Document:

EXHIBIT 10.13

 Exhibit 10.13 
  
 NOMINATING AGREEMENT 
  
 This Nominating Agreement (this “Agreement”), dated as of July 25, 2004, by and among Educate, Inc., a Delaware corporation (the
“Company”), Apollo Sylvan, LLC, a Delaware limited liability company (“Apollo Sylvan”), and Apollo Sylvan II, LLC, a Delaware limited liability company (“Apollo Sylvan II”). 
  
 WHEREAS, the Company has determined that it is in its best interests to
effect an initial public offering (“IPO”) of shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”); 
  
 WHEREAS, in connection with the IPO, the Company and Apollo (as defined below) desire to enter into this Agreement setting
forth certain rights and obligations with respect to the shares of Common Stock owned by Apollo. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows: 
  
 SECTION 1.
Definitions. As used in this Agreement, the following terms shall have the following respective meanings: 
  
 (a) “Affiliate” has the meaning given to that term in Rule 12b-2 under the Securities Exchange Act of 1934, as amended.

  
 (b) “Apollo” means, Apollo
Sylvan, Apollo Sylvan II, Affiliates of Apollo Sylvan and Apollo Sylvan II and any shares of Common Stock over which Apollo Sylvan, Apollo Sylvan II or any of their Affiliates have voting or dispositive power. 
  
 (c) “person” means any individual, firm,
corporation, general or limited partnership, limited liability company, trust, joint venture or other entity or association, including without limitation any governmental authority, and shall include any successor (by merger or otherwise) of such
entity. 
  
 (d) “Organizational
Documents” means the Certificate of Incorporation and By-Laws of the Company. 
  
 SECTION 2. Board Representation. 
  
 (a) Until such time as (x) Apollo no longer beneficially owns at least 33 1/3% of the total number of
shares of Common Stock outstanding at any time, and (y) Apollo (excluding any individuals who own shares of Common Stock directly that were purchased by them or were obtained upon the exercise of options granted to them in their capacity as a member
of the Board of Directors of the Company (the “Board of Directors”)) has, subsequent to the IPO (and any related overallotment option), sold at 

 
least one share of Common Stock to a person that is not an Affiliate of Apollo, the Company shall support the nomination of, and cause the Board of Directors
to include in the slate of nominees recommended to stockholders for election as directors, four persons (the “Apollo Designees”) designated at any time and from time to time by Apollo Management IV, L.P., a Delaware limited
partnership (“Apollo Management”); 
  
 (b) Until
such time as (x) Apollo no longer beneficially owns at least 50% of the total number of shares of Common Stock outstanding at any time, and (y) Apollo (excluding any individuals who own shares of Common Stock directly that were purchased by them or
were obtained upon the exercise of options granted to them in their capacity as a member of the Board of Directors of the Company (the “Board of Directors”)) has, subsequent to the IPO (and any related overallotment option), sold at
least one share of Common Stock to a person that is not an Affiliate of Apollo: 
  
 (i) the Company shall not, and shall cause the Board of Directors not to, allow the size of the Board of Directors to be less than four or
more than nine members without the prior written consent of Apollo Management; and 
  
 (ii) upon written request from Apollo Management, the Company promptly shall take all action as shall be necessary to, and shall cause the
Board of Directors of the Company to, increase the size of the Board of Directors by the greater of (a) two, or (b) such greater number that will cause Apollo Designees to constitute a majority of the positions on the Board of Directors, and the
Company shall cause the Board of Directors promptly to fill the vacancies created by such increase with Apollo Designees and shall, at the annual stockholder meeting following such written request from Apollo Management, support the nomination of,
and cause the Board of Directors to include in the slate of nominees recommended to stockholders for election as directors, Apollo Designees to fill such vacancies (in addition to the four Apollo Designees referred to in clause (ii)); 
  
 provided, however, that, notwithstanding the foregoing subsections (a) and (b), the
Company shall not be required to take any action which it reasonably believes is unlawful, and the Company shall be allowed to take any action the omission of which it reasonably believes would be unlawful. 
  
 (c) Until such time as (x) Apollo no longer beneficially owns at least
33 1/3% of the total number of shares of Common Stock outstanding at any time, and (y) Apollo (excluding any
individuals who own shares of Common Stock directly that were purchased by them or were obtained upon the exercise of options granted to them in their capacity as a member of the Board of Directors) has, subsequent to the IPO (and any related
overallotment option), sold at least one share of Common Stock to a person that is not an Affiliate of Apollo, vacancies arising through the death, resignation or removal of an Apollo Designee nominated by Apollo Management to the Board of Directors
pursuant to Section 2(a) hereto may be filled only by a majority of the directors nominated by Apollo Management then in office and the directors so chosen shall hold office until the next annual election and until their successors are duly elected
and qualified, or until their earlier death, resignation or removal. 

 (d) Until such time as (x) Apollo no longer beneficially owns at least 50% of the total number of shares
of Common Stock outstanding at any time and (y) Apollo (excluding any individuals who own shares of Common Stock directly that were purchased by them or were obtained upon the exercise of options granted to them in their capacity as a member of the
Board of Directors) has, subsequent to the IPO (and any related overallotment option), sold at least one share of Common stock to a person that is not an Affiliate of Apollo, vacancies arising from an increase in the number of directors pursuant to
Section 2(b)(ii) hereof may be filled only by a majority of the directors nominated by Apollo Management then in office and the directors so chosen shall hold office until the next annual election and until their successors are duly elected and
qualified, or until their earlier death, resignation or removal. 
  
 (e) Until such time as (x) Apollo no longer beneficially owns at least 33 1/3% of the total number of
shares of Common Stock outstanding at any time, and (y) Apollo (excluding any individuals who own shares of Common Stock directly that were purchased by them or were obtained upon the exercise of options granted to them in their capacity as a member
of the Board of Directors) has, subsequent to the IPO (and any related overallotment option), sold at least one share of Common Stock to a person that is not an Affiliate of Apollo, each Apollo Designee shall have the right to observe all meetings
of the Compensation Committee and the Nominating and Corporate Governance Committee of the Board of Directors; provided, however, that each such Committee, to the extent determined by the Committee to be necessary for the fulfillment of its duties
under its charter, may elect to convene a meeting at which Apollo Designees who are not otherwise members of such Committee shall not be permitted to observe. 
  
 (f) Notwithstanding the provisions of this Section 2, Apollo Management shall not be entitled to designate any person as a
nominee to the Board of Directors if the Company receives a written opinion of its outside legal counsel of national reputation that such person would not be qualified under any applicable law, rule or regulation to serve as a director of the
Company. Other than with respect to the issue set forth in the preceding sentence, neither the Company nor any other stockholder shall have the right to object to any Apollo Designee. 
  
 The Company shall notify Apollo Management in writing of the date on which proxy materials are expected to be mailed by the
Company in connection with an election of directors (and such notice shall be delivered to Apollo Management at least 30 days prior to such expected mailing date). The Company shall notify Apollo Management of any objection to an Apollo Designee
sufficiently in advance of the date on which such proxy materials are to be mailed by the Company in connection with such election of directors so as to enable Apollo Management to propose a replacement Apollo Designee in accordance with the terms
of this Agreement. 
  
 SECTION 3. Apollo Approval Rights. 
  
 (a) Subject to the provisions of subsection (b), without the approval of a
majority of the entire Board of Directors, which must include the approval of a majority of the directors nominated by Apollo Management, the Company may not, 

 
and no subsidiary of the Company shall, take any of the actions set forth on Exhibit A hereto. 
  
 (b) The foregoing approval rights shall terminate at such time as (i) Apollo
no longer beneficially owns at least 33 1/3% of the total number of shares of Common Stock outstanding at any
time, and (ii) Apollo (excluding any individuals who own shares of Common Stock directly that were purchased by them or were obtained upon the exercise of options granted to them in their capacity as a member of the Board of Directors) has,
subsequent to the IPO (and any related overallotment option), sold at least one share of Common Stock to a person that is not an Affiliate of Apollo. 
  
 SECTION 4. Miscellaneous. 
  
 (a) Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without giving
effect to its principles of conflicts of laws. 
  
 (b) Certain
Adjustments. The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all shares of capital stock of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of
assets or otherwise) which may be issued in respect of, in exchange for, or in substitution for the shares of Common Stock, by combination, recapitalization, reclassification, merger, consolidation or otherwise and the term “Common Stock”
shall include all such other securities. In the event of any change in the capitalization of the Company, as a result of any stock split, stock dividend or stock combination or otherwise, the provisions of this Agreement shall be appropriately
adjusted. 
  
 (c) Enforcement. The parties expressly agree
that the provisions of this Agreement may be specifically enforced against each of the parties hereto in any court of competent jurisdiction. 
  
 (d) Successors and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors, and administrators of the parties hereto. 
  
 (e) Entire Agreement. This Agreement constitutes the full and entire understanding and agreement between the parties with regard to the subject matter hereof and supersedes all prior oral or written (and all
contemporaneous oral) agreements or understandings with respect to the subject matter hereof. 
  
 (f) Notices, etc. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, return receipt requested, postage prepaid
or otherwise delivered by hand, messenger or facsimile transmission, addressed: (a) if to Apollo or Apollo Management, c/o Apollo Management IV, L.P., 9 West 57th Street, 43rd Floor, New York, New York 10019, Attention: Laurence
M. Berg, with a copy (which shall not constitute notice) to Apollo Management, L.P., 10250 Constellation Blvd., Suite 2900, Los Angeles, 

 
California 90067, Attention: Michael D. Weiner, Esq., or (b) if to the Company, at 1001 Fleet Street, Baltimore, Maryland 21202, Attention: Peter Cohen, with
a copy (which shall not constitute notice) to Skadden, Arps, Slate, Meagher & Flom LLP, 300 South Grand Avenue, Suite 3400, Los Angeles, California 90071, Attention: Jeffrey H. Cohen, or at such other address as the Company shall have furnished
to Apollo in writing. 
  
 Each such notice or other communication
shall for all purposes of this Agreement be treated as effective or as having been given when delivered, if delivered by hand or by messenger (or overnight courier), 24 hours after confirmed receipt if sent by facsimile transmission or at the
earlier of its receipt or on the fifth day after mailing, if mailed, as aforesaid. 
  
 (g) Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party hereto upon any breach or default of the Company under this Agreement, shall impair any such right,
power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereunder occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default therefore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of
any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, or by law or otherwise afforded to any
party, shall be cumulative and not alternative. 
  
 (h)
Counterparts. This Agreement may be executed in any number of counterparts, each of which may be executed by less than all of the parties hereto, each of which shall be enforceable against the parties actually executing such counterparts, and
all of which together shall constitute one instrument. 
  
 (i)
Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 (j) Amendments and Waivers. The provisions of this Agreement may be
amended at any time and from time to time, and particular provisions of this Agreement may be waived or modified, with and only with an agreement or consent in writing signed by the Company, Apollo Sylvan, Apollo Sylvan II and Apollo Management.

  
 (k) Jurisdiction. The parties hereto irrevocably
submit, in any legal action or proceeding relating to this Agreement, to the jurisdiction of the courts of the United States located in the State of Delaware or in any Delaware state court and consent that any such action or proceeding may be
brought in such courts and waive any objection that they may now or hereafter have to the venue of such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient forum. 

 (l) Further Assurances. The parties agree to use their best efforts and act in good faith in
carrying out their obligations under this Agreement. The parties also agree, without further consideration, to execute such further instruments and to take such further actions as may be necessary or desirable to carry. 
  
 (m) Enforcement. The parties expressly agree that the provisions of
this Agreement may be specifically enforced against each of the parties hereto in any court of competent jurisdiction. out the purposes and intent of this Agreement. 
  
 [Remainder of page intentionally left blank] 
  

 IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of the date first above
written. 
  

			
	EDUCATE, INC.
		
	By:	 	/s/    Kevin E. Shaffer        
	 Name: Kevin E. Shaffer
 Title: Chief
Financial Officer

	
	APOLLO SYLVAN, LLC
		
	By:	 	/s/    Aaron J. Stone        
	 Name: Aaron J. Stone
 Title: Vice
President

	
	APOLLO SYLVAN II, LLC
		
	By:	 	/s/    Aaron J. Stone        
	 Name: Aaron J. Stone
 Title: Vice
President

	
	APOLLO MANAGEMENT IV, L.P.
	
	 By: AIF IV Management, Inc.,
 its General
Partner

		
	By:	 	/s/    Aaron J. Stone        
	 Name: Aaron J. Stone
 Title: Vice
President

 EXHIBIT A 
  

Apollo Approval Rights 
  

	•	amendment, modification or repeal of any provision of the Organizational Documents in a manner that adversely affects Apollo; 

  

	•	the redemption, purchase or acquisition of any securities of the Company or any of its subsidiaries; 

  

	•	the issuance of additional shares of any class of capital stock (other than the grant of options or the issuance of shares upon the exercise of options); 

 

	•	the payment or declaration of any dividend or other distribution, with respect to any shares of any class or series of capital stock; 

  

	•	a consolidation or merger with or into any other entity, or transfer (by lease, assignment, sale or otherwise) of all or substantially all of the Company’s or any of its
subsidiaries’ assets to another entity; 

  

	•	a complete or partial liquidation, dissolution, winding-up, recapitalization, reclassification or reorganization; 

  

	•	a split, combination or reclassification of any shares of capital stock; 

  

	•	a disposition of any assets with a value in excess of $5 million in the aggregate; 

  

	•	consummation of any acquisition of the stock or assets of any other entity involving consideration in excess of $5 million in the aggregate; 

  

	•	consummation of any transaction, or amendment of the terms of any contract, agreement or understanding (whether oral or written), with any of the Company’s subsidiaries or any
Affiliate of the Company; 

  

	•	the incurrence of indebtedness in one transaction or a series of related transactions aggregating more than $5 million, except that Apollo approval shall not be required for
borrowings greater than $5 million under a revolving line of credit, so long as Apollo has previously approved the establishment of such line of credit; 

  

	•	a change in the Company’s Chief Executive Officer; and 

  

	•	a change in size of the Company’s Board of Directors.<PAGE>

                                 EXHIBIT (4)(a)

                                 FORM OF POLICY

<PAGE>

[LETTERHEAD OF TRANSAMERICA LIFE INSURANCE COMPANY]

                             ANNUITANT: [John Doe]

                              OWNER(S): [John Doe]

                         POLICY NUMBER: [07 - 12345]

                           POLICY DATE: [May 5, 2004]

                                    WE AGREE

..    To provide annuity payments as set forth in Section 10 of this policy,

..    Or to pay withdrawal benefits in accordance with Section 5 of this policy,

..    Or to pay death proceeds in accordance with Section 9 of this policy.

These agreements are subject to the provisions of this policy. This policy is
issued in consideration of the payment of the initial premium.

Withdrawals may be subject to surrender charges and / or an excess interest
adjustment reflecting changes in interest rates in accordance with Section 5 of
this policy. Transfers and amounts applied to an income option may also be
subject to an excess interest adjustment in accordance with Sections 5, 8 and
10, respectively, of this policy.

                             20 DAY RIGHT TO CANCEL

You may cancel this policy by delivering or mailing a written notice or sending
a telegram to us or your agent You must return the policy before midnight of the
twentieth day after the day you receive it Notice given by mail and return of
the policy by mail are effective on being postmarked, properly addressed and
postage prepaid.

We will pay you an amount equal to the sum of:

..    the premiums paid;

..    less prior withdrawals, if any; plus or minus

..    the accumulated gains or losses, if any, in the separate account on the
     date of cancellation;

unless otherwise required by law.

                        Signed for us at our home office.

       /s/ Craig D. Vermie                  /s/ Larry N. Norman
       -------------------                  -------------------
            SECRETARY                            PRESIDENT
    This policy is a legal contract between the policyowner and the Company.
                           READ YOUR POLICY CAREFULLY

                   Flexible Premium Deferred Variable Annuity
                   Income Payable At Annuity Commencement Date
          Benefits Based On The Performance Of The Separate Account Are
  Variable And Are Not Guaranteed As To Dollar Amount (See Sections 6 and 10C)
                                Non-Participating
AV1140 101 192 604

<PAGE>

                             SECTION 1 - DEFINITIONS

ADJUSTED POLICY VALUE - The policy value increased or decreased by any excess
interest adjustment

ANNUITANT - The person whose life annuity payments will be based on.

ANNUITY COMMENCEMENT DATE - The date the payments under an income option will
begin. This date may be changed by the owner as described in Section 11.

CASH VALUE - The amount, defined in Section 5, that is available for partial or
full surrenders.

CUMULATIVE EARNINGS - An amount equal to the policy value at the time a lump sum
payout or systematic payout option payout is made, minus the sum of all premium
payments reduced by all prior partial withdrawals deemed to have been from
premium, if any.

DISTRIBUTION - A disbursement of funds from the policy value or cash value.
Policy value and cash value will be reduced by any distribution

EARNINGS - The gains, if any, in the policy value.

FIXED ACCOUNT GUARANTEED MINIMUM EFFECTIVE ANNUAL INTEREST RATE - The minimum
guaranteed credited rate used to determine the fixed account portion of your
policy value prior to the annuity commencement date. This rate will apply for
the life of the policy and is shown on the Policy Data page.

GAINS - Cumulative earnings, if any, in the policy value.

INCOME OPTIONS - Options as described in Section 10.

INVESTMENT OPTIONS - Any of the guaranteed fixed account options and any of the
subaccounts of the separate account

MINIMUM NONFORFEITURE INTEREST RATE - The interest rate shown on the Policy Data
page and which is used to determine the minimum required cash value as defined
in your state's nonforfeiture law. This rate is not the credited rate used to
determine your policy's cash value, but rather it is the interest rate used to
develop the minimum cash value required by the nonforfeiture law applicable on
the policy date for the state or jurisdiction in which the policy is issued.

MINIMUM REQUIRED CASH VALUE - The minimum amount required to be paid on
surrender in accordance with the nonforfeiture law applicable on the policy date
for the state or jurisdiction in which the policy is issued. This minimum value
is calculated according to a method described in the law, which is different
than the method described in the policy for determining your policy's cash
value.

PAYEE - The person to whom annuity payments will be made.

POLICY ANNIVERSARY - The anniversary of the policy date for each year the policy
remains in force.

POLICY DATE - The date shown on the Policy Data page of this policy and the date
on which this policy becomes effective.

POLICY VALUE - Amount defined in Section 4, that can be used to fund one of the
income options.

POLICY YEAR - The 12-month period following the policy date shown on the Policy
Data page. The first policy year starts on the policy date. Each subsequent year
starts on the anniversary of the policy date.

SEPARATE ACCOUNT - The separate investment account(s) established by us, as
described in Section 6.

SUBACCOUNT - A division of the separate account, as described in Section 6.

SURRENDER - A partial or full withdrawal of funds from the policy value or cash
value.

WITHDRAWAL - A disbursement of funds from the policy value or cash value. Policy
value and cash value will be reduced by any distribution.

YOU, YOUR - The owner of this policy. Unless otherwise specified, the annuitant
and the owner shall be one and the same person. If a joint owner is named,
reference to "you" or "your" in this policy will apply to both the owner and
joint owner.

AVB1140                              Page 2

<PAGE>

                             SECTION 2 - POLICY DATA

POLICY NUMBER:    [07 - 12345]                  ANNUITANT:    [John Doe]

INITIAL PREMIUM                             ISSUE AGE/SEX:    [35 / Male]
PAYMENT:          [$5,000.0]

POLICY DATE:      [May 5, 2004]                  OWNER(S):    [John Doe]

ANNUITY
COMMENCEMENT                                   GUARANTEED
DATE:             [March 15, 2067]                MINIMUM
                                            DEATH BENEFIT
                                                   OPTION:    [Account Value]

BENEFICIARY:      [Jane Doe]

Fixed Account Guaranteed Minimum Effective Annual Interest Rate:      [l.50%]

Minimum Nonforfeiture Interest Rate:    [l.50%]

Before the Annuity Commencement Date:

  [Death Benefit - Account Value]
       Mortality and Expense Risk Fee and Administrative Charge:      [1.60%]

After the Annuity Commencement Date:

       Mortality and Expense Risk Fee and Administrative Charge:      [l.25%]

The amount paid on surrender will never be less than the greatest of the
following three amounts: 1) 100% of premium payments made to the fixed account,
less prior withdrawals and transfers from the fixed account, 2) cash value
described in Section 5, and 3) minimum required cash value, described in Section
5, and determined in accordance with the provisions of the applicable
nonforfeiture law on the policy date.

AV1140SP                             Page 3

<PAGE>

                          SECTION 3 - PREMIUM PAYMENTS

PAYMENT OF PREMIUMS
Premium payments may be made any time (subject to the Company's right to refuse
or limit certain premium payments as noted below) while this policy is in force
before the annuity commencement date. You may stop premium payments after the
initial premium payment. If payments are stopped, they may be resumed at any
time, and may be paid at any time in any amount, subject to the premium
requirements and/or restrictions below.

MAXIMUM AND MINIMUM PREMIUM PAYMENT
The minimum initial premium payment is $5,000. If this policy is being issued in
connection with certain tax-qualified plans (such as IRAs, Pension Plans, or
specially sponsored programs), the minimum initial premium is $1,000. The
minimum initial premium payment is waived for 403(b) annuities. The minimum
subsequent premium payment we will accept is $50. The maximum total premium
payments which we will accept without prior Company approval is $1,000,000 for
issue ages 0-80. For issue ages over 80, the maximum total premium payments
which we will accept without prior Company approval is $500,000. We reserve the
right to limit or refuse additional premium payments.

PREMIUM PAYMENT DATE
The premium payment date is the date on which the premium payment is credited to
the policy. The initial premium payment less any applicable premium taxes will
be credited to the policy within two business days of receipt of the premium
payment and the information needed. Subsequent additional premium payments, less
any applicable premium taxes will be credited to the policy as of the business
day the premium payment and required information are received. A business day is
any day that the New York Stock Exchange is open for trading.

ALLOCATION OF PREMIUM PAYMENTS
We will allocate your premium payment to the investment options you select. Your
allocation must be in whole percentages and must total 100%. We will generally
allocate subsequent premium payments the same way unless you request a different
allocation.

CHANGE OF ALLOCATION
You may change the allocation of premium payments to various investment options
by providing us notice containing the facts that we need. Premium payments
received after the date on which we receive your notice will be applied on the
basis of the new allocation.

PREMIUM AND OTHER TAXES
Amounts equal to any taxes paid by us to any governmental entity relating to
this policy will be deducted from the premium payment or policy value when
incurred or, at our sole discretion, a later date. We will, at our sole
discretion, determine when taxes relate to the policy, including when they have
resulted from: receipt by us of the premium payment; or commencement of annuity
payments. Payment of any taxes at an earlier date does not waive any right we
may have to deduct amounts at a later date. We will deduct any withholding taxes
required by applicable law.

                            SECTION 4 - POLICY VALUE

POLICY VALUE
On or before the annuity commencement date, the policy value is the sum of your
separate account value and your fixed account value, minus service charges,
premium taxes, rider fees, and transfer fees, if any.

ADJUSTED POLICY VALUE
The adjusted policy value is the policy value increased or decreased by any
excess interest adjustment.

You may use the greater of the minimum required cash value or the adjusted
policy value on the annuity commencement date to provide lifetime income or
income for a period of no less than 60 months under the income options in
Section 10.

SERVICE CHARGE
On each policy anniversary and at the time of full surrender during any policy
year before the annuity commencement date, we reserve the right to assess a
service charge up to $35 for policy administration expenses. The service charge
will be deducted from each investment option in proportion to the portion of
policy value (prior to such charge) in each investment option. In no event will
the service charge exceed 2% of the policy value on the policy anniversary or at
the time of full surrender.

The service charge will not be deducted on a policy anniversary or at the time
of full surrender if, at that time, (1) the sum of all premium payments less the
sum of all withdrawals taken equals or exceeds $50,000; or (2) the policy value
equals or exceeds $50,000.

M1808                                Page 4

<PAGE>

                 SECTION 5 - CASH VALUE AND PARTIAL WITHDRAWALS

CASH VALUE
On or before the annuity commencement date, the cash value is equal to the
adjusted policy value less any surrender charges. Information on the current
amount of your policy's cash value is available upon request. The greater of the
cash value or minimum required cash value will be paid in the event of a full
surrender of the policy. We must receive your written surrender request before
the annuity commencement date. After the annuity commencement date, there is no
cash value.

EXCESS INTEREST ADJUSTMENT
Full surrenders, partial withdrawals, transfers, and amounts applied to a
payment option (prior to the end of any guaranteed payment option) from
guaranteed period options of the fixed account described in Section 7 will be
subject to an excess interest adjustment except as provided for in the partial
withdrawals provision below.

An excess interest adjustment also applies when death proceeds are calculated
However, if the net effect of all excess interest adjustments is negative, we
will not reduce the death proceeds.

The excess interest adjustment is based on any change in interest rates from the
time the affected guaranteed period option started until the time the excess
interest adjustment occurs. The excess interest adjustment is applied as
follows:

1)   The excess interest adjustment is only applied when the transactions occur
     prior to the end of any guaranteed period option;
2)   Transfers to the guaranteed period options of the fixed account are
     considered premium payments for purposes of determining the excess interest
     adjustment;
3)   The excess interest adjustment is distinct from, and is applied prior to,
     the surrender charge;
4)   If interest rates have decreased from the time the affected guaranteed
     period(s) started until the time the transaction occurs, the excess
     interest adjustment will result in additional funds available to you;
5)   If interest rates have increased from the time the affected guaranteed
     period(s) started until the time the transaction occurs, the excess
     interest adjustment will result in a decrease in the funds available to
     you;
6)   Certain amounts are not subject to the excess interest adjustment as
     provided in Sections 5, 7, and 8;
7)   The excess interest adjustment for each guaranteed period option will not
     reduce the adjusted policy value for that guaranteed period option below
     the amount paid into that guaranteed period option, less any prior
     withdrawals and transfers from that guaranteed period option, as they
     occur, all accumulated at the Fixed Account Guaranteed Minimum Effective
     Annual Interest Rate shown on Page 3.

The formula for determining the amount of the excess interest adjustment is as
follows:

Excess Interest Adjustment = S x (G-C x (M/12)
where:  S       is the amount (before surrender charges and premium taxes, if
                any) being surrendered, partially withdrawn, transferred, or
                applied to a payment option that is subject to the excess
                interest adjustment.
        G       is the guaranteed interest rate for the guaranteed period
                applicable to "S".
        C       is the current guaranteed interest rate then being offered on
                new premium payments for the next longer guaranteed period than
                "M". If this policy form or such a guaranteed period option is
                no longer offered, "C" will be the U.S. Treasury rate for the
                next longer maturity (in whole years) than "M" on the 25th day
                of the previous calendar month, plus up to 2%.
        M       is the number of months remaining in the guaranteed period for
                "S", rounded up to the next higher whole number of months.

PARTIAL WITHDRAWALS
We will pay you a portion of the cash value as a partial withdrawal provided we
receive your written request while the policy is in effect and before the
annuity commencement date. Partial withdrawals will be deducted in proportion to
the amount of policy value in each investment option unless you tell us
otherwise.

The gross partial withdrawal is the total amount which will be deducted from
your policy value as a result of each partial withdrawal. The gross partial
withdrawal may be more or less than your requested partial withdrawal amount,
depending on whether surrender charges and/or excess interest adjustments apply
at the time you request the partial withdrawal.

U1808                                Page 5

<PAGE>

                              SECTION 5 - CONTINUED

The formula for determining the gross partial withdrawal is as follows:

Gross Partial Withdrawal = R - E + SC, where:

 R     is the requested partial withdrawal;
 E     is the excess interest adjustment; and
 SC    is the surrender charge on (EPW - E);
       where
 EPW   is the excess partial withdrawal amount (the portion of the requested
       partial withdrawal that is subject to surrender charge).

The excess partial withdrawal amount is the portion of the requested partial
withdrawal that is subject to surrender charge. For example, if the requested
withdrawal amount is $1,000, and the surrender charge-free amount is $200, then
the excess partial withdrawal would be $800. Excess partial withdrawals will
reduce the policy value by an amount equal to (X-Y+Z) where:

X      is excess partial withdrawal
A      is amount of partial withdrawal subject to excess interest adjustment
Y      is excess interest adjustment = (A) x (G-C) x (M/12) where G, C and M
       are defined in the excess interest adjustment provision above, with "A"
       substituted for "S" in the definitions of G and M.
Z      is surrender charge on X minus Y.

If any partial withdrawal reduces the cash value below $500, we reserve the
right to pay the full cash value and terminate the policy.

We may delay payment of the cash value from the fixed account for up to 6 months
after we receive the surrender or partial withdrawal request. If the annuitant
dies before a surrender or partial withdrawal is processed, the request will be
processed before the death proceeds are determined.

Each partial withdrawal consists of a portion that is subject to a surrender
charge (that is, the excess partial withdrawal) and a remaining portion that is
free from surrender charge (that is, the surrender charge-free amount). Either
portion may be zero (0) depending on the partial withdrawal requested and prior
amounts withdrawn.

Partial withdrawals in the amount of the cumulative interest in the guaranteed
period option(s) of the fixed account at the time of withdrawal may be withdrawn
from the GPO(s) of the fixed account free of any excess interest adjustment.

Amounts withdrawn under one of the options below may reduce the amount available
free of surrender charges under another option. Surrender charges and/or excess
interest adjustment may be waived as described below.

LUMP SUM
Beginning in the first policy year, you may withdraw, free from surrender
charges, a lump sum amount equal to the greater of A or B where:

A    is the cumulative earnings, if any, in the policy value and

B    is an amount equal to 10% of the premium payments.

If you take multiple lump sum withdrawals in any policy year, the total dollar
amount you receive free of surrender charge may be less than if you took a
single lump sum withdrawal in that policy year. Any unused surrender charge-free
percentages do not accumulate and do not carry over to the next policy year.

The minimum partial withdrawal under this option is $500. Withdrawals in excess
of the surrender charge-free amounts are subject to a surrender charge. We
reserve the right to limit the availability of this partial withdrawal option to
once per policy year.

SYSTEMATIC PAYOUT OPTION
Beginning in the first policy year, a Systematic Payout Option (SPO) is
available on a monthly, quarterly, semi-annual or annual basis. At the time a
SPO payout is made, such payout must be at least $50 and may not exceed the
greater of A or B, divided by the number of payouts made per year (e.g. 12 for
monthly).

A    is the cumulative earnings, if any, in the policy value; and

B    is an amount equal to 10% of the premium payments, less prior withdrawals
     during that policy year.

No surrender charges or excess interest adjustment will apply to the SPO payout
Monthly and quarterly payouts must be sent through electronic funds transfer
directly to a checking or savings account You may stop SPO payouts by giving us
30 days' written notice.

Once you have elected a SPO, you must wait a minimum time before the first SPO
payment 1 month for monthly, 3 months for quarterly, 6 months for semi-annual,
or 12 months for annual.

If you are receiving SPO payouts and a lump sum withdrawal is taken, such that
future SPO payouts in that policy year will exceed the total annual surrender
charge-free amount, then we will adjust future SPO payouts to reflect your
remaining surrender charge-free amount for that policy year, if any. Your SPO
payouts will be reduced on your next scheduled SPO payout, based on any
remaining surrender charge-free amount If, after a lump sum withdrawal is taken,
there is no remaining surrender charge free amount, the SPO will be stopped

P1733                                Page 6

<PAGE>

                              SECTION 5 - CONTINUED

MINIMUM REQUIRED DISTRIBUTION
Partial withdrawals taken to satisfy minimum distribution requirements with
respect to this policy under Section 401(a)(9) of the Internal Revenue Code are
available free of surrender charges.

Systematic minimum required distributions must be at least $50 or a lump sum
distribution is available if systematic minimum required distributions are less
than $50.

NURSING CARE AND TERMINAL CONDITION WITHDRAWAL OPTION

Definitions applicable to these options:

HOSPITAL - An institution which 1) is operated pursuant to the laws of the
jurisdiction in which it is located, 2) operates primarily for the care and
treatment of sick and injured persons on an inpatient basis, 3) provides 24-hour
nursing service by or under the supervision of registered graduate professional
nurses, 4) is supervised by a staff of one or more licensed physicians, and 5)
has medical, surgical and diagnostic facilities or access to such facilities.

NURSING FACILITY - A facility which 1) is operated pursuant to the laws of the
jurisdiction in which it is located, 2) provides care prescribed by a physician
and performed or supervised by a registered graduate nurse on a 24 hour basis,
or provides care designed essentially to help a person with the activities of
daily living which does require the continuous attention of trained medical or
paramedical personnel, and 3) is not, other than incidentally, a hospital, a
home for the aged, a retirement home, a rest home, a community living center or
a place mainly for the treatment of alcoholism, mental illness, or drug abuse.

PHYSICIAN - A Doctor of Medicine or Doctor of Osteopathy who is licensed as such
and operating within the scope of the license.

TERMINAL CONDITION - A condition resulting from an accident or illness which, as
determined by a physician, has reduced life expectancy to not more than 12
months, despite appropriate medical care.

If you or your spouse (annuitant or annuitant's spouse if the owner is not a
natural person) have been 1) confined in a hospital or nursing facility for 30
consecutive days or 2) diagnosed as having a terminal condition and the
confinement begins or diagnosis is made on or after the policy date, you may
elect to withdraw all or a portion of the policy value free of surrender
charges. The minimum partial withdrawal under this option is $1000. This option
is available even during the policy years other partial withdrawal options were
exercised. In cases where the policy is owned by a qualified plan or trust, this
option is not available until ownership is transferred to the annuitant.

For nursing care withdrawal, we must receive each partial withdrawal or
surrender request and proof of eligibility with each request no later than 90
days following the date that confinement has ceased, unless it can be shown that
it was not reasonably possible to provide the notice and proof within the above
time period and that the notice and proof were given as soon as reasonably
possible. However, in no event, except the absence of legal capacity, shall the
notice and proof be provided later than one year following the date that
confinement has ceased Proof of confinement may be a treating physician's
statement or a statement from a hospital or nursing facility administrator.
Systematic nursing care withdrawals are not permitted.

UNEMPLOYMENT WAIVER
Beginning in the first policy year, you may withdraw all or a portion of the
policy value free of any surrender charges and free of any excess interest
adjustment if the owner or owner's spouse (annuitant or annuitant's spouse, if
the owner is not a natural person) becomes unemployed. In order to qualify, you
1) must have been employed full-time for at least two years prior to your
becoming unemployed, 2) must have been employed full-time on your policy date,
3) must have been unemployed for at least 60 consecutive days at the time of
withdrawal and 4) must have a minimum cash value at the time of withdrawal of
$5,000. Proof of unemployment will consist of providing us with a determination
letter from the applicable State's Department of Labor, which verifies that you
qualify for and are receiving unemployment benefits at the time of withdrawal.
The determination letter must be received by us no later than 15 days following
the date of the withdrawal request.

SURRENDER CHARGES
Amounts withdrawn in excess of the surrender charge-free amount specified in the
withdrawal provisions above are subject to a surrender charge. The amount of
this charge, if any, will be a percentage, as shown in the table below, of the
amount of premium withdrawn:

Number of Years
 Since Premium           Percentage of
 Payment Date          Premium Withdrawn

1 year or less                8%
greater than 1 to 2           8%
greater than 2 to 3           7%
greater than 3 to 4           6%
greater than 4                0%

For surrender charge purposes, all earnings are considered to be withdrawn
first. After all earnings are withdrawn then the oldest premium payment is the
first premium payment considered to be withdrawn. If the amount withdrawn
exceeds this, the next oldest premium payment is considered to be withdrawn, and
so on until the most recent premium payments are deemed to be withdrawn (the
procedure being applied to withdrawals of premium is a "First-ln, First-Out" or
FIFO procedure).

PB1733                               Page 7

<PAGE>

                              SECTION 5 - CONTINUED

GUARANTEED RETURN OF FIXED ACCOUNT PREMIUM PAYMENTS
Upon full surrender of the policy, you will always receive at least the premium
payments and transfers made to, less prior withdrawals and transfers from, the
fixed account.

MINIMUM VALUES
Benefits available under this policy, including any paid up annuity or death
benefits that may be available, are not less than those required by any statute
of the state in which the policy is delivered.

MINIMUM REQUIRED CASH VALUE
The minimum required cash value is the minimum amount required to be paid on
surrender in accordance with the nonforfeiture law applicable on the policy date
for the state or jurisdiction in which the policy is issued This minimum value
is calculated according to a method described in the law, which is different
than the method described in the policy for determining your policy's cash
value.

                          SECTION 6 - SEPARATE ACCOUNT

SEPARATE ACCOUNT
We have established and will maintain one or more separate accounts, under the
laws of the state of Iowa. Any realized or unrealized income, net gains and
losses from the assets of the separate account are credited to or charged
against it without regard to our other income, gains, or losses. Assets are put
in the separate account for this policy, as well as for other variable annuity
policies. Any separate account may invest assets in shares of one or more mutual
fund portfolio, or in the case of a managed separate account, direct investments
in stocks or other securities as permitted by law. Fund shares refer to shares
of underlying mutual funds or prorata ownership of the assets held in a
subaccount of a managed separate account. Fund shares are purchased, redeemed,
and valued on behalf of the separate account.

The separate account is divided into subaccounts. Each subaccount invests
exclusively in shares of one of the portfolios of an underlying fund We reserve
the right to add or remove any subaccount of the separate account.

The assets of the separate account are our property. These assets will equal or
exceed the reserves and other contract liabilities of the separate account.
These assets will not be chargeable with liabilities arising out of any other
business we conduct We reserve the right, subject to regulations governing the
separate account, to transfer assets of a subaccount, in excess of the reserves
and other contract liabilities with respect to that subaccount, to another
subaccount or to our general account.

We will determine the fair market value of the assets of the separate account in
accordance with a method of valuation, which we establish in good faith.
Valuation period means the period of time from one determination of the value of
each subaccount to the next Such determinations are made when the value of the
assets and liabilities of each subaccount is calculated. This is generally the
close of business on each day on which the New York Stock Exchange is open. You
bear the entire investment risk for all amounts you allocate to the separate
account.

We also reserve the right to transfer assets of the separate account, which we
determine to be associated with the class of policies to which this policy
belongs, to another separate account If this type of transfer is made, the term
"separate account", as used in the policy, shall then mean the separate account
to which the assets were transferred.

We also reserve the right, when permitted by law, to:

(a)  deregister the separate account under the Investment Company Act of 1940;
(b)  manage the separate account under the direction of a committee at any time;
(c)  restrict or eliminate any voting rights of policy owners or other persons
     who have voting rights as to the separate account;
(d)  combine the separate account with one or more other separate accounts;
(e)  create new separate accounts;
(f)  add new subaccounts to or remove existing subaccounts from the separate
     account, or combine subaccounts; and
(g)  (add new underlying mutual funds, remove existing mutual funds, or
     substitute a new fund for an existing fund.

V1677                                Page 8

<PAGE>

                              SECTION 6 - CONTINUED

The net asset value of a fund share is the per-share value calculated by the
mutual fund or, in the case of a managed separate account, by the Company. The
net asset value is computed by adding the value of the subaccount's investments,
cash and other assets, subtracting its liabilities, and then dividing by the
number of shares outstanding. Net asset values of fund shares reflect investment
advisory fees and other expenses incurred in managing a mutual fund or a managed
separate account.

CHANGE IN INVESTMENT OBJECTIVE OR POLICY OF A MUTUAL FUND
If required by law or regulation, an investment policy of the separate account
will only be changed if approved by the appropriate insurance official of the
state of Iowa or deemed approved in accordance with such law or regulation. If
so required, the process for obtaining such approval is filed with the insurance
official of the state or district in which this policy is delivered.

CHARGES AND DEDUCTIONS
The mortality and expense risk fee and the administrative charge are each
deducted both before and after the annuity commencement date to compensate for
changes in mortality and expenses not anticipated by the mortality and
administration charges guaranteed in the policy. The service charge is deducted
prior to the annuity commencement date only.

If the mortality and expense risk fee is more than sufficient, the Company will
retain the balance as profit or may reduce this fee in the future.

ACCUMULATION UNITS
The policy value in the separate account before the annuity commencement date is
represented by accumulation units. The dollar value of accumulation units for
each subaccount will change from business day to business day reflecting the
investment experience of the subaccount. Accumulation units shall be used to
account for all amounts allocated to or withdrawn from a subaccount of the
separate account as a result of premium payments, partial withdrawals,
transfers, or fees and charges.

Transfers and premium payments allocated to the subaccounts will be applied to
provide accumulation units in those subaccounts. The number of accumulation
units purchased in a subaccount will be determined by dividing the dollar amount
allocated to or transferred to that subaccount, by the value of an accumulation
unit for that subaccount on the premium payment or transfer date.

The number of accumulation units withdrawn or transferred from the subaccounts
will be determined by dividing the dollar amount withdrawn or transferred by the
value of an accumulation unit for that subaccount on the withdrawal or transfer
date.

We set the initial accumulation unit value for each subaccount. Subsequent
accumulation unit values for each subaccount are determined by multiplying the
accumulation unit value for the immediately preceding valuation period by the
new investment factor of the subaccount for the current valuation period.

The net investment factor used to calculate the value of an accumulation unit in
each subaccount for the valuation period is determined by dividing (a) by (b)
and subtracting (c) from the result where:

(a)  is the result of:
     (1)  the net asset value of a fund share held in that subaccount determined
          as of the end of the current valuation period; plus
     (2)  the per share amount of any dividend or capital gain distributions
          made by the fund for shares held in that subaccount if the ex-dividend
          date occurs during the valuation period; plus or minus
     (3)  a per share credit or charge for any taxes reserved for, which we
          determine to have resulted from the investment operations of that
          subaccount.
(b)  is the net asset value of a fund share held in that subaccount determined
     as of the end of the immediately preceding valuation period.
(c)  is a factor representing the mortality and expense risk fee and
     administrative charge before the annuity commencement date. This factor is
     less than or equal to, on an annual basis, the percentage shown on the
     Policy Data page of the daily net asset value of a fund share held in that
     subaccount.

Since the net investment factor may be greater or less than one, the
accumulation unit value may increase or decrease.

VB1677                               Page 9

<PAGE>

                            SECTION 7 - FIXED ACCOUNT

FIXED ACCOUNT
The fixed account is comprised of guaranteed period options and the dollar cost
averaging fixed account option that we may choose to offer. Premium payments
applied to and any amounts transferred to the fixed account will reflect a fixed
interest rate. The interest rates we set will be credited for increments of at
least one year measured from each premium payment or transfer date. These rates
will never be less than the Fixed Account Guaranteed Minimum Effective Annual
Interest Rate shown on Page 3.

Upon full surrender of the policy, the cash value will never be less than that
required by the nonforfeiture laws of your state.

We reserve the right, at our sole discretion, to refuse premium payments or
transfers allocated to any of the fixed account options.

GUARANTEED PERIOD OPTIONS
We may offer Guaranteed Period Options in the fixed account, into which premium
payments may be paid or amounts transferred. The current interest rate we set
for funds entering each guaranteed period option is guaranteed until the end of
that option's guaranteed period. At that time, the premium payment made or
amount transferred into the guaranteed period option, less any withdrawals or
transfers from that guaranteed period option, plus accrued interest, may be
rolled into a new guaranteed period option (subject to availability of any
guaranteed period option for such rollovers) or may be transferred to any
subaccount(s) within the separate account(s).

You may choose the investment option(s) you want the funds transferred into by
giving us a written notice within 30 days before the end of the expiring
option's guaranteed period. However, any available guaranteed period elected may
not extend beyond the maximum annuity commencement date defined in Section 11.
In the absence of such election, the funds will be rolled into a new guaranteed
period option which is the same as the expiring guaranteed period option unless
that guaranteed period option is no longer offered. In that case, the funds will
be rolled into the next shorter guaranteed period option available, otherwise
the next longer guaranteed period option available. You will be mailed a notice
of completion of the rollover with the new interest rate applicable. The new
guaranteed period option will be deemed as accepted if we do not receive a
written rejection within 30 days from the postmark date of the completion
notice. We reserve the right, at our sole discretion, for new premium payments
or transfers to offer or not to offer any guaranteed period option. If we do not
offer a guaranteed period option and we have not received directions from you in
a form and manner acceptable to us, how the premium payments or funds
transferred are to be allocated, the funds will be placed in any available fixed
account option at the lowest crediting rate then applicable, or otherwise may be
refused as a fixed account premium/transfer. If that occurs, we will require
instructions as to which subaccounts to allocate such premiums/transfers.

When funds are withdrawn or transferred from a guaranteed period option, the
policy value associated with the oldest premium payment or transfer is
considered to be withdrawn or transferred first. If the amount withdrawn or
transferred exceeds the policy value associated with the oldest premium, the
policy value associated with the next oldest premium payment or transfer is
considered to be withdrawn or transferred next, and so on until the policy value
associated with the most recent premium payment or transfer is considered to be
withdrawn or transferred.

Partial withdrawals, surrenders, transfers (except those transfers made at the
end of a guaranteed period option), and amounts applied to an income option from
the guaranteed period option(s) are subject to an excess interest adjustment as
described in Section 5.

DOLLAR COST AVERAGING FIXED ACCOUNT OPTION
We may offer a dollar cost averaging fixed account option separate from the
guaranteed period options. This option will have a one-year interest rate
guarantee. The current interest rate we set for the dollar cost averaging fixed
account may differ from the rates credited on the one-year guaranteed period
option in the fixed account. In addition, the current interest rate we credit
may vary on different portions of the dollar cost averaging fixed account. The
credited interest rate will never be less than the Fixed Account Guaranteed
Minimum Effective Annual Interest Rate shown on Page 3. The dollar cost
averaging fixed account option will only be available under a dollar cost
averaging program as described in Section 8.

L1194                                Page 10

<PAGE>

                              SECTION 8 - TRANSFERS

A.   TRANSFERS BEFORE THE ANNUITY COMMENCEMENT DATE
Prior to the annuity commencement date, you may transfer the policy values from
one investment option to another by notifying us in a form and manner acceptable
to us. Transfers under this policy may be restricted if you elect a rider which
contains restrictions on transfers.

Transfers of policy value from the guaranteed period options of the fixed
account prior to the end of that guaranteed period option are subject to an
excess interest adjustment. No excess interest adjustment will apply to policy
value transfers at the end of a guaranteed period.

If the excess interest adjustment at the time of such policy value transfer
results in a decrease in the funds available to you, then the maximum policy
value transfer is 25% of that guaranteed period option's policy value, less
policy values previously transferred out of that guaranteed period option during
the current policy year. Each such transfer must be separated by a period of 12
months.

If the excess interest adjustment at the time of such policy value transfer
results in additional funds available to you, no maximum will apply to such
policy values transferred from the guaranteed period option.

Transfers of policy value from the separate account are subject to a minimum of
$500 or the entire subaccount policy value, if less. However, if the remaining
subaccount policy value is less than $500, we reserve the right to include that
amount as part of the transfer.

Transfers of interest credited in the guaranteed period options to other
Investment Options are allowed on a "First-ln, First-Out" basis. Such transfers
may be made monthly, quarterly, semi-annually, or annually. Each such transfer
must be at least S50 and will not be subject to an excess interest adjustment.

You may choose which guaranteed period option to transfer to or from, however,
any guaranteed period option elected may not extend beyond the maximum annuity
commencement date defined in Section 11.

We reserve the right to limit transfers to no more than 12 in any one policy
year. Any transfers in excess of 12 per policy year may be charged a $10 per
transfer fee. Transfers among multiple investment options will be treated as one
transfer in determining the number of transfers that have occurred. We also
reserve the right, at our sole discretion, to refuse transfers allocated to any
of the fixed account options.

This policy was not designed for the use of programmed, large, frequent, or
short-term transfers. Such transfers may be disruptive to the underlying fund
portfolios, increase transaction costs, and cause adverse effects for other
policy owners and beneficiaries. We have developed policies and procedures in an
attempt to detect and deter market timing and disruptive trading. If we
determine you are engaged in such activities we will use a combination of the
following measures in an attempt to deter those activities, without taking the
same measures for all owners: (1) monitor your trading activity; (2) advise you
in writing of our policy against market timing and disruptive trading; (3)
revoke expedited transfer privileges (we consider transfers by telephone, fax,
overnight mail, or the Internet to be "expedited" transfers); (4) require
written transfer requests with an original signature conveyed only via U.S. Mail
for all transfers; (5) restrict the transfer privileges of others acting on your
behalf, including your registered representative or an asset allocation or
investment advisory service; (6) suspend or discontinue your transfer
privileges; (7) impose holding period requirements; 18) limit the number, size,
frequency, manner, or timing of transfers; (9) reject any premium payment or
transfer request; (10) implement, administer, and impose fees or restrictions,
including redemption fees, imposed by an underlying fund portfolio; and (11)
reverse potentially harmful transfers. For all of these purposes, we may
aggregate two or more policies that we believe are connected We will also
administer the policy to comply with state, federal, and other regulatory
requirements concerning transfers.

DOLLAR COST AVERAGING OPTION
Prior to the annuity commencement date, you may instruct us to automatically
transfer a specified amount from source accounts made available by us to any
other subaccount(s) of the separate account. The automatic transfers can occur
monthly or quarterly. You may change the subaccounts to which these transfers
are allocated as permitted by us from time to time.

Transfers will continue until the elected source account is depleted. The amount
transferred each time must be at least $500. All transfers from the source
account will be the same amount as the initial transfer. Transfers must be
scheduled for at least 6 months, but not more than 24 months or for at least 4
quarters, but not more than 8 quarters each time the dollar cost averaging
program is started or restarted following termination of the program for any
reason.

Dollar cost averaging results in the purchase of more accumulation units when
the value of the accumulation unit is low, and fewer accumulation units when the
value of the accumulation unit is high. However, there is no guarantee that the
dollar cost averaging program will result in higher policy values or will
otherwise be successful.

LB1194                               Page 11

<PAGE>

                              SECTION 8 - CONTINUED

Dollar cost averaging may be discontinued before its scheduled completion by
sending written notice to us. If dollar cost averaging is discontinued prior to
the end of the scheduled period, all remaining funds in the dollar cost
averaging fixed account will be transferred at that time. Unless we are notified
otherwise the funds remaining in the dollar cost averaging fixed account will be
transferred to the subaccounts in the percentages currently indicated. While
dollar cost averaging is in effect, asset rebalancing is not available.

ASSET REBALANCING
Prior to the annuity commencement date, you may instruct us to automatically
transfer amounts among the subaccounts of the separate account on a regular
basis to maintain a desired allocation of the policy value among the various
subaccounts offered. Rebalancing will occur on a monthly, quarterly,
semi-annual, or annual basis, beginning on a date selected by you. You must
select the percentage of the policy value desired in each of the various
subaccounts offered (totaling 100%). Any amounts in the fixed account are
ignored for the purposes of asset rebalancing. Rebalancing can be started,
stopped or changed at any time. Asset rebalancing is not available while dollar
cost averaging is in effect. Rebalancing will cease as soon as we receive a
request for any other transfer.

B.   TRANSFERS AFTER THE ANNUITY COMMENCEMENT DATE
After the annuity commencement date, you may transfer the value of the variable
annuity units from one subaccount to another within the separate account or to
the fixed account. If you want to transfer the value of the variable annuity
units, you must provide a signed notice, containing the facts that we need. We
reserve the right to limit transfers between the subaccounts or to the fixed
accounts to once per policy year.

The minimum amount which may be transferred is the lesser of $10 monthly income
or the entire monthly income of the variable annuity units in the subaccount
from which the transfer is being made. If the monthly income of the remaining
units in a subaccount is less than $10, we have the right to include the value
of those variable annuity units as part of the transfer.

After the annuity commencement date, no transfers may be made from the fixed
account to any other investment options.

                           SECTION 9 - DEATH PROCEEDS

A.   DEATH PROCEEDS PRIOR TO ANNUITY COMMENCEMENT DATE
The amount of death proceeds will be the greatest of (a), (b), (c), or (d)
where:

(a)  is the policy value on the date we receive due proof of death and an
     election of a method of settlement;
(b)  is the cash value on the date we receive due proof of death and an election
     of a method of settlement;
(c)  is the minimum required cash value; and
(d)  is the guaranteed minimum death benefit, if any, plus any additional
     premium payments received, less any gross partial withdrawals, from the
     date of death to the date of payment of death proceeds.

Until the death proceeds are paid, the policy value will remain in the
subaccounts as previously specified by the owner or as reallocated pursuant to
instructions received by us from all beneficiaries (due proof of death is
required before we will accept such instructions). Therefore, the policy value
(and cash value) will fluctuate with the investment performance of the
applicable subaccounts and accordingly, the amount of the death proceeds will
also vary until the proceeds are paid.

For purposes of this policy, proof of death means:

(a)  a certified copy of the death certificate; or
(b)  a certified copy of a decree of a court of competent jurisdiction as to a
     finding of death; and
(c)  any other proof or other documents required by us.

If You have not directed how death proceeds are to be paid by the date of death,
the beneficiary may make such election within one year of the date we receive
due proof of the owner's or annuitant's death as described in Subsection C
below. The beneficiary may elect to receive the death proceeds as a lump sum or
in payments as described in Subsection C below. We will pay interest on death
proceeds as required by law.

We must distribute death proceeds or continue making payments under an income
option under this annuity policy as required in Internal Revenue Code Section
72(s). The requirements of Internal Revenue Code Section 72(s) will override any
provision of this policy to the contrary.

B.   GUARANTEED MINIMUM DEATH BENEFIT
The amount of the guaranteed minimum death benefit, if any, is based on the
guaranteed minimum death benefit option shown on the policy data page. You may
not change the guaranteed minimum death benefit option after we issue the
policy.

D615                                 Page 12

<PAGE>

                              SECTION 9 - CONTINUED

C.   DEATH PRIOR TO ANNUITY COMMENCEMENT DATE
Payment of death proceeds depends on the relationships between the owner,
annuitant, and beneficiary as outlined below.

If there are surviving owners, the surviving owners automatically take the place
of any designated beneficiary or beneficiaries.

Where there are joint annuitants, the death proceeds become payable only upon
the death of the surviving annuitant, subject to the distribution requirements
under Subsection C.1I. below.

I.   Annuitant Death

     When we have due proof that the annuitant died before the annuity
     commencement date, the death proceeds are payable to the beneficiary. If no
     beneficiary is designated and there is no surviving owner, the owner's
     estate will become the beneficiary.

     a)   When the beneficiary is the deceased annuitant's surviving spouse. The
          beneficiary may elect to continue this policy as owner and annuitant
          rather than receiving the death proceeds. If the policy is continued,
          an amount equal to the excess, if any, of the guaranteed minimum death
          benefit over the policy value will then be added to the policy value
          pro rata according to the amount of policy value in each Investment
          Option at that time. This is a one-time only policy value adjustment
          applied at the time the policy is continued, and the guaranteed
          minimum death benefit previously selected will continue on as
          applicable.

          If the policy is continued, all current surrender charges will be
          waived; however, any premium received after the deceased Annuitant's
          death will be subject to any applicable surrender charges.

          If the beneficiary elects to have the death proceeds paid rather than
          continue the policy, the death proceeds must be distributed pursuant
          to subsections b)(1) and (2) below.

     b)   When the beneficiary is an individual who is not the deceased
          annuitant's surviving spouse. The death proceeds must be distributed:

          (1)  by the end of 5 years after the date of the deceased annuitant's
               death; or

          (2)  payments (either as annuity payments or partial withdrawals) must
               begin no later than one year after the deceased annuitant's death
               and must be made for a period certain or for this beneficiary's
               lifetime, so long as any period certain does not exceed this
               beneficiary's life expectancy (as defined by the Internal Revenue
               Code and regulations adopted under that Code). Election of this
               option must be made at least 60 days prior to the one year
               anniversary of the annuitant's death.

     c)   When the beneficiary is not a natural person. The death proceeds must
          be distributed within 5 years after the annuitant's death.

II.  Owner Death

     At death of any owner, all current surrender charges will be waived,
     however, any premium received after the deceased owner's death will be
     subject to any applicable surrender charges.

     If the deceased owner is also the sole annuitant, Subsection C.I.
     "Annuitant Death" above applies.

     If an owner or joint owner who is not the sole annuitant dies prior to the
     annuity commencement date and before the entire interest in the policy is
     distributed, the successor owner as defined below will become the new
     owner, and no death proceeds are payable. The person or entity first listed
     below who is alive or in existence on the date of that death will become
     the successor owner:

     a)   surviving owner;
     b)   primary beneficiary;
     c)   contingent beneficiary; or
     d)   deceased owner's estate.

The successor owner will need to take distributions according to a), b), or c)
below.

     a)   If the sole successor owner is the deceased owner's spouse, we will
          continue this policy with the successor owner as the new owner, unless
          the deceased owner's spouse elects to take distribution as described
          in b)(1) or b)(2) below.
     b)   If the successor owner is an individual who is not the deceased
          owner's spouse, the adjusted policy value or the minimum required cash
          value, if greater, must be distributed:
          (1)  by the end of 5 years after the date of the deceased owner's
               death; or
          (2)  payments (either as annuity payments or partial withdrawals) must
               begin no later than one year after the deceased owner's death and
               must be made for a period certain or for the successor owner's
               lifetime, so long as any period certain does not exceed the
               successor owner's life expectancy (as defined by the Internal
               Revenue Code and regulations adopted under that Code). Election
               of this option must be made at least 60 days prior to the one
               year anniversary of the deceased owner's death.
     c)   If the successor owner is not a natural person, the adjusted policy
          value or the minimum required cash value, if greater, must be
          distributed within 5 years after the owner's death.

DB615                                Page 13

<PAGE>

                              SECTION 9 - CONTINUED

D.   DEATH ON OR AFTER THE ANNUITY COMMENCEMENT DATE
The death proceeds on or after the annuity commencement date depend on the
payment option selected. If any owner dies on or after the annuity commencement
date, but before the entire interest in the policy is distributed, the remaining
portion of such interest in the policy will be distributed to the beneficiary at
least as rapidly as under the method of distribution being used as of the date
of that death.

E.   AN OWNER IS NOT AN INDIVIDUAL
If any owner is not an individual, then for purposes of the provisions in
subsection C or D above, (1) the primary annuitant will be treated as the owner
of the policy; and (2) the death of, or any change in, the primary annuitant,
will be treated as the death of the owner.

                           SECTION 10 - INCOME OPTIONS

A.   GENERAL PAYMENT PROVISIONS
Payment
If this policy is in force on the annuity commencement date, we will use the
fixed account portion and/or the separate account portion of the adjusted policy
value, or the minimum required cash value, if greater, to make payments under an
income option to the payee under fixed income option 2 and/or variable income
option 3-V, respectively, with 10 years certain, or if elected, under one or
more of the other income options described in this section, or any other method
of payment if we agree. However, the income option elected must provide for
lifetime income or income for a period of at least 60 months. You will become
the annuitant upon annuitization, unless the owner is not a natural person.
Payments will be made at 1, 3, 6, or 12-month intervals. We reserve the right to
change the frequency of payments to avoid making payments of less than $50.

Before the annuity commencement date, if the death proceeds become payable, or
if you surrender this policy, we will pay any proceeds in one sum, or if
elected, all or part of these proceeds may be applied to one or more of the
income options described in this section, or any other method of payment if we
agree.

Adjusted Age
Payments under fixed income options 2 and 4 and the first payment under variable
income options 3-V and 5-V are determined based on the adjusted age of the
annuitant The adjusted age is the annuitant's actual age on the annuitant's
nearest birthday, at the annuity commencement date, adjusted as follows:

     Annuity
Commencement Date        Adjusted Age
-----------------     -----------------
   Before 2010        Actual Age
   2010 - 2019        Actual Age minus 1
   2020 - 2026        Actual Age minus 2
   2027 - 2033        Actual Age minus 3
   2034 - 2040        Actual Age minus 4
   After 2040         Actual Age minus 5

Election of Optional Method of Payment
Before the annuity commencement date, you can elect or change an income option.
You may elect, in a notice in a form and manner acceptable to us, income options
that may be either variable, fixed, or a combination of both. If you elect a
combination, you must also tell us what part of the adjusted policy value on the
annuity commencement date are to be applied to provide each type of payment (You
must also specify which subaccounts.) The amount of a combined payment will be
the sum of the variable and fixed payments. Payments under a variable income
option will reflect the investment performance of the selected subaccount(s) of
the separate account.

Payee
Unless you specify otherwise, the payee shall be the annuitant.

In the event of the death of a payee who is not the annuitant prior to the end
of payments pursuant to the terms of the income option chosen, payments will be
continued to the beneficiary or their present value may be paid in a single sum.

Proof of Age
We may require proof of the age of any person who elects income options 2, 3-V,
4 and 5-V of this Section before we make the first payment.

Minimum Proceeds
If the proceeds are less than $2,000, we reserve the right to pay them out as a
lump sum instead of applying them to an income option.

Premium Tax
We may be required by law to pay premium tax on the amount applied to an income
option. If so, we will deduct the premium tax before applying the proceeds.

Supplementary Contract
Once proceeds become payable and an income option has been selected, we will
issue a supplementary contract to reflect the terms of the selected income
option. The supplemental contract will name the payee(s) and will describe the
payment schedule.

S1354                                Page 14

<PAGE>

                             SECTION 10 - CONTINUED

B.   FIXED INCOME OPTIONS
Guaranteed Income Options
The amount of the fixed payment is determined by multiplying each $1,000 of
policy proceeds allocated to fixed income option 1, 2, or 4 by the amounts shown
on pages 18 and 19 for the option you select. Income options 1 and 3 are based
on the guaranteed interest rate shown on page 18. Income options 2 and 4 are
based on the guaranteed interest rate shown on page 18 and the "Annuity 2000"
(male, female, and unisex if required by law) mortality table projected for
improvement using projection scale G.

Fixed Income Option 1 - Income for a Specified Period
We will make level payments only for the specific period you choose. The
specified period may not exceed your life expectancy. No funds will remain at
the end of the specified period.

Fixed Income Option 2 - Life Income You may choose between:
(a)  No Period Certain - We will make level payments only during the annuitant's
     lifetime.
(b)  10 Years Certain - We will make level payments for the longer of the
     annuitant's lifetime or ten years.
(c)  Guaranteed Return of Policy Proceeds - We will make level payments for the
     longer of the annuitant's lifetime or until the total dollar amount of
     payments equals the amount applied to this option.
(d)  Life with Emergency Cash (SM) - We will make level payments during the
     annuitant's lifetime, but the annuity may be surrendered (in full or part).
     The emergency cash value is equal to a multiple of the payment where that
     multiple reduces over time to zero at age 101. We will apply a surrender
     charge that is applicable at the time of annuitization. Should the
     annuitant die before age 101 (or, for qualified policies, the applicable
     age based on IRS Life Expectancy table(s) if earlier), the same value would
     be payable, but without the surrender charge.

Fixed income options 2(a) and 2(d) are not available for annuitant adjusted
age(s) greater than 85.
Fixed Income Option 3 - Income of a Specified Amount
We will make payments for any specified amount you choose until the amount
applied to this option, with interest, is exhausted. The duration of the
payments may not exceed the annuitant's life expectancy. This will be a series
of level payments followed by a smaller final payment.

Fixed Income Option 4 - Joint and Survivor Annuity
You may choose between:

(a)  No Period Certain - We will make payments during the joint lifetime of the
     annuitant and a joint annuitant of your choosing. We will make payments as
     long as either person is living.

(b)  Life with Emergency Cash (SM) - We will make level payments during the
     joint lifetime of the annuitant and a joint annuitant of your choosing. We
     will make payments as long as either person is living, but the annuity may
     be surrendered (in full or part). The emergency cash value is equal to a
     multiple of the payment, where that multiple reduces over time to zero at
     age 101 of the younger annuitant. We will apply a surrender charge that is
     applicable at the time of annuitization. Should the last surviving
     annuitant die before age 101 (or, for qualified policies, the applicable
     age based on IRS Life Expectancy table(s) if earlier), the same value would
     be payable, but without the surrender charge.

Fixed income options 4(a) and 4(b) are not available for annuitant adjusted
age(s) greater than 85.

Current Income Options
The amounts shown in the tables on pages 18 and 19 are the guaranteed amounts.
You may obtain current amounts we offer to individuals of the same class,
subject to availability as described under "Guaranteed Income Options" above.

SB1354                               Page 15

<PAGE>

                             SECTION 10 - CONTINUED

C.   VARIABLE INCOME OPTIONS
Variable Annuity Units
We will use the adjusted policy value you tell us to apply to a variable income
option to purchase variable annuity units in your chosen subaccounts. The dollar
value of variable annuity units in your chosen subaccounts will increase or
decrease reflecting the investment experience of your chosen subaccounts. The
value of a variable annuity unit in a particular subaccount on any business day
is equal to (a) multiplied by (b) multiplied by (c), where:

(a)  is the variable annuity unit value for that the subaccount immediately
     preceding that on business day;
(b)  is the net investment factor for subaccount for the valuation period; and
(c)  is the assumed investment return adjustment factor for the valuation
     period.

The assumed investment return adjustment factor for the valuation period is the
product of daily discount factors which reflect the effective annual assumed
investment return shown on page 20.

The net investment factor used to calculate the value of a variable annuity unit
in each subaccount for the valuation period is determined by dividing (a) by (b)
and subtracting (c) from the result, where:

(a)  is the net result of:
     (1)  the net asset value of a fund share held in that subaccount determined
          as of the end of the current valuation period; plus
     (2)  the per share amount of any dividend or capital gain distributions
          made by the fund for shares held in that subaccount if the ex-dividend
          date occurs during the valuation period; plus or minus
     (3)  a per share credit or charge for any taxes reserved for, which we
          determine to have resulted from the investment operations of the
          subaccount.
(b)  is the net asset value of a fund share held in that subaccount determined
     as of the end of the immediately preceding valuation period.
(c)  is a factor representing the mortality and expense risk fee and
     administrative charge applicable after the annuity commencement date. This
     factor is less than or equal to, on an annual basis, the percentage shown
     on the Policy Data page, plus any additional fee applicable to the initial
     payment guarantee of the daily net asset value of a fund share held in the
     separate account for that subaccount

Determination of the First Variable Payment
The amount of the first variable payment is determined by multiplying each
$1,000 of adjusted policy value allocated to a variable income option by the
amounts shown on the variable income option table for the variable income option
you select. The tables are based on the effective annual assumed investment
return shown on page 20 and the "Annuity 2000" (male, female, and unisex if
required by law) mortality table projected for improvement using projection
scale G.

Variable Income Option 3-V - Life Income You may choose between:

(a)  No Period Certain - We will make payments during the lifetime of the
     annuitant
(b)  10 Years Certain - We will make payments for the longer of the annuitant's
     lifetime or ten years.
(c)  Life with Emergency Cash (SM) - We will make payments during the
     annuitant's lifetime, but the annuity may be surrendered (in full or part).
     The emergency cash value is equal to a multiple of the supportable payment
     (see definition below), where that multiple reduces over time to zero at
     age 101. We will apply a surrender charge that is applicable at the time of
     annuitization. Should the annuitant die before age 101 (or, for qualified
     policies, the applicable age based on IRS Life Expectancy table(s) if
     earlier), the same value would be payable, but without the surrender
     charge.

Variable Income Options 3-V(a) and 3-V(c) are not available for adjusted age(s)
greater than 85.

C979                                 Page 16

<PAGE>

                             SECTION 10 - CONTINUED

Variable Income Option 5-V - Joint and Survivor Annuity

You may choose between:

(a)  No Period Certain - We will make payments as long as either the annuitant
     or the joint annuitant is living.
(b)  Life with Emergency Cash (SM) - We will make payments during the joint
     lifetime of the annuitant and a joint annuitant of your selection. Payments
     will be made as long as either person is living, but the annuity may be
     surrendered (in full or part). The emergency cash value is equal to a
     multiple of the supportable payment (see definition below), where that
     multiple reduces over time to zero at age 101 of the younger annuitant. We
     will apply a surrender charge that is applicable at the time of
     annuitization. Should the last surviving annuitant die before age 101 (or,
     for qualified policies, the applicable age based on IRS Life Expectancy
     table(s) if earlier), the same value would be payable, but without the
     surrender charge.

Variable income options 5-V(a) and 5-V(b) are not available for annuitant
adjusted age(s) greater than 85.

Initial Payment Guarantee
At the time you annuitize, you may elect an initial payment guarantee under
which we guarantee your variable annuity payments will never be less than a
percentage of the initial variable annuity payment. You cannot terminate the
initial payment guarantee after you have elected it. The percentage applicable
to the initial payment and the additional fee for this option will be those
currently applicable at the time of annuitization.

Supportable Payment
The supportable payment is the sum of each selected subaccount's variable
annuity unit value times the number of variable annuity units. The variable
annuity units are adjusted to reflect the year-to-date difference between the
stabilized payment and the payment had they not been stabilized. Supportable
payments are used to determine surrender values, death benefits and transfers.

Determination of Subsequent Variable Payments Without Stabilization
The number of variable annuity units in each selected subaccount is determined
by dividing the first variable annuity payment allocated to the subaccount by
the variable annuity unit value of that subaccount on the annuity commencement
date. The amount of each variable annuity payment after the first payment will
increase or decrease according to the value of the variable annuity units which
reflect the investment experience of the selected subaccounts. Each variable
annuity payment after the first payment will be equal to the number of variable
annuity units in the selected subaccounts multiplied by the variable annuity
unit value on the date the payment is made.

Determination of Subsequent Variable Payments With Stabilization
If "Life with Emergency Cash" is chosen (variable income option 3-V(c) or
5-V(b)), or if the initial payment guarantee is chosen, variable annuity
payments during the first year following the annuity commencement date will be
stabilized to equal the initial payment. On each anniversary of the annuity
commencement date, the stabilized variable annuity payment will be increased or
decreased (but never below the guaranteed payment if the initial payment
guarantee is chosen) and held level for that year. On each anniversary of the
annuity commencement date, the stabilized variable annuity payment will equal
the supportable payment at that time (or if the initial payment guarantee is
chosen, the stabilized variable payment will equal the greater of the guaranteed
payment or the supportable payment at that time).

If the payment without stabilization (at any payment date during the year) is
greater than the stabilized variable annuity payment for that year, the excess
will be used to purchase additional annuity units (as described below). If the
payment without stabilization (at any payment date during the year) is less than
the stabilized variable annuity payment for that year, annuity units will be
redeemed (as described below) to fund the deficiency.

Purchase/Redemption of Annuity Units with Stabilized Variable Annuity Payments
The number of annuity units purchased or redeemed is equal to the annuity income
purchased or redeemed, respectively, divided by the annuity unit value for each
respective subaccount. Purchases and redemptions of annuity income will be
allocated to each subaccount on a proportionate basis. The amount of annuity
income purchased or redeemed is the difference between the payment without
stabilization during that year and the stabilized variable annuity payment,
times an attained adjusted age nearest birthday payment factor divided by
$1,000. The payment factor will reflect any remaining guaranteed payments, if
any, and is determined using the same assumptions for mortality and interest as
the payment factors listed in this policy for variable income options 3-V and
5-V.

CB979                                Page 17

<PAGE>

                       GUARANTEED FIXED INCOME OPTIONS **

      The amounts shown in these tables are the guaranteed monthly amounts
          for each 1,000 of the proceeds. Higher current amounts may be
                       available at the time of settlement

<TABLE>
<CAPTION>
      Option 1                  Option 2 (a)               Option 2 (b)               Option 2 (c)               Option 2 (d)
------------------------------------------------------------------------------------------------------------------------------------
 Number    Amount
   of        of              Monthly Installment       Monthly Installment       Monthly Installment For     Monthly Installment
 Years    Monthly            For Life No Period         For Life 10 Years         Life Guaranteed Return       For Life With
Payable  Installment               Certain                 Certain                  of Policy Proceeds       Emergency Cash (SM)
------------------------------------------------------------------------------------------------------------------------------------
                     Age*  Male    Female   Unisex    Male    Female   Unisex    Male    Female   Unisex    Male    Female   Unisex
------------------------------------------------------------------------------------------------------------------------------------
  <S>       <C>       <C> <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>
                      50  $  2.97  $  2.86  $  2.90  $  2.96  $  2.86  $  2.89  $  2.79  $  2.74  $  2.76  $  2.69  $  2.66  $  2.67
                      51     3.04     2.92     2.96     3.02     2.91     2.94     2.84     2.79     2.80     2.74     2.70     2.72
                      52     3.10     2.98     3.02     3.08     2.97     3.01     2.89     2.84     2.85     2.79     2.75     2.76
                      53     3.18     3.05     3.09     3.15     3.03     3.07     2.94     2.89     2.90     2.84     2.80     2.81
   5        17.28     54     3.25     3.11     3.15     3.22     3.10     3.14     3.00     2.94     2.96     2.89     2.85     2.86
   6        14.51     55     3.33     3.18     3.23     3.30     3.17     3.21     3.06     3.00     3.02     2.94     2.90     2.91
   7        12.53     56     3.41     3.26     3.30     3.38     3.24     3.28     3.12     3.06     3.07     3.00     2.96     2.97
   8        11.04     57     3.50     3.34     3.39     3.46     3.32     3.36     3.18     3.12     3.14     3.06     3.01     3.03
   9         9.89     58     3.60     3.42     3.47     3.55     3.39     3.44     3.25     3.18     3.20     3.12     3.07     3.08
  10         8.96     59     3.69     3.51     3.56     3.65     3.48     3.53     3.32     3.25     3.27     3.18     3.13     3.15
  11         8.21     60     3.80     3.60     3.66     3.75     3.57     3.62     3.39     3.32     3.34     3.25     3.20     3.21
  12         7.58     61     3.91     3.70     3.76     3.85     3.66     3.72     3.46     3.39     3.41     3.32     3.27     3.28
  13         7.05     62     4.03     3.81     3.87     3.96     3.76     3.82     3.54     3.47     3.49     3.39     3.34     3.35
  14         6.59     63     4.16     3.92     3.99     4.07     3.87     3.93     3.63     3.55     3.57     3.47     3.41     3.43
  15         6.20     64     4.30     4.04     4.12     4.20     3.98     4.04     3.72     3.63     3.66     3.55     3.49     3.51
  16         5.85     65     4.45     4.16     4.25     4.32     4.09     4.16     3.81     3.72     3.75     3.63     3.57     3.59
  17         5.55     66     4.60     4.30     4.39     4.46     4.22     4.29     3.91     3.81     3.84     3.72     3.66     3.68
  18         5.27     67     4.77     4.45     4.54     4.60     4.35     4.42     4.01     3.91     3.94     3.81     3.75     3.77
  19         5.03     68     4.95     4.60     4.71     4.75     4.49     4.57     4.11     4.01     4.04     3.90     3.85     3.86
  20         4.81     69     5.14     4.77     4.88     4.90     4.64     4.71     4.23     4.12     4.15     4.01     3.95     3.96
                      70     5.34     4.95     5.07     5.06     4.79     4.87     4.34     4.24     4.27     4.11     4.05     4.07
                      71     5.56     5.15     5.27     5.22     4.95     5.03     4.47     4.36     4.39     4.22     4.17     4.18
                      72     5.79     5.36     5.49     5.39     5.12     5.20     4.60     4.49     4.52     4.34     4.29     4.30
                      73     6.03     5.59     5.72     5.56     5.30     5.38     4.73     4.62     4.66     4.46     4.40     4.42
                      74     6.30     5.83     5.97     5.74     5.49     5.57     4.88     4.77     4.80     4.59     4.54     4.55
                      75     6.58     6.10     6.24     5.93     5.68     5.76     5.03     4.92     4.95     4.72     4.67     4.69
                      76     6.88     6.39     6.53     6.11     5.88     5.95     5.18     5.08     5.11     4.85     4.81     4.82
                      77     7.20     6.70     6.85     6.30     6.09     6.15     5.35     5.25     5.28     5.00     4.96     4.97
                      78     7.55     7.03     7.19     6.49     6.30     6.36     5.53     5.43     5.46     5.15     5.12     5.12
                      79     7.92     7.40     7.55     6.68     6.51     6.56     5.71     5.61     5.64     5.31     5.28     5.29
                      80     8.32     7.79     7.95     6.87     6.72     6.77     5.90     5.81     5.84     6.48     5.45     5.46
                      81     8.75     8.22     8.38     7.06     6.93     6.97     6.11     6.02     6.05     5.67     5.64     5.64
                      82     9.20     8.69     8.84     7.24     7.13     7.16     6.32     6.24     6.27     5.84     5.83     5.84
                      83     9.69     9.19     9.34     7.41     7.33     7.36     6.55     6.48     6.50     6.05     6.04     6.04
                      84    10.21     9.74     9.88     7.58     7.52     7.54     6.78     6.72     6.74     6.24     6.24     6.24
                      85    10.77    10.33    10.46     7.74     7.69     7.71     7.03     6.98     7.00     6.48     6.48     6.48
                      86                                7.89     7.86     7.87     7.29     7.26     7.27
                      87                                8.03     8.01     8.01     7.57     7.54     7.55
                      88                                8.16     8.15     8.15     7.86     7.84     7.85
                      89                                8.28     8.27     8.27     8.17     8.15     8.16
                      90                                8.38     8.38     8.38     8.49     8.48     8.48
                      91                                8.48     8.48     8.48     8.83     8.82     8.83
                      92                                8.57     8.57     8.57     9.19     9.18     9.19
                      93                                8.65     8.64     8.65     9.58     9.56     9.57
                      94                                8.72     8.71     8.71    10.00     9.97     9.98
                      95                                8.78     8.77     8.77    10.45    10.40    10.42
                      96                                8.83     8.82     8.82    10.94    10.87    10.89
                      97                                8.87     8.86     8.86    11.48    11.38    11.41
                      98                                8.90     8.90     8.90    12.07    11.95    11.99
</TABLE>

* Adjusted age as defined in Section 10.A.

** The guaranteed fixed income amounts are based on a guaranteed annual
effective interest rate of [1.5%]

Dollar amounts of monthly, quarterly, semi-annual and annual installments not
shown in the above tables will be calculated on the same basis as those shown
and may be obtained from the Company (if the option is available based on
adjusted age as described in Section 10).

T1097                               Page 18

<PAGE>

                            Fixed Income Option 4 (a)
                 Monthly Installment For Joint and Full Survivor

<TABLE>
<CAPTION>
                                      Adjusted Age of Female Annuitant*
Adjusted Age  ----------------------------------------------------------------------------------
     of        15 Years    12 Years    9 Years     6 Years     3 Years                  3 Years
    Male      Less Than   Less Than   Less Than   Less Than   Less Than    Same As     More Than
 Annuitant*      Male       Male        Male        Male        Male         Male        Male
------------------------------------------------------------------------------------------------
     <S>      <C>         <C>         <C>         <C>         <C>         <C>         <C>
     50       $     2.20  $     2.27  $     2.34  $     2.41  $     2.48  $     2.55  $     2.62
     55             2.35        2.44        2.52        2.61        2.71        2.80        2.88
     60             2.54        2.64        2.76        2.88        2.99        3.11        3.23
     65             2.77        2.91        3.06        3.22        3.38        3.54        3.69
     70             3.08        3.26        3.46        3.67        3.89        4.11        4.33
     75             3.47        3.72        3.99        4.29        4.60        4.93        5.24
     80             4.01        4.35        4.74        5.17        5.62        6.08        6.53
     85             4.75        5.25        5.81        6.44        7.09        7.75        8.36
</TABLE>

             Monthly Installment For Unisex Joint and Full Survivor

<TABLE>
<CAPTION>
                                       Adjusted Age of Joint Annuitant*
Adjusted Age  ----------------------------------------------------------------------------------
     of        15 Years    12 Years    9 Years     6 Years     3 Years                 3 Years
    First     Less Than   Less Than   Less Than   Less Than   Less Than    Same As    More Than
 Annuitant*     First       First       First       First       First       First       First
------------------------------------------------------------------------------------------------
     <S>      <C>         <C>         <C>         <C>         <C>         <C>         <C>
     50       $     2.20  $     2.27  $     2.34  $     2.41  $     2.48  $     2.55  $     2.61
     55             2.36        2.44        2.53        2.62        2.70        2.79        2.87
     60             2.55        2.65        2.76        2.88        2.99        3.10        3.20
     65             2.79        2.92        3.07        3.22        3.37        3.52        3.66
     70             3.10        3.28        3.47        3.67        3.88        4.09        4.28
     75             3.50        3.75        4.02        4.30        4.60        4.89        5.16
     80             4.06        4.40        4.78        5.19        5.62        6.04        6.44
     85             4.83        5.32        5.87        6.47        7.10        7.71        8.28
</TABLE>

                            Fixed Income Option 4 (b)
 Monthly Installment For Joint and Full Survivor (Life with Emergency Cash (SM))

<TABLE>
<CAPTION>
                                      Adjusted Age of Female Annuitant*
Adjusted Age  ----------------------------------------------------------------------------------
     of        15 Years    12 Years    9 Years     6 Years     3 Years                  3 Years
    Male      Less Than   Less Than   Less Than   Less Than   Less Than    Same As     More Than
 Annuitant*      Male       Male        Male        Male        Male         Male        Male
------------------------------------------------------------------------------------------------
     <S>      <C>         <C>         <C>         <C>         <C>         <C>         <C>
     50       $     2.15  $     2.21  $     2.28  $     2.35  $     2.42  $     2.49  $     2.54
     55             2.28        2.36        2.45        2.53        2.62        2.70        2.77
     60             2.45        2.54        2.65        2.76        2.87        2.97        3.06
     65             2.64        2.77        2.90        3.04        3.18        3.31        3.42
     70             2.89        3.04        3.21        3.39        3.57        3.75        3.89
     75             3.19        3.39        3.61        3.84        4.08        4.30        4.47
     80             3.57        3.83        4.12        4.42        4.73        5.02        5.23
     85             4.06        4.41        4.78        5.17        5.57        5.98        6.23
</TABLE>

             Monthly Installment For Unisex Joint and Full Survivor
                         (Life with Emergency Cash (SM))

<TABLE>
<CAPTION>
                                       Adjusted Age of Joint Annuitant*
Adjusted Age  ----------------------------------------------------------------------------------
     of        15 Years    12 Years    9 Years     6 Years     3 Years                 3 Years
    First     Less Than   Less Than   Less Than   Less Than   Less Than    Same As    More Than
 Annuitant*     First       First       First       First       First       First       First
------------------------------------------------------------------------------------------------
     <S>      <C>         <C>         <C>         <C>         <C>         <C>         <C>
     50       $     2.15  $     2.22  $     2.28  $     2.35  $     2.42  $     2.49  $     2.54
     55             2.29        2.37        2.45        2.53        2.62        2.70        2.76
     60             2.45        2.55        2.65        2.76        2.87        2.97        3.05
     65             2.65        2.78        2.91        3.04        3.18        3.31        3.40
     70             2.90        3.06        3.22        3.40        3.57        3.74        3.86
     75             3.21        3.41        3.62        3.86        4.08        4.29        4.45
     80             3.60        3.86        4.14        4.44        4.73        5.02        5.21
     85             4.08        4.43        4.80        5.18        5.58        5.97        6.21
</TABLE>

*Adjusted age as defined in Section 10.A.

Dollar amounts of monthly, quarterly, semi-annual, and annual installments not
shown in the above tables will be calculated on the same basis as those shown
and may be obtained from the Company (if the option is available based on
adjusted age as described in Section 10).

TB1097                               Page 19

<PAGE>

                             VARIABLE INCOME OPTIONS
                      BASED ON ASSUMED INVESTMENT RETURN**

        The amounts shown in these tables are the initial payment amounts
  based on a [5.0%] assumed investment return for each $1,000 of the proceeds.

<TABLE>
<CAPTION>
                 Option 3-V (a)                Option 3-V (b)                Option 3-V  (c)
--------------------------------------------------------------------------------------------------
               Monthly Installment         Monthly Installment for    Monthly Installment for Life
           for Life No Period Certain       Life 10 Years Certain       With Emergency Cash (SM)
--------------------------------------------------------------------------------------------------
  Age*      Male     Female    Unisex     Male     Female    Unisex     Male     Female    Unisex
--------------------------------------------------------------------------------------------------
   <S>    <C>       <C>       <C>       <C>       <C>       <C>       <C>       <C>       <C>
   50     $   5.07  $   4.93  $   4.98  $   5.04  $   4.92  $   4.95  $   4.83  $   4.76  $   4.78
   51         5.13      4.99      5.03      5.09      4.96      5.00      4.87      4.80      4.82
   52         5.19      5.04      5.08      5.15      5.01      6.05      4.92      4.84      4.86
   53         5.26      5.10      5.14      5.21      5.07      5.11      4.96      4.88      4.91
   54         5.33      5.16      5.21      5.27      5.12      5.17      5.01      4.93      4.95
   55         5.40      5.22      5.27      5.34      5.18      5.23      5.06      4.98      5.00
   56         5.48      5.29      5.35      5.41      5.25      5.30      5.12      5.03      5.05
   57         5.57      5.36      5.42      5.49      5.32      5.37      5.18      5.08      5.11
   58         5.66      5.44      5.50      5.57      5.39      5.44      5.24      5.14      5.17
   59         5.75      5.52      5.59      5.66      5.47      5.52      5.31      5.20      5.23
   60         5.85      5.61      5.68      5.75      5.55      6.61      5.37      5.26      5.29
   61         5.97      5.70      5.78      5.85      5.63      5.70      5.45      5.33      5.37
   62         6.09      5.81      5.89      5.95      5.72      5.79      5.53      5.40      5.44
   63         6.21      5.91      6.00      6.06      5.82      5.89      5.61      5.48      5.52
   64         6.35      6.03      6.13      6.17      5.92      6.00      5.70      5.56      5.60
   65         6.50      6.16      6.26      6.29      6.03      6.11      5.79      5.65      5.69
   66         6.66      6.29      6.40      6.42      6.15      6.23      5.89      5.75      5.79
   67         6.83      6.43      6.55      6.55      6.27      6.36      6.00      5.85      5.89
   68         7.01      6.59      6.71      6.69      6.40      6.49      6.11      5.96      6.00
   69         7.21      6.76      6.89      6.83      6.54      6.63      6.23      6.07      6.12
   70         7.41      6.94      7.08      6.98      6.69      6.77      6.36      6.20      6.25
   71         7.63      7.14      7.28      7.13      6.84      6.93      6.49      6.33      6.38
   72         7.87      7.35      7.50      7.28      7.00      7.09      6.63      6.46      6.52
   73         8.12      7.58      7.74      7.45      7.17      7.25      6.78      6.62      6.66
   74         8.39      7.83      8.00      7.61      7.34      7.42      6.94      6.78      6.83
   75         8.68      8.11      8.28      7.78      7.52      7.60      7.11      6.95      7.00
   76         8.99      8.40      8.58      7.95      7.71      7.78      7.29      7.13      7.18
   77         9.32      8.72      8.90      8.12      7.90      7.97      7.47      7.33      7.36
   78         9.68      9.07      9.25      8.29      8.09      8.16      7.68      7.52      7.57
   79        10.06      9.45      9.63      8.47      8.29      8.34      7.88      7.74      7.79
   80        10.47      9.85     10.04      8.64      8.48      8.53      8.11      7.98      8.01
   81        10.91     10.30     10.48      8.80      8.67      8.71      8.34      8.23      8.26
   82        11.38     10.78     10.96      8.97      8.86      8.89      8.60      8.48      8.53
   83        11.88     11.30     11.47      9.12      9.04      9.06      8.84      8.75      8.77
   84        12.42     11.87     12.03      9.27      9.21      9.23      9.09      9.01      9.05
   85        12.99     12.48     12.63      9.41      9.37      9.38      9.35      9.31      9.32
   86                                       9.54      9.51      9.52
   87                                       9.67      9.65      9.65
   88                                       9.78      9.77      9.77
   89                                       9.89      9.86      9.88
   90                                       9.98      9.98      9.98
   91                                      10.07     10.07     10.07
   92                                      10.15     10.15     10.15
   93                                      10.22     10.22     10.22
   94                                      10.28     10.28     10.28
   95                                      10.34     10.28     10.28
   96                                      10.38     10.38     10.38
   97                                      10.42     10.42     10.42
   98                                      10.45     10.45     10.45
</TABLE>

*Adjusted age as defined in Section 10.A.

**The discount factor per day which corresponds to the assumed investment return
of [5.0%] is [.99986634.]

Dollar amounts of monthly, quarterly, semi-annual, and annual installments not
shown in the above tables will be calculated on the same basis as those shown
and may be obtained from the Company (if the option is available based on
adjusted age as described in Section 10).

H1428                                Page 20

<PAGE>

                         Variable Income Option 5-V (a)
                 Monthly Installment For Joint and Full Survivor

<TABLE>
<CAPTION>
                                      Adjusted Age of Female Annuitant*
              ----------------------------------------------------------------------------------
Adjusted Age   15 Years    12 Years    9 Years     6 Years     3 Years                  3 Years
  of Male     Less Than   Less Than   Less Than   Less Than   Less Than    Same As     More Than
 Annuitant*      Male       Male        Male        Male        Male         Male        Male
------------------------------------------------------------------------------------------------
     <S>      <C>         <C>         <C>         <C>         <C>         <C>         <C>
     50       $     4.37  $     4.42  $     4.46  $     4.51  $     4.56  $     4.62  $     4.67
     55             4.48        4.54        4.60        4.67        4.74        4.81        4.88
     60             4.62        4.70        4.79        4.88        4.98        5.08        5.18
     65             4.81        4.92        5.04        5.17        5.31        5.46        5.61
     70             5.07        5.23        5.40        5.59        5.79        6.00        6.22
     75             5.43        5.65        5.90        6.18        6.48        6.79        7.11
     80             5.94        6.26        6.63        7.04        7.49        7.95        8.40
     85             6.67        7.15        7.70        8.31        8.97        9.63       10.26
</TABLE>

             Monthly Installment For Unisex Joint and Full Survivor

<TABLE>
<CAPTION>
                                       Adjusted Age of Joint Annuitant*
              ----------------------------------------------------------------------------------
Adjusted Age   15 Years    12 Years    9 Years     6 Years     3 Years                 3 Years
  of First    Less Than   Less Than   Less Than   Less Than   Less Than    Same As    More Than
 Annuitant*     First       First       First       First       First       First       First
------------------------------------------------------------------------------------------------
     <S>      <C>         <C>         <C>         <C>         <C>         <C>         <C>
     50       $     4.38  $     4.42  $     4.47  $     4.51  $     4.56  $     4.61  $     4.66
     55             4.48        4.54        4.60        4.67        4.73        4.80        4.87
     60             4.63        4.70        4.79        4.88        4.97        5.07        5.16
     65             4.82        4.93        5.05        5.17        5.30        5.44        5.57
     70             5.09        5.24        5.41        5.59        5.78        5.97        6.16
     75             5.46        5.68        5.93        6.19        6.47        6.75        7.03
     80             5.99        6.31        6.67        7.07        7.48        7.90        8.30
     85             6.75        7.23        7.76        8.35        8.97        9.59       10.17
</TABLE>

*Adjusted age as defined in Section 10.A

                         Variable Income Option 5-V (b)
 Monthly Installment For Joint and Full Survivor (Life with Emergency Cash (SM))

<TABLE>
<CAPTION>
                                      Adjusted Age of Female Annuitant*
              ----------------------------------------------------------------------------------
Adjusted Age   15 Years    12 Years    9 Years     6 Years     3 Years                  3 Years
  of Male     Less Than   Less Than   Less Than   Less Than   Less Than    Same As     More Than
 Annuitant*      Male       Male        Male        Male        Male         Male        Male
------------------------------------------------------------------------------------------------
     <S>      <C>         <C>         <C>         <C>         <C>         <C>         <C>
     50       $     4.34  $     4.38  $     4.42  $     4.47  $     4.51  $     4.57  $     4.61
     55             4.43        4.48        4.54        4.60        4.67        4.74        4.79
     60             4.55        4.62        4.70        4.78        4.88        4.97        5.05
     65             4.71        4.80        4.91        5.03        5.16        5.30        5.41
     70             4.92        5.05        5.21        5.38        5.56        5.76        5.91
     75             5.21        5.40        5.61        5.86        6.12        6.40        6.61
     80             5.61        5.88        6.19        6.53        6.90        7.29        7.56
     85             6.16        6.54        6.98        7.46        7.95        8.41        8.76
</TABLE>

             Monthly Installment For Unisex Joint and Full Survivor
                         (Life with Emergency Cash (SM))

<TABLE>
<CAPTION>
                                       Adjusted Age of Joint Annuitant*
              ----------------------------------------------------------------------------------
Adjusted Age   15 Years    12 Years    9 Years     6 Years     3 Years                 3 Years
  of First    Less Than   Less Than   Less Than   Less Than   Less Than    Same As    More Than
 Annuitant*     First       First       First       First       First       First       First
------------------------------------------------------------------------------------------------
     <S>      <C>         <C>         <C>         <C>         <C>         <C>         <C>
     50       $     4.34  $     4.38  $     4.42  $     4.47  $     4.51  $     4.56  $     4.60
     55             4.43        4.48        4.54        4.60        4.67        4.73        4.78
     60             4.55        4.62        4.70        4.78        4.87        4.96        5.03
     65             4.71        4.81        4.92        5.03        5.16        5.29        5.38
     70             4.93        5.07        5.22        5.38        5.56        5.74        5.87
     75             5.23        5.42        5.63        5.87        6.12        6.38        6.56
     80             5.64        5.91        6.21        6.55        6.90        7.26        7.51
     85             6.21        6.58        7.02        7.48        7.97        8.41        8.74
</TABLE>

*Adjusted age as defined in Section 10.A

Dollar amounts of monthly, quarterly, semi-annual, and annual installments not
shown in the above tables will be calculated on the same basis as those shown
and may be obtained from the Company (if the option is available based on
adjusted age as described in Section 10).

J1428                                Page 21

<PAGE>

                              SECTION 11 - GENERAL PROVISIONS

THE CONTRACT
This policy, which includes any attached endorsements and riders, constitutes
the entire contract between you and us.

MODIFICATION OF POLICY
No change in this policy is valid unless made in writing by us and approved by
one of our authorized officers. No agent or registered representative has
authority to change or waive any provision of your policy.

TAX QUALIFICATION
This policy is intended to qualify as an annuity contract for federal income tax
purposes. The provisions of this policy are to be interpreted to maintain such
qualification, notwithstanding any other provisions to the contrary. To maintain
such tax qualification, we reserve the right to amend this policy to reflect any
clarifications that may be needed or are appropriate to maintain such tax
qualification or to conform this policy to any applicable changes in the tax
qualification requirements. We will send you a copy in the event of any such
amendment. If you refuse such an amendment it must be by giving us written
notice, and your refusal may result in adverse tax consequences.

NON-PARTICIPATING
This policy will not share in our profits or surplus.

AGE OR SEX CORRECTIONS
If the age or sex of the annuitant has been misstated, the benefits will be
those, which the premiums paid, would have purchased for the correct age and
sex. Any underpayment made by us will be paid with the next payment. Any
overpayment made by us will be deducted from future payments. Any underpayment
or overpayment will use the same interest rate (but not less than the Fixed
Account Guaranteed Minimum Annual Interest Rate shown on the Policy Data page)
and will include interest from the date of the incorrect payment to the date of
the adjustment.

INCONTESTABILITY
This policy shall be incontestable from the policy date.

EVIDENCE OF SURVIVAL
We have the right to require evidence satisfactory to us that a person was alive
if a payment is based on that person being alive. No payment will be made until
we receive the evidence of continued survival.

SETTLEMENT
Any payment by us under this policy is payable at our administrative office.

RIGHTS OF OWNER
Prior to the annuity commencement date, the owner may, while the annuitant is
living:

     1.   Assign this policy.
     2.   Surrender the policy to us.
     3.   Amend or modify the policy with our consent.
     4.   Name a payee to receive the payments.
     5.   Exercise, receive, and enjoy every other right and benefit contained
          in the policy.

The use of these rights may be subject to the consent of any assignee,
irrevocable beneficiary, and of the spouse in a community or marital property
state.

CHANGE OF OWNERSHIP
As permitted by law, you can change the owner of this policy by notifying us in
writing in a form and manner acceptable to us. When a change takes effect, all
rights of ownership in this policy will pass to the new owner.

A change of owner will not be effective until it is recorded in our records.
After it has been so recorded, the change will take effect as of the date you
signed the notice. However, if the annuitant dies before the notice has been so
recorded, it will not be effective as to those proceeds we have paid before the
change was recorded in our records.

We may require that the change be endorsed in the policy. Changing the owner
does not change the beneficiary or the annuitant.

A change of ownership may result in adverse tax consequences.

COMMUNITY OR MARITAL PROPERTY
Unless we are notified in accordance with applicable law of a community or
marital property interest in this policy, We are not bound by any such interest.

ANNUITY COMMENCEMENT DATE
The annuity commencement date is the date shown on the Policy Data page. In no
event can this date be later than the last day of the month following the month
in which the annuitant attains age 98. You may change the annuity commencement
date at any time by giving us 30 days' written notice.

ASSIGNMENT
Before the annuity commencement date, you may assign this policy as permitted by
law. The assignment must be in writing and filed with us. We assume no
responsibility for the validity of any assignment. Any claim made under an
assignment shall be subject to proof of interest and the extent of the
assignment.

Assignment of this policy may result in adverse tax consequences.

R407                                 Page 22

<PAGE>

                             SECTION 11 - CONTINUED

BENEFICIARY
Death proceeds, when payable in accordance with Section 9, are payable to the
designated beneficiary or beneficiaries. However, if there is a surviving
owner(s), the surviving owner(s) automatically takes the place of any
beneficiary designation. Prior to the annuitant's death, you may name or change
a beneficiary, without the beneficiary's consent (unless irrevocably designated
or required by law) at any time by notifying us in writing in a form and manner
acceptable to us. The change will take effect upon the date you sign it, whether
or not you are living when we receive it. The notice must have been postmarked
(or show other evidence of delivery that is acceptable to us) on or before the
date of the annuitant's death. Your most recent change of beneficiary notice
will replace any prior beneficiary designations in their entirety. No change
will apply to any payment we made before the written notice was received. If an
irrevocable beneficiary dies, you may designate a new beneficiary.

You may direct the manner of payment of death proceeds pursuant to the terms of
this policy, subject to applicable law. In the absence of such direction, the
beneficiary may elect the manner of payment or make an election of any option.

Only those beneficiaries living or in existence at the time of the annuitant's
death will be eligible to receive a share of the death proceeds. If both primary
and contingent beneficiaries have been named, payment will be made to the named
primary beneficiaries living or in existence at the time the death proceeds
become payable. Payment will be made to the named contingent beneficiaries only
if all primary beneficiaries have died before the death proceeds become payable.

If death proceeds are payable to more than one beneficiary and you failed to
specify their interest, they will share equally. If any beneficiary is alive at
the time the death proceeds become payable, but dies before receiving their
payment, their share will be paid to their estate.

PROTECTION OF PROCEEDS
The policy and payments under it will be exempt from the claims of creditors to
the extent permitted by law. Unless you so direct by filing written notice with
us, no beneficiary may assign any payments under this policy before the payments
are due. To the extent permitted by law, no payments under this policy will be
subject to the claims of creditors of any beneficiary.

DEFERMENT
We will pay any partial withdrawals or surrender proceeds from the separate
account within 7 days after all requirements have been met. However, it may
happen that the New York Stock Exchange is closed for trading (other than the
usual weekend or holiday closings), or the Securities and Exchange Commission
restricts trading or determines that an emergency exists. If so, it may not be
practical for us to determine the investment experience of the separate account.
In that case, we may defer transfers among the subaccounts and to the fixed
account, and determination or payment of partial withdrawals or surrender
proceeds.

When permitted by law, we may defer paying any partial withdrawals or surrender
proceeds from the fixed account for up to 6 months from the date we receive your
request. If the annuitant dies after the request is made, but before the request
is processed, the request will be processed before the death proceeds are
determined.

REPORTS TO OWNER
We will give you an annual report at least once each policy year. This report
will show the number and value of the accumulation units held in each of the
subaccounts as well as the value of the fixed account. It will also show the
death benefit, cash value, and any other facts required by law or regulation.
The report will be sent to you at the most current address we have recorded for
you.

RB407                                Page 23

<PAGE>

[LETTERHEAD OF TRANSAMERICA LIFE INSURANCE COMPANY]

                                      INDEX

                                                       Page

Accumulation Units ..................................     9
Adjusted Age ........................................    14
Adjusted Policy Value ...............................     4
Age or Sex Corrections ..............................    22
Annuity Commencement Date ...........................    22
Assignment ..........................................    22
Beneficiary .........................................    23
Cash Value ..........................................     5
Contract ............................................    22
Death Proceeds ......................................    12
Definitions .........................................     2
Dollar Cost Averaging Option ........................    11
Evidence of Survival ................................    22
Excess Interest Adjustment ..........................     5
Fixed Account .......................................    10
Guaranteed Minimum Death Benefit ....................    12
Guaranteed Periods ..................................    10
Guaranteed Return of Fixed Account
 Premium Payments ...................................     8

                                                       Page

Income Options ......................................    15
Income Option Tables ................................    18
Incontestability ....................................    22
Modification of Policy ..............................    22
Non-participating ...................................    22
Partial Withdrawals .................................     5
Payee ...............................................    14
Payment of Premiums .................................     4
Policy Data Page ....................................     3
Policy Value ........................................     4
Proof of Age ........................................    14
Protection of Proceeds ..............................    23
Right to Cancel .....................................     1
Rights of Owner .....................................    22
Separate Account ....................................     8
Service Charge ......................................     4
Settlement ..........................................    22
Surrender Charges ...................................     7
Transfers ...........................................    11

                   Flexible Premium Deferred Variable Annuity
                   Income Payable At Annuity Commencement Date
            Benefits Based On The Performance Of The Separate Account
Are Variable And Are Not Guaranteed As To Dollar Amount (See Sections 6 and 10C)
                                Non-Participating

Y1142

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]