF Indexed Strategy [Maximum Loss 10%] [8%] [10%] Each Crediting Strategy is described in an endorsement to this Contract.  Please refer to the Strategy endorsements for important provisions and disclosures. Term: A Term is the period for which Contract values are allocated to a given Crediting Strategy, and over which interest or gain or loss is calculated.  Each Term is one year long, and will start and end on a Strategy Application Date.  A new Term will start at the end of the preceding Term. Market Day: A Market Day is each day that all markets that are used to measure available Indexed Strategies are open for regular trading. Market Close: A Market Close is the close of the regular or core trading session on the market used to measure a given Indexed Strategy.  VESTED GAIN OR LOSS DURING A TERM  Vesting Factor   Positive Index Change Negative Index Change [Dates within the first six months of a Term] [25%] [100%] [Dates within the final six months of a Term, but before the final Market Date of the Term] [50%] [100%] After reaching the final Market Day of a Term 100% 100%  [The final six months of a Term start with the date that is six months after the first day of the Term.]   

 

P1822317NW 5    EARLY WITHDRAWAL CHARGE Contract Year 1 2 3 4 5 6 7 8+ Early Withdrawal Charge Rate 8% 7% 6% 5% 4% 3% 2% 0% Free Withdrawal Percentage: [10%]   

 

P1822317NW 6    OWNER  Owner The Owner of this Contract is the person who possesses all of the ownership rights under this Contract.  The Owner on the Contract Effective Date is set out on the Contract Specifications page.  If the cover page of this Contract states that it is a Nonqualified Annuity, then it may be owned by two persons jointly.  If there is a joint Owner, the term “Owner” includes the joint Owner, and you must exercise all rights of ownership by joint action.  You may change the Owner as provided in the Change of Owner provision of this Contract.  A surviving spouse may become the Owner pursuant to the Successor Owner provision of this Contract.  If an Owner is a trust, custodial account, corporation, limited liability company, partnership, or other entity, then the age of the eldest Annuitant is treated as the age of the Owner for all purposes of this Contract.  Assignment Subject to the tax qualification endorsement, if any, you may assign all or any part of your rights under this Contract, except your rights to: 1) designate or change a Beneficiary; 2) designate or change an Annuitant; 3) change Owners; or 4) elect a Payout Option.  We are not responsible for the validity or tax effects of an assignment.  An assignment must be made by a Request in Good Order.  The rights of a person holding an assignment, including the right to any payment under this Contract, come before the rights of an Owner, Annuitant, Beneficiary, or other payee.  An assignment may be ended only by the person holding it or as provided by law.  Change of Owner Subject to the tax qualification endorsement, if any, you may change the Owner at any time during your lifetime.    A change of Owner must be made by a Request in Good Order.  A change of Owner cancels all prior Beneficiary designations. It does not cancel a designation of an Annuitant or a Payout Option election.    Successor Owner Your spouse becomes the successor owner of this Contract and succeeds to all rights of ownership if all of the following requirements are met: 1) a Death Benefit is payable on account of your death; 2) the sole Beneficiary under this Contract is your spouse, or a revocable trust or custodial account created by your spouse; 3) either you make that election by a Request in Good Order before your death, or your spouse makes that election by a Request in Good Order before the Death Benefit Payment Date; and 4) you were not a successor owner of this Contract.  A successor owner election cancels all prior Beneficiary designations.  It does not cancel a designation of an Annuitant or a Payout Option election.   

 

P1822317NW 7    If state law extends this successor owner right to a civil union partner or other person who is not your spouse as defined by federal tax law, then distributions after your death must be made as required by the Death Benefit Distribution Rules provision of this Contract.  Community Property If you live in a community property state and have a spouse at any time while you own this Contract, the laws of that state may vary your ownership rights.   ANNUITANT  The Annuitant is the natural person or persons on whose life the Annuity Payout Benefit is based.  The Annuitant on the Contract Effective Date is set out on the Contract Specification page.  If this Contract has a tax qualification endorsement, then the Annuitant must be the natural person covered under the retirement arrangement for whose benefit this Contract is held.  If the cover page states that this Contract is a Nonqualified Annuity, then the Annuitant cannot be changed at any time that it is owned by a trust, custodial account, corporation, limited liability company, partnership, or other entity.   Otherwise, you may change a designation of Annuitant by a Request in Good Order at any time before the Annuity Payout Initiation Date.  If an Annuitant dies before the Annuity Payout Initiation Date and no Death Benefit is payable, then in the absence of a new designation, the Annuitant shall be the surviving joint Annuitant(s), or if none, the Owner(s).   BENEFICIARY  Beneficiary A Beneficiary is a person entitled to receive all or part of a Death Benefit that is to be paid under this Contract on account of a death before the Annuity Payout Initiation Date.    If a Death Benefit becomes payable on account of your death or the death of a joint Owner, then the surviving Owner is the Beneficiary no matter what other designation you may have made.  In all other cases, you may designate person or persons who will be the Beneficiary(ies) as provided in the Designation of Beneficiary provision of this Contract.    If no designated Beneficiary is surviving, then the Beneficiary is your estate.  Designation of Beneficiary A designation of Beneficiary must be made by a Request in Good Order, received by us on or before the date of death for which a Death Benefit is payable.  You may designate two or more persons jointly as the Beneficiaries.  Unless you state otherwise, joint Beneficiaries that are surviving are entitled to equal shares.  You may also designate one or more persons as contingent Beneficiary.  Unless you state otherwise, a contingent Beneficiary is entitled to a benefit only if there is no primary Beneficiary that is surviving.   

 

P1822317NW 8    Survivorship Required In order to be entitled to receive a Death Benefit, a Beneficiary must survive for at least 30 days after the death for which the Death Benefit is payable.  If you designate your spouse as a Beneficiary and your marriage ends before your death, we will treat your former spouse as having predeceased you except: 1) to the extent a court order provides that the former spouse’s rights as a beneficiary are to continue; or  2) to the extent he or she remains or becomes an Owner.   PURCHASE PAYMENTS  A Purchase Payment is an amount received by us for this Contract.  It is determined after deducting any taxes withheld from the payment, and after deducting any fee charged by the person remitting payment.  You may make one or more Purchase Payments to us for this Contract.  The initial Purchase Payment must be received by us on or before the Contract Effective Date.  Each additional Purchase Payment must at least equal the minimum that is set out on the Contract Specifications page.  Each additional Purchase Payment must be received by us at our Administrative Office on or before the earliest of the following: 1) the last day of the Purchase Payment Period that is set out on the Contract Specifications page; 2) the Annuity Payout Initiation Date; 3) a death for which a Death Benefit is payable; and 4) the date that this Contract is surrendered.  Total Purchase Payments cannot exceed the maximum that is set out on the Contract Specifications Page.  Upon request, we will provide you with a receipt for a Purchase Payment as proof of payment.   CONTRACT VALUES  Account Value The Account Value of this Contract is equal to the sum of the values of each Crediting Strategy, plus the value of the Purchase Payment Account, if any.  Declared Rate Strategy Value The value of a Declared Rate Strategy is equal to: 1) the amounts applied to the Strategy at the start of the current Term; minus 2) each withdrawal and related Early Withdrawal Charge taken from the Strategy during the current Term; minus 3) each rider charge taken from the Strategy during the current Term; and plus 4) interest that we have credited on the balances in the Strategy for the current Term.   

 

P1822317NW 9    Indexed Strategy Value The value of an Indexed Strategy is equal to: 1) the investment base for that Term, which is the amount applied to the Strategy at the start of the current Term; minus 2) the portion of that investment base that is taken from the Strategy to pay for each withdrawal and related Early Withdrawal Charge during the current Term; minus 3) the portion of that investment base that is taken from the Strategy to pay for each rider charge during the current Term; and plus 4) the Vested Gain or Loss for that Term on the remaining portion of the investment base.  The portion of the investment base that is taken from the Strategy to pay for a withdrawal or charge is the amount that, when Vested Gain or Loss is included, equals the withdrawal or charge.  If there is a Vested Gain, then the portion of the investment base taken will be less than the withdrawal or charge.  If there is a Vested Loss, then the portion of the investment base taken will be greater than the withdrawal or charge.  A withdrawal or charge will reduce the value of an Indexed Strategy by an amount equal to the withdrawal or charge.  The portion of the investment base taken to pay for a withdrawal or charge is proportional to the reduction in the value of the Indexed Strategy due to the withdrawal or charge.  Purchase Payment Account Value The Purchase Payment Account holds each Purchase Payment until it is applied to a Crediting Strategy on a Strategy Application Date.  The Strategy Application Dates are set out on the Contract Specifications page.  Until it is applied to a Crediting Strategy, the value of the Purchase Payment Account is equal to: 1) Purchase Payments received by us since the last Strategy Application Date; minus 2) the premium tax or other tax that may apply to such Purchase Payments; minus 3) each withdrawal and related Early Withdrawal Charge taken from the Purchase Payment Account since the last Strategy Application Date; minus 4) each rider charge taken from the Purchase Payment Account since the last Strategy Application Date; and plus 5) interest earned daily on the Purchase Payment Account value.  Surrender Value The Surrender Value of this Contract is the amount that can be taken as a Cash Benefit under this Contract.  It is equal to: 1) the Account Value; minus 2) rider charges not previously deducted; and minus  3) the Early Withdrawal Charge that would apply on a surrender of this Contract.  Annuity Payout Value The Annuity Payout Value is the amount that can be applied to the Annuity Payout Benefit under this Contract.  It is equal to: 1) the Account Value on the Annuity Payout Initiation Date; minus 2) rider charges not previously deducted; and minus 3) premium tax or other taxes not previously deducted.   

 

P1822317NW 10    Death Benefit Value The Death Benefit Value is the amount that is available as a Death Benefit under this Contract.  It is equal to the greater of: 1) the Account Value on the date that the Death Benefit Value is determined; or 2) the Purchase Payments, reduced proportionately for all withdrawals, including withdrawals to pay rider charges, but not including amounts applied to pay Early Withdrawal Charges.  The reduction for withdrawals will be in the same proportion that the Account Value was reduced on the date of the withdrawal. In either case, the Death Benefit Value is reduced by: 1) rider charges not previously deducted; and 2) premium tax or other taxes not previously deducted.  For this purpose, the date that the Death Benefit Value is determined is the earlier of: 1) the date that we have received both proof of death and a Request in Good Order with instructions as to the form of Death Benefit; or  2) the first anniversary of the date of death.   INTEREST AND GAIN OR LOSS  Interest and Gain or Loss on Contract Values Each Strategy earns interest or is adjusted for Vested Gain or Loss based on the rules that apply to that Strategy.  The rules for each Strategy are set out in an endorsement to this Contract.  The Purchase Payment Account earns interest daily at an annual effective rate equal to [1%] per year.  An amount held under this Contract stops earning interest or being adjusted for Vested Gain or Loss after the earliest of: 1) the Annuity Payout Initiation Date; 2) the date that the Death Benefit Value is determined; or 3) the date on which the amount is withdrawn or this Contract is surrendered.  Crediting Strategy A Crediting Strategy is a specified method by which interest or gain or loss is calculated for a Term. The initial Crediting Strategies are set out on the Contract Specifications page.  The interest rates, maximum gains, participation rates, minimum and maximum allocations, or other variable factors in effect for a given Crediting Strategy may vary from one Term to the next.  At the end of a Term, we reserve the right to eliminate a particular Crediting Strategy at our discretion.    Strategy Selections Each Purchase Payment is applied to the Purchase Payment Account upon receipt by us.  On each Strategy Application Date, we apply the then current balance of the Purchase Payment Account to the Crediting Strategies you have selected.  Your selection must be made by a Request in Good Order.  The Strategy Application Dates and your initial selection are set out on the Contract Specifications page.  Your selection continues to apply until changed by a Request in Good Order.   

 

P1822317NW 11    Strategy Renewals at Term End At the end of each Term of a given Crediting Strategy, we will apply the ending value of that Strategy to a new Term of that same Strategy except to the extent that such value is moved under the Strategy Reallocation at Term End provision.  Strategy Reallocations at Term End At the end of a Term, you may reallocate the ending values of the Crediting Strategies for that Term among the available Strategies.  A reallocation must be made by Request in Good Order received by us on or before the last day of the Term.  At the end of a Term, we will reallocate any amount that cannot be applied to a given Crediting Strategy for the next Term because that Strategy is no longer available or because the amount is under the minimum or over the maximum for that Strategy.  We will make this reallocation: 1) to the Declared Rate Strategy, and if more than one, then to the Declared Rate Strategy having the shortest Term; or 2) if a Declared Rate Strategy is not available, then to a Strategy that we designate that has a maximum loss of 0%.  You cannot reallocate amounts from one Crediting Strategy to another until the end of the Term for which such amount is being held.  Rules for Strategy Selections and Reallocations Crediting Strategy selections and reallocations must be in whole percentages.  We reserve the right to round amounts up or down to make whole percentages, and to reduce or increase amounts proportionately in order to total 100%.  We reserve the right to establish minimum or maximum amounts or percentages that may be applied to a given Crediting Strategy.  We may change these minimums or maximums for any future renewal Terms in our discretion.  We will notify you of any such change.  We may limit the availability of a Strategy for a Term that would extend beyond the Annuity Payout Initiation Date.   CHARGES  Early Withdrawal Charge We will deduct an Early Withdrawal Charge from the Account Value of this Contract if it is surrendered or a withdrawal is taken prior to the seventh Contract Anniversary.  The Early Withdrawal Charge is equal to the Early Withdrawal Charge rate multiplied by the amount that is subject to such charge.  The amount that is subject to the charge is the portion of the Account Value that you withdraw or surrender.  The amount you withdraw or surrender includes any amount needed to pay the Early Withdrawal Charge itself.  It does not include the amount covered by your Free Withdrawal Allowance. The Early Withdrawal Charge rates are set out on the Contract Specifications page.  An Early Withdrawal Charge does not apply to a withdrawal or surrender on or after the seventh Contract Anniversary.   

 

P1822317NW 12    Free Withdrawal Allowance The Free Withdrawal Allowance is the total amount or amounts that may be taken as a withdrawal or surrender during a Contract Year without an Early Withdrawal Charge that might otherwise apply.  For the first Contract Year, it is equal to Free Withdrawal Percentage multiplied by the total Purchase Payments received by us.  For each subsequent Contract Year, it is equal to the Free Withdrawal Percentage multiplied by the sum of the Account Value as of the most recent Contract Anniversary plus all Purchase Payments received by us since that Contract Anniversary.  The Free Withdrawal Percentage is set out on the Contract Specifications page.  You may not carry over any unused part of your Free Withdrawal Allowance from one Contract Year to the next.   CASH BENEFIT  Surrender You may surrender this Contract in full at any time before the earlier of: 1) the Annuity Payout Initiation Date; or 2) a death for which a Death Benefit is payable.  A surrender must be made by a Request in Good Order.  In the case of a surrender, this Contract terminates.  The amount paid upon a surrender is the Surrender Value.  Withdrawals You may take withdrawals from this Contract at any time before the earliest of: 1) the Annuity Payout Initiation Date; 2) a death for which a Death Benefit is payable; or 3) the date that this Contract is surrendered.  A withdrawal must be made by a Request in Good Order.  The amount of any withdrawal must be at least $500.  No withdrawal may be made if it would reduce the Account Value to less than the Minimum Required Value.  The Minimum Required Value is set out on the Contract Specifications page.  A withdrawal will be taken: 1) first proportionally from funds that then qualify for a waiver of the Early Withdrawal Charge pursuant to the provisions of the Crediting Strategy endorsement; 2) then from the Purchase Payment Account; 3) then proportionally from Declared Rate Strategies having the shortest Term until all Declared Rate Strategies are exhausted; and 4) then proportionally from Indexed Strategies having the shortest Term.  Exchanges, Transfers, and Rollovers An amount paid on a withdrawal or surrender may be paid to or for another annuity or tax-qualified account in a tax-free exchange, transfer, or rollover to the full extent allowed by federal tax law.   

 

P1822317NW 13    ANNUITY PAYOUT BENEFIT  Annuity Payout Benefit The Annuity Payout Benefit is a series of periodic payments made under a Payout Option.  The Annuity Payout Benefit is payable under this Contract if the Annuity Payout Initiation Date is reached before the earlier of: 1) a death for which a Death Benefit is payable; or 2) the date that this Contract is surrendered.  Once the Annuity Payout Initiation Date is reached: 1) the Annuity Payout Benefit is in place of all other benefits under this Contract; and 2) all other rights under this Contract terminate except for rights related to the Annuity Payout Benefit.  Annuity Payout Amount The amount of each payment under the Annuity Payout Benefit is determined on the Annuity Payout Initiation Date based on: 1) the Annuity Payout Value on that date;  2) the Payout Option that applies; and 3) the payment interval.  Annuity Payout Initiation Date The Annuity Payout Initiation Date is the first day of the first payment interval for which payment of the Annuity Payout Benefit is to be made.  Payments under a Payout Option are made at the end of each payment interval.  This means that for annual payments, the first payment will be made one year after the Annuity Payout Initiation Date.  You may choose the Annuity Payout Initiation Date by a Request in Good Order.  Such a request must be received by us no later than the chosen date, and at least 30 days before the date of the first payment to be made under a Payout Option.  The earliest permitted date that you may choose is the first Contract Anniversary.  Unless we agree, the latest permitted date that you may choose is the Contract Anniversary following your 95th birthday or the 95th birthday of a joint owner.  The earliest and latest permitted dates, as determined on the Contract Effective Date, are set out on the Contract Specifications page.  If you have not chosen the Annuity Payout Initiation Date by the latest permitted date, we may choose it for you.  We will notify you in writing at least 45 days before the date we choose, and give you an opportunity to choose an earlier date.  Form of Annuity Payout Benefit The Annuity Payout Benefit is paid in the form of annual payments as a Life Payout with Payments for at Least a Fixed Period as described in the PAYOUT OPTIONS section of this Contract, with a fixed period of 10 years, or if fewer, the maximum number of whole years permitted by any tax qualification endorsement.  In place of that, you may choose to have the Annuity Payout Benefit paid in the form of any other Payout Option that is available to you under this Contract.  Your choice must be made by a Request in Good Order that is received by us no later than the Annuity Payout Initiation Date and at least 30 days before the date of the first payment to be made.   

 

P1822317NW 14    Each Payout Option that is contingent on life is based on the life of the Annuitant.    We will not pay an Annuity Payout Benefit if we have the right to terminate this Contract pursuant to the Termination provision.  Payee for Annuity Payout Benefit Payments of the Annuity Payout Benefit are paid to the surviving Owner(s).  In place of receiving such payments, the surviving Owner(s) may from time to time elect for payments of the Annuity Payout Benefit be made: 1) as a tax-free exchange, transfer, or rollover to or for an annuity or tax-qualified account as permitted by federal tax law; or 2) to the Annuitant.  That election must be made or changed by a Request in Good Order received at least 30 days before the date of payment.  Annuity Payout Benefit payments that become due after the death of the payee are made to:  1) the surviving Owner(s); or if none 2) then to the surviving contingent payee(s) designated by the surviving Owner(s); or if none 3) the estate of the last payee who received payments.  A designation or change of a contingent payee must be made or changed by a Request in Good Order.  If you designate your spouse as a contingent payee and your marriage ends before your death, then we will treat your former spouse as having predeceased you except: 1) to the extent a court order provides that the former spouse’s rights as a contingent payee are to continue; or 2) to the extent he or she remains or becomes an Owner.  The portion of the Annuity Payout Benefit, if any, remaining after the death of an Owner or Annuitant must be paid at least as rapidly as payments were being made at the time of such death.   DEATH BENEFIT  Death Benefit A Death Benefit is payable under this Contract if, before the Annuity Payout Initiation Date and before the date that this Contract is surrendered: 1) an Owner dies; or 2) an Annuitant dies when this Contract is owned by a trust, custodial account, corporation, limited liability company, partnership, or other entity.  No Death Benefit will be payable on your death if your spouse becomes successor owner of this Contract.  If a Death Benefit becomes payable: 1) it is in place of all other benefits under this Contract; and 2) all other rights under this Contract terminate except for rights related to the Death Benefit.  Only one Death Benefit can be paid under this Contract.   

 

P1822317NW 15    Death Benefit Amount If the Death Benefit is to be paid as a series of periodic payments under a Payout Option, then the amount of each payment under the Death Benefit is determined on the date that the Death Benefit Value is applied to the Payout Option and is based on: 1) the Death Benefit Value, together with any interest required by law to the date it is applied to the Payout Option;  2) the Payout Option that applies; and 3) the payment interval.  If the Death Benefit is paid in a lump sum, then it is equal to the Death Benefit Value increased by interest as required by law.  Interest on Death Benefit We will accrue interest on the Death Benefit payable under this Contract as required by law.  Such interest, if any, is added to the Death Benefit Value to be paid.  Death Benefit Payout Date If the Death Benefit is to be paid under a Payout Option, then we will we apply the Death Benefit Value to a Payout Option as soon as practical after receipt of due proof of death and a Request in Good Order.  The date that we do so will be the first day of the first payment interval for which a payment is to be made.  Payments under a Payout Option are made at the end of each payment interval.  This means that for annual payments, the first payment will be made one year after the date on which the Death Benefit is applied to a Payout Option.  If the Death Benefit is to be paid as a lump sum, then it will be paid as soon as practical after the receipt of the Request in Good Order for a lump sum payment.  Form of Death Benefit Death Benefit payments are made annually as a Fixed Period Payout as described in the PAYOUT OPTIONS section of this Contract, with a period certain of two years.  In place of that, you may choose to have Death Benefit payments paid as a lump sum or in the form of any Payout Option that is available under this Contract.  Your choice must be made by a Request in Good Order that is received by us on or before the date of death for which a Death Benefit is payable.  If you do not make such a choice, the Beneficiary may make that choice after the date of death.  His or her choice must be made by a Request in Good Order that is received by us no later than the date that the Death Benefit Value is applied to a Payout Option and at least 30 days before the date of the first payment to be made.  Any choice is subject to the Death Benefit Distribution Rules provision of this Contract.  In any event, a Payout Option that is contingent on life is based on the life of the Beneficiary.  A Beneficiary that is a trust, custodial account, corporation, limited liability company, partnership, or other entity may elect a Payout Option based on the life of a person to whom the Beneficiary is obligated.  Such an election must be made by a Request in Good Order at least 30 days before the date of payment.  We will pay the Death Benefit as a lump sum rather than as payments under a Payout Option if:  1) as of the date that the Death Benefit Value is to be applied to a Payout Option, the Death Benefit Distribution Rules provision of this Contract does not allow a two-year payout; or 2) the Death Benefit is less than $2,000.   

 

P1822317NW 16    Death Benefit Distribution Rules The Death Benefit must be paid in accordance with the tax qualification endorsement, if any.  If the cover page states that this Contract is a Nonqualified Annuity, then the Death Benefit must be paid either: 1) in full within five years of the date of death; or 2) over the life of the Beneficiary or over a period certain not exceeding his or her life expectancy, with payments at least annually and with the first payment made within one year of the date of death.  If the cover page states that this Contract is a Nonqualified Annuity, and your spouse (as defined by federal tax law) becomes the successor owner of this Contract after your death, then: 1) this rule does not apply to your death; and 2) if the successor owner dies before the Annuity Payout Initiation Date, this rule applies to the death of the successor owner.  Payee for Death Benefit Payments Death Benefit payments are made to the Beneficiary as the payee unless:   1) amounts are paid as a tax-free exchange, transfer, or rollover to or for an annuity or tax- qualified account as permitted by federal tax law; or 2) the Beneficiary is a trust, custodial account, corporation, limited liability company, partnership, or other entity, and elects to have Death Benefit payments made to a person to whom the Beneficiary is obligated to make corresponding payments.  Death Benefit payments that become due after the death of the payee are made to the contingent payee designated as part of any Payout Option election made by you for the Death Benefit.  If there is no such contingent payee surviving, then such payments are made to the contingent payee designated by the Beneficiary.  Failing that, such payments are made to the estate of the last payee who received payments.  If the Beneficiary designates his or her spouse as the contingent payee and their marriage ends before the Beneficiary’s death, then we will treat the former spouse as having predeceased the Beneficiary except to the extent a court order provides that the rights of the former spouse as contingent payee are to continue.  A designation or change of a payee or contingent payee must be made by a Request in Good Order.  A Beneficiary may not change a contingent payee designation made as part of a Payout Option election made by you for the Death Benefit.  A Beneficiary may make or change any other payee or contingent payee designation at any time.   PAYOUT OPTIONS  Conditions Payments under a Payout Option are subject to any minimum amounts, payment intervals, and other rules and conditions that we may from time to time require.  If we change our minimums, we may change any current or future payment amounts and/or payment intervals to conform to the change.  Payments under a Payout Option are made at the end of a payment interval.  Once payment begins under a Payout Option, the Payout Option may not be changed.  All elected Payout Options must comply with pertinent laws and governmental regulations and rulings.  If more than one person is the payee under a Payout Option, payments are made to the payees jointly.  No more than two persons may be initial payees under a joint and survivor Payout Option.   

 

P1822317NW 17    If payment under a Payout Option depends on whether a specified person is still alive, we may at any time require proof that such person is still living. We will require proof of the age of any person on whose life payments are based.  Nonhuman Payees under a Payout Option Except as stated in this provision, the primary payee under a Payout Option must be a human being.  All payments under a Payout Option during his or her life must be made by check payable to the primary payee or by electronic transfer to a checking or savings account owned by the primary payee.  Payments may be made as a tax-free exchange, transfer, or rollover to or for another annuity or tax-qualified account to the full extent allowed by federal tax law.  An Owner that is a trust, corporation, limited liability company, partnership, or other entity may be the primary payee for an Annuity Payout Benefit.  A Beneficiary that is a trust, corporation, limited liability company, partnership, or other entity may be the primary payee for a Death Benefit.  We may make other exceptions in our discretion.  Limitation on Election of Payout Option A fixed period of less than the Minimum Fixed Period Payout is available only for a Death Benefit.  The Minimum Fixed Period Payout is set out on the Contract Specifications page.  Payout Option Computations The 2012 Individual Annuity Mortality Period Table with projection scale G2 for blended lives (60% female/40% male) with interest at [1%] per year, compounded annually, is used to compute all guaranteed Payout Option factors, values, and benefits under this Contract.  For purposes of calculating payments based on the age of a person, we will use the person’s age as of his or her last birthday.  Available Payout Options The available Payout Options are set out below.  Fixed Period Payout:  We will make periodic payments for a fixed period.  The first payment is paid as of the last day of the initial payment interval.  The fixed period may not be longer than 30 years.  The Fixed Period Payout Table applies to this Option.  Life Payout:  We will make periodic payments until the death of the person on whose life payments are based.  The first payment is paid as of the last day of the initial payment interval.  Upon request, we will provide information on the payouts that we will make based on the age of the person on whose life payments are based, the payment interval, and the year in which the Contract Value is applied to the Payout Option  Life Payout with Payments for at Least a Fixed Period:  We will make periodic payments until the death of the person on whose life payments are based.  We guarantee that such payments continue for at least a fixed period you select even if the person should die before the end of that fixed period.  The first payment is paid as of the last day of the initial payment interval.  Upon request, we will provide information on the payments that we will make based on the age of the person on whose life payments are based, the fixed period, the payment interval, and the year in which the Contract value is applied to the Payout Option.  Joint and One-half Survivor Payout:  We will make periodic payments until the death of the primary person on whose life payments are based; thereafter, we will make one-half of the periodic payment until the death of the secondary person on whose life payments are based.  The first payment is paid as of the last day of the initial payment interval.  Upon request, we will provide information on the payments that we will make based on the ages of the persons on whose lives payments are based, the payment interval, and the year in which the Contract value is applied to the Payout Option.  We will make periodic payments in any other form of Payout Option that is acceptable to us at the time of an election.   

 

P1822317NW 18    Commuted Values Once the Contract value is applied to a Payout Option, the periodic payments cannot be accelerated or converted into a lump sum payment unless we agree.  Fixed Period Payout Table The Fixed Period Payout Table shows the payments that we will make at sample payment intervals for each $1,000 applied based on the guaranteed Payout Option factors.  Payments for fixed number of years for each $1,000 applied.    Semi    Annual Annual Quarterly Monthly Years     1 [$1,010.00 $503.74 $251.55 $83.78 2      507.51  253.12  126.40  42.10 3     340.02  169.58   84.68  28.20 4     256.28  127.82   63.83   21.25 5     206.03   102.76   51.31   17.09 6    172.54    86.05   42.97   14.31 7    148.62    74.12   37.01   12.32 8    130.69    65.18   32.55   10.84 9    116.74    58.22   29.07   9.68 10    105.58    52.65   26.29   8.75 11      96.45    48.10   24.02   8.00 12      88.84    44.31   22.12   7.37 13      82.41    41.10   20.52   6.83 14      76.90    38.35   19.15   6.37 15      72.12    35.97    17.96   5.98 16      67.94     33.88   16.92   5.63 17      64.25    32.04   16.00   5.33 18      60.98    30.41   15.18   5.05 19      58.05    28.95   14.45   4.81 20     55.41    27.63   13.80    4.59]  The values stated for fixed periods shorter than the Minimum Fixed Period Payout are available only as a Death Benefit option.  The Minimum Fixed Period Payout is set out on the Contract Specifications page.   GENERAL PROVISIONS  Entire Contract This Contract, any application for it, any endorsements to it, and any riders and rider applications, form the entire contract between you and us.  Only statements that you have made in consideration for this Contract or a rider may be used to defend a claim based on it, or to void this Contract or a rider.  Such statements are treated as representations and not warranties.   

 

P1822317NW 19    Changes – Waivers No changes or waivers of the provisions of this Contract are valid unless made in writing and are signed by our President, Vice President, or Secretary.  No other person or producer has authority to change or waive any provision of this Contract.  We reserve the right, in our sole discretion, to administer and change the provisions of this Contract to obtain or retain the intended tax treatment under federal tax law, or to take into account other pertinent laws and governmental regulations and rulings.  Misstatement If the age of a person is misstated, we will adjust payments to the amount that would have been payable based on the correct age.  If payments based on the correct age would have been higher, we will promptly pay the underpaid amount in one sum, with interest.  If payments based on the correct age would have been lower, we may deduct the overpaid amount, with interest, from succeeding payments.  We may also pursue other remedies at law or in equity.  The interest to be paid or charged is the rate that was used to calculate the payments, but not to exceed 6% per year.  Required Reports At least once each Contract Year, we will send you a report of your current values.  We will also provide any other information required by law.  These reports will stop on the earliest of the following dates: 1) the Annuity Payout Initiation Date; 2) the date that the Death Benefit Value is determined; or 3) the date that this Contract is surrendered.  The reports will be mailed to your last known address.  If permitted by law, in place of that we may deliver these and other required documents in electronic form.  The reported values will be based on the information in our possession at the time that we prepare the report.  We may adjust the reported values at a later date if that information proves to be incorrect or has changed.  Exclusive Benefit Your rights as Owner of this Contract are for the exclusive benefit of you and your Beneficiaries.  Your rights as Owner of this Contract are not forfeitable by us.  State Law All factors, values, benefits, and reserves under this Contract shall not be less than those required by the law of the state in which this Contract is delivered.  Claims of Creditors To the extent allowed by law, your rights as Owner of this Contract and all values and benefits under it are not subject to the claims of creditors or to legal process.  Company Liability We will not be liable for any loss that is related to a failure by you, or by any other person having rights or benefits under this Contract, to comply with pertinent laws or governmental regulations or rulings.  Incontestability This Contract is not contestable by us, except to the extent stated in an application, endorsement, or rider, if any.  Discharge of Liability We will be discharged from all liability to the extent of each payment that is made for a Cash Benefit, Annuity Payout Benefit, Death Benefit, or rider benefit.   

 

P1822317NW 20    Transfer by the Company We reserve the right to transfer our obligations under this Contract to another qualified life insurance company under an assumption or reinsurance arrangement.  We may make such a transfer without your consent.  Taxes Some states impose on the Company a premium tax or other taxes on annuities.  If a premium tax or other tax is charged or due, we reserve the right to deduct this amount from the Purchase Payment or Account Value at the time that it is imposed.  Proof of Death Before making payment of a Death Benefit, or any other payment or transfer of ownership rights that depends on the death of a specified person, we will require proof of death.  We may delay making any payment until it is received. For this purpose, proof of death is: 1) a certified copy of a death certificate showing the cause and manner of death; 2) a certified copy of a decree that is made by a court of competent jurisdiction as to the finding of death; or 3) other proof that is satisfactory to us.  Loans A loan is not available under this Contract.  Termination We reserve the right to terminate this Contract at any time that the Account Value is less than the Minimum Required Value.  The Minimum Required Value is set out on the Contract Specifications page.  If we terminate this Contract for this reason, we will pay you the Surrender Value.  We will not terminate this Contract at a time when a distribution to you is prohibited by a tax qualification endorsement.  Deferral of Payment We reserve the right to delay payment of a surrender or withdrawal after we receive your Request in Good Order for it.  We may delay such payment for up to six months upon receipt of written approval from the commissioner of insurance of the state in which this Contract was issued.  Escheat of Payment If an Annuity Payout Benefit or Death Benefit is due to be paid, and we cannot find the payee or there is a dispute over the payment that is not resolved, we will escheat the amount due as required by law.  In the case of an Annuity Payout Benefit, we will escheat payments as they become due.  In the case of a Death Benefit, we will escheat the Death Benefit as a lump sum on the date that state law requires that it be escheated.  Change of Administrative Office If we change our Administrative Office, we will notify you in writing.  Separate Account We hold reserves to support our guarantees under the Indexed Strategies of this Contract in a non- unitized Separate Account.  The Separate Account is established and maintained pursuant to the laws of our domiciliary state.  The assets in the Separate Account shall not be chargeable with liabilities arising out of any other business that we conduct.  General account assets are also available to meet guarantees under this Contract as well as our other general obligations.   

 

P1822317NW 21    Changes in Indices This Contract has one or more Crediting Strategies that calculate interest based in whole or in part on an index, a market interest rate, or the price or unit value of an investment fund or commodity.  We reserve the right to replace an index or an interest rate if it stops being published, or if an investment fund terminates, or if an investment fund or a commodity stops being traded on a specified market, then we will select a similar index, interest rate, investment fund, commodity, or market to replace it.  If the publication schedule of an index or interest rate is changed, or if the calculation of it is changed significantly, if there is a significant change in the investment objectives, strategies, or operations of an investment fund, or if a specified market declines in importance, then: 1) we may replace it with a similar index, interest rate, investment fund, commodity, or market; or 2) we may make adjustments to it to approximate its performance before the change.  The new or adjusted index, interest rate, investment fund, commodity, or market will not be exactly the same as the original, but it will correspond reasonably to it, as determined by us in good faith. The new or adjusted index, interest rate, investment fund, commodity, or market will apply until it is replaced or adjusted, or until the particular Crediting Strategy is eliminated.  If required, we will get approval from the insurance department of the state where this Contract was issued before we make a replacement or adjustment.   

 

        

 

        

 

P1822317NW                                                 GREAT AMERICAN LIFE INSURANCE COMPANY®    [Marketing Name] Individual Deferred Annuity Contract [Tax Qualification] Indexed and Declared Rate Crediting Strategies Flexible Purchase Payments for Limited Period Nonparticipating - No Dividends

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