Document:

exv10w6

 

Exhibit 10.6

STRATTEC SECURITY CORPORATION

ECONOMIC VALUE ADDED

BONUS PLAN

FOR

NON-EMPLOYEE MEMBERS OF THE

BOARD OF DIRECTORS

Effective June 30, 1997

as Amended August 21, 2001, October 23, 2001

and August 24, 2007

 

 

STRATTEC SECURITY CORPORATION

ECONOMIC VALUE ADDED

BONUS PLAN

FOR

NON-EMPLOYEE MEMBERS OF THE

BOARD OF DIRECTORS

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	I.
	 	Plan Objectives	 	1
	 
	 	 	 	 
	II.
	 	Plan Administration	 	1
	 
	 	 	 	 
	III.
	 	Definitions	 	1
	 
	 	 	 	 
	IV.
	 	Eligibility	 	4
	 
	 	 	 	 
	V.
	 	Individual Participation Levels	 	4
	 
	 	 	 	 
	VI.
	 	Performance Factors	 	4
	 
	 	 	 	 
	VII.
	 	Change in Status During Plan Year	 	5
	 
	 	 	 	 
	VIII.
	 	Bonus Payment	 	6
	 
	 	 	 	 
	IX.
	 	Administrative Provisions	 	6
	 
	 	 	 	 
	X.
	 	Miscellaneous	 	7

 

 

	I.	 	PLAN OBJECTIVES

	 	A.	 	To promote the maximization of shareholder value over the long term by
providing incentive compensation to non-employee members of the Board of Directors of
STRATTEC SECURITY CORPORATION (the “Company”) in a form which is designed to
financially reward participants for an increase in the value of the Company.
	 
	 	B.	 	To provide competitive levels of compensation that enable the Company to
attract and retain people who can have a positive impact on the economic value of the
Company to its shareholders.
	 
	 	C.	 	To encourage teamwork and cooperation in the achievement of Company goals.

	II.	 	PLAN ADMINISTRATION
	 
	 	 	The Chairman & C.E.O. of the Company shall be responsible for the design, administration,
and interpretation of the Plan.
	 
	III.	 	DEFINITIONS

	 	A.	 	“Actual EVA” means the EVA as calculated for the relevant Plan Year.
	 
	 	B.	 	“ Bonus” means the bonus which is calculated in the manner set forth
in Section V.A.
	 
	 	C.	 	“Capital” means the Company’s average monthly net operating capital
employed for the Plan Year, calculated as follows:

	 	 	 	 	 
	 

	 	 	 	Current Assets
	 

	 	+
	 	Bad Debt Reserve
	 

	 	+
	 	LIFO Reserve
	 

	 	-
	 	Future Income Tax Benefits
	 

	 	-
	 	Current Noninterest-Bearing Liabilities
	 

	 	+
	 	Property, Plant, Equipment, (Net)
	 

	 	-
	 	Construction in Progress
	 

	 	(+/-)
	 	Unusual Capital Items

	 	D.	 	“Capital Charge” means the deemed opportunity cost of employing
Capital in the Company’s business, determined as follows:

1

 

Capital Charge = Capital x Cost of Capital

	 	E.	 	“Company” means STRATTEC SECURITY CORPORATION. The Company’s
Chairman & C.E.O., or his/her designee may act on behalf of the Company with respect
to this Plan.
	 
	 	F.	 	“Compensation Committee” means the Compensation Committee of the
Board of Directors, which among other duties, is responsible for administering the EVA
Plan for the Company’s Officers and Senior Managers.
	 
	 	G.. 	 	“Cost of Capital” means the weighted average of the cost of equity
and the after tax cost of debt for the relevant Plan Year. For Plan administration
purposes, it is assumed the Company’s capital structure will be 80% Equity and 20%
Debt. The Cost of Capital will be initially set at 10% for fiscal year 2008 and
reviewed by the Compensation Committee prior to each Plan Year thereafter, consistent
with the following methodology:

	 	(a)	 	Cost of Equity = Risk Free Rate + (Business Risk Index
x Average Equity Risk Premium)
	 
	 	(b)	 	Debt Cost of Capital = Debt Yield x (1 - Tax Rate)
	 
	 	(c)	 	The weighted average of the Cost of Equity and the Debt Cost
of Capital is determined by reference to the expected debt-to-capital ratio

	 	 	 	where the Risk Free Rate is the average daily closing yield rate on 30 year U.S.
Treasury Bonds for an appropriate period (determined by the Compensation Committee
from time to time) preceding the relevant Plan Year, the Business Risk Index is
determined by reference to an auto supply industry factor selected by the
Compensation Committee, the Average Equity Risk Premium is 6%, the Debt Yield is
the weighted average yield of all borrowing included in the Company’s permanent
capital, and the tax rate is the combination of the relevant corporate Federal and
state income tax rates.
	 
	 	 	 	The Compensation Committee will review the Cost of Capital annually and make
appropriate adjustments only if the calculated Cost of Capital changes by more than
1% from that used during the prior Plan Year.

2

 

	 	H.	 	“Earned Wages” includes all cash compensation paid in the Plan Year.
	 
	 	I.	 	“Economic Value Added” or “EVA” means the NOPAT that remains after
subtracting the Capital Charge, expressed as follows:

EVA = NOPAT - Capital Charge

	 	 	 	EVA may be positive or negative.
	 
	 	J.	 	Effective Date. June 30, 1997, the date as of which the Plan first
applies to the Company.
	 
	 	K.	 	“EVA Leverage Factor” means the adjustment factor reflecting
deviation in the use of capital expressed as a percentage of net operating capital
employed. For purposes of this Plan, the Company’s EVA Leverage Factor is determined
to be 3% of the monthly average net operating capital employed during the prior Plan
year.
	 
	 	 	 	For fiscal year 2008 (beginning July 2, 2007) the EVA Leverage Factor is set at
$3,316,000.
	 
	 	L.	 	“NOPAT” means cash adjusted net operating profits after taxes for the
Plan Year, calculated as follows:

	 	 	 	 	 
	 

	 	 	 	Net Sales
	 

	 	-
	 	Cost of Goods Sold
	 

	 	(+ -)
	 	Change in LIFO Reserve
	 

	 	-
	 	Engineering/Selling & Admin.
	 

	 	(+ -)
	 	Change in Bad Debt Reserve
	 

	 	(+ -)
	 	Other Income & Expense excluding Interest Expense
	 

	 	(+ -)
	 	Other Unusual Income or Expense Items
	 

	 	(+ -)
	 	Amortization of Unusual Income or Expense Items
	 

	 	-
	 	Cash Adjusted Taxes on the Above (+/- change in deferred tax liability)

	 	M.	 	Participant. Any individual who has satisfied the eligibility
requirements of the Plan as provided in Section IV.
	 
	 	N.	 	“Plan Year” means the one-year period coincident with the Company’s
fiscal year.

3

 

	 	O.	 	“Target EVA” means the target level of EVA for the Plan Year,
determined as follows:

	 	 	 	Expected Improvement will be approved by the Board of Directors annually,
based on past practice and consideration for current relevant economic conditions.
	 
	 	 	 	For fiscal year 2008 (beginning July 2, 2007) the Target EVA is set at $1,154,000.

	IV.	 	ELIGIBILITY
	 
	 	 	Members of the Company’s Board of Directors who are not regular full-time employees of the
Company are the only individuals eligible to participate in this Plan.

	V.	 	INDIVIDUAL PARTICIPATION LEVELS

	 	A.	 	Bonus Formula. Each Participant’s Bonus will be determined as a
function of the Participant’s Earned Wages, the Participant’s Target Incentive Award
(provided in paragraph V.B., below), and the Company Performance Factor (provided in
Section VI.) for the Plan Year. Each Participant’s Accrued Bonus will be calculated as
follows:

	 	B.	 	Target Incentive Award. The Target Incentive Award for all non-employee
Directors will be 40% of Earned Wages.

	VI.	 	PERFORMANCE FACTOR

	 	A.	 	Company Performance Factor Calculation. For any Plan Year, the
Company Performance Factor will be calculated as follows:

4

 

	 	B.	 	Adjustments to Company Performance. When Company performance is
based on Economic Value Added, it may be necessary to exclude significant, unusual,
unbudgeted or noncontrollable gains or losses from actual financial results in order
to properly measure performance. The Chairman & C.E.O. will decide those items that
shall be considered in adjusting actual results. For example, some types of items
that may be considered for exclusion are:

	 	(1)	 	Any gains or losses which will be treated as extraordinary in
the Company’s financial statements.
	 
	 	(2)	 	Profits or losses of any entities acquired by the Company
during the Plan Year, assuming they were not included in the budget and/or the
goal.
	 
	 	(3)	 	Material gains or losses not in the budget and/or the goal
which are of a nonrecurring nature and are not considered to be in the
ordinary course of business. Some of these would be as follows:

	 	(a)	 	Gains or losses from the sale or disposal
of real estate or property.
	 
	 	(b)	 	Gains resulting from insurance recoveries
when such gains relate to claims filed in prior years.
	 
	 	(c)	 	Losses resulting from natural catastrophes,
when the cause of the catastrophe is beyond the control of the
Company and did not result from any failure or negligence on the
Company’s part.

	VII.	 	CHANGE IN STATUS DURING THE PLAN YEAR

	 	A.	 	New Board Members. A newly appointed or elected non-employee
Director will accrue a pro rata Bonus based on Earned Wages received during the first
Plan Year in which that Director joins the Board of Directors.

5

 

	 	B.	 	Removal. A non-employee Director removed from the Board of Directors
by due process during the Plan Year shall not be eligible for a Bonus.
	 
	 	C.	 	Resignation. A non-employee Director who resigns during the Plan
Year will be eligible for a pro rata Bonus based on Earned Wages received.
	 
	 	D.	 	Death, Disability and Retirement. If a non-employee Director ceases
to function as a member of the Board of Directors during a Plan Year by reason of
death or disability, a tentative Bonus will be calculated as if the Participant had
remained an active member of the Board as of the end of the Plan Year. The final
Bonus will be calculated based upon the Earned Wages received.
	 
	 	 	 	Each non-employee Director may name any beneficiary or beneficiaries (who may be
named contingently or successively) to whom any benefit under this Plan is to be
paid in case of the non-employee Director’s death.
	 
	 	 	 	Each such designation shall revoke all prior designations by the non-employee
Director, shall be in the form prescribed by the Compensation Committee, and shall
be effective only when filed by the non-employee Director in writing during his or
her lifetime with the Chairman & C.E.O.
	 
	 	 	 	In the absence of any such designation, benefits remaining unpaid at the
non-employee Director’s death shall be paid to that Director’s estate.
	 
	 	E.	 	Leave of Absence. A non-employee Director whose status as an active
Board Member is changed during a Plan Year as a result of a leave of absence may, at
the discretion of the Chairman & C.E.O., be eligible for a pro rata Bonus determined
in the same way as in paragraph D of this Section.

	VIII.	 	BONUS PAYMENT
	 
	 	 	All positive Bonuses of Participants for the Plan Year shall be paid in full as soon as
administratively feasible following the end of the Plan Year in which the Bonus was earned.

6

 

	IX.	 	ADMINISTRATIVE PROVISIONS

	 	A.	 	Amendments. The Chairman & C.E.O. of the Company shall have the
right to amend or restate the Plan at any time from time to time. The Company
reserves the right to suspend or terminate the Plan at any time. No such
modification, amendment, suspension, or termination may, without the consent of any
affected participants (or beneficiaries of such participants in the event of death),
reduce the rights of any such participants (or beneficiaries, as applicable) to a
payment or distribution already earned under Plan terms in effect prior to such
change.
	 
	 	B.	 	Authority to Act. The Chairman & C.E.O. (or in his or her absence,
the President & C.O.O.) may act on behalf of the Company for purposes of the Plan.
	 
	 	C.	 	Interpretation of Plan. Any decision of the Chairman & C.E.O. with
respect to any issues concerning, the amounts, terms, form and time of payment of
awards, and interpretation of any Plan guideline, definition, or requirement shall be
final and binding.
	 
	 	D.	 	Reporting Compliance. Awards made under this Plan shall be included
in the employee’s compensation for purposes of Securities & Exchange Commission
required reporting.
	 
	 	E.	 	Right to Continued Employment; Additional Awards. The receipt of a
bonus award shall not give the recipient any right to continued membership on the
Company’s Board of Directors. In addition, the receipt of a bonus award with respect
to any Plan Year shall not entitle the recipient to an award with respect to any
subsequent Plan Year.

	X.	 	MISCELLANEOUS

	 	A.	 	Indemnification. The Chairman & C.E.O. (or any Company officer
designated to act in the Chairman’s behalf) shall not be liable for, and shall be
indemnified and held harmless by the Company from any loss, cost, liability, or
expense that may be imposed upon or reasonably incurred in connection with any claim,
action, suit, or proceeding to which the Chairman & C.E.O., President & C.O.O. and/or
the Compensation Committee may be a party by reason of any action taken or failure to
act under this Plan. The foregoing right of

7

 

	 	 	 	indemnification shall not be exclusive of any other rights of indemnification to
which such person(s) may be entitled under the Company’s Certificate of
Incorporation of By-Laws, as a matter of law, or otherwise, or any power that the
Company may have to indemnify them or hold them harmless.
	 
	 	B.	 	Expenses of the Plan. The expenses of administering this Plan shall
be borne by the Company.
	 
	 	C.	 	Governing Law. This Plan shall be construed in accordance with and
governed by the laws of the State of Wisconsin.

8<PAGE>

                                                                    Exhibit 4.17

                   GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER
                                   JOINT LIFE
                                SECURESOURCE(SM)

This rider is made a part of the contract to which it is attached. Except where
this rider provides otherwise, it is subject to all of the conditions and
limitations of the contract. THIS RIDER CANNOT BE TERMINATED EITHER BY YOU OR US
PRIOR TO THE CONTRACT'S SETTLEMENT DATE EXCEPT AS PROVIDED IN THE TERMINATION OF
THE RIDER PROVISION.

This rider requires participation in our asset allocation program. There is no
additional charge to participate in this program. Your Initial Asset Allocation
Model is shown under Contract Data. Contracts issued with initial purchase
payments over the Maximum Purchase Payments Permitted (shown under Contract
Data) require corporate officer approval and may require limitation of the
number of models available for selection.

If you selected this Guaranteed Minimum Withdrawal Benefit Rider option, it will
be indicated under Contract Data.

The additional charge for this rider is described below.

Tax-qualified annuities have minimum distribution rules that govern the timing
and amount of distributions from the annuity contract. If you have a
tax-qualified annuity, you may be required to take a minimum distribution that
is greater than your Remaining Benefit Payment (RBP) or your Remaining Annual
Lifetime Payment (RALP) on the most recent rider anniversary. In most
situations, these required minimum distributions will not result in excess
withdrawal processing. However, in limited circumstances, an excess withdrawal
due to a required distribution would be subject to the Guaranteed Benefit Amount
(GBA) excess withdrawal processing, the RBA excess withdrawal processing, and/or
the ALP excess withdrawal processing.

DEFINITIONS

CONTRACT DATE, CONTRACT ANNIVERSARY, RIDER ANNIVERSARY

Your contract date is shown under Contract Data. It is the date from which
contract anniversaries, contract years, and contract months are determined. Your
contract anniversary is the same day and month as the contract date each year
that the contract remains in force. Your rider anniversary is the same as your
contract anniversary unless the rider is issued after the contract date. It is
the same day and month as the rider effective date each year that the rider
remains in force.

RIDER EFFECTIVE DATE

This rider is effective as of the contract date of this contract unless
otherwise provided.

WAITING PERIOD

The Waiting Period, as shown under Contract Data, is the number of years,
starting on the rider effective date, that your ability to utilize both Step-ups
and withdrawals is limited. During the Waiting Period, Step-ups are not
available if a withdrawal is taken. The end of the Waiting Period is the day
prior to the anniversary.

WITHDRAWAL

For purposes of this rider, the term "withdrawal" is equal to the term
"surrender" in your contract and any other riders. A withdrawal is the amount by
which your contract value is reduced as a result of your surrender request. It
may differ from the amount of your request due to any surrender charge.

GUARANTEED BENEFIT AMOUNT (GBA)

The Guaranteed Benefit Amount (GBA) is equal to the total cumulative withdrawals
guaranteed by this rider. The GBA cannot be withdrawn and is not payable as a
death benefit. The GBA is used to calculate the Guaranteed Benefit Payment.

REMAINING BENEFIT AMOUNT (RBA)

As you make withdrawals, they reduce the amount of GBA that is guaranteed by
this rider as future withdrawals. At any point in time, the Remaining Benefit
Amount (RBA) equals the amount of GBA that remains.

GUARANTEED BENEFIT PAYMENT (GBP)

At any time, the Guaranteed Benefit Payment (GBP) is the amount that the rider
guarantees will be available for withdrawal each contract year after the Waiting
Period, until the earlier of the termination of the rider or the RBA is reduced
to zero. During the Waiting Period, the annual withdrawal amount guaranteed by
the rider may be less than the GBP due to the limitations the Waiting Period
imposes on your ability to utilize both Step-ups and withdrawals. The annual
withdrawal amount guaranteed by the rider during the Waiting Period is equal to
the Remaining

139476-JT                                                               (6/2007)

                                     Page 1

<PAGE>

Benefit Payment at the beginning of the contract year as described below.

REMAINING BENEFIT PAYMENT (RBP)

As you make withdrawals during a contract year, the remaining amount that the
rider guarantees will be available for withdrawal that year is reduced. At any
point in time, the Remaining Benefit Payment (RBP) equals the amount that the
rider guarantees will be available for withdrawal during the remainder of the
current contract year. During the Waiting Period, when the amount that the rider
guarantees to be available for withdrawal may be less than the GBP, the RBP will
be the amount that is actually guaranteed. Withdrawing more than the RBP will
subject the RBA and GBA to the excess withdrawal processing described later in
this rider. When determining if a withdrawal will result in the application of
the RBA and GBA excess withdrawal processing, we use the RBP amount on the date
of (but prior to) the current withdrawal.

COVERED SPOUSES

The Covered Spouses are established on the rider effective date and cannot be
changed. The Covered Spouses are the owner and the owner's legally married
spouse as defined under federal law, as named on the application and as shown
under Contract Data for as long as the marriage is valid and in effect. If the
owner is a non-natural person (e.g., a trust), the Covered Spouses are the
annuitant and the legally married spouse of the annuitant.

ANNUAL LIFETIME PAYMENT ATTAINED AGE (ALPAA)

The Annual Lifetime Payment Attained Age (ALPAA), as shown under Contract Data,
is the age of the younger Covered Spouse at which the lifetime benefit is
established.

ANNUAL LIFETIME PAYMENT (ALP)

The Annual Lifetime Payment (ALP), after established as described below, is the
amount that the rider guarantees will be available for withdrawal each contract
year after the Waiting Period, until the death of both Covered Spouses (see
Death Benefit Before the Settlement Date) or termination of the rider, without
the possibility of reducing the guarantee provided by this rider. During the
Waiting Period, the annual withdrawal amount guaranteed by the rider may be less
than the ALP due to the limitations the Waiting Period imposes on your ability
to utilize both Step-ups and withdrawals. The annual withdrawal amount
guaranteed by the rider during the Waiting Period is equal to the Remaining
Annual Lifetime Payment at the beginning of the contract year as described
below.

REMAINING ANNUAL LIFETIME PAYMENT (RALP)

As you make withdrawals during a contract year, the remaining amount that the
rider guarantees will be available for withdrawal that year is reduced. At any
point in time after the establishment of the ALP, the Remaining Annual Lifetime
Payment (RALP) equals the amount that the rider guarantees will be available for
withdrawal during the remainder of the current contract year. During the Waiting
Period, when the amount that the rider guarantees to be available for withdrawal
may be less than the ALP, the RALP will be the amount that is actually
guaranteed. Withdrawing more than the RALP will subject the ALP to the excess
withdrawal processing described later in this rider. When determining if a
withdrawal will result in the application of the ALP excess withdrawal
processing, we use the RALP amount on the date of (but prior to) the current
withdrawal.

STEP-UP DATE

The rider anniversary date if the Annual Step-up is processed automatically (see
"Annual Step-up" below). If not, the valuation date we receive your written
request to Step-up if we receive your request before the close of business on
that day, otherwise the next valuation date.

GUARANTEED MINIMUM WITHDRAWAL BENEFIT

The Guaranteed Minimum Withdrawal Benefit guarantees that regardless of
investment performance you may take withdrawals each contract year until the
earlier of:

     i)   termination of the rider or

     ii)  the later of:

          1)   the death of both Covered Spouses or

          2)   the RBA is depleted.

Before the establishment of the ALP, the annual withdrawal amount guaranteed by
the rider is equal to the RBP from the beginning of the contract year.

After the establishment of the ALP, the rider guarantees that you have the
option each contract year to cumulatively withdraw an amount up to the RALP or
the RBP from the beginning of the contract year, but the rider does not
guarantee withdrawal of both the RALP and the RBP in a contract year.

                                     Page 2

<PAGE>

After the establishment of the ALP, if you withdraw an amount larger than the
RALP, the ALP may be reduced in accordance with the excess withdrawal processing
as described below (see ALP - When a withdrawal is made).

At any time, as long as your withdrawal does not exceed the greater of the RBP
or the RALP, you will not be assessed a surrender charge. If you withdraw an
amount larger than the greater of the RBP or the RALP, the amount in excess of
the greater of the RBP or the RALP will be assessed any applicable surrender
charges, and the GBA, RBA and ALP may be reduced in accordance with the excess
withdrawal processing as described below. (See GBA and RBA - When a withdrawal
is made. Also, see ALP - When a withdrawal is made.) At any time you may
withdraw any amount up to your entire surrender value, subject to the excess
withdrawal processing under the rider.

Certain values used to compute amounts available for withdrawal under the terms
of this rider can be increased if your contract value has increased at the
specified intervals (see Annual Step-Up). We will modify the charge for this
rider if you elect the Annual Step-up (see Annual Rider Charge) and the then
current charge for the asset allocation model at the time of the Step-up is
higher. If you take withdrawals during the Waiting Period, any previously
applied Annual Step-ups will be reversed and the Annual Step-up will not be
available until the rider anniversary following the Waiting Period. You may take
withdrawals after the end of the Waiting Period without reversal of previously
applied Annual Step-ups.

GUARANTEED BENEFIT AMOUNT (GBA) AND REMAINING BENEFIT AMOUNT (RBA)

Your GBA and RBA are determined at the following times and are subject to a
maximum amount as shown under Contract Data:

1.   AT RIDER EFFECTIVE DATE

     If the rider is effective on the contract date, the GBA and RBA are set
     equal to the initial purchase payment plus any purchase payment credit (if
     applicable). If the rider is effective on a contract anniversary date, the
     GBA and RBA are set equal to the contract value on the later of that
     anniversary and the valuation date we receive your written request to add
     the rider if we receive your request before the close of business on that
     day, otherwise the contract value on the next valuation date.

2.   WHEN A SUBSEQUENT PURCHASE PAYMENT IS MADE

     Each additional purchase payment will have its own GBA and RBA established
     equal to the amount of the purchase payment plus any purchase payment
     credit. Upon each subsequent purchase payment:

     (A)  the total RBA is recalculated to equal the sum of the individual RBAs
          immediately prior to the receipt of the additional purchase payment,
          plus the RBA associated with the additional purchase payment.

     (B)  the total GBA is recalculated to equal the sum of the individual GBAs
          immediately prior to the receipt of the additional purchase payment,
          plus the GBA associated with the additional purchase payment.

3.   WHEN A WITHDRAWAL IS MADE ON OR AFTER THE RIDER ANNIVERSARY FOLLOWING THE
     WAITING PERIOD

     Whenever such a withdrawal is made the total GBA and total RBA will be
     equal to the amount in either (A) or (B) as follows:

     (A)  If the current withdrawal is less than or equal to the RBP, the total
          RBA is reduced by the amount of the withdrawal and the total GBA is
          unchanged.

     (B)  If the current withdrawal exceeds the RBP, excess withdrawal
          processing will occur as follows:

          (i)  the total GBA will be reset to the lesser of its current value or
               the contract value immediately following the withdrawal; and

          (ii) the total RBA will be reset to the lesser of its current value
               less the amount of the withdrawal or the contract value
               immediately following the withdrawal.

4.   WHEN A WITHDRAWAL IS MADE DURING THE WAITING PERIOD

     Upon the first such withdrawal, any previously applied Annual Step-ups will
     be reversed. Step-up reversal means that the GBA and RBA associated with
     each purchase payment will be reset to the amount of that purchase payment
     plus any purchase payment credit. The total GBA and total RBA will be
     recalculated to equal the sum of the individual

                                     Page 3

<PAGE>

     GBAs and RBAs. The GBP will also be recalculated as described below (see
     Guaranteed Benefit Payment). These recalculated values are then used in the
     following calculations.

     Whenever such a withdrawal is made, and after reversal of any previously
     applied Annual Step-ups has been completed, the total GBA and total RBA
     will be equal to the amount in either (A) or (B) as follows:

     (A)  If the current withdrawal is less than or equal to the RBP, the total
          RBA is reduced by the amount of the withdrawal and the total GBA is
          unchanged.

     (B)  If the current withdrawal exceeds the RBP, excess withdrawal
          processing will occur as follows:

          (i)  the total GBA will be reset to the lesser of its current value or
               the contract value immediately following the withdrawal; and

          (ii) the total RBA will be reset to the lesser of its current value
               less the amount of the withdrawal or the contract value
               immediately following the withdrawal.

5.   WHENEVER AN INDIVIDUAL RBA IS DEPLETED

     Whenever an RBA is depleted by a withdrawal, the GBA associated with that
     RBA will also be set to zero.

6.   UPON ANNUAL STEP-UP AS DESCRIBED BELOW.

GUARANTEED BENEFIT PAYMENT (GBP)

At any point in time, the GBP is calculated as follows:

1.   Determine the lesser of (A) or (B) for each purchase payment where:

     (A)  is the individual GBA multiplied by the GBP Percentage shown under
          Contract Data, and

     (B)  is the individual RBA.

2.   Add the results of Step 1 for each purchase payment to obtain the current
     total GBP.

If you withdraw less than the GBP in a contract year, there is no carry over to
the next contract year.

REMAINING BENEFIT PAYMENT (RBP)

At the beginning of each contract year during the Waiting Period and prior to
any withdrawal, the RBP for each purchase payment is set equal to that purchase
payment plus any purchase payment credit multiplied by the GBP Percentage shown
under Contract Data.

At the beginning of any other contract year, each individual RBP is set equal to
each individual GBP.

Each additional purchase payment will have its own RBP established equal to that
payment's GBP. The total RBP is equal to the sum of the individual RBPs.

Whenever a withdrawal is made, the total RBP equals the total RBP immediately
prior to the withdrawal less the amount of the withdrawal, but not less than
zero.

ANNUAL LIFETIME PAYMENT (ALP)

Your ALP is determined at the following times and is subject to a maximum amount
as shown under Contract Data:

1.   INITIAL ESTABLISHMENT

     The ALP is set equal to the total RBA multiplied by the ALP Percentage
     shown under Contract Data on the earliest of the following dates:

     (A)  the rider effective date if the younger Covered Spouse has already
          reached the ALPAA.

     (B)  the rider anniversary following the date the younger Covered Spouse
          reaches the ALPAA.

     (C)  upon the first death of a Covered Spouse, then

          1)   the date we receive written request when the death benefit is not
               payable and the surviving Covered Spouse has already reached the
               ALPAA, or

          2)   the date spousal continuation is effective when the death benefit
               is payable and the surviving Covered Spouse has already reached
               the ALPAA, or

          3)   the rider anniversary following the date the surviving Covered
               Spouse reaches the ALPAA.

     (D)  Following dissolution of marriage of the Covered Spouses,

          1)   the date we receive written request if the Covered Spouse who is
               the owner (or annuitant in the case of non-natural ownership) has
               already reached the ALPAA, or

                                     Page 4

<PAGE>

          2)   the rider anniversary following the date the Covered Spouse who
               is the owner (or annuitant in the case of non-natural ownership)
               reaches the ALPAA.

2.   WHEN A SUBSEQUENT PURCHASE PAYMENT IS MADE

     Each purchase payment made subsequent to the establishment of the ALP
     increases the ALP by the amount of the purchase payment and any purchase
     payment credit multiplied by the ALP percentage shown under Contract Data.

3    WHEN A WITHDRAWAL IS MADE ON OR AFTER THE RIDER ANNIVERSARY FOLLOWING THE
     WAITING PERIOD

     Whenever such a withdrawal is made after the establishment of the ALP, the
     ALP will be equal to the amount in either (A) or (B) as follows:

     (A)  If the current withdrawal is less than or equal to the RALP, the ALP
          is unchanged.

     (B)  If the current withdrawal exceeds the RALP, excess withdrawal
          processing will occur and the ALP will be reset to the lesser of:

          (i)  the ALP immediately prior to the withdrawal; or

          (ii) the contract value immediately following the withdrawal
               multiplied by the ALP percentage shown under Contract Data.

     If you withdraw less than the ALP in a contract year, there is no carry
     over to the next contract year.

4.   WHEN A WITHDRAWAL IS MADE DURING THE WAITING PERIOD

     If the ALP has been established upon the first such withdrawal, any
     previously applied Annual Step-ups will be reversed. Step-up reversal means
     that the ALP will be reset to equal total purchase payments plus any
     purchase payment credits multiplied by the ALP Percentage shown under
     Contract Data. The recalculated value is then used in the following
     calculations.

     Whenever such a withdrawal is made, and after the reversal of any
     previously applied Annual Step-ups has been completed, the ALP will be
     equal to the amount in either (A) or (B) as follows:

     (A)  If the current withdrawal is less than or equal to the RALP, the ALP
          is unchanged.

     (B)  If the current withdrawal exceeds the RALP, excess withdrawal
          processing will occur and the ALP will be reset to the lesser of:

          (i)  the ALP immediately prior to the withdrawal; or

          (ii) the contract value immediately following the withdrawal
               multiplied by the ALP percentage shown under Contract Data.

5.   UPON ANNUAL STEP-UP AS DESCRIBED BELOW.

6.   UPON STEP-UP FOLLOWING SPOUSAL CONTINUATION AS DESCRIBED BELOW.

REMAINING ANNUAL LIFETIME PAYMENT (RALP)

The RALP is established at the same time as the ALP.

At the beginning of each contract year during the Waiting Period and prior to
any withdrawal, the RALP is set equal to total purchase payments plus any
purchase payment credits multiplied by the ALP Percentage shown under Contract
Data.

At the beginning of any other contract year, the RALP is set equal to the ALP.

Whenever a subsequent purchase payment is made, the RALP is increased by the
amount of that purchase payment plus any purchase payment credits multiplied by
the ALP Percentage shown under Contract Data.

Whenever a withdrawal is made, the RALP equals the RALP immediately prior to the
withdrawal less the amount of the withdrawal, but not less than zero.

EXCESS WITHDRAWAL PROCESSING

Here is a simplified example of how the Guaranteed Benefit Amount (GBA), the
Remaining Benefit Amount (RBA), the Guaranteed Benefit Payment (GBP), and the
Annual Lifetime Payment (ALP) change when withdrawals exceed the annual limits
and when withdrawals don't exceed the annual limits.

EXAMPLE ASSUMES

-    No withdrawals have ever been made

-    GBA = $100,000

-    RBA = $100,000

-    The contract value before the withdrawal is $70,000

                                     Page 5

<PAGE>

-    Current annual withdrawal limit is $6,000 for the ALP and $7,000 for the
     GBP

$6,000 WITHDRAWAL

     RBA after withdrawal = $94,000 = $100,000 - $6,000

     GBA after withdrawal = $100,000

     ALP after withdrawal = $6,000

     GBP after withdrawal = $7,000

$7,000 WITHDRAWAL

     RBA after withdrawal = $93,000 = $100,000 - $7,000

     GBA after withdrawal = $100,000

     ALP after withdrawal = $3,780 = lesser of ($6,000) or (6% * ($70,000 -
     $7,000))

     GBP after withdrawal = $7,000

$8,000 WITHDRAWAL

     RBA after withdrawal = $62,000 = lesser of ($100,000 - $8,000) or ($70,000
     - $8,000)

     GBA after withdrawal = $62,000 = lesser of ($100,000) or ($70,000 - $8,000)

     ALP after withdrawal = $3,720 = lesser of ($6,000) or (6% * ($70,000 -
     $8,000))

     GBP after withdrawal = $4,340 = 7% * $62,000

REQUIRED MINIMUM DISTRIBUTIONS

Notwithstanding the excess withdrawal processing provisions above, if you are
taking required minimum distributions ("RMD") from this contract and the RMD is
greater than the RALP or RBP on the most recent rider anniversary, the portion
of the RMD that exceeds the RALP or RBP on the most recent rider anniversary
will not be treated as an excess withdrawal provided:

1.   the RMD is for this contract alone, and

2.   the RMD is based on your recalculated life expectancy taken from the
     Uniform Lifetime Table under the Code, and

3.   the RMD amount is otherwise based on the requirements of the Code Section
     401(a)(9), related Code provisions, and regulations thereunder that were in
     effect on the effective date of this rider.

Withdrawal amounts greater than the RALP or RBP on the most recent rider
anniversary that do not meet these conditions will result in excess withdrawal
processing.

ANNUAL STEP-UP

Beginning with the first rider anniversary, an Annual Step-up may be available.
If you take any withdrawals during the Waiting Period, any previously applied
Annual Step-ups will be reversed and the Annual Step-up will not be available
until the rider anniversary following the Waiting Period.

The Annual Step-up will be effective on the Step-up Date. Only one Annual
Step-up will be allowed each contract year.

Other than the exception described above, the Annual Step-up will be available
as described below.

-    On any rider anniversary where the RBA or, if established, the ALP would
     increase and the annual rider charge would not increase as a result of the
     Annual Step-up, we will execute the Annual Step-up automatically on the
     Step-up Date.

-    If the Annual Step-Up would result in an increase of the annual rider
     charge, we do not execute the Annual Step-Up automatically and you will be
     notified. You then have the option to elect the Annual Step-up, with the
     resulting charge increase, anytime within the 30 days following that rider
     anniversary as long as the contract value is greater than the total RBA or
     the contract value multiplied by the ALP Percentage shown under Contract
     Data is greater than the ALP, if established, on the Step-up Date.

If the Annual Step-up is executed, the total RBA, total GBA, GBP, RBP, ALP, and
RALP will be adjusted as follows:

RBA STEP-UP

Subject to the maximum RBA shown under Contract Data, the total RBA will be
increased to the greater of (A) or (B) where:

     (A)  is the total RBA immediately prior to the Annual Step-up; and

     (B)  is the contract value on the Step-up Date.

GBA STEP-UP

Subject to the maximum GBA shown under Contract Data, the total GBA will be
increased to the greater of (A) or (B) where:

     (A)  is the total GBA immediately prior to the Annual Step-up; and

     (B)  is the contract value on the Step-up Date.

GBP STEP-UP

The GBP will be calculated as described earlier, based on the increased GBA and
RBA.

                                     Page 6

<PAGE>

RBP STEP-UP

Prior to any withdrawals during the Waiting Period, the RBP for each purchase
payment will be calculated as that purchase payment plus any purchase payment
credit multiplied by the GBP Percentage shown under Contract Data. The total RBP
is equal to the sum of the individual RBPs.

At any other time, the RBP will be calculated as the GBP after the Annual
Step-up less all prior withdrawals made during the current contract year, but
will never be less than zero.

ALP STEP-UP

After the establishment of the ALP, subject to the maximum ALP shown under
Contract Data, the ALP will be increased to the greater of (A) or (B) where:

     (A)  is the ALP immediately prior to the Annual Step-up; and

     (B)  is the contract value on the Step-up Date multiplied by the ALP
          Percentage shown under Contract Data.

RALP STEP-UP

After the establishment of the ALP, and prior to any withdrawals during the
Waiting Period, the RALP will be calculated as total purchase payments plus any
purchase payment credits multiplied by the ALP Percentage shown under Contract
Data.

At any other time after the establishment of the ALP, the RALP will be
calculated as the ALP after the Annual Step-up less all prior withdrawals made
during the current contract year, but will never be less than zero.

ASSET ALLOCATION PROGRAM

This rider requires participation in our asset allocation program. At time of
application you choose an asset allocation model from any available model
ranging from the conservative category to the aggressive category. If your
contract was issued with initial purchase payments over the Maximum Purchase
Payments Permitted (shown under Contract Data) requiring corporate officer
approval, there may be a limitation of the number of models available for
selection.

Because this rider requires that your contract value be invested in one of the
asset allocation models for the life of the contract, and you CANNOT TERMINATE
THIS RIDER ONCE YOU HAVE SELECTED IT, if you later decide you do not want to
participate in any of the asset allocation models, you must terminate your
contract by requesting a full surrender. Surrender charges and tax penalties may
then apply.

You can allocate your contract value to any available asset allocation model (1)
prior to your first withdrawal and (2) following a benefit reset as described
below but prior to any subsequent withdrawal. During these accumulation phases,
you may request to change your asset allocation to any available asset
allocation model.

Immediately following a withdrawal your contract value will be reallocated to
the Target Model shown under Contract Data if your current asset allocation
model is more aggressive than the Target Model. After you have taken a
withdrawal and prior to any benefit reset as described below, you are in a
withdrawal phase. During withdrawal phases you may request to change your asset
allocation model to the Target Model or any asset allocation model that is more
conservative without a benefit reset as described below.

If you are in a withdrawal phase and you choose to allocate your contract value
to an asset allocation model that is more aggressive than the Target Model, your
rider benefit will be reset as follows:

     (A)  the total GBA will be reset to the lesser of its current value or the
          contract value; and

     (B)  the total RBA will be reset to the lesser of its current value or the
          contract value; and

     (C)  the ALP, if established, will be reset to the lesser of:

          i)   its current value or

          ii)  the contract value multiplied by the ALP Percentage shown under
               Contract Data; and

     (D)  the GBP will be recalculated as described earlier, based on the reset
          GBA and RBA; and

     (E)  the RBP will be recalculated as the reset GBP less all prior
          withdrawals made during the current contract year, but it will never
          be less than zero; and

     (F)  the RALP will be recalculated as the reset ALP less all prior
          withdrawals made during the current contract year, but it will never
          be less than zero.

You may request to change your asset allocation model by written request on an
authorized form or by another method agreed to by us. The number of elective
asset allocation model changes permitted

                                     Page 7

<PAGE>

per contract year is shown under Contract Data. Additionally, we reserve the
right to limit the number of model changes permitted if required to comply with
the written instructions of a fund.

We reserve the right to change the Target Model to an asset allocation model
that is more aggressive after 30 days written notice.

We reserve the right to cancel required participation in the asset allocation
program after 30 days written notice. If asset allocation models are not
required, you may allocate your contract value and additional purchase payments
as provided in the contract.

REMAINING BENEFIT AMOUNT (RBA) PAYOUT OPTION

As an alternative to the annuity payment plans available under the contract, a
fixed payout option is available under this rider.

Under this option, the amount payable each year will be equal to the remaining
schedule of GBPs but the total amount paid over the life of the annuity will not
exceed the total RBA at the time you begin this fixed payout option. These
annualized amounts will be paid in the frequency that you elect. The frequencies
will be among those offered by us at that time but will be no less frequently
than annually. If, at the death of the owner, payments have been made for less
than the total RBA, the remaining payments will be made to the beneficiary.

This option may not be available if the contract is issued to qualify under
Section 403 or 408 of the Code, as amended. For such contracts, this option will
be available only if the number of years it will take to deplete the RBA by
paying the GBP each year is less than the life expectancy of the owner at the
time the option becomes effective. Such life expectancy will be computed using a
life expectancy table published by the IRS.

This payout option may be elected as a settlement option by the beneficiary of
the contract subject to the Payments to Beneficiary section of the contract.
Whenever multiple beneficiaries are designated under the contract, each such
beneficiary's share of the proceeds, if they elect this option, will be in
proportion to their applicable designated beneficiary percentage.

We reserve the right to adjust the remaining schedule of GBPs if necessary to
comply with the Code.

CONTRACT PROVISION MODIFICATIONS

Because of the addition of this rider to your contract, several contract
provisions are modified as described above and as further described below.

PAYMENT LIMITS PROVISION

We may restrict cumulative subsequent purchase payments to $100,000 on a
non-discriminatory basis.

ALLOCATION OF PURCHASE PAYMENTS

Because this rider requires participation in our asset allocation program,
allocation of purchase payments shall be determined by the asset allocation
model.

TRANSFERS OF CONTRACT VALUES PROVISION

Because this rider requires participation in our asset allocation program,
transfer privileges granted under the contract are suspended other than: 1)
transfers among the available asset allocation models as described above, 2)
transfers necessary to adjust contract value allocations to match the allocation
percentages utilized in your asset allocation model, or 3) transfers as
otherwise agreed to by us. Transfers made by you into and out of the same
subaccount within a five business day period (or vice versa) may be to the
disadvantage of other contract owners and are prohibited.

RULES FOR SURRENDER PROVISION

For surrenders, the surrender will be made from the variable subaccounts and
Regular Fixed Account in the same proportion as your interest in each bears to
the contract value less amounts in any Special DCA fixed account. You cannot
specify from which accounts the surrender is to be made.

If the contract value falls to zero and the total RBA is greater than zero, the
following will occur:

(A)  If the younger Covered Spouse has not reached the ALPAA and the contract
     value is reduced to zero as a result of fees or charges, or a withdrawal
     that is less than or equal to the RBP, the owner must choose to receive
     either the remaining schedule of GBPs until

                                     Page 8

<PAGE>

     the total RBA equals zero, or wait until the rider anniversary following
     the date the younger Covered Spouse reaches the ALPAA and receive the ALP
     annually until the later of:

     (i)  the death of both Covered Spouses; or

     (ii) the total RBA is reduced to zero.

     We will notify you of this option. If no election is made, the ALP will be
     paid.

(B)  If the younger Covered Spouse has reached the ALPAA and the contract value
     is reduced to zero as a result of fees or charges, or a withdrawal that is
     less than or equal to both the RBP and the RALP, the owner must choose to
     receive either the remaining schedule of GBPs until the total RBA equals
     zero, or the ALP which will be paid annually until the later of:

     (i)  the death of both Covered Spouses; or

     (ii) the total RBA is reduced to zero.

     We will notify you of this option. If no election is made, the ALP will be
     paid.

(C)  If the younger Covered Spouse has reached the ALPAA and the contract value
     is reduced to zero as a result of a withdrawal that is greater than the
     RALP, but less than or equal to the RBP, the remaining schedule of GBPs
     will be paid until the total RBA equals zero.

(D)  If the younger Covered Spouse has reached the ALPAA and the contract value
     is reduced to zero as a result of a withdrawal that is greater than the RBP
     but less than or equal to the RALP, the ALP will be paid annually until the
     death of both Covered Spouses.

In (A), (B), (C) and (D) above:

-    These annualized amounts will be paid in the frequency that you elect. The
     frequencies will be among those offered by us at that time but will be no
     less frequently than annually.

-    We will no longer accept subsequent purchase payments.

-    No more charges will be collected for the rider.

-    If the owner had been receiving the ALP, upon the first death the ALP will
     continue to be paid annually until the later of 1) the death of the last
     surviving Covered Spouse or 2) the RBA is reduced to zero. In all other
     situations the death benefit becomes the remaining payments, if any, until
     the RBA is reduced to zero.

If the contract value is reduced to zero as a result of a withdrawal that is
greater than the RALP but less than or equal to the RBP, and the total RBA is
reduced to zero, this rider and the contract will terminate.

If the contract value is reduced to zero as a result of a withdrawal that is
greater than both the RBP and the RALP, this rider and the contract will
terminate.

DEATH BENEFIT BEFORE THE SETTLEMENT DATE

If the death benefit becomes payable at the death of a Covered Spouse, the
surviving Covered Spouse must utilize the spousal continuation provision to
continue the joint benefit. If spousal continuation is not available under the
terms of the contract, the rider terminates. The lifetime benefit of this rider
ends at the death of the last surviving Covered Spouse.

If the contract value is greater than zero when the death benefit becomes
payable, the beneficiary may: 1) elect to take the death benefit under the terms
of the contract, 2) take the fixed payout option available under this rider, or
3) continue the contract under the spousal continuation provision below.

If the contract value equals zero at the death of the last surviving Covered
Spouse, the following will occur:

(A)  If the RBA is greater than zero and the owner had been receiving the GBP
     each year, the GBP will continue to be paid to the beneficiary until the
     RBA is depleted.

(B)  If the RBA is greater than zero and the owner had been receiving the ALP
     each year, the ALP will continue to be paid to the beneficiary until the
     RBA is depleted.

(C)  If the RBA equals zero, the benefit terminates. No further payments are
     made.

SPOUSE OPTION TO CONTINUE CONTRACT UPON OWNER'S DEATH

If the surviving spouse is a Covered Spouse and chooses to continue the contract
under the spousal continuation provision, the following provisions apply:

1.   The rider continues as part of the contract.

2.   The Waiting Period is cancelled and any Waiting Period limitations on
     withdrawals and Step-ups terminate.

                                     Page 9

<PAGE>

3.   The surviving Covered Spouse can name a new beneficiary, however, a new
     Covered Spouse cannot be added to the rider.

4.   At the time of spousal continuation, a Step-up will be available if A) your
     contract value is greater than the RBA and/or B) the ALP Percentage shown
     under Contract Data times your contract value is greater than the ALP. All
     Annual Step-up rules, other than those that apply to the Waiting Period,
     also apply to the spousal continuation Step-up. If the spousal continuation
     Step-up is processed automatically, the Step-up date is the valuation date
     spousal continuation is effective. If not, the Step-up date is the
     valuation date we receive the spouse's written request to Step-up if we
     receive the request by the close of business on that day, otherwise the
     next valuation date.

OWNERSHIP, CHANGE OF OWNERSHIP

Since the joint life benefit requires that the surviving Covered Spouse continue
the contract under the "Spouse Option to Continue Contract Upon Owner's Death"
provision, only ownership arrangements that permit such continuation are allowed
at rider issue.

If the owner is a natural person, only the Covered Spouses can be owners. If
there is a non-natural owner, one of the Covered Spouses must be the annuitant.
Ownership changes are only allowed between the Covered Spouses. No other
ownership changes are allowed as long as the rider is in force.

ANNUAL RIDER CHARGE

We deduct the charge on a pro-rata basis among the variable subaccounts, but not
the Fixed Account, in the same proportion your value in each bears to your total
variable account contract value. We deduct the charge (or the entire variable
account contract value if less) 60 days after each contract anniversary.

The fee is calculated 60 days after your contract anniversary by multiplying the
Annual Rider Charge by the greater of the contract value or the total RBA on
that date. This charge may vary with your asset allocation model.

The Initial Annual Rider Charge associated with your initial asset allocation
model is shown on your Contract Data page. This charge will increase if:

(A)  you elect to change your asset allocation model and the Annual Rider Charge
     for the new asset allocation model is higher; or

(B)  you elect the Annual Step-up or spousal continuation Step-up and the then
     current Annual Rider Charge for the asset allocation model at the time of
     the Step-up has increased.

The new charge will be the charge in effect on the valuation date we receive
your written request to change your asset allocation model or Step-up if we
receive your request before the close of business on that day, otherwise the
charge in effect on the next valuation date.

There is no increase in the Annual Rider Charge for automatic Annual Step-ups,
automatic spousal continuation Step-ups, or for any required reallocation of
your contract value to the Target Model following a withdrawal.

The Annual Rider Charge is subject to the Maximum Annual Rider Charge shown
under Contract Data.

If the rider charge changes during a contract year, we will calculate an average
rider charge, for that contract year only, that reflects the various different
charges that were in effect that year, adjusted for the number of calendar days
each charge was in effect.

If your contract or rider is terminated for any reason, the rider charge will be
deducted, adjusted for the number of calendar days since the last charge was
taken.

TERMINATION OF THE RIDER

This rider cannot be terminated either by you or us except as follows:

1.   After the death benefit is payable, continuation of the contract by any one
     other than a Covered Spouse will terminate the rider.

2.   Settlement of the contract under an annuity payment plan will terminate the
     rider.

3.   Termination of the contract for any reason will terminate the rider.

################################################################################

ABCD

Secretary

                                    Page 10

<PAGE>

Guaranteed Minimum Withdrawal Benefit Rider   Effective 05-15-2007

<TABLE>
<S>                                                 <C>
Covered Spouses                                     John Doe
                                                    Jane Doe
Initial Annual Rider Charge                         .65%
Maximum Annual Rider Charge                         1.50%
Maximum RBA and GBA                                 $5,000,000
Maximum ALP                                         $275,000
GBP Percentage                                      7%
ALP Percentage                                      5.5%
Waiting Period                                      3 Years
Annual Lifetime Payment Attained Age                Age 68
Initial Asset Allocation Model Selection            Moderately Aggressive
Target Model                                        Moderate
Number of Model Changes Allowed Per Contract Year   2
</TABLE>

-    This Guaranteed Minimum Withdrawal Benefit rider requires participation in
     our Asset Allocation Program containing certain variable subaccounts and
     the fixed account, if applicable. There is no additional charge for such
     participation.

-    Because the rider requires that your contract value be invested in one of
     the asset allocation models for the life of the contract, and you cannot
     terminate the rider once you have selected it, you must terminate your
     contract by requesting a full surrender if you do not want to participate
     in any of the asset allocation models. Surrender charges and tax penalties
     may apply. Therefore, you should not select the rider if you do not intend
     to continue participating in one of the asset allocation models for the
     life of the rider.

-    Rider charges may vary by model selection and will change if you change
     your asset allocation model to one for which the price is higher at the
     time of the change. Rider charges will change if you elect to Step-up the
     Remaining Benefit Amount (RBA) and/or the Annual Lifetime Payment (ALP) and
     the then current charge for the asset allocation model at the time of the
     Step-up is higher. Rider charges will never exceed the Maximum Annual
     Charge shown above.

-    If you take a withdrawal and you are invested more aggressively than the
     Target Model, your contract value will be automatically reallocated to the
     Target Model. After a withdrawal, you can only allocate your contract value
     to the Target Model or less aggressive asset allocation models without
     affecting your guarantees.

-    Contracts issued with an initial purchase payment higher than the Maximum
     Purchase Payments Permitted require corporate officer approval and may
     require limitation of the number of models available for selection.

For tax-qualified contracts: You may be required to take a minimum distribution
that is greater than your Remaining Benefit Payment (RBP) or your Remaining
Annual Lifetime Payment (RALP) on the most recent rider anniversary. In many
situations, these required minimum distributions will not result in excess
withdrawal processing. However, in some circumstances, an excess withdrawal due
to a required distribution would be subject to the Guaranteed Benefit Amount
(GBA) excess withdrawal processing, the RBA excess withdrawal processing, and/or
the ALP excess withdrawal processing. And, if your tax-qualified contract is a
tax sheltered annuity (TSA) as described in Section 403(b) of the Code, the
contractual right to withdrawals is restricted. If you plan to exercise the
benefit before or after your required minimum distribution date, or if your
tax-qualified contract is a TSA, you should consult your tax advisor to consider
whether the benefit is appropriate for your circumstances.

DP139476-JT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]