Common use of Ceding Allowance Clause in Contracts

Ceding Allowance. The Reinsurer shall indemnify the Cedent for ceding ---------------- allowances equal to a fixed rate times its quota share of premiums collected with respect to Policies according to the following schedule: Ceding Allowance Product Name Cumulative Premium By Plan Code ------------ ---------------------- ---------------- Class A (Front-End Load; FL3EDR A-Share; ▇▇▇▇▇▇ ▇▇▇▇▇) FL3ER3 & All Other FL3ER4 Plan Codes Less than $50,000 0.50% 7.00% $50,000 - 99,999.99 0.50% 5.75% $100,000 - 249,999.99 0.50% 4.75% $250,000 - 499,999.99 0.50% 4.00% $500,000 - 999,999.99 0.50% 3.60% $1 million or greater 0.50% 3.00% ------------------------------------------------------------------------------ Age of Oldest Owner Upon Acceptance of Purchase Commission Ceding Allowance Product Name Payment Option By Plan Code ------------ ----------- ---------- ------------------------------------- Class VA ST110R, (7-Year ▇▇▇▇▇▇ ▇▇▇▇▇▇, Back-End Load) & ST110X& ST11R3 & All Other ST11M3 ST11X3 ST13R3 Plan Codes 0-79 A 7.50% 7.00% 0.50% 8.50% B 3.20% 7.00% 0.50% 7.00% C -- 7.00% 0.50% 4.00% 80-85 A 4.60% 7.00% 0.50% 5.25% B 2.60% 7.00% 0.50% 4.50% C -- 7.00% 0.50% 3.00% 86-90 A 3.30% 7.00% 0.50% 3.63% B 2.30% 7.00% 0.50% 3.25% C -- 7.00% 0.50% 2.50% ------------------------------------------------------------------------------- Class B (7-Year ST1EDR Back-End Load; ST1ER3 & All Other ▇▇▇▇▇▇ ▇▇▇▇▇) ST1ER4 Plan Codes 0 - 79 All 0.50% 6.75% 80 - 85 All 0.50% 4.50% 86 - 90 All 0.50% 3.25% ------------------------------------------------------------------------------------------- Class AA (7- ST1AGB, Year Back-End ST1AGX ST1AGR All Other Load; ▇▇ ▇▇▇▇▇▇ & ▇▇▇▇▇▇ & ▇▇▇▇ ▇▇▇▇▇▇▇) ST1AG4 ST1AR4 Codes 0 - 79 A 7.00% 0.50% 7.75% B 7.00% 0.50% 4.00% 80 - 85 A 7.00% 0.50% 5.00% B 7.00% 0.50% 3.00% 86 - 90 A 7.00% 0.50% 3.50% B 7.00% 0.50% 2.50% ------------------------------------------------------------------------------------------- Class XC All Other (Bonus; ▇▇▇▇▇▇ & ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇) ▇▇▇▇▇▇ Codes 0 - 79 A 7.25% 8.50% B 3.20% 7.00% 80 - 85 A 4.60% 5.25% B 2.60% 4.50% 86 - 90 A 3.30% 3.63% B 2.30% 3.25% ------------------------------------------------------------------------------------------- Class C (Level CS510R, Load; C-Share; CS51MR, All Other Wirehouses) CS51ML & CS51R3 & Plan CS51M3 CS53R3 Codes 0 - 79 All 3.20% 0.50% 4.25% 80 - 85 All 2.60% 0.50% 3.12% 86 - 90 All 2.30% 0.50% 2.56% ------------------------------------------------------------------------------------------- Class L (3-Year LS410R, Back-End Load; LS41MR, All Other L-Share; LS41ML & LS41R3 & Plan Wirehouses) LS41M3 LS43R3 Codes 0-79 A 4.75% 0.50% 6.87% B 4.75% 0.50% 5.12% 80-85 A 3.60% 0.50% 4.62% B 3.60^ 0.50% 3.72% 86-90 A 2.80% 0.50% 3.52% B 2.80% 0.50% 3.07%

Ceding Allowance. The Reinsurer shall indemnify the Cedent for ceding ---------------- allowances equal to a fixed rate times its quota share of premiums collected with respect to Policies according to the following schedule: Ceding Allowance Product Name Cumulative Premium By Plan Code ------------ ---------------------- ---------------- Class A (Front-End Load; FL3EDR & All Other A-Share; ▇▇▇▇▇▇ ▇▇▇▇▇) FL3ER3 & All Other FL3ER4 Plan Codes Less than $50,000 0.50% 7.00% $50,000 - 99,999.99 0.50% 5.75% $100,000 - 249,999.99 0.50% 4.75% $250,000 - 499,999.99 0.50% 4.00% $500,000 - 999,999.99 0.50% 3.60% $1 million or greater 0.50% 3.00% ------------------------------------------------------------------------------ Age of Oldest Owner Upon Acceptance of Purchase Commission Ceding Allowance Product Name Payment Option By Plan Code ------------ ----------- ---------- ------------------------------------- Class VA ST110R, (7-Year ▇▇▇▇▇▇ ▇▇▇▇▇▇, Back-End Load) & ST110X& ST11R3 & All Other ST11M3 ST11X3 ST13R3 Plan Codes 0-79 A 7.50% 7.00% 0.50% 8.50% B 3.20% 7.00% 0.50% 7.00% C -- 7.00% 0.50% 4.00% 80-85 A 4.60% 7.00% 0.50% 5.25% B 2.60% 7.00% 0.50% 4.50% C -- 7.00% 0.50% 3.00% 86-90 A 3.30% 7.00% 0.50% 3.63% B 2.30% 7.00% 0.50% 3.25% C -- 7.00% 0.50% 2.50% ------------------------------------------------------------------------------- Class B (7-Year ST1EDR Back-End Load; ST1ER3 & All Other ▇▇▇▇▇▇ ▇▇▇▇▇) ST1ER4 ST1ER3 Plan Codes 0 - 79 All 0.50% 6.75% 80 - 85 All 0.50% 4.50% 86 - 90 All 0.50% 3.25% ------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Class AA (7- ST1AGB, (7-Year ST1AGX ST1AGR Back-End ST1AGX ST1AGR Load; & & All Other Load; ▇▇ ▇▇▇▇▇▇ & ▇▇▇▇▇▇ & ▇▇▇▇ ▇▇▇▇▇▇▇) ST1AG4 ST1AR4 ST1AG3 ST1AR3 Plan Codes 0 - 79 A 7.00% 0.50% 7.75% B 7.00% 0.50% 4.00% 80 - 85 A 7.00% 0.50% 5.00% B 7.00% 0.50% 3.00% 86 - 90 A 7.00% 0.50% 3.50% B 7.00% 0.50% 2.50% ------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Class XC All Other BN21ML (Bonus; ▇▇▇▇▇▇ & ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇All Other Wirehouses) ▇▇▇▇▇▇ BN21M3 Plan Codes 0 - 79 A 7.25% 8.50% B 3.20% 7.00% 80 - 85 A 4.60% 5.25% B 2.60% 4.50% 86 - 90 A 3.30% 3.63% B 2.30% 3.25% ------------------------------------------------------------------------------------------- Class C (Level CS510R, Load; C-Share; CS51MR, All Other Wirehouses) CS51ML & CS51R3 & Plan & All Other CS51M3 CS53R3 Plan Codes 0 - 79 All 3.20% 0.50% 4.25% 80 - 85 All 2.60% 0.50% 3.12% 86 - 90 All 2.30% 0.50% 2.56% ------------------------------------------------------------------------------------------- Class L (3-Year LS410R, Back-End Load; LS41MR▇▇▇▇▇▇ ▇▇▇▇▇▇, All Other L-Share; LS41ML & LS41R3 & Plan All Other Wirehouses) LS41M3 LS43R3 Plan Codes 0-79 A 4.75% 0.50% 6.87% B 4.75% 0.50% 5.12% 80-85 A 3.60% 0.50% 4.62% B 3.60^ 0.50% 3.72% 86-90 A 2.80% 0.50% 3.52% B 2.80% 0.50% 3.07%% -------------------------------------------------------------------------------------------