Document:

Flexible Premium Variable Annuity

Contract - Nonparticipating

Insured 

         John Doe

Policy Number 

            123456789

Agency 

          0123

Annuity proceeds payable at
maturity date. Death proceeds payable in event of death of Annuitant prior to
maturity date. Flexible premiums payable until maturity date or prior death of
Annuitant.

The contract value of this contract may increase or decrease daily
depending on the investment experience of the subaccounts. There is no
guaranteed minimum contract value.

Kansas City Life Insurance Company will pay
the proceeds of this contract according to the provisions on this and the
following pages, all of which are part of this contract. This contract is a
legal contract between you and Kansas City Life Insurance Company. READ YOUR
CONTRACT CAREFULLY. 

Signed for Kansas City Life Insurance Company, a stock company, at its Home Office, 3520 Broadway, PO Box 219139, Kansas
City, MO 64121-9139.

/s/William A. Schalekamp                /s/R. Philip Bixby
      Secretary                              President

10-Day Right To Examine Contract

Please examine this contract carefully. If you are not satisfied, you
may return the contract to us or to your agent within 10 days of its receipt. If
returned, the contract will be void from the beginning and we will refund the
contract value as of the earlier of the date the returned contract is received
by us at our Home Office or the date the returned contract is received by the
Kansas City Life representative who sold you the contract. 

                      Guide to Contract Provisions
                                                                            Page
  Section 1.  Contract Data..................................................3
  Section 1.  Contract Data (Continued)......................................4
  Section 1.  Contract Data (Continued)......................................5
  Section 1.  Contract Data (Continued)......................................6
  Section 2:  Definitions....................................................7
  Section 3:  Proceeds.......................................................8
  Section 4:  Premiums.......................................................9
  Section 5:  Contract Values................................................9
  Section 6: Other Contract Provisions......................................10
           6.1  Contract....................................................10
           6.2  Authority to Change Contract................................10
           6.3  Modifications...............................................10
           6.4  Incontestability............................................11
           6.5  Age and Sex.................................................11
           6.6  Option to Change Maturity Date..............................11
           6.7  Contract Termination........................................11
           6.8  Contract Loans..............................................11
           6.9  Nonparticipating............................................11
           6.10  Annual Report..............................................11
           6.11  Basis of Computation.......................................11
  Section 7:  Control of Contract...........................................11
  Section 8:  Variable Account..............................................12
  Section 9:  Transfers.....................................................13
  Section 10:  Payment of Proceeds..........................................14

A copy of the original
application and any additional benefits provided by rider or endorsement follow
the last page of this contract. 

Section 1.  Contract Data

BENEFICIARY

        As
stated in the application or in any subsequent agreements, amendments, or
endorsements. 

OWNER

        
     The Annuitant

ISSUE AGE

        
     35

SEX

        
     Male

CONTRACT NUMBER

        
     9999999

ANNUITANT

        
     John Doe

CONTRACT DATE

        
     July 01, 2002

MATURITY DATE

        
     July 01, 2032

MONTHLY LIFE INCOME FACTOR

        
     $5.65 per $1,000 of maturity proceeds

GUARANTEED PAYMENT PERIOD

        
     120 Months

Section 1.  Contract Data (Continued)

                                             DATE PREPARED:         07/01/2002

    ANNUITANT                                CONTRACT NUMBER
      John Doe                                  9999999

                                                ANNUAL      PREMIUMS
FORM NO.          BENEFIT DESCRIPTION           AMOUNT      PAYABLE
---------      -------------------------      -----------   ------
J159          Flexible Premium                 $25,000      To age 65*
              Variable Annuity Contract
              Nonparticipating

              TOTAL ANNUAL PREMIUM            $25,000

*  Premiums are payable according to the flexible premium provision of this contract.

Section 1.  Contract Data (Continued)

                                       DATE PREPARED:             07/01/2002

    ANNUITANT                          CONTRACT NUMBER
      John Doe                            9999999

EXPENSE CHARGES

        
     MORTALITY AND EXPENSE RISK CHARGE

        
     [1.40%] (on an annual basis) of the average daily net assets of the variable account.

        
     ASSET-BASED ADMINISTRATION CHARGE

        
     [0.25%] (on an annual basis) of the average daily net assets of the variable account.

Section 1.  Contract Data (Continued)

                                     DATE PREPARED: 07/01/2002

     ANNUITANT                       CONTRACT NUMBER
       John Doe                         9999999

Investment Options

[KCL Fixed Account

        
   Subaccounts that invest in the Kansas City Life Variable Annuity Separate Account:

               MFS Emerging Growth Series
               MFS Research Series
               MFS Total Return Series
               MFS Utilities Series
               MFS Strategic Income Series
               MFS Bond Series
               American Century VP Capital Appreciation
               American Century VP Income & Growth
               American Century VP International
               American Century VP Value
               Federated American Leaders Fund II
               Federated High Income Bond Fund II
               Federated International Small Company Fund II
               *Federated Prime Money Fund II
               Dreyfus Appreciation Portfolio
               Dreyfus Small Cap Portfolio
               Dreyfus Stock Index Fund
               The Dreyfus Socially Responsible Growth Fund, Inc.
               JPMorgan U.S. Disciplined Equity Portfolio
               JPMorgan Small Company Portfolio
               Franklin Real Estate Fund (Class 2)
               Franklin Small Cap Fund (Class 2)
               Templeton Developing Markets Securities Fund (Class 2)
               Templeton Foreign Securities Fund (Class 2)
               Calamos Convertible Portfolio
               AIM V.I. Dent Demographic Trends Fund
               AIM V.I. New Technology Fund
               AIM V.I. Premier Equity Fund
               Seligman Capital Portfolio (Class 2)
               Seligman Communications and Information Portfolio (Class 2)

        *
The Federated Prime Money Fund II subaccount is referred to in this contract as
the money market subaccount.] 

Section 2:  Definitions

The following key words are
used in this contract and are important in describing it. Please refer back to
these definitions as you read this contract. 

2.1  Accumulation Unit

An accounting unit used to
calculate the variable account value. It is a measure of the net investment
results of each of the subaccounts. 

2.2  Age

The age on the
Annuitant’s last birthday as of each contract anniversary. This contract is
issued at the age last birthday shown in Section 1, Contract Data. If the
contract date falls on the birthday of the Annuitant, the age will be the age
the Annuitant reaches on the contract date. 

2.3  Allocation Date

The date on which the
initial net premium is allocated to the money market subaccount(s). This date is
the later of the date when all requirements are met and your application is
approved, or the date we receive the initial premium at the Home Office. 

2.4  Annuitant

The person on whose life the annuity benefit for this contract is based.

2.5  Asset-Based Administration Charge

A percentage charge we
deduct on a daily basis from the assets of the subaccounts to compensate us for
the costs associated with administration of the contract. 

2.6  Beneficiary

The person you have
designated in the application (or in the last beneficiary designation filed with
us) to receive any proceeds payable under this contract at the death of the
Annuitant or owner. 

2.7  Cash Surrender Value

Equals the contract value
at the time of surrender less any loan balance and any premium taxes payable. 

2.8  Contract Anniversary

The same day and month as the
contract date each year that the contract remains in force. 

2.9  Contract Date

The date from which we compute contract months, years and anniversaries.

2.10  Contract Value

The sum of the variable
account value and the fixed account value. These values are described in more
detail in Section 5, Contract Values. 

2.11  Contract Year

Any period of twelve months
starting with the contract date and each contract anniversary thereafter. 

2.12  Fixed Account

An account that is part of
our general account. The investment performance of the variable account has no
impact on the fixed account. 

2.13  Fixed Account Value

The contract value in the fixed account.

2.14  Maturity Date

The date shown in Section
1, Contract Data, when we will apply the contract value under a life payment
option (unless you have elected to receive the cash surrender value as a lump
sum payment or under a non-life payment option). For qualified and non-qualified
contracts, the latest maturity date is the later of the contract anniversary
following the Annuitant’s 85th birthday or the tenth anniversary of the
contract. However, qualified contracts may be required to begin distributions at
age 70 1/2. 

2.15  Mortality and Expense Risk Charge

A charge we deduct from the
assets of the subaccounts to compensate us for the mortality and expense risks
for the contract. We show this charge in Section 1, Contract Data. 

2.16  Net Investment Factor

The ratio of the subaccount
performance of the current valuation day to the immediately prior valuation day.
The subaccount performance includes gains or losses in the subaccounts,
dividends paid, any capital gains or losses, any taxes attributable to gains or
losses in funds underlying the subaccount, mortality and expense risk charges,
and asset-based administration charges. 

2.17  Owner

The person entitled to exercise all rights and privileges provided in the contract.

2.18  Premium Year

The 12 month period
following the date we credit a particular premium to your contract. 

2.19  Proceeds

The total amount we are obligated to pay under the terms of this contract.

2.20  Subaccounts

The division of accounts
making up the variable account. The assets of each subaccount are invested in a
corresponding portfolio of a designated mutual fund. The subaccounts are shown
on page 6 of the contract. 

2.21  Valuation Day

Each day on which the New York Stock Exchange is open for business.

2.22  Valuation Period

The interval of time
commencing at the close of business on one valuation day and ending at the close
of business on the next valuation day. 

2.23  Variable Account

The Kansas City Life
Variable Annuity Separate Account. This is not part of our general account. The
variable account has subaccounts each of which is invested in a corresponding
portfolio of a designated mutual fund. 

2.24  Variable Account Value

The total value of a contract allocated to subaccounts of the variable account.

2.25  We, Our, Us

Kansas City Life Insurance Company.

2.26  Written Notice

A written notice or written
request in a form satisfactory to us, which is signed by the owner and received
at the Home Office. 

2.27  You, Your

The owner of this contract. The owner may be someone other than the Annuitant.

Section 3:  Proceeds

3.1  Types of Proceeds and Method of Payment

There are various types of proceeds available under this contract. These include:

(1)          Maturity proceeds

(2)          Death proceeds

(3)          Surrender proceeds

(4)          Partial surrender proceeds

We will pay maturity, death
or surrender proceeds either under a payment option (as described in Section 10,
Payment of Proceeds) or in a lump sum. The amount of proceeds payable will vary
by the type of proceeds and the form of payment selected. We will only pay
partial surrender proceeds as a lump sum or under the Systematic Partial
Surrender Plan described in Section 5.7. 

We have the right to
require that this contract be returned to us when maturity, surrender or death
proceeds are paid. 

To the extent permitted by
law, proceeds will not be subject to any claims of your creditors or the
beneficiary’s creditors. 

3.2  Maturity Proceeds

On the maturity date we will pay the maturity proceeds to the Annuitant, if living.

The maturity proceeds will
be equal to the cash surrender value as described in Section 5.5. 

If you fail to make another
selection of a payment option or lump sum payment, we will apply the contract
value under payment option 4 with an installment refund option of 120 months.
This means that the monthly payments will continue for a minimum of 120 months
and as long thereafter as the Annuitant lives. If the Annuitant dies before
receiving a total of 120 monthly payments, we will continue to make monthly
payments to the beneficiary until a total of 120 payments have been made. The
beneficiary may elect in writing to receive the present value of any remaining
guaranteed payments in a single sum. 

3.3  Death Proceeds

If the Annuitant dies
before the maturity date, the beneficiary will receive a death benefit. The
proceeds payable will be the guaranteed minimum death benefit. The guaranteed
minimum death benefit will be the greater of: 

(1)          the premiums paid less a proportional adjustment of partial surrenders and less any loan balance; or

(2)          contract value at the time of death less any loan balance; or

(3)          the highest contract value as of each fifth year contract anniversary during any
point the contract has been effect on or before the Annuitant’s death. Any
loan balance will be deducted from such contract value and the contract value
will also be proportionately adjusted for partial surrenders plus any additional
premiums paid.

The guaranteed minimum
death benefit at ages above 80 will equal the greater of the contract value at
the time of death or the guaranteed minimum death benefit as of the contract
anniversary on which the Annuitant attains age 80 proportionately adjusted for
partial surrenders less any loan balance plus any additional premiums paid. 

We will pay interest on
single sum death proceeds from the date of the Annuitant’s death until the
date of payment. Interest will be at an annual rate determined by us, but never
less than the rate required by the state in which this contract is delivered. 

3.4  Surrender Proceeds

We will pay proceeds of a
full surrender as either a lump sum or under a payment option as described in
Section 10, Payment of Proceeds. Unless you specify otherwise, we will pay full
surrender proceeds as a lump sum. Surrender proceeds will be equal to the cash
surrender value as described in Section 5.5. 

The amount of proceeds
payable under the Partial Surrender Provision is defined in Section 5.6. We will
only pay out partial surrender proceeds as a lump sum or under the Systematic
Partial Surrender Plan described in Section 5.7. 

3.5  Proceeds Applied under Payment Options

If you elect to receive
proceeds under a payment option as described in Section 10, we may require proof
that the Annuitant is living. 

If you choose to receive a
life income (payment options 4 or 5), this life income will be purchased using
the applicable monthly life income factor shown in Section 10. If the pay out
rates in use by us at the time proceeds become payable are more favorable than
those shown in Section 10, we will provide a life income using the more
favorable rates. 

Once a monthly life income
(payment options 4 or 5 as described in Section 10) becomes payable, you may not
make any election regarding payment of the proceeds other than the right to
change the beneficiary or contingent payee. 

Section 4:  Premiums

4.1  Flexible Premium Provision

You must pay your first
premium when the contract is delivered. Subsequent premiums may be paid at any
time while the contract is in force prior to the maturity date. These premiums
may vary in amount at your option except that we have the right to require that
the premium payment be at least $50. 

All premiums after the
first are payable at the Home Office or to a representative authorized to
receive premiums. We will furnish a receipt upon request. 

We require that the initial
premium under this contract be at least $25,000. Additional premiums may be
paid. We have the right to limit the number and amount of additional premium
payments. 

4.2  Nonpayment of Premiums

If premiums for this
contract cease, we will continue the contract subject to Section 6.7, Contract
Termination. The monthly income payable on the maturity date will be as
described in Section 3.2, Maturity Proceeds. 

Section 5:  Contract Values

5.1  Contract Value

On the contract date the contract value equals the initial premium paid.

On any day after the
contract date the contract value is equal to the fixed account value plus the
variable account value. 

5.2  Fixed Account Value

On the contract date the
fixed account value is equal to the portion of the premium allocated to the
fixed account. 

On each valuation day the fixed account value will be equal to:

                         A + B + C - D - E

“A” is the fixed
account value on the preceding valuation date plus interest from the preceding
valuation day to the date of calculation. 

“B” is the
portion of the premiums allocated to the fixed account and received since the
preceding valuation day, plus interest from the date we receive such premiums to
the date of calculation. 

“C” is the amount
of any transfers from the subaccounts to the fixed account, plus interest on
such transferred amounts from the effective dates of such transfers to the date
of calculation. 

“D” is the amount
of any transfers from the fixed account to the subaccounts since the preceding
valuation day, plus interest on such transferred amount from the effective dates
of such transfers to the date of calculation. 

“E” is the amount
of any partial surrenders from the fixed account since the preceding valuation
period, plus interest on these surrendered amounts from the effective date of
the partial surrenders to the date of calculation. 

5.3  Interest Rate for Fixed Account Value

The value in the fixed
account is guaranteed to accumulate at a minimum effective annual interest rate
of 3%. We may credit a rate in excess of 3% while the contract is in force and
before the maturity proceeds have been paid. 

We may change the interest
rate credited to new deposits at any time. We will not change the interest rate
credited to funds in the fixed account more often than once each year. 

5.4  Variable Account Value

The variable account value
is the sum of the values of the subaccounts under this contract. 

On the contract date the value of each subaccount equals:

(1)          the portion of the initial premium allocated to the subaccount; less

(2)        
the portion of the mortality and expense risk charges and asset-based
administration charge allocated to the subaccounts. 

5.5  Cash Surrender

You may surrender this
contract for its cash surrender value at any time before the earlier of: 

(1)          your death;

(2)          the Annuitant's death; or

(3)          the maturity date.

The cash surrender value of this contract is:

(1)          the contract value of this contract at the time of surrender; less

(2)          any loan balance; less

(3)          any premium taxes payable.

To surrender the contract
you must submit a written request to us. We have the right to require that the
contract be returned to us as well. We will determine the cash surrender value
on the date we receive these requirements. 

We will pay the cash
surrender value in a lump sum unless you request payment under a payment option. 

Certain federal income tax
consequences may apply to a cash surrender of the contract. You should consult
your tax advisor before requesting a surrender. 

5.6  Partial Surrender

You may make a partial surrender at any time before the earlier of:

(1)          the death of the Annuitant;

(2)          the death of the Owner; or

(3)          the maturity date.

We will surrender the
amount requested from the contract value on the day we receive written notice
for the surrender. You may specify the specific amount to be surrendered from
certain subaccounts or the fixed account. 

The minimum distribution
requested must be for at least $100. We will pay partial surrender proceeds in a
lump sum. 

We will pay you the amount
requested and cancel units equal to the amount surrendered from the subaccounts
and/or the fixed account according to your instructions. In the event that the
amount to be surrendered exceeds the subaccount(s) value and/or the fixed
account value, we will process the surrender for the amount available and
contact you for further instructions. 

We may also permit partial
surrenders by telephonic or other forms of request, subject to the
administrative procedures, limitations, and conditions applicable at the time of
the request. 

Certain federal income tax
consequences may apply to partial surrenders from the contract. You should
consult your tax advisor before requesting any partial surrenders. 

5.7  Systematic Partial Surrender

The systematic partial
surrender plan enables you to pre-authorize a periodic exercise of the partial
surrender right. If you enter into this plan, you may instruct us to surrender a
requested dollar amount from the contract on a monthly, quarterly, semi-annual
or annual basis. 

The minimum distribution requested must be at least $100.

We will pay you the amount
requested and cancel units equal to the amount surrendered from the subaccounts
and/or the fixed account according to your instructions. In the event that the
amount to be surrendered exceeds the subaccount(s) value and/or the fixed
account value, we will process the surrender for the amount available and
contact you for further instructions. 

Systematic partial
surrenders may be discontinued by you at any time upon written request to us at
our Home Office. 

Certain federal income tax
consequences may apply to systematic partial surrenders from the contract.
Therefore, you should consult with your tax advisor before requesting any
systematic partial surrenders. 

5.8  Time Period for Payment

We will normally pay out
any partial surrender, cash surrender value or death benefit within seven days
of receiving your written request or receipt and filing of due proof of death
(including any documents we require to process and make the payment). However,
we have the right to suspend or delay the date of any surrender, partial
surrender or death benefit payment from the subaccounts for any period during
which: 

(1)        
the New York Stock Exchange is closed, other than customary weekend and holiday
closings, or trading on the New York Stock Exchange is restricted as determined
by the Securities and Exchange Commission; or

(2)          the Securities and Exchange Commission permits by an order the postponement for the protection of contract owners; or

(3)        
The Securities and Exchange Commission determines that an emergency exists that
would make the disposal of securities held in the variable account or the
determination of the value of the variable account’s net assets not
reasonably practicable.

For any surrender, partial
surrender or transfer from the fixed account, we have the right to postpone
making a payment to you up to six months from the date of written notice. If
payment is not made within 30 days after receipt of documentation necessary to
complete the transaction (or such shorter period required by a particular
jurisdiction), we will add interest to the amount paid from the date we receive
documentation at 3% (or such higher rate required for a particular state). 

Section 6: Other Contract Provisions

6.1  Contract

This contract and
application are the entire contract. This contract is issued in consideration of
the application and payment of the premiums. We will attach a copy of the
application when we issue the contract. In the absence of fraud, all statements
made in the application either by you or by the Annuitant will be considered
representations and not warranties. We may use statements to contest a claim or
the validity of this contract only if they are contained in the application. 

6.2  Authority to Change Contract

No change or waiver of any
provisions of this contract will be valid unless made in writing by us and
signed by our President, Vice President, Secretary or Assistant Secretary. No
agent or other person has authority to change or waive any provision of your
contract. 

6.3  Modifications

Upon notice to you, we may
modify the contract, but only if such modification is necessary to: 

(1)          make the contract or the variable account comply with any law or regulation  issued by a governmental  agency to which
     we are subject; or

(2)        
assure continued qualification of the contract under the Internal Revenue Code
or other federal or state laws relating to retirement annuities or variable
annuity contracts; or

(3)          reflect a change in the operation of the variable account; or

(4)          provide additional variable account and/or fixed accumulation options.

We have the right to modify
the contract as necessary to attempt to prevent the contract owner from being
considered the owner of the assets of the variable account. 

In the event of any such
modification, we will issue an appropriate endorsement to the contract, if
required. 

6.4  Incontestability

After this contract has
been in force during the Annuitant’s lifetime for two years from the
contract date, we cannot contest this contract except for the nonpayment of
premiums. 

6.5  Age and Sex

This contract is issued at
the Annuitant’s age shown in Section 1, Contract Data. If the contract date
falls on the birthday of the Annuitant, the age will be the age the Annuitant
reaches on the contract date. 

If the Annuitant’s age
or sex has been incorrectly stated, the benefits under this contract will be
those the proceeds applied would have purchased for the correct age and sex. 

If the incorrect statement is not discovered until after payments have begun:

(1)          any overpayment by us will be deducted from the next succeeding payment or payments as they fall due; or

(2)          any underpayment by us will be paid in one sum to the Annuitant.

In either case, interest
will be payable at the rate of 3% per year compounded annually. 

6.6  Option to Change Maturity Date

You may elect a new
maturity date at any time by making a written notice to us subject to the
following limitations: 

(1)          we must receive your written notice at least 30 days before the current maturity date;

(2)         the requested maturity
date must be a date that is at least 30 days after we receive your written
notice; 

(3)        
the requested maturity date cannot exceed the later of the contract anniversary
following the Annuitant’s 85th birthday, or the tenth anniversary of the
contract; and

(4)         the requested maturity
date must be no later than any earlier maturity date required by law. 

We may require that the contract be submitted for endorsement to show the change.

If you elect a new maturity
date, the monthly life income factor will be as shown in Table B of Section 10,
Payment of Proceeds. 

6.7  Contract Termination

We have the right to
terminate this contract and pay the cash surrender value if all of the following
occur simultaneously: 

(1)          no premiums have been paid for at least two years;

(2)          the contract value is less than $2,000; and

(3)          the total premiums paid, less any partial surrenders, is less than $2,000.

We will mail notice to you
of our intention to terminate the contract at least six months in advance. We
have the right to terminate on the date specified in the notice, unless: 

(1)          we receive an additional premium payment before the termination date specified in the notice; or

(2)          the contract value has increased to the amount specified above.

This additional premium
payment must be for at least the minimum premium amount we will accept. 

6.8  Contract Loans

If your contract has been
purchased as a tax sheltered annuity as described in Section 403(b) of the
Internal Revenue Code, as amended, that is not part of a plan that is subject to
the Employee Retirement Income Security Act of 1974, you will have the option of
taking a contract loan at any time after the first contract year. If your
contract has been purchased in this tax sheltered market, an endorsement
attached to this contract will detail the loan requirements. 

6.9  Nonparticipating

This contract will not participate in any of our profits, losses or surplus earnings.

6.10  Annual Report

At least annually we will send you a report showing the following:

(1)          the contract value;

(2)          the cash surrender value; and

(3)          any other information required by law or regulation.

Upon receiving your written
notice, we will send you a report at any other time during the year for a
reasonable charge as determined by us. 

6.11  Basis of Computation

Our calculation of
guaranteed fixed account values are based on an interest rate of 3% per year.
The reserves and guaranteed fixed account values will at no time be less than
the minimum required by law of the state in which this contract is delivered. 

Section 7:  Control of Contract

7.1  Ownership

The Annuitant is the owner
unless otherwise provided in the application. As owner, you may exercise every
right provided by your contract. These rights and privileges end at the
Annuitant’s death. 

The consent of the
beneficiary is required to exercise these rights if you have not reserved the
right to change the beneficiary. 

7.2  Change of Ownership

You may change the
ownership of this contract by giving written notice to us. The change will be
effective on the date your written notice was signed but will have no effect on
any payment made or other action taken by us before we receive it. We may
require that the contract be submitted for endorsement to show the change. 

Certain federal income tax
consequences may apply to a change of ownership on non-qualified contracts. You
should consult with your tax advisor before requesting any change of ownership
on a non-qualified contract. 

7.3  Assignment

An assignment is a transfer
of some or all of your rights under this contract. No assignment will be binding
on us unless made in writing and filed at our Home Office. We assume no
responsibility for the validity or effect of any assignment. 

Certain federal income tax
consequences may apply to an assignment. You should consult with your tax
advisor before requesting any assignment. 

7.4  Beneficiary

The beneficiary is shown on
the application or in the last beneficiary designation filed with us. Death
proceeds will be paid to the beneficiary except as provided in this Section. 

If any beneficiary dies
before the Annuitant, that beneficiary’s interest will pass to any other
beneficiaries according to their respective interest. 

If all beneficiaries die
before the Annuitant, we will pay the death proceeds to you, if living,
otherwise to your estate or legal successors. 

Unless you have waived the
right to do so, you may change the beneficiary by filing a written notice in a
form satisfactory to us. In order to be effective, the written notice for change
of beneficiary must be signed while your contract is in force and the Annuitant
is living. The change will be effective on the date your written notice was
signed but will have no effect on any payment made or other action taken by us
before we receive it. 

The interest of any beneficiary will be subject to:

(1)          any assignment of this contract which is binding on us; and

(2)          any optional settlement agreement in effect at the Annuitant's death.

7.5  Simultaneous Death of Beneficiary and Annuitant

We will pay death proceeds as though the beneficiary died before the Annuitant if:

(1)          the beneficiary dies at the same time as or within 15 days of the Annuitant's death; and

(2)          we have not paid the proceeds to the beneficiary within this 15-day period.

Section 8:  Variable Account

8.1  General Description

The name of the variable
account is the Kansas City Life Variable Annuity Separate Account. The income,
gains and losses, (whether or not realized), from assets allocated to the
variable account are credited or charged against the variable account without
regard to our other income, gains or losses. The portion of the assets of the
variable account equal to the reserves and other contract liabilities with
respect to the variable account will not be chargeable with liabilities arising
out of any other business we may contract. 

The assets of the variable
account are segregated by investment options, thus establishing a series of
subaccounts within the variable account. 

When permitted by law, we have the right to:

(1)          create new variable accounts;

(2)          combine variable accounts;

(3)          remove, close, combine or add subaccounts and make the new subaccounts available to you at our discretion;

(4)          substitute shares of another portfolio of the funds or shares of another investment company for those of the funds;

(5)          add new portfolios to the funds;

(6)          de-register the variable account under the Investment Company Act of 1940 if registration is no longer required;

(7)          make any changes required by the Investment Company Act of 1940; and

(8)        
operate the variable account as a managed investment company under the
Investment Company Act of 1940 or any other form permitted by law.

If a change is made, we
will send you a revised prospectus and any notice required by law. If required,
we would first seek the approval of the Securities and Exchange Commission, and
when required, the appropriate state regulatory authorities before making a
change in the investment options. 

8.2  Subaccounts

The subaccounts are
separate investment accounts. They are named in Section 1, Contract Data. The
assets of each subaccount are invested in a corresponding portfolio of a
designated mutual fund. 

Subaccount values will
fluctuate in accordance with the investment experience of the applicable
portfolio of the fund held within the subaccount. 

The subaccount value is
equal to the number of accumulation units credited to the subaccount times the
appropriate accumulation unit value. 

The number of accumulation
units to be purchased or redeemed in a transaction is found by dividing: 

(1)          the dollar amount of the transaction; by

(2)          the subaccount's unit value for the valuation period for that transaction.

The number of units in any subaccount
will be increased at the end of the valuation period by: 

(1)         any premiums allocated to the subaccount during the current valuation period; and

(2)         any transfers to the
subaccount from another subaccount or from the fixed account during the current
valuation period. 

The number of units in any
subaccount will be decreased at the end of the valuation period by: 

(1)          any amounts transferred from the subaccount to another subaccount or the fixed account; and

(2)          amounts surrendered during the current valuation period.

The value of an
accumulation unit for each of the subaccounts was arbitrarily set at $10 when
the first investments were bought. The value for any later valuation period is
equal to: 

                                      A x B

“A” is equal to
the subaccount’s accumulation unit value for the end of the immediately
preceding valuation day. 

“B” is equal to the net investment factor for the most current valuation day.

The net investment factor equals:

   X -   Z
   Y

“X”
 equals the sum of:

(1)          the net asset value per accumulation unit held in the subaccount at the end of the current valuation day; plus

(2)        
the per accumulation unit amount of any dividend, or capital gain distribution
on shares held in the subaccount during the current valuation day; less

(3)        
the per accumulation unit amount of any capital loss distribution on shares held
in the subaccount during the current valuation day; less

(4)        
the per accumulation unit amount of any taxes or any amount set aside during the
valuation day as a reserve for taxes attributable to gains or losses in funds
underlying the subaccount.

“Y” equals the
net asset value per accumulation unit held in the subaccount as of the end of
the immediately preceding valuation day. 

“Z” equals the
charges deducted from the subaccount on each valuation period for the
asset-based administration charge and the mortality and expense risk charge. 

The value of the subaccount may increase, decrease or remain the same.

8.3  Allocations

This contract provides
investment options for the amount in the contract value. We allocate amounts
placed in the contract value to the subaccounts of the variable account and to
the fixed account at your direction. The initial premium allocation percentages
are indicated in the application for this contract. 

These percentages will also
apply to subsequent premium allocations until you change them. Such allocation
percentages may be changed by written notice. 

Allocation percentages must
be zero or a whole number not greater than 100. The sum of the premium
allocation percentages must equal 100. 

We have the right to limit
the number of subaccount allocations in effect at any one time. 

8.4  Deductions made from Subaccounts

We deduct the mortality and
expense risk charge and the asset-based administration charge from each of the
subaccounts on each valuation day. These charges are shown in Section 1,
Contract Data. 

Section 9:  Transfers

9.1  Transfer Fees

You may make a total of six
transfers per year from the subaccounts and the fixed account free of charge.
However, you may make only one transfer from the fixed account each contract
year. Any unused free transfers do not carry over to the next contract year. We
will charge a $25 transfer fee on any additional transfers during a contract
year. For the purpose of assessing a fee, we consider each written request or
telephone request to be one transfer. We will deduct the processing fee from the
amount being transferred, or from the remaining contract value, according to
your instructions. 

9.2  Transfers from Subaccounts

After the 10-day right to
examine period and prior to the maturity date, you may transfer all or a part of
an amount from the value in any subaccount of the variable account to one or
more of the subaccounts of the variable account or to the fixed account. The
minimum amount that you may transfer is the lesser of: 

(1)          $250; or

(2)          the total value in that subaccount on that date.

We will treat any transfer
that would reduce the amount in a subaccount below $250 as a transfer request
for the entire amount in that subaccount. 

A transfer fee may apply as described in Section 9.1, Transfer Fees.

An excessive number or
amount of transfers, including short-term “market timing” transfers,
may adversely affect the performance of the underlying fund in which a
subaccount invests and/or may not be in the best interests of other contract
owners. If, in our sole opinion, a pattern of excessive transfers develops or a
transfer is not in the best interests of one or more other contract owners, we
have the right not to process a transfer request or apply limitations or
modifications to transfers to or from one or more of the subaccounts. These
limitations or modifications may include (but are not limited to) any of the
following: 

(1)          the requirement of a minimum time period between each transfer;

(2)         not accepting a
transfer request from a third party acting under authorization on behalf of more
than one owner; 

(3)          limiting the dollar amount that may be transferred between the subaccounts by an owner at any one time; and

(4)         requiring that a
written transfer request be provided to us at our Home Office, signed by an
owner. 

We also have the right not
to process a transfer request when the sale or purchase of shares of a fund is
not reasonably practicable due to actions taken or limitations imposed by the
fund. 

We may suspend or modify this transfer privilege at any time.

9.3  Transfers from the Fixed Account

At your request you may
also transfer an amount from the unloaned value in the fixed account to one or
more subaccounts of the variable account. We must receive the request in writing
or other form acceptable to us. You may make only one transfer from the fixed
account each contract year. 

We will not transfer more
than 25% of the unloaned fixed account value, unless the balance after the
transfer is less than $250, in which case the entire amount will be transferred. 

A transfer fee may apply as described in Section 9.1, Transfer Fees.
 

We may suspend or modify this transfer privilege at any time.
 

Section 10:  Payment of Proceeds

10.1  Payment Options

You may apply death
benefit, maturity or full surrender proceeds of $2,000 or more to any of the
following options: 

	 	Option 1.  Interest Payments
	 	
We
will make guaranteed interest payments to the payee annually or monthly as
elected. We will pay interest on the proceeds at the guaranteed rate of 3.0% per
year and this may be increased by additional interest paid annually. The
proceeds and any unpaid interest may be withdrawn in full at any time.

	 	
     Option 2.  Installments of a Specified Amount

	 	
We
will make annual or monthly payments until the proceeds plus interest are fully
paid. We will pay interest on the proceeds at the guaranteed rate of 3.0% per
year and this may be increased by additional interest.

	 	

     Option 3.  Installments for a Specified Period

	 	
Payment
of the proceeds may be made in equal annual or monthly payments for a specified
number of years. We will pay interest on the proceeds at the guaranteed rate of
3.0% per year and this may be increased by additional interest. The amount of
each payment is shown in Table A.

	 	

     Option 4.  Life Income

	 	

We
will pay an income during the payee’s lifetime. A minimum guaranteed
payment period may be chosen. We will continue payments under the Installment
Refund option until the total income payments paid equal the proceeds applied.
The amount of each payment is shown in Table B.

	 	

     Option 5.  Joint and Survivor Income

	 	
We
will pay an income during the lifetime of two persons and will continue to pay
the same income as long as either person is living. The minimum guaranteed
payment period will be ten years. The amount of each payment is shown in Table
C.

If the payout rates in use
by us at the time proceeds become payable are more favorable than those shown in
options 4 and 5, we will provide a life income using the more favorable rates. 

These options are supported
by our general account. The payments will not reflect the investment experience
of the variable account. 

10.2  Payee

The payee is the person
receiving proceeds under a payment option. The payee can be you, the Annuitant
or a beneficiary. We will require satisfactory proof of the payee’s age
under options 4 and 5. 

The contingent payee is the
person named to receive proceeds if the payee is not alive. 

10.3  Minimum Payments

The payment under any
payment option must be at least $50. We may make payments less frequently so
that each payment is at least $50. 

10.4  Choice of Options

You may choose an option by
written notice during the Annuitant’s lifetime. If an option for payment of
proceeds is not in effect at the Annuitant’s death, the beneficiary may
make a choice. 

10.5  Availability of Options

We have the right to
restrict these options if you designate an executor, administrator, trustee,
corporation, partnership or association as the payee. 

10.6  Operative Date

The first payment will be
payable on the payment mode following the date proceeds become payable. 

10.7  Death of Payee

At the death of the payee,
any payments remaining will be paid according to the terms of the option chosen
for payment of proceeds, unless the contingent payee elects in writing to
receive the present value of any remaining guaranteed payments in a single sum. 

If a contingent payee has
not been named or does not survive the payee, the following amounts will be paid
in one sum to the estate of the payee: 

(1)          any amount left on deposit under option 1; and

(2)          the present value of any remaining guaranteed payments under options 2 through 5.

If you have not named a
contingent payee, or if every contingent payee named by you dies before the
payee, you may, by written notice, name a new contingent payee. The new
contingent payee will receive any amount that would otherwise have been payable
to the payee’s estate. 

10.8  Claims of Creditors

To the extent permitted by
law, proceeds will not be subject to any claims of a payee’s creditors. 

                           TABLE A - INSTALLMENT OPTION*
                           -----------------------------
                        for each $1,000 of Proceeds Applied
-------- --------- -------- --------- -------- ------- -------- -------- -------
Term of                      Term of                   Term of
 Years    Annual    Monthly   Years    Annual  Monthly  Years    Annual  Monthly
-------- --------- -------- --------- -------- ------- -------- -------- -------
   1     $1000.00   $84.47     11     $104.93   $8.86     21     $62.98   $5.32
   2       507.39    42.86     12       97.54    8.24     22      60.92    5.15
   3       343.23    28.99     13       91.29    7.71     23      59.04    4.99
   4       261.19    22.06     14       85.95    7.26     24      57.33    4.84
   5       211.99    17.91     15       81.33    6.87     25      55.76    4.71

   6       179.22    15.14     16       77.29    6.53     26      54.31    4.59
   7       155.83    13.16     17       73.74    6.23     27      52.97    4.47
   8       138.31    11.68     18       70.59    5.96     28      51.74    4.37
   9       124.69    10.53     19       67.78    5.73     29      50.60    4.27
   10      113.82     9.61     20       65.26    5.51     30      49.53    4.18
-------- --------- -------- --------- -------- ------- -------- -------- -------

                         TABLE B - LIFE INCOME OPTIONS*
                         ------------------------------
               Monthly Income for each $1,000 of Proceeds Applied
----- ---------------------------- -----------------------------------------
                       MALE                            FEMALE
 Age   Minimum Guaranteed Payment Period  Minimum Guaranteed Payment Period
      ------- ------- ------- ----------- ------- ------- ------- ----------
                              Install-ment                          Install-
                120      240       Refund            120    240       ment
        None   Months  Months               None   Months  Months    Refund
----- ------- ------- ------- ----------- ------- ------- ------- ----------
  50   $4.23   $4.19   $4.06       $4.05   $3.89   $3.87   $3.81      $3.80
  51    4.31    4.26    4.11        4.11    3.95    3.93    3.86       3.84
  52    4.38    4.33    4.17        4.17    4.01    3.98    3.91       3.89
  53    4.46    4.40    4.22        4.23    4.07    4.04    3.96       3.95
  54    4.55    4.48    4.28        4.29    4.13    4.11    4.01       4.00

  55    4.63    4.56    4.33        4.36    4.20    4.17    4.07       4.06
  56    4.73    4.65    4.39        4.43    4.28    4.24    4.12       4.12
  57    4.83    4.74    4.45        4.51    4.36    4.32    4.18       4.18
  58    4.94    4.83    4.51        4.59    4.44    4.40    4.24       4.25
  59    5.05    4.93    4.57        4.67    4.53    4.48    4.30       4.32

  60    5.17    5.04    4.63        4.75    4.63    4.57    4.37       4.39
  61    5.30    5.15    4.69        4.85    4.73    4.66    4.43       4.47
  62    5.44    5.27    4.75        4.94    4.84    4.76    4.50       4.55
  63    5.60    5.39    4.81        5.04    4.95    4.86    4.56       4.64
  64    5.76    5.52    4.86        5.15    5.08    4.97    4.63       4.73

  65    5.93    5.65    4.92        5.26    5.21    5.09    4.69       4.83
  66    6.12    5.79    4.97        5.37    5.35    5.21    4.76       4.93
  67    6.32    5.94    5.02        5.50    5.50    5.34    4.82       5.04
  68    6.53    6.09    5.06        5.62    5.66    5.47    4.88       5.15
  69    6.76    6.24    5.11        5.76    5.84    5.61    4.94       5.27

  70    7.00    6.40    5.14        5.90    6.02    5.76    5.00       5.39
  71    7.26    6.56    5.18        6.04    6.23    5.92    5.05       5.53
  72    7.53    6.72    5.21        6.20    6.45    6.08    5.10       5.67
  73    7.83    6.88    5.24        6.36    6.70    6.25    5.14       5.81
  74    8.15    7.05    5.26        6.53    6.96    6.43    5.18       5.97

  75    8.49    7.22    5.28        6.70    7.24    6.61    5.22       6.14

----- ------- ------- ------- ----------- ------- ------- ------- ----------

              TABLE C - JOINT AND SURVIVOR OPTION*
              ------------------------------------
      Monthly Income - Ten Year Guaranteed Payment Period
          for each $1,000 of Proceeds Applied
------- -------------------------------------------------
  Male                               Female Age
  Age      50      55      60      65       70       75
------- ------- ------- ------- ------- -------- --------
   50    $3.31   $3.37   $3.43   $3.49    $3.53    $3.56
   55             3.47    3.55    3.63     3.70     3.76
   60                     3.68    3.80     3.91     4.00
   65                             3.97     4.15     4.31
   70                                      4.41     4.68
   75                                               5.08
------- ------- ------- ------- ------- -------- --------

*Amounts not shown for available options will be furnished on request.

Flexible Premium Variable

Annuity Contract - Nonparticipating

Annuity proceeds payable at
maturity date. Death proceeds payable in event of death of Annuitant prior to
maturity date. Flexible premiums payable until maturity date or prior death of
Annuitant.

If you have any questions concerning
this contract or if anyone suggests that you change or replace this contract please contact
your Kansas City Life agent or the Home Office of the Company<PAGE>

                                                                     Exhibit 4.2

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY BE REOFFERED AND SOLD ONLY
IF SO REGISTERED OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE. THE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, OFFERED FOR
SALE OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR
AN OPINION OF COUNSEL SATISFACTORY IN FORM AND SUBSTANCE TO COUNSEL FOR THE
COMPANY THAT THE TRANSACTION SHALL NOT RESULT IN A VIOLATION OF STATE OR FEDERAL
SECURITIES LAWS.

                     DICK'S CLOTHING & SPORTING GOODS, INC.
                     --------------------------------------

                  Series E Warrant, Class B, for the Purchase
             of Shares of Series E Preferred Stock or Common Stock
             -----------------------------------------------------

No. FIELD A

         FOR VALUE RECEIVED, DICK'S CLOTHING & SPORTING GOODS, INC., a New York
corporation (the "Company"), hereby certifies that FIELD B, with a
mailing address of FIELD C, or a permitted assign thereof, is entitled to
purchase from the Company, at any time or from time to time, commencing only on
the Warrant Exercise Date (as hereinafter defined), and prior to 5:00 p.m., New
York City time, on the Warrant Expiration Date (as hereinafter defined), the
Exercise Number (as hereinafter defined) of fully paid and non-assessable
shares of the Series E Convertible Preferred Stock, par value $.01 per share
(the "Series E Preferred Stock"), of the Company for purchase price of one cent
($.01) per share.

    1.   Definitions.
         ------------

         "Administration Expense" means the Company's corporate expense before
pre-operating costs, PROVIDED, that if Store Contribution exceeds the FY 1998
Store Contribution Percentage, the excess of such amount shall be used to reduce
Administration Expense for FY 1998. Administration Expense shall be calculated
using the information reflected in the FY 1998 Audited Statements.

         "Aggregate Exercise Price" means the aggregate purchase price payable
hereunder for the Warrant Shares, consisting of the Per Share Exercise Price
times the aggregate number of Warrant Shares purchasable hereunder.

         "Certificate" means the Company's Amended and Restated Certificate of
Incorporation, as it may be amended from time to hereafter.

<PAGE>

         "Class A Warrants" means the Series E Warrants, Class A, for the
purchase of shares of Series E Preferred Stock (or Common Stock, if a Conversion
Event has occurred), issued pursuant to paragraph 4(c)( 7A) of the Certificate.

         "Class C Warrant" means the Series E Warrants, Class C, for the
purchase of shares of Series E Preferred Stock (or Common Stock, if a Conversion
Event has occurred), issued pursuant to paragraph 4(c)(7C) of the Certificate.

         "Common Stock" means the Company's common stock, par value $.01 per
share.

         "Conversion Event" means the conversion of all outstanding shares of
Series E Preferred Stock to Common Stock pursuant to the mandatory conversion
provision of the Series E Preferred Stock contained in the Certificate.

         "Convertible Security" means any stock or security convertible into or
exchangeable for Common Stock.

         "Exercise Number" means the aggregate number of Warrant Shares
purchasable upon the exercise of this Warrant, which shall be equal to such
number of Warrant Shares as is obtained by multiplying (a) the number obtained
by multiplying the sum of (i) the aggregate number of outstanding shares of
Common Stock issued and outstanding on the Warrant Exercise Date, plus (ii) the
number of shares of Common Stock of the Company issuable upon the exercise of
all Options that have been granted by the Company as of the Warrant Exercise
Date and upon the conversion of all Convertible Securities outstanding as of the
Warrant Exercise Date including shares issuable upon the exercise of the Class B
Warrants (whether or not such Options or the right to convert or exchange any
such Convertible Securities are immediately exercisable), but excluding shares
issuable upon the exercise of the Class A Warrants and the Class C Warrants
(except as provided in subparts (iii) and (iv) below), plus (iii) the number of
shares of Series E Preferred Stock (or Common Stock, if a Conversion Event has
occurred) issuable upon the exercise of the Class A Warrants, if the Class A
Warrants become exercisable prior to the exercise of this Warrant, plus (iv) the
number of shares of Series E Preferred Stock (or Common Stock, if a Conversion
Event has occurred) issuable upon the exercise of the Class C Warrants, if the
Class C Warrants become exercisable prior to the exercise of this Warrant, times
(b) three percent (3%), times (c) a fraction, the numerator of which is the
Initial Preferred Shares and the denominator of which is the aggregate number of
shares of Series E Preferred Stock, Series F Preferred Stock and Series G
Preferred Stock outstanding at the Warrant Exercise Date.

         "FY 1998" means the fiscal year ended on or about February 28, 1998.

         "FY 1998 Audited Statements" means the Company's audited financial
statements for FY 1998.

         "FY 1998 Store Contribution Percentage" means six percent (6.00%).

                                      -2-

<PAGE>

         "Holder" means the holder of this Warrant.

         "Initial Preferred Share" means the number of shares of Series E
Preferred Stock, Series F Preferred Stock and/or Series G Preferred Stock
purchased by the Original Holder pursuant to the Series E, F and G Purchase
Agreement, which is FIELD D.

         "Options" means any warrants or other rights to subscribe for or to
purchase, or any options for the purchase of, Common Stock.

         "Original Holder" means FIELD E.

         "Sale of the Company" means the consolidation or merger of the Company
into or with any other entity or entities which results in the exchange of
outstanding shares of the Company for securities or other consideration issued
or paid or caused to be issued or paid by any such entity or affiliate thereof,
and the sale or transfer by the Company of more than fifty-five percent (55%) of
its assets.

         "Per Share Exercise Price" means the price payable hereunder for each
of the Warrant Shares, which shall be one cent ($.01) per share.

         "Series C Preferred Stock" means the Company's Series C Convertible
Preferred Stock, $.01 par value.

         "Series D Preferred Stock" means the Company's Series D Convertible
Preferred Stock, $.01 par value, $.01 par value.

         "Series E Preferred Stock" means the Company's Series E Convertible
Preferred Stock, $.01 par value.

         "Series E, F and G Purchase Agreement" means the Series E, F and G
Convertible Preferred Stock Purchase Agreement dated as of February 12, 1996, as
amended, among the Company and certain of its shareholders.

         "Series F Preferred Stock" means the Company's Series F Convertible
Preferred Stock, $.01 par value.

         "Series G Preferred Stock" means the Company's Series G Convertible
Preferred Stock, $.01 par value.

         "Series E Warrants" means the warrants to purchase Series E Preferred
Stock (or Common Stock, if there has been a Conversion Event) issued to holders
of the Company's Series C Preferred Stock, Series D Preferred Stock, Series E
Preferred Stock, Series F Preferred Stock

                                      -3-

<PAGE>

and Series G Preferred Stock in accordance with paragraph 4(c)(7) of the
Certificate, designated as Class A Warrants, Class B Warrants and Class C
Warrants.

         "Stock" means the Series E Preferred Stock, together with any other
equity securities (including the Common Stock into which the Series E Preferred
Stock is convertible) which may be issued by the Company with respect thereto or
in substitution therefor.

         "Stockholders' Agreement" means the Amended and Restated Stockholders'
Agreement dated November 22, 1993, as amended, among the Company and its
shareholders.

         "Store Contribution" means the Company's sales (excluding proceeds from
real estate sale-lease back transactions) less cost of sales, store payrolls,
bonuses, employee fringe benefits, taxes, employee health insurance premiums and
other expenses, advertising and store general and administrative expenses,
PROVIDED, that cash reserves for store closings of up to one million dollars
($1,000,000) over any two-year period may be excluded from the calculation of
Store Contribution if such reserves are approved by the vote of at least eighty
percent (80%) of the Company's Board of Directors. Store Contribution shall be
calculated using the information reflected in the Company's audited financial
statements for FY 1998.

         "Warrant" means this Series E Warrant, Class B, for the purchase of
shares of Series E Preferred Stock (or Common Stock, if a Conversion Event has
occurred).

         "Warrant Exercise Date" means the date the Company's FY 1998 Audited
Statements are issued by the independent certified public accountant performing
the audit thereon if, and only if, the FY 1998 Audited Statements indicate that
a Warrant Exercise Event has occurred.

         "Warrant Exercise Event" means the occurrence, for FY 1998, as
reflected on the Company's FY 1998 Audited Statements, of one or both of the
following: (a) Store Contribution is less than or equal to the FY 1998 Store
Contribution Percentage of the Company's sales (excluding proceeds from real
estate sale-leaseback transactions), or (b) Administration Expense exceeds
twenty million dollars ($20,000,000).

         "Warrant Share" means the shares of Stock purchasable hereunder.

         "Warrant Expiration Date" means the earlier of (a) seven (7) years from
the Warrant Exercise Date, or (b) the effective date of a Sale of the Company,
or (c) one (1) business day prior to the effective date of an underwritten
public offering of shares of Common Stock of the Company.

    2.   Exercise of Warrant.
         --------------------

                                      -4-

<PAGE>

         (a) This Warrant may be exercised, in whole at any time or in part from
time to time, commencing only upon the Warrant Exercise Date, and prior to 5:00
P.M., New York City time, on the Warrant Expiration Date, by the Holder by the
surrender of this Warrant (with the subscription form at the end hereof duly
executed) at the address set forth in Subsection 9(a) hereof, together with
proper payment of the Aggregate Exercise Price, or the proportionate part
thereof if this Warrant is exercised in part. Payment for Warrant Shares shall
be made by certified or official bank check payable to the order of the Company.
If this Warrant is exercised in part, this Warrant must be exercised for a
number of whole shares of the Stock, and the Holder is entitled to receive a new
Warrant covering the Warrant Shares which have not been exercised and setting
forth the proportionate part of the Aggregate Exercise Price applicable to such
Warrant Shares. Upon such surrender of this Warrant, the Company will (i) issue
a certificate or certificates in the name of the Holder for the largest number
of whole shares of the Series E Preferred Stock to which the Holder shall be
entitled and, if this Warrant is exercised in whole, in lieu of any fractional
share of the Stock to which the holder shall be entitled, pay to the Holder cash
in an amount equal to the fair value of such fractional share (determined in
such reasonable manner as the Board of Directors of the Company shall
determine), PROVIDED, that if there has been a Conversion Event on or before the
date of any whole or partial exercise of this Warrant, then, upon surrender of
this Warrant, the Company will issue a certificate or certificates in the name
of the Holder for the largest number of whole shares of the Common Stock to
which the Holder shall be entitled in accordance with the conversion terms of
the Series E Preferred Stock and, if this Warrant is exercised in whole, in lieu
of any fractional share of the Common Stock to which the Holder shall be
entitled, pay to the Holder cash in an amount equal to the fair value of such
fractional share (determined in such reasonable manner as the Board of Directors
of the Company shall determine), and (ii) deliver the other securities and
properties receivable upon the exercise of this Warrant, if any, or the
proportionate part thereof if this Warrant is exercised in part, pursuant to the
provisions of this Warrant.

         (b) If (i) the FY 1998 Audited Statements are issued, and no Warrant
Exercise Event has occurred, or (ii) there is a Sale of the Company or an
underwritten public offering of shares of the Common Stock before the end of FY
1998, this Warrant shall not become exercisable and shall be cancelled and
terminated automatically with no further action by the Company or any Holder
hereof required.

         (c) In lieu of exercising this Warrant, on and after the Warrant
Exercise Date and prior to the Warrant Expiration Date, the Holder may elect to
receive shares equal to the value of this Warrant (or the portion thereof being
canceled) by surrender of this Warrant at the principal office of the Company
together with notice of such election in which event the Company shall issue to
the Holder a number of shares of Stock computed using the following formula:

                                      -5-

<PAGE>

                 X     =     Z(FMV-EP)
                              ---------
                                 FMV
         where:

         X       =     the number of shares of Stock to be issued to the Holder.

         Z       =     the number of Warrant Shares purchasable under this
                       Warrant at the time of such exercise.

         FMV     =     the fair market value of one share of Common Stock at the
                       time of such exercise as determined pursuant to the
                       provisions of paragraph 4(c)(3E) of the Certificate.

         EP      =     Exercise Price.

    3.   Reservation of Warrant Shares.
         ------------------------------

    The Company agrees that it will at all times reserve, and will keep
available, solely for issuance or delivery upon the exercise of this Warrant,
the shares of the Series E Preferred Stock, the shares of the Common Stock into
which the shares of Series E Preferred Stock are convertible, and other
securities and properties as from time to time shall be receivable upon the
exercise of this Warrant, free and clear of all restrictions on sale or transfer
and free and clear of all pre-emptive rights.

    4.   Adjustments to Warrant.
         -----------------------

         (a) In case the Company shall, after the Warrant Exercise Date (i) pay
a dividend or make a distribution on its capital stock in shares of Series E
Preferred Stock, or after a Conversion Event, in shares of Common Stock, (ii)
subdivide its outstanding shares of Series E Preferred Stock, or after a
Conversion Event, Common Stock, into a greater number of shares, (iii) combine
its outstanding shares of Series E Preferred Stock, or after a Conversion Event,
its outstanding shares of Common Stock, into a smaller number of shares, or (iv)
issue by reclassification of its Series E Preferred Stock, or after a Conversion
Event, issue by reclassification of its Common Stock, any shares of capital
stock of the Company, then, in such event, the Per Share Warrant Price shall be
adjusted, subject to Sections 4(c) and (d) hereof, so that the Holder of this
Warrant upon the exercise hereof shall be entitled to receive the number of
shares of Series E Preferred Stock or, after a Conversion Event, shares of
Common Stock, or other capital stock of the Company which it would have owned
immediately following such action had such Warrant been exercised immediately
prior thereto. An adjustment made pursuant to this Section 4(a) shall become
effective immediately after the record date in the case of a dividend or
distribution and shall become effective immediately after the effective date in
the case of a subdivision, combination or reclassification. If, as a result of
an adjustment made pursuant to this Subsection 4(a), the Holder, when this
Warrant is surrendered for exercise, shall become entitled

                                      -6-

<PAGE>

to receive shares of two or more classes of capital stock of the Company, the
Board of Directors (whose determination shall be conclusive and shall be
described in a written notice to the Holder of this Warrant promptly after such
adjustment) shall determine the allocation of the adjusted Per Share Warrant
Price between or among shares of such classes of capital stock.

         (b) In case of any capital reorganization or reclassification, or any
consolidation or merger to which the Company is a party other than a merger or
consolidation in which the Company is the continuing corporation, or in case of
any sale or conveyance to another entity of the property of the Company as an
entirety or substantially as an entirety, or in the case of any statutory
exchange of securities with another corporation (including any exchange effected
in connection with a merger of a third corporation into the Company), that
occurs after the Warrant Exercise Date, the Holder of this Warrant shall have
the right thereafter to convert this Warrant into the kind and amount of
securities, cash or other property which it would have owned or have been
entitled to receive immediately after such reorganization, reclassification,
consolidation, merger, statutory exchange, sale of conveyance had this Warrant
been converted immediately prior to the effective date of such reorganization,
reclassification, consolidation, merger, statutory exchange, sale or conveyance.
This Section 4(b) shall similarly apply to successive reorganizations,
reclassifications, consolidations, mergers, statutory exchanges, sales or
conveyances that occur after the Warrant Exercise Date. The issuer of any shares
of stock or other securities or property thereafter deliverable on the
conversion of this Warrant shall be responsible for all of the agreements and
obligations of the Company hereunder. Notice of any such reorganization,
reclassification, consolidation, merger, statutory exchange, sale or conveyance
and of said provisions so proposed to be made, shall be mailed to the Holder of
this Warrant not less than thirty (30) days prior to such event. A sale of all
or substantially all of the assets of the Company for a consideration consisting
primarily of securities shall be deemed a consolidation or merger for the
foregoing purposes.

         (c) Notwithstanding anything herein to the contrary, the Per Share
Exercise Price shall not be adjusted to a number that is less than the par value
per share of the Warrant Shares purchasable hereunder.

         (d) No adjustment in the Per Share Exercise Price shall be required
unless such adjustment would require an increase or decrease of at least $0.005
per share of Stock; PROVIDED, HOWEVER, that any adjustments which by reason of
this Section 4(d) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. All calculations under this Section 4
shall be made to the nearest cent or to the nearest 1/100th of a share, as the
case may be. Anything in this Section 4 to the contrary notwithstanding, the
Company shall be entitled to make such adjustments in the Per Share Exercise
Price, in addition to those required by this Section 4, as it in its discretion
shall deem to be advisable in order that any stock dividend, subdivision of
shares or other event hereafter made by the Company to its shareholders shall
not be taxable.

         (d) If the Board of Directors of the Company shall declare any dividend
or other distribution with respect to the Series E Preferred Stock or the Common
Stock, other than a cash distribution out of earned surplus, the Company shall
mail notice thereof to the Holder of

                                      -7-

<PAGE>

this Warrant not less than 15 days prior to the record date fixed for
determining shareholders entitled to participate in such dividend or other
distribution.

    5.   Fully Paid Stock; Taxes.
         ------------------------

    The Company agrees that the shares of the Stock represented by each and
every certificate for Warrant Shares delivered on the exercise of this Warrant
shall, at the time of such delivery, be validly issued and outstanding, fully
paid and non-assessable, and not subject to pre-emptive rights, and the Company
will take all such actions as may be necessary to assure that the par value or
stated value, if any, per share of the Stock is at all times equal to or less
than the then Per Share Warrant Price. The Company further covenants and agrees
that it will pay, when due and payable, any and all Federal and state stamp,
original issue or similar taxes which may be payable in respect of the issue of
any Warrant Share or certificate therefor.

    6.   Transferability; Stockholders' Agreement.
         -----------------------------------------

         (a) Title to this Warrant is transferable only in connection with the
transfer of the Initial Preferred Shares to which this Warrant is attached, and
then only on the books of the Company by the registered holder in person or by
duly authorized attorney. The Holder hereof acknowledges that by virtue of its
ownership of the Initial Preferred Shares the Holder is a party to the
Stockholders' Agreement, and that transferability of the Initial Preferred
Shares and the Warrant is limited as set forth therein.

         (b) This Warrant may not be sold, transferred, assigned or hypothecated
by the Holder except in compliance with the provisions of the Securities Act of
1933, as amended (the "Act") and applicable state securities laws. The Company
may treat the registered Holder of this Warrant as he or it appears on the
Company's books at any time as the Holder for all purposes. The Company shall
permit any Holder of a Warrant or his fully authorized attorney, upon written
request during ordinary business hours, to inspect and copy or make extracts
from its books showing the registered holders of Warrants. All warrants issued
upon the transfer or assignment of this Warrant will be dated the same date as
this Warrant, and all rights of the Holder thereof shall be identical to those
of the Holder.

         (c) Upon exercise of this Warrant, the Holder agrees that it will
become a party to and bound by the terms and conditions of the Stockholders'
Agreement among the Company and its shareholders, if such Stockholders'
Agreement has not been terminated in accordance with its terms prior to the
exercise of this Warrant.

         (d) If requested in writing by the underwriters for the initial public
offering of securities of the Company, the Holder shall agree not to sell
publicly any shares of Common Stock issued pursuant to the exercise of this
Warrant or pursuant to the conversion of Series E Preferred stock issued
pursuant to the exercise of this Warrant (other than shares of Common Stock
being registered in such offering), without the consent of such underwriters,
for a period of not more than ninety (90) days following the effective date of
the registration statement relating to such offering.

                                      -8-

<PAGE>

    7.   Loss, etc., of Warrant.
         -----------------------

    Upon receipt of evidence satisfactory to the Company of the loss,
theft, destruction or mutilation of this Warrant, and of indemnity reasonably
satisfactory to the Company, if lost, stolen or destroyed, and upon surrender
and cancellation of this Warrant, if mutilated, the Company shall execute and
deliver to the Holder a new Warrant of like date, tenor and denomination.

    8.   Warrant Holders Not Shareholders.
         ---------------------------------

    Except as otherwise provided herein, this Warrant does not confer upon
the holder any right to vote or to consent to or receive notice as a shareholder
of the Company, as such, in respect of any matters whatsoever, or any other
rights or liabilities as a shareholder, prior to the exercise hereof.

    9.   Communication.
         --------------

    No notice of other communication under this Warrant shall be effective
unless, but any notice or other communication shall be effective and shall be
deemed to have been given if, the same is in writing and is mailed by
first-class mail, postage prepared, addressed to:

         (a) the Company at 400 Cherrington Parkway, Suite 200, Coraopolis,
Pennsylvania 15108, or such other address as the Company has designated in
writing to the Holder, or

         (b) the Holder at the address set forth on the first page of this
warrant, or such other address as the Holder has designated in writing to the
Company.

    10.  Headings.
         ---------

    The headings of this Warrant have been inserted as a matter of
convenience and shall not affect the construction hereof.

    11.  Applicable Law.
         ---------------

    This Warrant shall be governed by and construed in accordance with the
law of the State of New York without giving effect to the principles of
conflicts of law thereof.

                                      -9-

<PAGE>

         IN WITNESS WHEREOF, DICK'S CLOTHING & SPORTING GOODS, INC. has caused
this Warrant to be signed by its Vice President - Chief Financial Officer and
attested this ___ day of April, 1996.

                                   DICK'S CLOTHING & SPORTING GOODS, INC.

                                   -------------------------------------------
                                   Michael F. Hines
                                   Vice President - Chief Financial Officer

ATTEST:

------------------------------

                                     - 10-

<PAGE>

                                  SUBSCRIPTION
                                  ------------

         The undersigned, _________________________ pursuant to the provisions
of the foregoing Warrant, hereby agrees to subscribe for and purchase
____________ shares of the Series E Convertible Preferred Stock (or, after a
Conversion Event (as defined in the Warrant), the Common Stock) of DICK'S
CLOTHING & SPORTING GOODS, INC. covered by said Warrant, and makes payment
therefor in full at the price per share provided by said Warrant.

Dated:                                  Signature:
       ---------------------------                 -----------------------------
                                        Address:
                                                --------------------------------

                                   ASSIGNMENT
                                   ----------

         FOR VALUE RECEIVED ___________________________ hereby sells, assigns
and transfers unto ______________________ the foregoing Warrant and all rights
evidenced thereby, and does irrevocably constitute and appoint
____________________________________ attorney, to transfer said Warrant on the
books of DICK'S CLOTHING & SPORTING GOODS, INC.

Dated:                                  Signature:
       ---------------------------                 -----------------------------
                                        Address:
                                                --------------------------------

                               PARTIAL ASSIGNMENT
                               ------------------

         FOR VALUE RECEIVED, __________________________ hereby assigns and
transfers unto ___________________ the right to purchase __________ shares of
the Series E Convertible Preferred Stock (or, after a Conversion Event (as
defined in the Warrant), the Common Stock) of DICK'S CLOTHING & SPORTING GOODS,
INC. by the foregoing Warrant, and a proportionate part of said Warrant and the
rights evidenced hereby, and does irrevocably constitute and appoint _________,
attorney to transfer that part of said Warrant on the books of DICK'S CLOTHING
& SPORTING GOODS, INC.

Dated:                                  Signature:
       ---------------------------                 -----------------------------
                                        Address:
                                                --------------------------------

                                      -11-

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