Common use of Indices Clause in Contracts

Indices. The Performance Rate of a Shield Option is based on the performance of the associated Index. We currently offer Shield Options based on the performance of securities (the “Securities Indices”). In the future we may offer Shield Options based on other types of indices. We may also add or remove indices for new Contracts at our discretion. The following Securities Indices are currently available: S&P 500® Index (Price Return Index). The S&P 500® Index includes 500 large cap stocks from leading companies in leading industries of the U.S. economy, capturing approximately 80% coverage of U.S. equities by market capitalization. The S&P 500® Index does not include dividends declared by any of the companies in this Index. ▇▇▇▇▇▇▇ 2000® Index (Price Return Index). The ▇▇▇▇▇▇▇ 2000® Index measures the performance of the small-cap segment of the U.S. equity universe. The ▇▇▇▇▇▇▇ 2000 is a subset of the ▇▇▇▇▇▇▇ 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Index does not include dividends declared by any of the companies in this Index. See Appendix A for important information regarding the publishers of the Indices. See Appendix B for an Index substitution Investment Amount example. The Index Value of an Index, on a Business Day, is the published closing value of the Index on that Business Day. The Index Value on any day that is not a Business Day is the value as of the prior Business Day. We will use consistent sources to obtain Index Values. If these sources are no longer available for specific indices, we will select an alternative published source(s) for these Index Values. The Performance Rate of a Shield Option is based on the performance of an Index. Index Performance is the percentage change in an Index Value measured from the Term Start Date to any day, including the Term End Date, within the Term. The Index Performance can be positive, zero or negative. The Shield Rate is accrued from the Term Start Date to the Term End Date, and the full Shield Rate only applies if you hold the Shield Option until the Term End Date. The Shield Rate for each Shield Option is the amount of any negative Index Performance that is absorbed by us at the Term End Date. Any negative Index Performance beyond the Shield Rate will reduce the Investment Amount. You should also keep in mind that if Index Performance is negative, the Performance Rate can never be greater than zero. We currently offer the following Shield Rates: Shield 10, Shield 15 and Shield 25: Shield Rate Downside Protection Shield 10 up to 10% Shield 15 up to 15% Shield 25 up to 25% For example, a -15% Index Performance with a 10% Shield Rate will result in a -5% Performance Rate; or, a -10% Index Performance with a 25% Shield Rate will result in a 0% Performance Rate. The Shield Rate may vary between Shield Options and it is not an annual rate.

Indices. The Performance Rate of a Shield Option is based on the performance of the associated Index. We currently offer Shield Options with indices based on the performance of securities (the “Securities Indices”)securities. In the future we may offer Shield Options based on other types of indices. We may also add or remove indices for new Contracts at our discretion. The following Securities Indices are currently available: S&P 500® Index (Price Return Index). The S&P 500® Index includes 500 large cap stocks from leading companies in leading industries of the U.S. economy, capturing approximately 80% coverage of U.S. equities by market capitalization. The S&P 500® Index does not include dividends declared by any of the companies in this Index. ▇▇▇▇▇▇▇ 2000® Index (Price Return Index). The ▇▇▇▇▇▇▇ 2000® Index measures the performance of the small-cap segment of the U.S. equity universe. The ▇▇▇▇▇▇▇ 2000 is a subset of the ▇▇▇▇▇▇▇ 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell ▇▇▇▇▇▇▇ 2000® Index does not include dividends declared by any of the companies in this Index. See Appendix A for important information regarding the publishers of the Indices. See Appendix B for an Index substitution Investment Amount example. The Index Value of an Index, on a Business Day, is the published closing value of the Index on that Business Day. The Index Value on any day that is not a Business Day is the value as of the prior Business Day. We will use consistent sources to obtain Index Values. If these sources are no longer available for specific indices, we will select an alternative published source(s) for these Index Values. The Performance Rate of a Shield Option is based on the performance of an Index. Index Performance is the percentage change in an Index Value measured from the Term Start Date to any day, including the Term End Date, within the Term. The Index Performance can be positive, zero or negative. The Shield Rate is accrued from the Term Start Date to the Term End Date, and the full Shield Rate only applies if you hold the Shield Option until the Term End Date. The Shield Rate for each Shield Option is the amount of any negative Index Performance that is absorbed by us at the Term End Date. Any negative Index Performance beyond the Shield Rate will reduce the Investment Amount. You should also keep in mind that if Index Performance is negative, the Performance Rate can never be greater than zero. We currently offer the following Shield Rates: —Shield 10, Shield 15 10 and Shield 2515: Shield Rate Downside Protection Shield 10 up to 10% Shield 15 up to 15% Shield 25 up to 25% For example, a -15% Index Performance with a 10% Shield Rate will result in a -5% Performance Rate; or, a -10% Index Performance with a 2515% Shield Rate will result in a 0% Performance Rate. The Shield Rate may vary between Shield Options and it is not an annual rate.