Class Plus 2 Information Folder and Contract Provisions - Empire Life

1) the current LWA; and2) a new LWA that is calculated based on the current IncomeBase (after all transactions have been processed) andthe Joint Tiered LWA Percentage that corresponds to theyoungest of the Annuitant and the Joint Life’s age as ofDecember 31st of the following calendar year.If total withdrawals have exceeded the LWA for the currentcalendar year, the LWA for the following calendar year willbe an amount equal to the Joint Tiered LWA Percentage ofthe current Income Base (after all transactions have beenprocessed). The Joint Tiered LWA Percentage will be determinedbased on the youngest of the Annuitant and the Joint Life’s ageas of December 31st of the following calendar year.The Joint Tiered LWA Percentage will automatically increase asthe youngest of the Annuitant and the Joint Life’s age increasesin accordance with the chart of Joint Tiered LWA Percentagesoutlined in the Information Folder. The LWA is always based onthe age of the youngest of the Annuitant and the Joint Life evenif that person dies while your contract is in effect.The current Joint Tiered LWA Percentages will be as outlinedin the Information Folder. We reserve the right to change theJoint Tiered LWA Percentages. Such a change will not apply tocontracts issued prior to the date on which the change becomeseffective. If the new Joint Tiered LWA Percentages are higherthan those in effect when your contract was issued, we mayallow you to change to the new Joint Tiered LWA Percentages inaccordance with our rules.If total withdrawals have not exceeded the LWA for the currentcalendar year, the remainder will not be added to the LWA forthe next calendar year.5.4 Income BaseThe initial Income Base is set to equal the initial deposit. TheIncome Base may:1) increase by any subsequent deposits;2) increase on the last Valuation Date of each calendar yearby a notional Income Base Bonus (See Section 5.5 IncomeBase Bonus);3) increase on every third Class Plus Anniversary Date as aresult of an Income Base Reset (See Section 5.6 IncomeBase Reset);4) decrease by any withdrawals;5) decrease additionally for Excess Withdrawals (See Section5.8 Excess Withdrawals).5.5 Income Base BonusThe contract may be eligible for notional bonuses that willincrease your Income Base each calendar year following theinitial deposit. This includes the calendar year of theinitial deposit.If there are no withdrawals during the calendar year, theIncome Base will increase by a notional Income Base Bonus.The amount of the Income Base Bonus is currently equal to 5%of the current Bonus Base. Income Base Bonuses are applied tothe Income Base on the last Valuation Date of the calendar year.We reserve the right to change the Income Base Bonuspercentage. Such a change will not apply to contracts issuedprior to the date on which the change becomes effective. If thenew Income Base Bonus percentage is higher than the IncomeBase Bonus percentage in effect when your contract wasissued, we may increase the Income Base Bonus percentage inaccordance with our rules.Income Base Bonuses do not affect the market value of the FundClass Units at the credit of your contract.The Bonus Base is equal to the initial deposit. The Bonus Basewill increase by the amount of any subsequent deposits.Commencing on the third Class Plus Anniversary Date and onevery third Class Plus Anniversary Date thereafter, a BonusBase Reset will automatically occur. A Bonus Base Reset mayresult in an increase to the Bonus Base. If the market value ofthe Fund Class Units at the credit of your contract is greaterthan the Bonus Base, the Bonus Base is increased to equal themarket value of the Fund Class Units at the credit of yourcontract, otherwise it will remain unchanged. If the Class PlusAnniversary Date does not fall on a Valuation Date the mostrecent Valuation Date prior to the Class Plus Anniversary Datewill be used for calculating the market value of the Fund ClassUnits at the credit of your contractIf an Excess Withdrawal occurs and the market value of theFund Class Units at the credit of your contract, determinedimmediately after the withdrawal, is less than the Bonus Base,the Bonus Base is decreased to equal the market value of theFund Class Units at the credit of your contract, otherwise it willremain unchanged.5.6 Income Base ResetCommencing on the third Class Plus Anniversary Date and onevery third Class Plus Anniversary Date thereafter, an IncomeBase Reset will automatically occur. If the market value of theFund Class Units at the credit of your contract is greater thanthe Income Base, the Income Base will be increased to equalthe market value of the Fund Class Units at the credit of yourcontract, otherwise it will remain unchanged.50