<PAGE>

Rider - Guaranteed Minimum Death Benefit - Step Up
The Penn Mutual Life Insurance Company agrees, subject to the provisions of this
supplemental agreement, to provide the Guaranteed Minimum Death Benefit as
applied for on the application. The Company also agrees to provide all of the
other benefits which are stated in this agreement.

This agreement is a part of the policy to which it is attached. It is subject to
all of the provisions of the policy unless stated otherwise in this agreement.
This agreement enhances the death benefit section in the contract to which it is
attached.

Death Before the Annuity Date. Prior to the Annuity Date and upon receipt of due
proof of the Annuitant's death and the necessary forms to make payment to a
beneficiary, the Company will pay to the beneficiary the Guaranteed Minimum
Death Benefit in place of the Variable Account Death Benefit if it is greater.

On each Contract Anniversary, the Guaranteed Minimum Death Benefit will be equal
to the greater of:
       (1) the Guaranteed Minimum Death Benefit currently in effect; or
       (2) the Variable Account Value on the current Contract Anniversary.
The Guaranteed Minimum Death Benefit after the Contract Anniversary will be the
Guaranteed Minimum Death Benefit on the Contract Anniversary plus the sum of
purchase payments paid into the Variable Account after the Contract Anniversary
less any reduction for a withdrawal from the Variable Account as described
below.

When part of the Variable Account Value is withdrawn, the withdrawal will reduce
the Guaranteed Minimum Death Benefit in the same proportion that the Variable
Account Value was reduced on the date of withdrawal. For each withdrawal, the
Guaranteed Minimum Death Benefit reduction is calculated by multiplying the
Guaranteed Minimum Death Benefit on the date of withdrawal by a fraction, the
numerator of which is the amount of the withdrawal including any applicable
Contingent Deferred Sales Charge and the denominator of which is the Variable
Account Value immediately prior to the withdrawal.

Transfers into the Variable Account will be treated as purchase payments
allocated to the Variable Account for the Guaranteed Minimum Death Benefit
calculation described above. Similarly, transfers out of the Variable Account
will be treated as withdrawals from the Variable Account.

<PAGE>

Charge--While this agreement is in force, an asset based charge will be
assessed. The charge will be a percentage of the average variable account value.
On an annual basis the percentage will not exceed the amount shown on Page 3 of
the contract. The charge will be deducted on the date specified on Page 3. It
will also be deducted when the Variable Account Value is withdrawn or
transferred in full if withdrawal or transfer is not on the date specified on
Page 3. The charge will be deducted on the date of payment of the Death Benefit
and on the date of annuitization. If the charge is deducted on a date other than
that specified on Page 3, only a fraction of the charge will be deducted. The
fraction will be equal to the portion of the year that the contract was inforce.

Average Variable Account Values-- The average variable account value is equal to
the variable account value at the beginning of the contract year plus the
variable account value at the time the charge is assessed divided by two. At the
time of the first deduction, the beginning of the contract year value will be
equal to the initial purchase payment allocated to the variable account.

Termination of Agreement--This agreement will terminate upon:

(a) the Termination Date for this agreement shown on Page 3 of the Contract;
(b) surrender of this contract;
(c) full withdrawal of the variable account;
(d) annuitization; or
(e) receipt by the Company of a written request by the Owner to discontinue it.

Effective Date--The effective date of this agreement is the same as the Date of
Issue of this policy unless another effective date is shown below.

The Penn Mutual Life Insurance Company


/s/ Robert E. Chappell
-----------------------
Chairman and
Chief Executive Officer