▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
GROUP ANNUITY CONTRACT NO.:
CONTRACT HOLDER: THE CHASE MANHATTAN BANK, NA
PARTICIPANT: ▇▇▇▇ ▇▇▇
REGISTER DATE: OCTOBER 1, 1998
This Contract is issued in consideration of payment of the Contributions under
the terms of this Contract.
The terms of this Contract, which include the following pages, are agreed to by
the Contract Holder and The Equitable Life Assurance Society of the United
States ("Equitable").
FOR THE CONTRACT HOLDER FOR THE EQUITABLE
BY: BY :
------------------------------- ------------------------------
President and Chief Executive
Officer
TITLE: Vice President BY:
--------------------------- --------------------------------
Vice President, Secretary and
Associate General Counsel
DATED: BY:
-------------------------- --------------------------------
Assistant Registrar
AT : New York, New York DATE OF ISSUE:
-------------------------- ---------------------
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNTS MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN PART II OF THIS CONTRACT.
INTEREST RATE GUARANTEE - FIXED ANNUITY
BENEFITS - NON-PARTICIPATING
No. 1048-98-GC-OH
TABLE OF CONTENTS
Page
Part I - DEFINITIONS 3
Part II - INVESTMENT OPTIONS 6
Part III - CONTRIBUTIONS AND ALLOCATIONS 10
Part IV - TRANSFERS AMONG INVESTMENT OPTIONS 11
Part V - WITHDRAWALS, DEATH BENEFITS, AND TERMINATION 13
Part VI - WITHDRAWALS TO EFFECT PLAN LOANS 18
Part VII - ANNUITY BENEFITS 20
Part VIII - ANNUITY ACCOUNT VALUES 22
Part IX - CHARGES 23
Part X - GENERAL PROVISIONS 25
APPENDIX A 27
No. 1048-98-GC-OH Page 2
PART I - DEFINITIONS
SECTION 1.01 ANNUITY ACCOUNT VALUE
"Annuity Account Value" means the sum of the amounts held with respect to a
Participant in the Guaranteed Interest Account and the Separate Accounts. The
amount held with respect to a Participant in a Separate Account at any time is
equal to the number of Accumulation Units in such Separate Account held with
respect to such Participant multiplied by the Accumulation Unit Value thereof at
such time.
SECTION 1.02 ANNUITY BENEFIT
"Annuity Benefit" means a benefit payable by Equitable pursuant to Part VII of
this Contract.
SECTION 1.03 ANNUITY COMMENCEMENT DATE
"Annuity Commencement Date" means the date, reported to Equitable by or on
behalf of the Participant as described in Section 7.02, on which annuity
payments are to commence.
SECTION 1.04 APPLICATION
"Application" means the application for participation under this Contract signed
by the Participant and accepted by Equitable.
SECTION 1.05 BUSINESS DAY
A "Business Day" is any day on which Equitable is open and the New York Stock
Exchange is open for trading. Equitable's Business Day ends at 4:00 P.M.,
Eastern Time, or such other time as Equitable designates upon written notice to
the Employer.
SECTION 1.06 CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value held for each
Participant, less any charge that applies as described in Part IX.
SECTION 1.07 CODE
"Code" means the Internal Revenue Code of 1986, as now or hereafter amended, or
any corresponding provisions of prior or subsequent United States revenue laws.
SECTION 1.08 CONTRACT
"Contract" means this contract and the Application.
SECTION 1.09 CONTRACT DATE
"Contract Date" means the date as of which the first Contribution made pursuant
to any Contract issued by Equitable as a funding vehicle under the Plan, is
received by Equitable.
SECTION 1.10 CONTRACT YEAR
"Contract Year" means, with respect to the Plan, the twelve month period
starting on (i) the Contract Date and (ii) each anniversary of the Contract
Date, unless Equitable agrees to another period.
SECTION 1.11 CONTRIBUTION
"Contribution" means a payment made to Equitable pursuant to the Plan and as
described in Section 3.01.
No. 1048-98-GC-OH Page 3
SECTION 1.12 EMPLOYER
"Employer" means an Employer which has adopted a Plan which participates under
this Contract.
SECTION 1.13 GUARANTEED INTEREST RATE
"Guaranteed Interest Rate" means the effective annual rates at which interest
accrues on the amount in the Guaranteed Interest Account.
SECTION 1.14 INVESTMENT FUND
"Investment Fund" means a subdivision of a Separate Account. An Investment Fund
may invest its assets in a separate class (or series) of shares of a specified
trust or investment company where each class (or series) represents a separate
portfolio in the specified trust or investment company.
SECTION 1.15 INVESTMENT OPTION
"Investment Option" means the Guaranteed Interest Account, a Separate Account,
or an Investment Fund of a Separate Account.
SECTION 1.16 PARTICIPANT
"Participant" means a person covered under and eligible to participate in the
Plan who has applied for the Contract, and who may exercise rights hereunder to
the extent permitted by the Plan.
SECTION 1.17 PARTICIPATION DATE
"Participation Date" means the earliest of (a) the Business Day on which the
Participant has signed an application for this Contract, (b) the Business Day on
which the Participant was enrolled under the Prior Contract, if applicable, and
(c) the Business Day on which the first Contribution for the Participant is
received at the Processing Office.
SECTION 1.18 PARTICIPATION YEAR
"Participation Year" means, with respect to the Participant, the twelve month
period starting on (i) the Participation Date and (ii) each anniversary of the
Participation Date, unless Equitable agrees to another period.
SECTION 1.19 PLAN
"Plan" means a defined contribution plan adopted pursuant to Ohio law by the
Employer named in the Application. The Plan must intend to meet the requirements
for qualification under Section 401(a) or 403(a) of the Code.
SECTION 1.20 PRIOR CONTRACT
"Prior Contract" means a contract issued by Equitable and from which the
Employer and Equitable have agreed to transfer certain liabilities associated
with the Plan to this Contract.
SECTION 1.21 PROCESSING OFFICE
"Processing Office" means the Equitable administrative office or such other
location as Equitable may designate upon written notice to the Participant.
SECTION 1.22 SEPARATE ACCOUNT
"Separate Account" means any of the Separate Accounts described or referred to
in Sections 2.02 and 2.06.
No. 1048-98-GC-OH Page 4
SECTION 1.23 SOURCE
"Source" means any of the various sources of Contributions, if applicable, if
Equitable has agreed at the Employer's request to maintain records with respect
to each Source that applies to each Participant pursuant to the Plan. For
example, a Source may arise from Employer contributions or from employee
contributions, including without limitation post-tax and salary deferral
contributions. The Employer will determine and report each Source to Equitable,
in a form acceptable to Equitable.
SECTION 1.24 TRANSACTION DATE
The Transaction Date is the Business Day Equitable receives at the Processing
Office a Contribution or a transaction request providing the information
Equitable needs. Transaction requests must be in a form acceptable to Equitable.
No. 1048-98-GC-OH Page 5
PART II - INVESTMENT OPTIONS
SECTION 2.01 GUARANTEED INTEREST ACCOUNT - CONDITIONS
(A) GUARANTEED INTEREST ACCOUNT
Any amount held in the Guaranteed Interest Account becomes part of
Equitable's general assets, which support the guarantees of this Contract
as well as other obligations of Equitable.
The amount in such Account at any time with respect to the Plan is equal
to the sum of:
o all amounts that have been allocated or transferred to such Account,
plus
o the amount of any interest credited, less
o all amounts that have been withdrawn (including charges) or
transferred from such Account.
Equitable will credit the amount held in the Guaranteed Interest Account
with interest at effective annual rates that Equitable determines.
Equitable will also determine a minimum Guaranteed Interest Rate that
will remain in effect throughout a stated twelve-month period. The
Application will describe the initial Rate(s) to apply for a stated
period or periods starting with the Contract Date.
(B) CONDITIONS
The Participant agrees:
(i) With respect to the investment option of the Plan that is funded
under the Guaranteed Interest Account, to the extent that the Plan
provides that allocations to, and transfers to and from, such option
are to be made solely at the discretion of the individuals covered by
the Plan, such allocations and transfers will be made without any
direction or influence from the Employer or trustee for the Plan.
Equitable is to be given at least 60 days advance written notice by
the Employer of any noncompliance with this condition.
(ii)The Employer is to provide Equitable with any amendment to the Plan
or its investment policy, any communication by the Employer to the
individuals covered by the Plan concerning the Guaranteed Interest
Account or the investment option of the Plan to which it relates, or
any change in the manner in which the Plan is administered with
respect thereto. Any such document is to be provided to Equitable at
least 60 days before its effective date. Equitable may also request,
and the Employer will thereupon provide, any other information that
Equitable reasonably determines would bear upon the flow of funds to
and from the Guaranteed Interest Account.
If the conditions stated in (i) and (ii) above are not complied with, if
the Employer fails to remit Contributions in accordance with Section
3.01, or if Equitable determines and so notifies the Employer by written
notice that an amendment to the Plan, its investment policy, or any
change in the manner in which the Plan is administered would materially
and adversely affect the flow of funds to or from the Guaranteed Interest
Account, then Equitable will have the right to:
(i) decline further requests for transfers to or from the Guaranteed
Interest Account; and/or
(ii)deem that a termination of Plan participation has occurred under this
Contract and that the Participant has requested Equitable to make
payment in accordance with Section 5.03.
Equitable further has the right, pursuant to the terms of Section 3.01
and of Section 5.01, to deem that a termination of Plan participation has
occurred and to apply the terms of subsection (b) of Section 5.03.
No. 1048-98-GC-OH Page 6
SECTION 2.02 SEPARATE ACCOUNT
The Separate Accounts set forth in the Application are available under this
Contract. A Separate Account may be subdivided into Investment Funds.
The assets of a Separate Account are Equitable's property. The portion of
Equitable's assets equal to the reserves and other contract liabilities will not
be chargeable with liabilities which arise out of any other business Equitable
conducts. Equitable may transfer assets of a Separate Account or an Investment
Fund in excess of the reserves and other liabilities with respect to such
Account or Fund to another Separate Account or Investment Fund or to Equitable's
general account.
Equitable may, at its discretion, invest Separate Account assets in any
investment which applicable law permits. Equitable may rely conclusively on the
opinion of counsel (including counsel in its employ) as to what investments
Equitable may make as law permits.
If Equitable changes a Separate Account or adds separate accounts as described
in Section 2.06, then the terms herein related to the Separate Account will
apply to the changed or added account(s).
SECTION 2.03 SEPARATE ACCOUNT ACCUMULATION UNITS AND UNIT VALUES
The amount in a Separate Account with respect to the Plan at any time is equal
to the number of Accumulation Units in that Account with respect to the Plan
multiplied by the Accumulation Unit Value which applies at that time. For the
purposes of this Contract, "Accumulation Unit" means a unit which is purchased
in a Separate Account, and "Accumulation Unit Value" means the dollar value of
each Accumulation unit in a Separate Account on a given date. (If Investment
Funds apply as described in Section 2.02, then the terms of this Section 2.03
apply separately to each Fund, unless otherwise stated.)
Amounts allocated or transferred to a Separate Account are used to purchase
Accumulation Units of that Account. Units are redeemed when amounts are
deducted, transferred or withdrawn.
The number of Accumulation Units in a Separate Account at any time is equal to
the number of Accumulation Units purchased minus the number of Units redeemed in
that Account up to that time. The number of Accumulation Units purchased or
redeemed in a transaction is equal to the dollar amount of the transaction
divided by the Account's Accumulation Unit Value for that Transaction Date.
Equitable determines Accumulation Unit Values for each Separate Account for each
Valuation Period. A "Valuation Period" is each Business Day together with any
consecutive preceding non-business days. For example, for each Monday which is a
Business Day, the preceding Saturday and Sunday will be included to equal a
three-day Valuation Period.
Unless the following paragraph applies, the Accumulation Unit Value for a
Separate Account for any Valuation Period is equal to the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the ratio of
(i) the Value of the Separate Account at the close of business at the end of the
current Valuation Period, before any amounts are allocated to or withdrawn from
the Separate Account in that Period, to (ii) the Value of the Separate Account
at the close of business at the end of the preceding Valuation Period, after all
allocations and withdrawals were made for that Period. For this purpose, "Value
of the Separate Account" means the market value or, where there is no readily
available market, the fair value of the assets allocated to the Separate
Account, as determined in accordance with Equitable's rules, accepted accounting
practices, and applicable laws and regulations. For certain Separate Accounts,
however, further details as to the Value of the Separate Account may be
described in the Application.
To the extent the Separate Account invests in Investment Funds, and the assets
of the Funds are invested in a class or series of shares of a specified trust or
investment company, then the Accumulation Unit Value of an Investment Fund for
any Valuation Period is equal to the Accumulation Unit Value for that Fund on
the immediately preceding Valuation Period multiplied by the Net Investment
Factor for that Fund for the current Valuation Period. The Net Investment Factor
for a Valuation Period is (a) divided by (b) minus (c), where
(a) is the value of the Investment Fund's shares of the related portfolio
of the specified trust or investment company at the end of the
Valuation Period (before taking into account any amounts allocated to
or withdrawn from the Investment Fund for the Valuation Period and
after deduction of investment advisory fees and other expenses of the
specified trust or investment company; for this purpose, Equitable
uses the share value reported to Equitable by the specified trust or
investment company);
No. 1048-98-GC-OH Page 7
(b) is the value of the Investment Fund's shares of the related portfolio
of the specified trust or investment company at the end of the
preceding Valuation Period (taking into account any amounts allocated
or withdrawn for that Valuation Period);
(c) is the daily Separate Account charge (see Section 9.04) for the
expenses of the Contract, times the number of calendar days in the
Valuation Period, plus any charge for taxes or amounts set aside as a
reserve for taxes.
SECTION 2.04 AVAILABILITY OF INVESTMENT OPTIONS
Section 3.01 of this Contract describes the allocation of Contributions among
Investment Options stated in the Application. The election is subject to the
following:
(a) The availability of Investment Options will be subject to the terms
of the Plan, as reported to Equitable by the Employer.
(b) Equitable reserves the right to limit the number of Investment
Options which may be elected. If this right is exercised, it will be
done so on a uniform and nondiscriminatory basis and will in no event
result in the availability of fewer than four Investment Options.
SECTION 2.05 TYPES OF INVESTMENT OPTIONS
The Investment Options may consist of funds which are classified as "Type A"
Investment Options or "Type B" Investment Options, or any other type which may
be specified in the Application, as Equitable designates in its discretion for
purposes of the transfer rules described in Section 4.02. The Application will
identify the specific Investment Options available pursuant to the terms of
Section 2.04 and whether such Investment Options are designated Type A or Type
B.
SECTION 2.06 CHANGES WITH RESPECT TO SEPARATE ACCOUNTS
In addition to the right reserved pursuant to subsection (b) of Section 2.04,
Equitable reserves the right, subject to compliance with applicable law,
including approval of Participants if required:
(a) to add Investment Funds (or sub-funds of Investment Funds) to, or to
remove Investment Funds (or sub-funds) from, a Separate Account, or
to add or remove Separate Accounts;
(b) to combine any two or more Investment Funds or sub-funds thereof,
which, in Equitable's judgment, have the same general investment
objectives;
(c) to transfer the assets Equitable determines to be the share of the
class of contracts to which this Contract belongs from any Separate
Account or Investment Fund to another Separate Account or Investment
Fund which, in Equitable's judgment, has the same general investment
objectives;
(d) to operate the Separate Account or any Investment Fund as a
management investment company under the Investment Company Act of
1940;
(e) to register or deregister the Separate Account or any Investment Fund
under the Investment Company Act of 1940, provided that such action
conforms with the requirements of applicable law;
(f) to restrict or eliminate any voting rights as to any Separate
Account;
(g) to cause one or more Separate Accounts or Investment Funds to invest
some or all of their assets in one or more other trusts or investment
companies which, in Equitable's judgment, have the same general
investment objectives.
No. 1048-98-GC-OH Page 8
A portfolio might, in Equitable's judgment, become unsuitable for investment by
a Separate Account or an Investment Fund, in view of legal, regulatory, or
federal income tax restrictions. In such event, shares of another series or
shares of another unit investment trust may be substituted for shares already
purchased with respect to the Separate Account or as the security to be
purchased in the future, provided that such substitution meets applicable
federal income tax guidelines and, to the extent required by law, has been
approved by the Securities and Exchange Commission and such other regulatory
authorities as may be necessary.
If the exercise of these rights results in a material change in the underlying
investments of a Separate Account or an Investment Fund, the participant will be
notified of such exercise, as required by law.
No. 1048-98-GC-OH Page 9
PART III - CONTRIBUTIONS AND ALLOCATIONS
SECTION 3.01 CONTRIBUTIONS, ALLOCATIONS
The Participant or the Employer on the Participant's behalf will remit as
Contributions hereunder all amounts maintained with respect to the Contract and
all amounts directed thereto as contributions, unless Equitable agrees otherwise
in writing or unless such remittance is to cease pursuant to the terms of this
Contract. Rollover or direct transfer contributions may be made if and as
permitted under the Plan. However, Equitable reserves the right to refuse other
contributions such as non-deductible voluntary contributions. Equitable has the
right to require a minimum aggregate amount of Contributions on an annual basis;
the Application will specify if a minimum applies. If any such minimum amount
requirement is not met, Equitable has the right to deem that a termination of
Plan participation has occurred and to apply the terms of subsection (b) of
Section 5.03.
The Application states which Investment Options will be available under the
Contract with respect to the Plan, subject to the terms of Section 2.04.
Contributions may be allocated to, or transfers made among, these Options.
Each Contribution is allocated (after deduction of any tax charge that may
apply) in accordance with the allocation instructions submitted in a form
acceptable to Equitable. Contributions made to an Investment Fund will be used
to purchase Accumulation Units in that Fund, using the Accumulation Unit Value
then available with respect to that Fund.
SECTION 3.02 DISCONTINUANCE OF CONTRIBUTIONS
Contributions under the Contract will continue with respect to the Plan subject
to an election made by the Employer, Participant or Equitable according to the
following:
(a) The Employer or Participant may notify Equitable at any time, pursuant to
Section 4.03 and subsection (b) of Section 5.03, that participation of
the Plan under the Contract is to be terminated, in which case
Contributions will be discontinued with respect to the Plan and payments
may be made as described in subsection (b) of Section 5.03.
(b) Equitable reserves the right, upon 90 days' notice to the Participant and
Employer before any anniversary of the Contract Date which occurs on or
after the fifth such anniversary, to discontinue acceptance of
Contributions under this Contract. However, such right may be exercised
only if withdrawals under the Contract with respect to the Plan would not
be subject to a Withdrawal Charge pursuant to Section 9.01. If Equitable
exercises this right, Equitable will then also have the right to pay all
amounts held for the Participant under the Contract on the same basis as
if a Plan termination had occurred; that is, such amounts would be paid
as described in subsection (a) of Section 5.03.
Equitable may exercise this right for reasons including, but not limited
to, (a) a decision by Equitable to replace the terms of this Contract
with terms available under a different contract for plans qualified under
Section 401(a) of the Code or (b) the aggregate amount of Contributions
is less than the required minimum, if applicable pursuant to Section
3.01. Equitable will, in its notice of discontinuance, inform the
Employer and Participant of the reason for such discontinuance.
No. 1048-98-GC-OH Page 10
PART IV - TRANSFERS AMONG INVESTMENT OPTIONS
SECTION 4.01 TRANSFER REQUESTS
The Participant may upon written request transfer, pursuant to the terms of the
Plan, all or part of the amount held in an Investment Option to one or more of
the other Options. A transfer request must be made in a form acceptable to
Equitable. The request will specify the Source(s), if applicable as described in
Part VIII, to which the transfer applies. All transfers will be made on the
Transaction Date and will be subject to the terms of Section 4.02 and to
Equitable's rules in effect at the time of transfer. With respect to a Separate
Account, the transfers will be made at the Accumulation Unit Value next computed
after the Transaction Date.
SECTION 4.02 TRANSFER RULES
The maximum amount which may be transferred with respect to the Contract from
the Guaranteed Interest Account to a Separate Account or any Investment Fund of
a Separate Account, during any period consisting of the current and three
immediately preceding calendar quarters (the "Transfer Period"), is:
(a) a percentage of the amount in the Guaranteed Interest Account with
respect to the Contract on the last day of the calendar year which
precedes the date of transfer or, if greater,
(b) the total of all amounts transferred at the Participant's request
from the Guaranteed Interest Account to any Separate Account or
Investment Fund in such preceding calendar year.
The percentage referred to in subsection (a) above will be stated in the
Application. The actual percentage to apply with respect to each Contract will
be determined by Equitable on a uniform and nondiscriminatory basis. In any
event, Equitable may not impose a transfer rule which involves a percentage less
than 5%.
SECTION 4.03 TERMINATION OF CONTRACT PARTICIPATION
The terms of this Section 4.03 apply if the terms of Section 5.03 apply, as
specified in the Application.
In the case of a Plan for which a notice is received regarding the Participant's
termination of participation under this Contract as described in subsection (b)
of Section 5.03, no transfers may be made on and after the date Equitable
receives a request for withdrawal from the Guaranteed Interest Account pursuant
to such subsection (b) of Section 5.03.
In addition, if the termination of participation is due to termination of the
Plan as described in subsection (a) of Section 5.03, then no transfers may be
made on and after the date Equitable receives notice of the Plan termination and
before a period of 90 days has elapsed, except that transfers already being made
under any automatic transfer option available from Equitable will be continued
during such period. After the end of such 90-day period, transfers will be
permitted and, regardless of which Separate Account Investment Options had been
elected with respect to the Plan, the maximum amount that may be transferred to
a Separate Account or an Investment Fund of a Separate Account from the
Guaranteed Interest Account in any Transfer Period will be an amount equal to a
percentage (determined as described by notice to the Participant from Equitable)
of the amount, if any, that was held in the Guaranteed Interest Account as of
the last day of such 90-day period.
SECTION 4.04 CHANGES
Equitable reserves the right to:
(a) defer transfers for up to six months, as described in Section 10.03,
(b) revise the transfer rules described in Section 4.02; and
(c) charge for any transfer after the first four such transfers on behalf
of a Participant made in any calendar year, as described in Section
9.03.
Any action taken pursuant to subsection (b) or (c) above will be made by
Equitable upon 90 days' advance notice to the Participant.
No. 1048-98-GC-OH Page 11
PART V - WITHDRAWALS , DEATH BENEFITS, AND TERMINATION
SECTION 5.01 WITHDRAWALS
The Participant or the Employer on behalf of the Participant may make a written
request to Equitable for a withdrawal from the Investment Options with respect
to a Participant pursuant to the terms of the Plan.
On the Transaction Date, Equitable will pay the amount of the withdrawal
requested or, if less, the Cash Value, subject to the terms of section 9.01. The
withdrawal to be made to provide the payment will be made from the Investment
Options specified, subject to the terms of Section 8.02. The payment arising
from the withdrawal will be made to the Participant unless the Participant and
Equitable agree to another payee.
However, prior to making any payment, Equitable may request from the Employer or
Participant such information as it may reasonably require to determine that the
withdrawal is necessary and proper under the terms of the Plan and is not made
in order to avoid the effect of subsection (b) of section 5.03. In addition,
Equitable may request from the Employer or Participant similar information with
respect to withdrawals previously made. If (a) such information is not submitted
as requested, or (b) Equitable determines from information submitted that
withdrawals previously made were made in order to avoid the effect of subsection
(b) of section 5.03, or (c) Equitable determines that the pattern of certain
withdrawals previously made has the effect of a termination of participation
under this Contract with respect to the Plan, then Equitable has the right to
deem that a termination of Plan participation has occurred in whole or in part
and to apply the terms of subsection (b) of Section 5.03. In the event that the
terms of subsection (b) of Section 5.03 are so applied, and pursuant to such
terms a Market Value Adjustment would have been assessed with respect to the
aggregate amount of such previous withdrawals, then the Participant will pay to
Equitable an amount equal to such Market Value Adjustment, as determined by
Equitable; if such amount is not paid as required, Equitable will have the right
to deduct the amount proportionately from the Investment Options under this
Contract.
SECTION 5.02 DEATH BENEFIT & BENEFICIARY DESIGNATION
SECTION 5.02.1 BENEFICIARY
A Participant may, pursuant to the Plan, including any spousal consent
provisions thereof, designate (with the right to change such designation from
time to time) a beneficiary or beneficiaries to receive any payment with respect
to the Participant becoming due to a beneficiary under this Contract. Equitable
reserves the right to restrict the designation of a nonspouse beneficiary for
married Participants under age 35. Any other person to whom periodic payments
are payable under this Contract may designate (with the right to change such
designation from time to time) a beneficiary or beneficiaries to receive any
single sum payment or any remaining periodic payments becoming due upon the
death of such person, if no prior designation is then in effect with respect
thereto.
Any designation or change shall be by written notice filed at the Processing
Office, except that a designation or change made by a Participant who has not
attained his Annuity Commencement Date shall be by written notice filed with the
Employer or Employer Plan Trustee. Upon receipt of said notice by Equitable,
such designation or change shall take effect as of the date shown on said notice
as the date on which it was signed, whether or not the person making such
designation or change is living at the time of receipt, but without further
liability on the part of Equitable with respect to any payment made by it before
the receipt by it of (a) said notice or (b) a written report from the Employer
or Employer Plan Trustee that such party received said notice.
SECTION 5.02.2 DEATH BENEFITS
Upon Equitable's receipt of evidence satisfactory to it of the death of a
Participant, a death benefit will be payable to the beneficiary designated in
accordance with Section 5.02.1. Such death benefit will be equal to the Annuity
Account Value as of the applicable Transaction Date.
The beneficiary or beneficiaries with respect to such death benefit may elect
any of the following methods of disposition, subject to the requirements of law
and Equitable's rules then in effect:
(a) To receive the death benefit in a single sum;
(b) To apply the death benefit to the purchase of an Annuity Benefit in
a form then offered by Equitable;
(c) To apply the death benefit to provide any other form of benefit
then offered by Equitable;
(d) To apply the death benefit to an account or accounts under this
Contract maintained for the benefit of such beneficiary or
beneficiaries.
Unless Equitable receives suitable written instructions to the contrary from the
Employer, Employer Plan Trustee or such beneficiary or beneficiaries on the date
on which it receives due proof of the death of the Participant, any amounts then
held with respect to the Participant in certain Investment Options will be
transferred to one Investment Option as described below,
No. 1048-98-GC-OH Page 12
and the entire Annuity Account Value will be held therein pending disposition of
the death benefit in accordance with the immediately preceding paragraph.
Such transfer will be (a) of any amounts not then in the Money Market Fund to
such Money Market Fund if such Money Market Fund is then applicable under this
Contract to the Plan, and (b) in any other case, of any amounts not then in the
Guaranteed Interest Account to the Guaranteed Interest Account.
Equitable will pay or apply a death benefit in accordance with the election
described in the second paragraph of this Section 5.02.2. Upon such disposition
in accordance with Clauses (a), (b), or (c) of such paragraph, the amount held
in the Investment Options with respect to the Participant and the Annuity
Account Value will be zero. Equitable will thereupon be released from any and
all liability for payment with respect to the Annuity Account Value.
Any beneficiary who elects to dispose of the death benefit by having it applied
to an account in accordance with the Clause (d) of the second paragraph of this
Section 5.02.2, will be subject to the following:
(a) The beneficiary will be entitled to defer distribution of the account
to the extent permitted by the Plan and applicable law;
(b) The value of the account will be determined at the time of
distribution to the beneficiary and, depending upon investment gains
or losses, may be worth more or less than the initial value of the
account;
(c) If the beneficiary dies before taking full distribution of the
account, a death benefit will be determined with respect to the
account as though such beneficiary were a Participant; and
(d) Such account may be allocated to, and transferred among, the
Investment Options in accordance with the provisions of this
Contract as applicable to Annuity Account Values with respect to
Participants.
In any event, any death benefit paid pursuant to this Section 5.02 will be paid
in accordance with the minimum distribution rules of Section 401(a)(9) of the
Code and applicable Treasury Regulations and as specified by the Plan. If the
Participant dies while a loan is outstanding, the loan will automatically
default and be subject to a federal income tax as a plan distribution.
SECTION 5.03 TERMINATION OF COVERAGE UNDER THE CONTRACT
The terms of this Section 5.03 will apply if specified in the Application.
(A) PLAN TERMINATION:
Upon receipt of notice that the Plan is to terminate, in whole or in
part, without immediate establishment of a successor plan sponsored by
the Employer, withdrawals will be made in accordance with the
following:
(1) WITHDRAWALS FROM SEPARATE ACCOUNTS:
After such notice has been received, any withdrawal from any
other Investment Option that is requested by the Participant or
Employer on behalf of a Participant will continue to be made in
accordance with the provisions of Section 5.01.
(2) WITHDRAWALS FROM THE GUARANTEED INTEREST ACCOUNT:
After such notice has been received, any withdrawal from the
Guaranteed Interest Account that is requested by the Participant
or the Employer on behalf of a Participant, other than a
withdrawal that is in connection with a "Benefit Distribution"
described in subsection (f) below, will be made in accordance
with this subsection (a)(2) in lieu of the provisions of Section
5.01. Equitable will accept requests for such withdrawals only
after 90 days has elapsed from Equitable's receipt of the
notice. Payment of the requested withdrawal will commence, or
will be made, within 30 days of the later of (i) receipt of such
request at Equitable's Processing Office, or (ii) the end of
such 90-day period.
Equitable will, subject to the following provisions, pay such
withdrawal in annual installments over a period not to exceed 59
months, as described in subsection (d) below and without a
Market Value Adjustment described in subsection (g) below or
Withdrawal Charge described in Section 9.01.
No. 1048-98-GC-OH Page 13
If, during the installment period, the Employer or Participant
reports to Equitable that all or part of the balance of the
installments are to be paid in connection with a Benefit
Distribution, Equitable will pay in a single sum the amount
requested.
Equitable reserves the right to pay such withdrawal in a single
sum in lieu of such annual installments, if the aggregate amount
held in the Guaranteed Interest Account with respect to the
Contract is less than $1,000,000. Such single sum will be equal
to the lesser of (i) the amount of withdrawal requested, minus
any Withdrawal Charges that apply pursuant to Section 9.01, and
(ii) the amount of withdrawal requested reduced by any Market
Value Adjustment that applies pursuant to subsection (g) below,
provided, however, that such Market Value Adjustment will not
exceed 7%. If a Market Value Adjustment applies, then the amount
to be paid will be determined as of the "Calculation Date"
defined in subsection (g) below, and will include interest at
the then applicable Guaranteed Interest Rate from the
Calculation Date to the "Effective Date of Withdrawal" defined
in subsection (g) below.
In addition, the Participant may request that the withdrawal be
paid in a single sum in lieu of such annual installments. If
Equitable has agreed, then such single sum will be equal to the
amount described in the immediately preceding paragraph, without
regard, however, to the 7% limit on a Market Value Adjustment.
Any amount to be paid pursuant to this subsection (a)(2) plus,
if applicable, any Withdrawal Charge described in Section 9.01
or Market Value Adjustment will be withdrawn from the amounts
held in the Guaranteed Interest Account.
(B) TERMINATION OF PLAN PARTICIPATION UNDER THIS CONTRACT:
If the Employer terminates the Plan's participation under this Contract
or if the Participant terminates this Contract in whole or in part,
Equitable will, if the Employer so requests, pay the amounts held with
respect to the Plan or part thereof in accordance with the following:
(1) WITHDRAWALS FROM SEPARATE ACCOUNTS:
Equitable will pay the aggregate of the amounts then held in any
Separate Account with respect to the Plan, minus any applicable
Withdrawal Charges. Such payment will be made in a single sum
or other form as requested by the Employer.
(2) WITHDRAWALS FROM THE GUARANTEED INTEREST ACCOUNT:
(A) The amounts in the Guaranteed Interest Account will be
paid in annual installments over a period not to exceed
59 months, as described in subsection (d) below.
(B) No Withdrawal Charge or Market Value Adjustment will
apply with respect to the installments.
(C) If the terms of Part VIII apply, Equitable will have the
right to discontinue maintenance of Participant-level
records and, in lieu thereof, to (i) treat all amounts
remaining in the Investment Options as a single Annuity
Account Value, with the Employer as sole Participant, and
(ii) rely fully upon the advice of the Employer for any
Participant-level information required to process
transactions hereunder, including but not limited to the
payment of death benefits.
(D) Anything in this Contract to the contrary
notwithstanding, any repayments of loans, as described in
Part VI of this Contract, on and after the beginning of
the installment period are to be made to the then active
funding vehicle of the Plan.
(E) On and after Equitable's receipt of the Employer's
request for payment, no other withdrawals from, and no
transfers to or from, the Guaranteed Interest Account
will be made except in conjunction with Benefit
Distributions subject to subsection (F) following.
No. 1048-98-GC-OH Page 14
(F) The amount of any withdrawal for a Benefit Distribution
while installments are in progress will be the amount
required therefor, minus any amount then held in another
funding vehicle with respect to the Plan.
(G) On and after the Employer's request for termination of
the Plan's participation under this Contract, no further
Contributions may be made to the Guaranteed Interest
Account with respect to the Plan.
Equitable reserves the right to pay such withdrawal in a
single sum in lieu of such annual installments, if the
aggregate amount held in the Guaranteed Interest Account with
respect to the Plan is less than $1,000,000. Such single sum
will be equal to the lesser of (i) the amount of withdrawal
requested, minus any Withdrawal Charges that apply pursuant to
Section 9.01, and (ii) the amount of withdrawal requested
reduced by any Market Value Adjustment that applies pursuant
to subsection (g) below, provided, however, that such Market
Value Adjustment will not exceed 7%. If a Market Value
Adjustment applies, then the amount to be paid will be
determined as of the "Calculation Date" defined in subsection
(g) below, and will include interest at the then applicable
Guaranteed Interest Rate from the Calculation Date to the
"Effective Date of Withdrawal" defined in subsection (g)
below.
In addition, the Employer may request that the withdrawal be
paid in a single sum in lieu of such annual installments. If
Equitable has agreed, then such single sum will be equal to
the amount described in the immediately preceding paragraph,
without regard, however, to the 7% limit on a Market Value
Adjustment.
(C) PLAN IS NO LONGER QUALIFIED:
Upon receipt of notice that the Plan is not or is no longer qualified
under Section 401(a) or 403(a) of the Code, Equitable reserves the
right to terminate this Contract and to pay the amounts held in the
Investment Options with respect to the Contract as if the Employer had
terminated the Plan's participation under this Contract in accordance
with subsection (b) above. this applies even if the Employer is not the
Contract Holder.
(D) INSTALLMENT PAYMENTS:
Any installments to be paid pursuant to subsections (a) or (b) above
will be made in accordance with the following:
(i) The first such installment will be paid on a Business Day that
is not more than 30 days after receipt at Equitable's
Processing Office of the applicable request for payment.
(ii) Each of the next four annual installments will be paid,
respectively, on the first Business Day on or after each
anniversary of the first installment.
(iii) The final installment will be paid on the Business Day before
the fifth anniversary of the day the first installment was
paid.
(iv) Each such installment will be equal to the amount then in the
Guaranteed Interest Account divided by the number of remaining
installments, including the one then due.
(E) LIABILITY FOR PAYMENTS:
Any amount payable pursuant to the above subsections will be paid to
the Participant or otherwise paid as may be agreed upon in writing
between the Participant and Equitable. Any payment by Equitable
pursuant to this Section 5.03 will fully discharge Equitable from all
liability with respect to the amount paid.
(F) BENEFIT DISTRIBUTION:
A "Benefit Distribution" for the purposes of this Section 5.03 means
payment with respect to a Participant under the terms of the Plan or
Contract in any of the following circumstances or as otherwise stated
in the Application:
(i) as a result of the Participant's retirement, death, or
"Disability";
No. 1048-98-GC-OH Page 15
(ii) as a result of the Participant's separation from service with
the Employer, provided such separation from service would
qualify as such under Section 402(d)(4)(A) of the Code as in
effect under the Tax Reform Act of 1986;
(iii) in connection with a minimum distribution made on or after the
Participant's "Required Beginning Date," as defined in Section
401(a)(9)(C) of the Code.
For the purposes of (i) above, "Disability" means the inability to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to
result in death or to be of long, continued and indefinite duration,
presumably for life, as determined by the Employer on the basis of
either (A) a written determination by the Social Security
Administration that disability payments under the Social Security Act
have been approved; or (B) other evidence satisfactory to Equitable of
such condition.
(G) MARKET VALUE ADJUSTMENT:
Any withdrawal from the Guaranteed Interest Account pursuant to
subsection (a) or the last paragraph of subsection (b) above will be
subject to a Market Value Adjustment (unless specified otherwise in
either such subsection) if:
(i) no Withdrawal Charge applies to such withdrawal; or
(ii) the Withdrawal Charge that applies is less than the Market
Value Adjustment.
The term "Market Value Adjustment" means the greater of (A) zero, and
(B) a percentage equal to:
(i) the sum of all market value adjustments for quarterly
generations in the Guaranteed Interest Account, as determined
pursuant to the next paragraph, with respect to the Contract
as of the "Effective Date of Withdrawal," divided by
(ii) the amount held in the Guaranteed Interest Account with
respect to the Contract as of the Effective Date of
Withdrawal.
For purposes of such calculation, the Guaranteed Interest Account will
be deemed to consist of a series of quarterly generations, one for each
calendar quarter during which the Contract participated in the
Guaranteed Interest Account.
The market value adjustment for each such quarterly generation is the
product of (A), (B) and (C) as follows:
(A) the amount of the contract's "net cash flow" in the given
quarterly generation as of the Effective Date of Withdrawal;
(B) the rate equal to
(1) the interest rate, as of the applicable "Calculation
Date," for a five-year Treasury bond, minus
(2) the "average interest rate," during the calendar
quarter in which such quarterly generation was first
established, for five-year Treasury bonds, less 0.25%,
subject to the following provisions of this
subsection;
(C) the fraction equal to the number of calendar days from the
Effective Date of Withdrawal which occasioned this calculation
to the maturity date for the given quarterly generation
divided by 365. Such maturity date will be the quinquennial
anniversary of the first Business Day of the given quarterly
generation.
"Effective Date of Withdrawal" for this purpose means the Business Day
on which Equitable is to make payment of the requested withdrawal
pursuant to the terms of subsection (a) or subsection (b) of this
Section 5.03.
"Calculation Date" for this purpose means the Business Day occurring on
or next following the date on which Equitable receives the Employer's
or Participant's request for payment pursuant to the terms of
subsection (a) or
No. 1048-98-GC-OH Page 16
subsection (b) of this Section 5.03. The Calculation Date is the date
as of which Equitable determines the Market Value Adjustment.
The "average interest rate" to be used for purposes of item (B)(2)
above with respect to a given quarterly generation whose first Business
Day was more than five years before the Calculation Date will be the
average interest rate for the most recent calendar quarter whose first
Business Day was a quinquennial anniversary of the first Business Day
of the given quarterly generation.
The contract's "net cash flow" in a given quarterly generation is the
sum of all allocations (including interest credited) and transfers to,
minus all withdrawals, deductions and transfers from, the Guaranteed
Interest Account with respect to such quarterly generation. Equitable
may, to the extent that such data are unavailable on the Calculation
Date, estimate the applicable amount on the basis of appropriate
historical data. The interest rate on a five-year Treasury bond will be
determined by using the applicable rate of interest (on an annual
effective yield basis) specified in the United States Treasury
Department's Constant Maturity Series for that date. If the interest
rate associated with a five-year Treasury bond is not available in that
series, the rate will be determined by linear interpolation between the
next lower and next higher available maturities. The source for the
United States Treasury Department's Constant Maturity Series will be
the Federal Reserve Statistical Release F.15 Bulletin. If for any
reason this series is not available, the interest rate will be based on
a comparable series.
Equitable may at any time substitute a bond of different maturity for
the five-year Treasury bond referred to in this subsection, provided
that (i) any such change will apply only to Contracts which begin
participation after such change, and (ii) such change will be made by
advance written notice to the applicable Employer and Participant. In
such event, the references in this subsection to "five years" and
"quinquennial anniversary" will be deemed to have been correspondingly
changed.
No. 1048-98-GC-OH Page 17
PART VI - WITHDRAWALS TO EFFECT PLAN LOANS
SECTION 6.01 WITHDRAWALS TO EFFECT EMPLOYER PLAN LOANS TO PARTICIPANTS
The Participant or the Employer on behalf of the Participant may request
withdrawals for purposes of making loans for Plan Participants in accordance
with the terms of the Plan and of the Code and applicable Treasury regulations.
Future restrictions in the Code or applicable Treasury regulations may require
changes in the terms and availability of withdrawals to make Plan loans under
this Contract.
The Participant will specify from which Investment Option(s) and Sources, if
applicable, the withdrawal is to be made.
SECTION 6.02 TERMS -- RESTRICTIONS
Withdrawals to effect Plan loans may not be made if the Plan has terminated or
amounts are being paid pursuant to the terms of Section 5.03.
In addition, the following terms will apply:
(a) A withdrawal to make a Plan loan will be available only from the portion,
if any, of the Annuity Account Value that is considered vested in
accordance with the Plan, as reported to Equitable by the Employer.
(b) Before the loan effective date the Participant or the Employer on behalf
of the Participant is to provide Equitable with a signed loan agreement,
in a form satisfactory to Equitable, setting forth all applicable terms
and conditions of the Plan loan. Such agreement is to be signed by the
Employer (or Plan trustee) and the Participant.
(c) There is no more than one loan for a given Participant at one time,
except for any loan which was established under the Plan before the
Contract Date and transferred to this Contract.
(d) The rate of interest applicable to each Plan loan is a fixed rate for the
full term of the loan, as determined by the Employer in accordance with
the Plan. [If no such rate exists under the Plan, the rate shall be fixed
at the prime rate as set by Equitable].
(e) The Plan loan must by its terms be repayable within a term as specified
in the Code and applicable Treasury regulations and in the Plan.
(f) Loan repayments are to be remitted to Equitable as of each Plan Loan
Repayment Date, with each such payment at least equal to the amount
required, as specified in the amortization schedule. The "Plan Loan
Repayment Date" will be each of a series of dates to be designated in a
Plan loan amortization schedule included in the loan agreement referred
to in subsection (b) above.
(g) Additional Plan loan repayments may be made at any time. The loan,
including the full amount of interest due thereon, may, if the Plan so
provides, be repaid in full at any time.
(h) Plan loan repayments will be allocated by Equitable either (i) to the
Investment Options on the basis of the instructions submitted for
withdrawal of such loan amounts pursuant to Section 6.01, or (ii) if the
Participant so elects and if such Account is applicable under this
Contract to the Plan, entirely to the Guaranteed Interest Account.
(i) A Plan loan will be deemed in default if (i) the full amount of any loan
repayment is not received by Equitable within 90 days of the applicable
Plan Loan Repayment Date, (ii) this Contract or the participation under
this Contract with respect to the Plan is terminated, or (iii) the
Participant dies. If a Plan loan is deemed in default, Equitable has the
right to treat the loan principal as a withdrawal pursuant to Section
5.01, subject to any Withdrawal Charge that applies pursuant to Section
9.01, if specified in the Application.
SECTION 6.03 LIMITS ON AMOUNTS
The minimum amount of withdrawal for each loan will be the minimum set forth in
the Plan, but in no event will be less than $1000. The maximum amount of
withdrawal for each Plan loan will be the maximum amount permitted under Section
72(p) of the Code.
No. 1048-98-GC-OH Page 18
SECTION 6.04 PLAN LOAN CHARGES
The Application will specify if a one time set-up charge and/or an annual loan
recordkeeping charge will apply. The maximum set-up charge is $150.00 or 1% of
the loan amount, as specified in the Application; the maximum loan recordkeeping
charge is $60.00 per year. The Application will also specify if a Withdrawal
Charge may apply to a Plan loan which is deemed in default, as described in
subsection (i) of Section 6.02.
Set-up and recordkeeping charges will be deducted by Equitable from the amounts
held in the Investment Options. Any amount remitted by the Employer toward such
charges will correspondingly reduce such deduction.
No. 1048-98-GC-OH Page 19
PART VII ANNUITY BENEFITS
SECTION 7.01 ANNUITY BENEFIT
Each Annuity Benefit under this Contract will be paid as a Life Annuity, unless
another form offered by Equitable or one of its affiliated or subsidiary
companies is elected, subject to the terms of the Plan. The Life Annuity form
provides monthly payments to the Participant beginning as of the Annuity
Commencement Date and ending with the last payment due before the Participant's
death.
SECTION 7.02 REPORT FOR ANNUITY BENEFIT
The Participant or the Employer on behalf of the Participant will report to
Equitable when an Annuity Benefit is to be provided under this Contract.
Equitable reserves the right to require that the amount to be applied to provide
such Annuity Benefit be at least $[5,000]. Any such report is to be made before
the first payment under such Annuity Benefit. Any such report will be in the
form prescribed by Equitable and will include all pertinent facts and
determinations requested by Equitable. Equitable will be fully protected in
relying on the reports and other information furnished by the Employer,
Participant or other authorized person and need not inquire as to the accuracy
or completeness thereof.
SECTION 7.03 APPLICATION TO PROVIDE ANNUITY BENEFIT
Prior to the date of the first payment under the Annuity Benefit to be provided
hereunder, an application will be made to provide such Annuity Benefit. The
amount so applied will be equal to the amount withdrawn from the Investment
Options to provide such Benefit, less any applicable tax charge on annuity
considerations; provided that the Participant or the Employer on behalf of the
Participant may report, in accordance with Section 7.02, that only a portion of
the given amount is to be used for such Benefit.
If Equitable has deducted charges for applicable tax from the Contributions
being applied to provide an Annuity Benefit before they were allocated to the
Investment Options pursuant to Section 3.01, Equitable will not again deduct
charges from such Contributions for the same taxes. If however, taxes are later
imposed upon Equitable when such an application is made, Equitable reserves the
right to make an additional deduction for such taxes.
Application will be made on the basis of either (a) the Table of Guaranteed
Annuity Payments included in Appendix A of this Contract, or (b) Equitable's
then-current individual annuity rates applicable at the time of application to
funds which derive from sources outside Equitable, whichever rates would provide
a larger benefit with respect to the payee.
SECTION 7.04 CONDITIONS
Equitable has the right to ask for proof acceptable to it that the person on
whose life a benefit payment is based is alive when each payment is due.
Equitable will require proof of the age of any person on whose life an annuity
form is based.
If a benefit was based on information that is later found not to be correct,
such benefit will be adjusted on the basis of the correct information. The
adjustment will be made in the amount of the benefit payments, or any amount
used to provide the benefit, or any combination. Overpayments by Equitable will
be charged against future payments. Underpayments will be added to future
payments. Equitable's liability is limited to the correct information and the
actual amounts used to provide the benefits.
If Equitable receives proof satisfactory to it that (a) a payee entitled to
receive any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (b) another person or an
institution is then maintaining or has custody of such payee, and (c) no
guardian, committee, or other representative of the estate of such payee has
been appointed, Equitable may make the payments to such other person or
institution. Equitable will have no further liability with respect to the
payments so made.
If the amount to be applied hereunder is less than $3,500 or would result in an
initial monthly payment of less than $20.00, Equitable may pay the amount to the
payee in a single sum instead of applying it under the annuity form elected.
No. 1048-98-GC-OH Page 20
SECTION 7.05 CHANGES
Equitable reserves the right, upon 90 days' advance notice to the Participant,
to change at any time on and after the fifth anniversary of the Register Date of
this Contract, at intervals of not less than five years, the actuarial basis
used in the Tables of Guaranteed Annuity Payments; however, no such change will
apply to any Annuity Benefit provided before the change.
No. 1048-98-GC-OH Page 21
PART VIII - ANNUITY ACCOUNT VALUES
SECTION 8.01 PARTICIPANTS' ACCOUNTS (Applicable if the Employer is the
contractholder)
The Employer may request Equitable to maintain Participant - level accounts; if
Equitable consents, this will be so provided in the Application. If so, then the
Employer will specify the Participant with respect to whom each Contribution is
being remitted, the Source to which each Contribution relates, and the
allocation by Source of such Contribution among the Investment Options. In
addition, the terms of Sections 2.01 and 2.03 will apply separately with respect
to each Participant's Annuity Account Value.
SECTION 8.02 WITHDRAWALS
The amount to be paid for a withdrawal pursuant to the terms of Section 5.01,
plus any Withdrawal Charge which applies pursuant to Section 9.01, will be
withdrawn on a pro-rata basis from the amounts held with respect to the
Participant in the Investment Options, unless the Participant directs otherwise.
SECTION 8.03 TRANSFERS
The transfer rules described in Section 4.02 will apply separately with respect
to each Participant. That is, the maximum percentage which may be transferred
from the Guaranteed Interest Account applies to the amount held in such Account
with respect to the Participant.
SECTION 8.04 FORFEITURES
(a) Forfeitures:
If the Employer reports to Equitable that the Annuity Account
Value is to be reduced as a result of a forfeiture pursuant to
the Plan, Equitable will reduce the Annuity Account Value by
the amount of the reduction so reported as representing the
unvested portion of the Annuity Account Value.
Equitable will apply the amount of any such reduction to the
Forfeiture Account, described in subsection (b) below, pending
subsequent disposition. Such amount (and any interest thereon)
will be disposed of in a manner to be reported in writing to
Equitable by the Employer.
(b) Forfeiture Account:
The Forfeiture Account is an unallocated account maintained by
Equitable in order to hold amounts arising from reductions in
Annuity Account Values pursuant to subsection (a) above. Such
account will be maintained in the Money Market Account or in
any Investment Option designated by Equitable by notice to the
Employer or Participant.
(c) Withdrawals from Account:
If the Employer requests that the amount representing a
forfeiture and the interest thereon be withdrawn from the
Forfeiture Account, for any purpose other than reallocation of
such amount to the Participants covered under the Plan and the
Contract, such withdrawal may be subject to the terms of
Section 5.01 or 5.03, as if termination of participation under
the Contract had occurred.
No. 1048-98-GC-OH Page 22
PART IX - CHARGES
SECTION 9.01 WITHDRAWAL CHARGES
A withdrawal or a termination payment made under Part V may be subject to a
Withdrawal Charge as specified in the Application.
Equitable reserves the right to reduce or waive the Withdrawal Charge in such
circumstances as it determines. The Application will specify the circumstances,
if any, by which a waiver will apply. In addition, the years of participation
under the Prior Contract, if applicable, will be included for purposes of
determining the Withdrawal Charge, if so specified in the Application.
Moreover, the Withdrawal Charge will be reduced if needed in order to comply
with any state law that applies.
SECTION 9.02 ADMINISTRATIVE CHARGE
If so specified in the Application, Equitable will withdraw an Administrative
Charge from the Annuity Account Value as of the last Business Day of either each
calendar quarter or each Contract Year, whichever is specified in the
Application.
The Administrative Charge will, if specified in the Application, be prorated for
the calendar quarter or Contract Year, whichever applies, in which the Contract
Date occurs or in which the Annuity Account Value is withdrawn or applied to
provide an Annuity Benefit.
In lieu of withdrawal from the Annuity Account Value, the Employer may pay the
amount of such Charge directly to Equitable.
Equitable reserves the right to reduce or waive the Administrative Charge in
such circumstances as it determines. The Application will specify the
circumstances, if any, by which a waiver will apply.
SECTION 9.03 TRANSFER CHARGES
If specified in the Application, Equitable reserves the right to impose a charge
with respect to any transfer among Investment Options after the first four such
transfers made by the Participant in any calendar year, pursuant to Section
4.02. The amount of such charge will be set forth in a notice from Equitable to
the Participant and in no event will exceed 50% of the amount of the then
current Administrative Charge.
SECTION 9.04 DAILY SEPARATE ACCOUNT CHARGE
Assets of a Separate Account will be subject to a daily asset charge if so
specified in the Application.
SECTION 9.05 LOAN CHARGES
As described in Section 6.04, a Plan loan set-up charge and a recordkeeping
charge may apply with respect to each Participant for whom a Plan loan is
effected, if so specified in the Application.
SECTION 9.06 PLAN RECORDKEEPING AND SERVICE CHARGES
If specified in the Application, a plan recordkeeping and services charge will
be payable. To the extent that the Employer does not pay such charge directly to
Equitable and has directed Equitable pursuant to the Application, Equitable will
deduct such charge from the amounts held in the Investment Options with respect
to the Contract.
The amount of the charge as well as the frequency at which such charge will be
payable will be specified in the Application.
No. 1048-98-GC-OH Page 23
SECTION 9.07 ONGOING OPERATIONS CHARGE
If so specified in the Application, Equitable will withdraw, as of the last
Business Day of each month, from the amount held in each Investment Option with
respect to the Contract an Operations Charge equal to one-twelfth of the annual
rate stated in the Application. In lieu of such withdrawal, the Employer may pay
the amount of such Charge directly to Equitable.
SECTION 9.08 MARKET VALUE ADJUSTMENT
A Market Value Adjustment may apply in the event of termination of coverage
under this Contract pursuant to the terms of Section 5.03, if such Section 5.03
applies as specified in the Application.
SECTION 9.09 CHANGES
In addition to the right of Equitable to reduce or waive charges as described in
this Part IX, Equitable reserves the right, upon 90 days' advance written notice
to the Participant, to increase the amount of any charge, subject to (a) the
application of any increase in Withdrawal Charges described in Section 9.01 only
to Contributions made after the date of the change and (b) with respect to the
daily Separate Account charge described in Section 9.04, any limit on the amount
then required by the Securities and Exchange Commission.
No. 1048-98-GC-OH Page 24
PART X - GENERAL PROVISIONS
SECTION 10.01 CONTRACT
This Contract constitutes the entire contract between the parties and will
govern with respect to the rights and obligations of Equitable.
This Contract may not be modified, nor may any of Equitable's rights or
requirements be waived, except in writing and by an authorized officer of
Equitable. In addition to the rights of change reserved by Equitable as provided
in this Contract, the Contract may be changed by amendment or replacement
without the consent of any other person provided that such change does not
reduce any Annuity Benefit provided before such change and provided that no
rights, privileges, or benefits under the Contract with respect to Contributions
made hereunder prior to the effective date of such change may be adversely
affected by an amendment to the Contract without the consent of the Participant.
SECTION 10.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend this Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
will include, but not be limited to, the right to conform the Contract to
reflect changes in the Code, in Treasury regulations or published rulings of the
Internal Revenue Service, in the Employee Retirement Income Security Act of
1974, as amended, and in Department of Labor regulations.
The benefits and values available under this Contract will not be less than the
minimum benefits required by any applicable state law.
SECTION 10.03 DEFERMENT
Payments by Equitable pursuant to the terms of Part V will be made within seven
days after the Transaction Date. However, payments or applications of proceeds
from a Separate Account can be deferred for any period during which (1) the New
York Stock Exchange is closed or trading is restricted, (2) sales of securities
or determination of the fair value of the Account's assets is not reasonably
practicable because of an emergency, or (3) the Securities and Exchange
Commission, by order, permits Equitable to defer payment in order to protect
persons with interests in the Separate Account. Equitable can defer payment or
transfer of any portion of an Annuity Account Value in the Guaranteed Interest
Account for up to six months while the Participant is living.
SECTION 10.04 ASSIGNMENTS, NONTRANSFERABILITY
Neither the Participant nor Equitable may assign its rights or obligations
hereunder without the other party's prior written consent, except that an
assignment by Equitable to a corporation in which it has a direct or indirect
ownership interest shall not require such consent provided that Equitable
remains liable for the failure of that corporation to perform its obligations
under this Contract.
Subject to the requirements of applicable law, no amount payable to a
Participant or beneficiary under the Contract may be assigned, commuted or
encumbered by the payee and no such amount will in any way be subject to any
claim against such payee. Such prohibition will not apply to any assignment,
transfer or attachment pursuant to a qualified domestic relations order, as
defined in Section 414(p) of the Code.
SECTION 10.05 CONTRACT HOLDER'S RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of the Plan or for Contributions or any payments or other distributions
hereunder. Equitable will deal with the Contract Holder in accordance with the
terms and conditions of the trust agreement pursuant to which the Contract
Holder agreed to act as such and in such manner as the Contract Holder and
Equitable agree, without the consent of any other person.
No. 1048-98-GC-OH Page 25
SECTION 10.06 PLAN STATUS
A "qualified plan" is a plan or agreement that meets the requirements for
Alternative Retirement Plans under Ohio law and the requirements for
qualification under Section 401(a) or 403(a) of the Code. The Employer is to
provide evidence satisfactory to Equitable that the Plan is a qualified plan
and, if at any time the Plan is no longer a qualified plan, the Employer is to
give Equitable prompt written notice thereof.
If (a) the Employer does not provide such evidence, or (b) the Employer gives
notice that the Plan is no longer a qualified plan, then upon at least thirty
days advance written notice to the Participant, Equitable may:
(i) prohibit further Contributions under this Contract, and
(ii) withdraw from the Investment Options the amounts therein with respect
to the Plan and make the payment described in subsection (c) of
Section 5.03.
SECTION 10.07 MANNER OF PAYMENT
Equitable will pay all amounts payable under this Contract by check or, if so
agreed upon by the Participant and Equitable, by wire transfer. All amounts
payable by the Participant will be paid by check payable to Equitable or by any
other method acceptable to Equitable.
SECTION 10.08 MISCELLANEOUS
Equitable's performance under this Contract is subject to prompt receipt of the
following information from the Employer:
(a) evidence satisfactory to Equitable the Participant to whom each
Contribution is being remitted and the Contribution's Source;
(b) a written copy of the Plan, and any amendments or modifications to
said Plan;
(c) the vesting schedule for the Plan, which includes but is not
necessarily limited to service information; and
(d) any additional information Equitable may reasonably require to
fulfill the obligations set forth in this Contract.
No. 1048-98-GC-OH Page 26
APPENDIX A
TABLE OF GUARANTEED ANNUITY PAYMENTS
Amount of Annuity Benefit payable monthly on the fixed dollar Life Annuity form
provided by an application of $1,000.
Age Amount
55 $3.50
60 3.80
65 4.20
70 4.73
The amount of income provided under an Annuity Benefit payable on the Life
Annuity form is based on 2.50% interest and the 1983 Individual Annuity
Mortality Table "a" projected with Scale G, adjusted to a unisex basis,
reflecting a 20% - 80% split of males and females at pivotal age 55.
Amounts required for ages not shown in the Table or for other annuity forms will
be calculated by Equitable on the same actuarial basis, except that rates for
ages over 85 will equal the rates for age 85.
67659
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