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                                                                    EXHIBIT 10.2

                              PATHMARK STORES, INC.
                     2000 NON-EMPLOYEE DIRECTORS EQUITY PLAN
                        (AS AMENDED AS OF MARCH 29, 2001)

1.       PURPOSE

                  The purpose of the Pathmark Stores, Inc. 2000 Non-Employee
Directors Equity Plan (the "PLAN") is to promote the long-term growth and
financial success of the Company by attracting, motivating and retaining
non-employee directors of outstanding ability and assisting the Company in
promoting a greater identity of interest between the Company's non-employee
directors and its stockholders.

2.       DEFINITIONS

                  For purposes of the Plan, the following terms shall be defined
as follows:

                  "ANNUAL MEETING" means the annual meeting of the Company's
stockholders.

                  "BOARD" means the Board of Directors of the Company.

                  "CHANGE IN CONTROL" shall mean any of the following:

                  (i) the acquisition by any Person of beneficial ownership
                  (within the meaning of Rule 13d-3 promulgated under the
                  Exchange Act) of 35% or more of the Common Stock then
                  outstanding, but shall not include any such acquisition by any
                  employee benefit plan of the Company, any Person or entity
                  organized, appointed or established by the Company for or
                  pursuant to the terms of any such employee benefit plan; any
                  Person (other than any of Fidelity Management & Research
                  Company or Fidelity Management Trust Company or by any fund or
                  account associated with either Fidelity Management & Research
                  Company or Fidelity Management Trust Company) who as of
                  September 19, 2000 was the beneficial owner of 15% or more of
                  the shares of Common Stock outstanding on such date unless and
                  until such Person, together with all Affiliates of such
                  Person, becomes the beneficial owner of 35% or more of the
                  shares of Common Stock then outstanding whereupon a Change in
                  Control shall be deemed to have occurred;

                  (ii) consummation after approval by the shareholders of
                  Pathmark of either (A) a plan of complete liquidation or
                  dissolution of Pathmark or (B) a merger, amalgamation or
                  consolidation of Pathmark with any other corporation, the
                  issuance of voting securities of Pathmark in connection with a
                  merger or consolidation of Pathmark or sale or other
                  disposition of all or substantially all of the assets of
                  Pathmark or the acquisition of assets of another corporation
                  (each, a "BUSINESS COMBINATION"), unless, in each case of a
                  Business Combination, immediately following such Business
                  Combination, all or substantially all of the individuals and
                  entities who were the beneficial owners of the Common Stock
                  outstanding immediately prior to such Business Combination
                  beneficially own, directly or indirectly, more than 50% of the
                  then outstanding shares of common stock and 50% of the
                  combined voting power of the then outstanding voting
                  securities entitled to vote generally in the election of
                  directors, as the case may be, of the entity resulting from
                  such Business Combination (including, without limitation, an
                  entity which as a result of such transaction owns the Company
                  or all or substantially all of Pathmark's assets either
                  directly or through one or more subsidiaries) in substantially
                  the same proportions as their ownership, immediately prior to
                  such Business Combination, of the Common Stock; or

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                  (iii) the individuals who, as of September 19, 2000,
                  constitute the Board, and subsequently elected members of the
                  Board whose election is approved or recommended by at least a
                  majority of such current members or their successors whose
                  election was so approved or recommended (other than any
                  subsequently elected members whose initial assumption of
                  office occurs as a result of an actual or threatened election
                  contest with respect to the election or removal of directors
                  or other actual or threatened solicitation of proxies or
                  consents by or on behalf of a Person other than the Board),
                  cease for any reason to constitute at least a majority of such
                  Board.

                           For purposes of the above definition of Change in
         Control only, the following defined terms shall apply:

                                    "AFFILIATE" means, with respect to any
                  Person, any other entity which (i) is a Subsidiary of such
                  Person, (ii) is, directly or indirectly, under common control
                  with such Person, or (iii) is, directly or indirectly,
                  controlling such Person.

                                    "PERSON" means any person, entity or "group"
                  within the meaning of Section 13(d)(3) or Section 14(d)(2) of
                  the Exchange Act, except that such term shall not include (i)
                  the Company or any of its subsidiaries, (ii) a trustee or
                  other fiduciary holding securities under an employee benefit
                  plan of the Company, (iii) an underwriter temporarily holding
                  securities pursuant to an offering of such securities, or (iv)
                  an entity owned, directly or indirectly, by the shareholders
                  of Pathmark in substantially the same proportions as their
                  ownership of stock of Pathmark.

                                    "SUBSIDIARY" means with respect to any
                  Person, any entity of which: if a corporation, a majority of
                  the total voting power of shares of stock entitled (without
                  regard to the occurrence of any contingency) to vote in the
                  election of directors, managers or trustees thereof is at the
                  time of determination owned or controlled, directly or
                  indirectly, collectively or individually, by such Person or by
                  one or more Affiliates of such Person, and if a partnership,
                  association, limited liability company or other entity, a
                  majority of the partnership, membership or other similar
                  ownership interest thereof is at the time of determination
                  owned or controlled, directly or indirectly, collectively or
                  individually, by such Person or by one or more Affiliates of
                  such Person.

                                           ********

                  "COMMON STOCK" means the Common Stock of the Company, par
         value $.01 per share, or such other class or kind of shares or other
         securities as may be applicable under Section 11 below.

                  "COMPANY" or "PATHMARK" means Pathmark Stores, Inc., a
         Delaware corporation, or any successor thereto, and its Subsidiaries.

                  "DATE OF GRANT" means, with respect to any Director Option,
         the date on which such Director Option is granted to a Non-Employee
         Director.

                  "DIRECTOR OPTION" means a right to purchase shares of Common
         Stock granted to a Non-Employee Director pursuant to Section 6 hereof.

                  "EFFECTIVE DATE" means the effective date of the Plan provided
         for in Section 9 below.

                  "FAIR MARKET VALUE" means, with respect to a share of Common
         Stock, the fair market value thereof as of the relevant date of
         determination, as determined in accordance with a valuation methodology
         approved by the Board, and according to the following, as applicable:

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                           (i) If the Common Stock is quoted on the NASDAQ
                  National Market, in the absence of any alternative valuation
                  methodology approved by the Board, the Fair Market Value of a
                  share of Common Stock shall equal the per share closing price
                  quoted on the day immediately prior to the date of grant as
                  reported in the transactions index of each such exchange, as
                  published in THE WALL STREET JOURNAL, or, if no closing price
                  was quoted in any such index for such date, then as of the
                  next preceding date on which such a closing price was quoted;

                           (ii) If the Common Stock is not quoted on the NASDAQ
                  National Market, but is publicly traded on another national
                  securities exchange or quoted on an automated system, the Fair
                  Market Value of a share of Common Stock shall equal the per
                  share closing price quoted on the day immediately prior to the
                  date of grant as reported in the transactions index of each
                  such exchange or automated system, as published in THE WALL
                  STREET JOURNAL, or, if no closing price was quoted in any such
                  index for such date, then as of the next preceding date on
                  which such a closing price was quoted; and

                           (iii) If the Common Stock is not publicly traded on
                  a national securities exchange or quoted on the NASDAQ
                  National Market or any other automated system, the Fair
                  Market Value of a share of Common Stock shall be reasonably
                  determined in good faith by the Board.

                  "NON-EMPLOYEE DIRECTOR" means a member of the Board who is not
         an employee of the Company or any of its Subsidiaries.

                  "PERMANENT DISABILITY" means a physical or mental impairment
         rendering a Non-Employee Director substantially unable to function as a
         member of the Board for any period of six consecutive months. Any
         dispute as to whether a Non-Employee Director is Permanently Disabled
         shall be resolved by a physician mutually acceptable to the
         Non-Employee Director and the Company, whose decision shall be final
         and binding upon the Non-Employee Director and the Company.

                  "PERSON" means any individual, firm, corporation, partnership
         or other entity.

                   "SUBSIDIARY" means (i) a corporation or other entity with
         respect to which the Company, directly or indirectly, has the power,
         whether through the ownership of voting securities, by contract or
         otherwise, to elect at least a majority of the members of such
         corporation's board of directors or analogous governing body, or (ii)
         any other corporation or other entity in which the Company, directly or
         indirectly, has an equity or similar interest and which the Board
         designates as a Subsidiary for purposes of the Plan.

3.       ADMINISTRATION

                  (a) ADMINISTRATION BY THE BOARD. The Plan shall be
administered by the Board, which may adopt rules and regulations it considers
necessary or appropriate to carry out the Plan's purposes. The Board's
interpretation and construction of any Plan provision shall be final and
conclusive. The Board may, but need not, from time to time delegate some or all
of its authority under the Plan to a committee consisting of one or more members
of the Board, any such delegation to be subject to the restrictions and limits
that the Board specifies at the time of such delegation or thereafter.
References in the Plan to the "Board" shall, to the extent consistent with the
terms and limitations of any such delegation, be deemed to include a reference
to any such committee to which the Board's authority hereunder has been
delegated.

                  (b) AWARD CERTIFICATE. The terms and conditions of each grant
of Director Options under the Plan shall be embodied in an award agreement or
award certificate which shall incorporate the Plan

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by reference, shall indicate the date on which the Director Options were granted
and the number of Director Options granted on such date.

4.       SHARES AVAILABLE

                  Subject to the provisions of Section 11 below, the maximum
number of shares of Common Stock which may be issued under the Plan (the
"SECTION 4 LIMIT") shall be 130,000 shares. For purposes of determining the
number of shares of Common Stock that remain available for issuance, there shall
be added back to the Section 4 Limit and again be available under the Plan any
shares of Common Stock tendered to pay the exercise price of a Director Option.
Either authorized and unissued shares of Common Stock or treasury shares may be
delivered pursuant to the Plan.

5.       ELIGIBILITY

                  Director Options shall be granted only to Non-Employee
Directors.

6.       GRANTS OF DIRECTOR OPTIONS

                  (a) GENERAL. A Director Option shall entitle a Non-Employee
Director to purchase a specified number of shares of Common Stock during a
specified period at an exercise price per share of Common Stock determined as
provided below. All Director Options provided for herein shall have the general
terms and conditions set forth in Section 7 below.

                  (b) INITIAL GRANTS. On the date of the first regularly
scheduled meeting of the Board after the Effective Date each Non-Employee
Director shall receive Director Options to purchase 3,000 shares of Common
Stock. In addition, on the date of the first Annual Meeting after the Effective
Date (the "FIRST ANNUAL MEETING") each Non-Employee Director shall receive
Director Options to purchase 12,000 shares of Common Stock. The exercise price
per share of Common Stock of each Director Option provided for in this Section
6(b) shall be the Fair Market Value of one share of Common Stock on the Date of
Grant.

                  (c) ANNUAL GRANTS OF DIRECTOR OPTIONS. On the date of each
Annual Meeting occurring after the First Annual Meeting, each Non-Employee
Director shall automatically receive Director Options to purchase 5,000 shares
of Common Stock; PROVIDED that the Non-Employee Director shall continue to serve
as a director of the Company after such meeting of the Board; and PROVIDED,
FURTHER, that with respect to Non-Employee Director who, as of any Annual
Meeting, has served on the Board for less than one year, such Non-Employee
Director shall receive a pro rated number of Director Options. The exercise
price per share of Common Stock of each Director Option provided for in this
Section 6(c) shall be the Fair Market Value of one share of Common Stock on the
date of the Date of Grant.

                  (d) GRANTS OF DIRECTOR OPTIONS TO NEW DIRECTORS. On the date
that a Non-Employee Director is initially elected or appointed to the Board,
such Non-Employee Director shall receive Director Options to purchase 15,000
shares of Common Stock. The exercise price per share of Common Stock of each
Director Option provided for in this Section 6(d) shall be the Fair Market Value
of one share of Common Stock on the Date of Grant.

7.       GENERAL TERMS AND CONDITIONS OF DIRECTORS OPTIONS

                  (a) OPTION TERM. Each Director Option shall expire on the date
of the Annual Meeting held in the fifth calendar year following the date of
grant, subject to earlier expiration as provided herein.

                  (b) VESTING; ACCELERATED VESTING; EFFECT OF TERMINATION OF
SERVICE.

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                  (i) VESTING GENERALLY. Each Director Option shall vest and
         become exercisable with respect to one-third of the shares of Common
         Stock subject to such Option on the first through the third
         anniversaries of the date of grant, provided that the Non-Employee
         Director continues to serve as a member of the Board on each such
         anniversary date. Notwithstanding the preceding sentence, all Director
         Options shall be considered fully vested and exercisable upon the
         earlier to occur of (X) termination of the Non-Employee Director's
         service on the Board by reason of death or Permanent Disability or (Y)
         a Change in Control.

                  (ii) EXERCISE FOLLOWING TERMINATION OF SERVICE. Following
         termination of a Non-Employee Director's service on the Board, the
         former Non-Employee Director (or the former Non-Employee Directors'
         estate, personal representative or beneficiary, as the case may be)
         shall have the right, subject to the other terms and conditions hereof,
         to exercise all Director Options that had vested as of or in connection
         with the termination of service:

                           (A) at any time within two years after the date of
                  termination of service, if such termination was by reason of
                  death, Permanent Disability or retirement from the Board in
                  accordance with the retirement policy then in effect for Board
                  members, or

                           (B) in all other cases, at any time within one year
                  after the date of termination of service;

         SUBJECT, in all cases, to earlier expiration of the Director Option
pursuant to Section 7(a) above.

                  (c) NOTICE OF EXERCISE. Subject to the other terms and
conditions of the Plan, a Non-Employee Director may exercise all or any portion
of a vested Director Option by giving notice of exercise to the Company or its
designated agent, PROVIDED, HOWEVER, that no fewer than 10 shares of Common
Stock may be purchased upon any exercise of a Director Option unless the number
of shares purchased at such time is the total number of shares in respect of
which the Director Option is then exercisable, and PROVIDED, FURTHER, that in no
event shall the Option be exercisable for a fractional share. The date of
exercise of an Option shall be the later of (i) the date on which the Company or
its agent receives such notice or (ii) the date on which the conditions provided
in Sections 7(d) and 7(e) below are satisfied.

                  (d) PAYMENT. The exercise price of a Director Option may be
paid in cash or previously owned shares or a combination thereof or by any other
method approved by the Board.

                  (e) LIMITATION ON EXERCISE. A Director Option shall not be
exercisable unless the Common Stock subject thereto has been registered under
the Securities Act of 1933, as amended (the "1933 ACT"), and qualified under
applicable state "blue sky" laws in connection with the offer and sale thereof,
or the Company has determined that an exemption from registration under the 1933
Act and from qualification under such state "blue sky" laws is available.

                  (f) ISSUANCE OF SHARES. Subject to the foregoing conditions,
as soon as is reasonably practicable after its receipt of a proper notice of
exercise and payment of the exercise price for the number of shares with respect
to which a Director Option is exercised, the Company shall deliver to the
exercising Non-Employee Director, at the principal office of the Company or at
such other location as may be acceptable to the Company and the Non-Employee
Director, one or more stock certificates for the appropriate number of shares of
Common Stock issued in connection with such exercise. Such shares shall be fully
paid and nonassessable and shall be issued in the name of the Non-Employee
Director. Notwithstanding the foregoing, the Board in its discretion may,
subject to rules and procedures as it may adopt from time to time, provide
Non-Employee Directors with the opportunity to defer receipt of shares of Common
Stock issuable upon exercise of Director Options.

8.       TRANSFERABILITY

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                  Director Options may not be transferred, pledged, assigned or
otherwise disposed of except by will or the laws of descent and distribution or
pursuant to a domestic relations order, PROVIDED, HOWEVER, that Director Options
may be transferred to a member or members of a Non-Employee Director's immediate
family (as defined below) or to one or more trusts or partnerships established
in whole or in part for the benefit of one or more of such immediate family
members (collectively as "PERMITTED TRANSFEREES"), subject to such rules and
procedures as may from time to time be adopted or imposed by the Board. If a
Director Option is transferred to a Permitted Transferee, it shall be further
transferable only by will or the laws of descent and distribution or, for no
consideration, to another Permitted Transferee of the Non-Employee Director. A
Non-Employee Director shall notify the Company in writing prior to any proposed
transfer of a Director Option to a Permitted Transferee and shall furnish the
Company, upon request, with information concerning such Permitted Transferee's
financial condition and investment experience. For purposes of the Plan, a
Non-Employee Director's "immediate family" means any child, stepchild,
grandchild, spouse, son-in-law or daughter-in-law and shall include adoptive
relationships; PROVIDED, HOWEVER, that if the Company adopts a different
definition of "immediate family" (or similar term) in connection with the
transferability of employee stock options awarded to employees of the Company,
such definition shall apply, without further action of the Board, to the Plan.

9.       TERM

                  The Effective Date shall be the date of the approval of the
Plan of Reorganization of the Company and its parent companies, assuming the
Plan is approved by the stockholders of the Company prior to such date. Unless
earlier terminated in accordance with Section 10 below, the Plan shall expire on
the date of the Annual Meeting held in 2010. Grants of Director Options shall be
made in connection with the Annual Meeting held in 2010, and shall be the last
grants made under the Plan. Expiration of the Plan in connection with the Annual
Meeting held in 2010 shall not affect awards of Director Options made prior to
such Annual Meeting, which awards shall remain outstanding subject to the terms
hereof.

10.      AMENDMENTS

                  The Board may at any time and from time to time alter, amend,
suspend or terminate the Plan in whole of in part, including without limitation
to amend the provisions for determining the amount of or Directors Options to be
issued to a Non-Employee Director, PROVIDED, HOWEVER, that:

                  (i) any amendment which under the requirements of applicable
         law or stock exchange rule must be approved by the stockholders of the
         Company shall not be effective unless and until such stockholder
         approval has been obtained in compliance with such law or rule; and

                  (ii) except as provided in Section 11 below, the Board may
         not, without the approval of the Company's stockholders, increase the
         number of shares available for issuance under the Plan pursuant to
         Section 4 above or reduce the exercise price of a Director Option.

No termination or amendment of the Plan that would adversely affect a
Non-Employee Director's rights under the Plan with respect to any award of
Director Options made prior to such action shall be effective as to such
Non-Employee Director unless he or she consents thereto.

11.      ADJUSTMENT OF AND CHANGES IN SHARES

                  In the event of any merger, consolidation, recapitalization,
reclassification, stock dividend, distribution of property, special cash
dividend or other change in corporate structure affecting the shares, the Board,
in its discretion, may make (i) such proportionate adjustments as it considers
appropriate in the number and kind of shares authorized for issuance hereunder
in order to preserve, but not increase, the benefits or potential benefits
intended to be made available hereunder and/or (ii) such other adjustments as it

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deems appropriate. The Board's determination as to what, if any, adjustments
shall be made shall be final and binding on the Company and all Non-Employee
Directors who receive grants under the Plan.

12.      NO RIGHT TO RE-ELECTION

                  Nothing in the Plan shall be deemed to create any obligation
on the part of the Board to nominate any of its members for re-election by the
Company's stockholders, nor confer upon any Non-Employee Director the right to
remain a member of the Board for any period of time, or at any particular rate
of compensation.

13.      GOVERNING LAW

                  The Plan and all agreements entered into under the Plan shall
be construed in accordance with and governed by the laws of the State of
Delaware.

14.      NO RESTRICTION ON RIGHT OF COMPANY TO EFFECT CORPORATE CHANGES

                  The Plan shall not affect in any way the right or power of the
Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company's capital
structure or its business, or any merger or consolidation of the Company, or any
issue of stock or of options, warrants or rights to purchase stock or of bonds,
debentures, preferred or prior preference stocks whose rights are superior to or
affect the Common Stock or the rights thereof or which are convertible into or
exchangeable for Common Stock, or the dissolution or liquidation of the Company,
or any sale or transfer of all or any part of its assets or business, or any
other corporate act or proceeding, whether of a similar character or otherwise.

15.      UNFUNDED PLAN

                  The Plan is unfunded. Prior to the payment or settlement of
the exercise of any Director Options, nothing contained herein shall give any
non-Employee Director any rights that are greater than those of a general
creditor of the Company. In its sole discretion, the Board may authorize the
creation of trusts or other arrangements to meet the obligations created under
the Plan to deliver Common Stock with respect to awards hereunder.

7Prepared by MERRILL CORPORATION

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EXHIBIT 4(a)  

	

Protective Life Insurance Company®	 	 
	Nashville, Tennessee

(A Stock Insurance Company)

	 	 

INDIVIDUAL FLEXIBLE PREMIUM DEFERRED FIXED

AND VARIABLE ANNUITY CONTRACT

(Non-Participating)

Protective
Life Insurance Company agrees to provide the benefits described in this Contract. 

THIS IS A VARIABLE ANNUITY CONTRACT

THE
VALUE OF THIS CONTRACT AND THE ANNUITY INCOME PAYMENTS, WHEN BASED ON THE INVESTMENT EXPERIENCE OF THE PROTECTIVE VARIABLE ANNUITY SEPARATE ACCOUNT, IS VARIABLE. NO MINIMUM VALUE IS GUARANTEED FOR
AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT. 

RIGHT TO CANCEL

YOU
HAVE THE RIGHT TO RETURN THIS CONTRACT. You may cancel this Contract within ten days after you receive it by returning the Contract to our administrative office, or to the agent who sold the
Contract, with a written request for cancellation. Return of this Contract by mail is effective on being post-marked, properly addressed and postage pre-paid. We will promptly return the Contract
Value plus any amount deducted for premium taxes. This amount may be more or less than your Purchase Payments. 

	

 	 	

 
	

Deborah J. Long

Secretary	
 	

John D. Johns

President

THIS IS A LEGAL CONTRACT

READ IT CAREFULLY  

Administrative Office:

PROTECTIVE LIFE INSURANCE COMPANY

2801 Highway 280 South

P. O. Box 10648

Birmingham, Alabama 35202-0648

(800) 456-6330 

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2

 
SCHEDULE  

	CONTRACT NUMBER

PVA20000001	 	EFFECTIVE DATE

May 15, 2001
	
OWNER

John J. Doe	
 	
BIRTH DATE OF OWNER

November 5, 1953
	
JOINT OWNER

N/A	
 	
BIRTH DATE OF JOINT OWNER

N/A
	
ANNUITANT

John J. Doe	
 	
BIRTH DATE OF ANNUITANT

November 5, 1953
	
BENEFICIARY

As contained in our records	
 	
ANNUITY COMMENCEMENT DATE

November 5, 2043

INITIAL PURCHASE PAYMENT: {$100,000.00} 

ANNUAL EFFECTIVE INTEREST RATE FOR THE FIXED ACCOUNT ON THE EFFECTIVE DATE: {4.00%} 

ANNUAL EFFECTIVE INTEREST RATE FOR DCA FIXED ACCOUNT 1 ON THE EFFECTIVE DATE: {5.00%} 

ANNUAL EFFECTIVE INTEREST RATE FOR DCA FIXED ACCOUNT 2 ON THE EFFECTIVE DATE: {4.50%} 

BENEFIT PACKAGE: {Standard} 

CONTRACT MAINTENANCE FEE: $30 

The contract maintenance fee is deducted prior to the Annuity Commencement Date on each Contract Anniversary, and on any day that the Contract is surrendered other than the Contract Anniversary. The
contract maintenance fee will be deducted from the Allocation Options in the same proportion as their values are to the Contract Value. The contract maintenance fee will be waived by
the Company in the event the Contract Value or the aggregate Purchase Payments reduced by surrenders equals or exceeds $50,000 on the date the contract maintenance fee is to be deducted. 

MORTALITY AND EXPENSE RISK CHARGE: {1.25%} per annum prior to the Annuity Commencement Date, and 1.25% per annum on or after the Annuity
Commencement Date. 

ADMINISTRATION CHARGE: 0.15% per annum. 

TRANSFER FEE: $25 per transfer in excess of 12 in any Contract Year. 

3

 
SURRENDER CHARGE  

	
 Number of Full Years Elapsed Between

the Effective Date and the Surrender Date
	
 	

Surrender Charge Percentage
	
 
	0	 	6	%
	1	 	6	%
	2	 	5	%
	3	 	5	%
	4	 	4	%
	5	+	0	%

ALLOCATION OPTIONS AVAILABLE ON THE EFFECTIVE DATE  

{Protective Life Guaranteed Account}

{Fixed
Account}

{DCA Fixed Account 1}

{DCA Fixed Account 2} 

{Goldman Sachs/PIC}

{International
Equity}

{Small Cap Value}

{Capital Growth}

{CORE U.S. Equity}

{Growth and Income}

{Global Income} 

{Goldman Sachs}

{Internet
Tollkeeper} 

{Massachusetts Financial Services (MFS)}

{New
Discovery}

{Emerging Growth}

{Research}

{Investors Growth Stock}

{Utilities}

{Investors Trust}

{Growth Series} 

{OppenheimerFunds}

{Aggressive
Growth}

{Global Securities}

{Capital Appreciation}

{Main Street Growth & Income}

{High Income}

{Strategic Bond}

{Money Fund} 

{Van Kampen Life Investment Trust}

{Aggressive
Growth}

{Emerging Growth}

{Enterprise}

{Comstock}

{Growth and Income}

{Strategic Stock}

{Asset Allocation} 

{Calvert}

{Social
Small Cap Growth}

{Social Balanced} 

{Van Eck}

{Worldwide
Hard Assets}

{Worldwide Real Estate} 

4

 

 
 

TABLE OF CONTENTS    
  

	Definitions	 	7
	
General Provisions	
 	

8
	Entire Contract	 	8
	Modification of the Contract	 	8
	Incontestability	 	8
	Assignment	 	8
	Notice	 	8
	Error in Age or Gender	 	8
	Settlement	 	8
	Receipt of Payment	 	8
	Protection of Proceeds	 	8
	Premium Tax	 	8
	Non-Participating	 	8
	Minimum Values	 	9
	Application of Law	 	9
	Reports	 	9
	
Parties to the Contract	
 	

9
	Company	 	9
	Owner	 	9
	Change of Owner	 	9
	Beneficiary	 	9
	Change of Beneficiary	 	9
	Annuitant	 	9
	Change of Annuitant	 	9
	Payee	 	9
	
Purchase Payments	
 	

10
	Purchase Payment	 	10
	Allocation of Purchase Payments	 	10
	No Default	 	10
	
Guaranteed Account	
 	

10
	Guaranteed Account Value	 	10
	
Variable Account	
 	

10
	General Description	 	10
	Sub-Accounts of the Variable Account	 	11
	Variable Account Value	 	11
	Accumulation Unit Values	 	12
	
Transfers	
 	

12
	
Surrenders	
 	

13
	Free Withdrawal Amount	 	13
	Determining the Surrender Charge	 	13
	Suspension or Delay in Payment of Surrender	 	13

5

 

	
Death Benefit	
 	

13
	Death of an Owner	 	13
	Death of the Annuitant	 	13
	Death Benefit	 	14
	Suspension of Payment	 	14
	
Annuitization	
 	

14
	Annuity Commencement Date	 	14
	Annuity Income Payments	 	14
	Fixed Income Payments	 	14
	Variable Income Payments	 	15
	Annuity Unit Values	 	15
	Selection of Annuity Options	 	15
	Annuity Options	 	15
	Minimum Amounts	 	16
	Guaranteed Purchase Rates	 	16
	Fixed Annuity Tables	 	16

6

 
 
 

DEFINITIONS    
  

Accumulation Unit:  A unit of measure used to calculate the value of a Sub-Account prior to the Annuity Commencement Date. 

Allocation Option:  Any account to which Purchase Payments may be allocated or Contract Value transferred under this Contract. 

Annuity Commencement Date:  The date as of which the Contract Value, less applicable premium tax, is applied to an Annuity Option. 

Annuity Option:  The payout option pursuant to which the Company makes annuity income payments. 

Annuity Unit:  A unit of measure used to calculate the amount of the variable income payments. 

Assumed Investment Return:  The assumed annual rate of return used to calculate the amount of the variable income payments. 

Contract Anniversary:  The same month and day as the Effective Date in each subsequent year of the Contract. 

Contract Value:  Prior to the Annuity Commencement Date, the sum of the Variable Account value and the Guaranteed Account value. 

Contract Year:  Any period of 12 months commencing with the Effective Date or any Contract Anniversary. 

Effective Date:  The date as of which the initial Purchase Payment is credited to the Contract and the date the Contract takes effect, as
shown on the Schedule. 

Fund:  Any investment portfolio in which a corresponding Sub-Account invests. 

Guaranteed Account:  Includes any Allocation Option we may offer with interest rate guarantees. 

Purchase Payment:  The amount(s) paid by the Owner and accepted by the Company as consideration for this Contract. 

Qualified Contracts:  Contracts issued in connection with retirement plans that receive favorable tax treatment under
Sections 401, 403, 408, 408A or 457 of the Internal Revenue Code. 

Sub-Account:  A separate division of the Variable Account. 

Surrender Value:  The amount available for a full surrender. It is equal to the Contract Value minus any applicable surrender charge,
contract maintenance fee and premium tax. 

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

Valuation Period:  The period which begins at the close of regular trading on the New York Stock Exchange on any Valuation Day and ends
at the close of regular trading on the next Valuation Day. 

Variable Account:  The Protective Variable Annuity Separate Account, a separate investment account of Protective Life. 

Written Notice:  A notice or request submitted in writing in a form satisfactory to the Company that is received at the administrative
office. 

7

 
 
 

GENERAL PROVISIONS    
  

Entire Contract — This Contract and its attachments, including the copy of your Application and any endorsements and amendments, constitute
the entire agreement between you and us. All statements in the Application shall be considered representations and not warranties. 

Modification of the Contract — No one is authorized to modify or waive any term or provision of this Contract unless we agree to the
modification or waiver in writing and it is signed by our President, Vice-President or Secretary. We reserve the right to change or modify the provisions of this Contract to conform to any applicable
laws, rules or regulations issued by a government agency, or to assure continued qualification of the Contract as an annuity contract under the Internal Revenue Code. We will send you a copy of the
endorsement that modifies the Contract, and where required we will obtain all necessary approvals, including that of the Owner(s). 

Incontestability — We will not contest this Contract after it is issued. 

Assignment — You have the right to assign this Contract. We do not assume responsibility for the assignment; any claim made under an
assignment is subject to proof of the nature and extent of the assignee's interest prior to payment by us. 

Notice — All instructions under this Contract and requests to change or assign this Contract must be by Written Notice. The Written Notice
is effective as of the date it was signed, however, the Company is not responsible for following any instruction or making any change or assignment before our receipt of the Written Notice. 

Error in Age or Gender — When a benefit of this Contract is contingent upon any person's age or gender, we may require proof of such. We may
suspend payments until proof is provided. When we receive satisfactory proof, we will make the payments that were due during the period of suspension. Where the use of unisex mortality rates is
required, we will not determine or adjust benefits based upon gender. 

If
after proof of age and gender (where applicable) is provided, it is determined that the information you furnished was not correct, we will adjust any benefit under this Contract to that which would
be payable based upon the correct information. If we have underpaid a benefit because of the error, we will make up the underpayment in a lump sum. If the error resulted in an overpayment, we will
deduct the amount of the overpayment from any current or future payment due under the Contract. Underpayments and overpayments will bear interest at an annual effective interest rate of 3%. 

Settlement — Benefits due under this Contract are payable from our administrative office. The Owner may apply the settlement proceeds to any
payout option we offer for such payments at the time the election is made. Unless directed otherwise in writing, we will make payments according to the Owner's instructions as contained in our records
at the time the payment is made. We shall be discharged from all liability for payment to the extent of any payments we make. 

Receipt of Payment — If any Owner, Annuitant, Beneficiary or Payee is incapable of giving a valid receipt for any payment, we may make such
payment to whomever has legally assumed his or her care and principal support. Any such payment shall fully discharge us to the extent of that payment. 

Protection of Proceeds — To the extent permitted by law and except as provided by an assignment, no benefits payable under this Contract
will be subject to the claims of creditors. 

Premium Tax — Premium tax will be deducted, if applicable. Premium tax may be deducted from the Purchase Payment(s) when accepted or from
the Contract Value upon a full or partial surrender, death or annuitization. 

Non-Participating — This Contract does not share in our surplus or profits, or pay dividends. 

8

 

Minimum Values — The values available under the Contract are at least equal to the minimum values required in the state where the Contract
is delivered. 

Application of Law — The provisions of the Contract are to be interpreted in accordance with the laws of the state where the Contract is
delivered, with the Internal Revenue Code and with applicable regulations. 

Reports — At least annually prior to the Annuity Commencement Date, we will send to you at the address contained in our records a report
showing the current Contract Value and any other information required by law. 

 
 

PARTIES TO THE CONTRACT    
  

Company — Protective Life Insurance Company, also referred to as "we", "us" and "our". 

Owner — The person or persons who own the Contract and are entitled to exercise all rights and privileges provided in the Contract. Two
persons may own the Contract together; they are designated as the Owner and the Joint Owner. Individuals as well as non-natural persons, such as corporations or trusts, may be Owners. The Owner is
referred to as "you" and "your". 

Change of Owner — The Owner of this Contract may be changed by Written Notice provided (1) any new Owner's 85th birthday is after the
Effective Date, and (2) any new Owner's 90th birthday is on or after the Annuity Commencement Date. For a period of one year after any change of ownership involving a natural person, the death
benefit will equal the Contract Value. 

Beneficiary — The person or persons who may receive the benefits of this Contract upon the death of any Owner. 

Primary — The Primary Beneficiary is the surviving Joint Owner, if any. If there is no surviving Joint Owner, the Primary Beneficiary is the
person or persons designated by the Owner and named in our records. 

Contingent — The Contingent Beneficiary is the person or persons designated by the Owner and named in our records to be Beneficiary if the
Primary Beneficiary is not living. 

If
no Beneficiary designation is in effect or if no Beneficiary is living at the time of an Owner's death, the Beneficiary will be the estate of the deceased Owner. If any Owner dies on or after the
Annuity Commencement Date, the Beneficiary will become the new Owner. 

Change of Beneficiary — Unless designated irrevocably, the Owner may change the Beneficiary by Written Notice prior to the death of any
Owner. An irrevocable Beneficiary is one whose written consent is needed before the Owner can change the Beneficiary designation or exercise certain other rights. 

Annuitant — The person or persons on whose life annuity income payments may be based. The Owner is the Annuitant unless the Owner designates
another person as the Annuitant. 

Change of Annuitant — The Owner may change the Annuitant by Written Notice prior to the Annuity Commencement Date. However, if any Owner is
not an individual the Annuitant may not be changed. The new Annuitant's 90th birthday may not be earlier than the Annuity Commencement Date in effect when the change of Annuitant is requested. 

Payee — The person or persons designated by the Owner to receive the annuity income payments under the Contract. The Annuitant is the Payee
unless the Owner designates another party as the Payee. The Owner may change the Payee at any time. 

9

 
 
 

PURCHASE PAYMENTS    
  

Purchase Payment — Purchase Payments are payable at our administrative office. They may be made by check payable to Protective Life
Insurance Company or by any other method we deem acceptable. Your initial Purchase Payment is shown on the Schedule. 

Subsequent
Purchase Payments may be accepted by the Company but may not be allocated to the DCA Fixed Accounts. The minimum subsequent Purchase Payment we will accept is $100. The maximum aggregate
Purchase Payment(s) we will accept without prior administrative office approval is $1,000,000. We reserve the right not to accept any Purchase Payment. 

Allocation of Purchase Payments — We will allocate your Purchase Payments to the Allocation Options according to your instructions as
contained in our records at the time the Purchase Payment is accepted at our administrative office. Your initial allocation instructions are on the Application. You may change your allocation
instructions at any time by Written Notice. Allocations must be made in whole percentages. 

No Default — This Contract will not be in default if subsequent Purchase Payments are not made. 

 
 

GUARANTEED ACCOUNT    
  

The Guaranteed Account includes the Fixed Account and the DCA Fixed Accounts, which are each a part of the Company's general account. You may allocate some or all of your
Purchase Payments and may transfer some of your Contract Value to an account within the Guaranteed Account, except that transfers may not be made into the DCA Fixed Accounts. Amounts allocated to an
account within the Guaranteed Account earn interest from the date the funds are credited to the account. 

The
interest rate we apply to Purchase Payments and transfers into the Fixed Account is guaranteed for one year from the date the Purchase Payment or transfer is credited to the account. When an
interest rate guarantee expires, we will set a new interest rate, which may not be the same as the interest rate then in effect for Purchase Payments or transfers allocated to the Fixed Account. The
new interest rate is also guaranteed for one year. 

We
will systematically transfer Purchase Payments allocated to the DCA Fixed Accounts to other Allocation Options in equal amounts over a designated period. The interest rate we apply to Purchase
Payments allocated to a DCA Fixed Account is guaranteed for the period over which transfers are allowed from that DCA Fixed Account. 

We,
in our sole discretion, establish the interest rates for each account in the Guaranteed Account. We will not declare a rate that is less than an annual effective interest rate of 3.00%. Because
these rates vary from time to time, allocations made to the same account within the Guaranteed Account at different times may earn interest at different rates. 

Guaranteed Account Value — Any time prior to the Annuity Commencement Date, the Guaranteed Account value is equal to: (1) Purchase
Payments allocated to the Guaranteed Account; plus (2) amounts transferred into the Guaranteed Account; plus (3) interest credited to the Guaranteed Account; minus (4) amounts
transferred out of the Guaranteed Account; minus (5) the amount of any surrenders removed from the Guaranteed Account, including any applicable surrender charges and premium tax; minus
(6) fees deducted from the Guaranteed Account. For the purposes of interest crediting, amounts deducted, transferred or withdrawn from accounts within the Guaranteed Account will be separately
accounted for on a "first-in, first-out" (FIFO) basis. 

 
 

VARIABLE ACCOUNT    
  

General Description — The variable benefits under the Contract are provided through the Protective Variable Annuity Separate Account, which
is registered with the Securities and Exchange Commission 

10

 

as a unit investment trust under the Investment Company Act of 1940. We own the assets in the Variable Account. The portion of the assets of the Variable Account equal to the reserves and other
contract liabilities with respect to the Variable Account are not chargeable with the liabilities arising out of any other business we may conduct. The income, gains and losses, both realized and
unrealized, from the assets of the Variable Account shall be credited to or charged against the Variable Account without regard to any other income, gains or losses of the Company. We have the right
to transfer to our general account any assets of the Variable Account that are in excess of such reserves and other liabilities. 

Sub-Accounts of the Variable Account — The Variable Account is divided into a series of Sub-Accounts. The Sub-Accounts available on the
Effective Date are listed on the Schedule. Each Sub-Account invests in shares of a corresponding Fund. The income, dividends, and gains, if any,
distributed from the shares of a Fund will be reinvested by purchasing additional shares of that Fund at its net asset value. 

When
permitted by law, we may: 

	(1)
	create
new variable accounts;

	(2)
	combine
variable accounts, including the Variable Account;

	(3)
	add
new Sub-Accounts to, or remove existing Sub-Accounts from the Variable Account, or combine Sub-Accounts;

	(4)
	make
new Sub-Accounts or other Sub-Accounts available to such classes of the Contracts as we may determine;

	(5)
	add
new Funds, or remove existing Funds;

	(6)
	substitute
a different Fund for any existing Fund if shares of a Fund are no longer available for investment, or if we determine that investment in a Fund is no longer appropriate
in light of the purposes of the Variable Account;

	(7)
	deregister
the Variable Account under the Investment Company Act of 1940 if such registration is no longer required;

	(8)
	operate
the Variable Account as a management investment company under the Investment Company Act of 1940 or as any other form permitted by law; and

	(9)
	make
any changes to the Variable Account or its operations as may be required by the Investment Company Act of 1940 or other applicable law or regulations. 

The
investment policy of the Variable Account will not be changed without obtaining all necessary regulatory approvals. 

The
values and benefits of this Contract provided by the Variable Account depend on the investment performance of the Funds in which the Sub-Accounts invests. We do not guarantee the investment
performance of the Funds. You bear the full investment risk for amounts allocated or transferred to the Sub-Accounts. 

We
reserve the right to deduct taxes attributable to the operation of the Variable Account. 

Variable Account Value — At any time prior to the Annuity Commencement Date, the Variable Account value is equal to: (1) Purchase
Payments allocated to the Variable Account; plus (2) amounts transferred into the Variable Account; plus or minus (3) investment performance; minus (4) amounts transferred out of
the Variable Account; minus (5) the amount of any surrenders removed from the Variable Account including any applicable surrender charges and premium tax; minus (6) fees deducted from
the Variable Account. The Variable Account value also equals the total of the Sub-Account values. 

11

 

Amounts allocated to the Variable Account, including, but not limited to Purchase Payments and transfers, are used to purchase Accumulation Units of one or more Sub-Accounts as directed by the Owner.
To calculate the value of a Sub-Account, we multiply the number of Accumulation Units attributable to each Sub-Account by the Accumulation Unit value for that Sub-Account as of the Valuation Period on
which the value is being determined. 

Events
that will result in the cancellation of an appropriate number of Accumulation Units of a Sub-Account include, but are not limited to: (1) transfers from a Sub-Account; (2) a full
or partial surrender; (3) payment of the death benefit; (4) annuitization; (5) the deduction of the contract maintenance fee. 

Accumulation
Units will be canceled as of the end of the Valuation Period during which the transaction occurs. 

Accumulation Unit Values — The Accumulation Unit value for each Sub-Account on any Valuation Day is determined by multiplying the
Accumulation Unit value on the prior Valuation Day by the net investment factor for the Valuation Period. The net investment factor is used to measure the investment performance of a Sub-Account from
one Valuation Period to the next. A net investment factor is determined for each Sub-Account for each Valuation Period. The net investment factor may be greater or less than one, so the value of an
Accumulation Unit can increase or decrease. The
net investment factor for any Sub-Account for any Valuation Period is determined by dividing (1) by (2) and subtracting (3), where: 

	(1)
	is
the result of:

	a.
	the
net asset value per share of the Fund held in the Sub-Account, determined at the end of the current Valuation Period; plus

	b.
	the
per share amount of any dividend or capital gain distributions made by the Funds held in the Sub-Account, if the ex-dividend date occurs during the current Valuation Period. 

	(2)
	is
the net asset value per share of the Fund held in the Sub-Account, determined at the end of the most recent prior Valuation Period.

	(3)
	is
a factor representing the mortality and expense risk charge and the administration charge for the number of days in the Valuation Period and a charge or credit for any taxes
attributed to the investment operations of the Sub-Account, as determined by the Company. 

 
 

TRANSFERS    
  

Prior to the Annuity Commencement Date, you may instruct us to transfer amounts among the Allocation Options. You must transfer at least $100 or, if less, the entire amount in
the Allocation Option each time you make a transfer. If after the transfer the amount remaining in any of the Allocation Options from which the transfer is made is less than $100, we may transfer the
entire amount instead of the requested amount. We may also limit the number of transfers to no more than 12 per year. For each additional transfer over 12 during each Contract Year, we may charge a
transfer fee as shown on the Schedule. The transfer fee, if any, will be deducted from the amount being transferred. 

We
reserve the right to limit amounts transferred into any account within the Guaranteed Account. The maximum amount that may be transferred from the Fixed Account in any Contract Year is the greater
of (a) $2,500; or (b) 25% of the Contract Value in the Fixed Account. Transfers into a DCA Fixed Account are not permitted. 

The
DCA Fixed Accounts are available only for initial Purchase Payments designated for dollar cost averaging. Purchase Payments allocated to a DCA Fixed Account must include instructions regarding
the number and frequency of the dollar cost averaging transfers, and the Allocation Option(s) into which the transfers are to be made. If transfers from a DCA Fixed Account are terminated, we will
transfer any 

12

 

amount remaining in that DCA Fixed Account into the Fixed Account unless you have otherwise instructed us how to allocate the remaining amount. 

 
 

SURRENDERS    
  

A full surrender of the Contract may be made any time prior to the Annuity Commencement Date. Partial surrenders may be made prior to the Annuity Commencement Date provided the
Contract Value remaining after the surrender is at least $10,000 for non-Qualified Contracts and $2,000 for Qualified Contracts. The amount we pay upon a full or partial surrender is equal to the
Contract Value surrendered minus any applicable surrender charge, premium tax and contract maintenance fee. We will withdraw amounts pro-rata from the Allocation Options. 

Free Withdrawal Amount — During the first Contract Year you may withdraw an amount equal to 15% of your initial Purchase Payments without
incurring a surrender charge. In any subsequent Contract Year you may withdraw, without incurring a surrender charge, an amount equal to the greatest of: (1) the earnings in your Contract as of
the prior Contract Anniversary, if any; or, (2) 15% of your cumulative Purchase Payments as of the prior Contract Anniversary; or, (3) 15% of the Contract Value as of the prior Contract
Anniversary. This is called the "free withdrawal amount". For the purpose of determining the free withdrawal amount, earnings equal the Contract Value on the prior Contract Anniversary minus Purchase
Payments not previously assessed with a surrender charge. Withdrawals in excess of the free withdrawal amount during any Contract Year may be subject to the surrender charge. 

Determining the Surrender Charge — Prior to the fifth Contract Anniversary, we calculate the surrender charge by multiplying surrendered
Contract Value in excess of any free withdrawal amount by its applicable surrender charge percentage, as shown on the Schedule. We will not assess a surrender charge on surrenders or partial
surrenders after the fifth Contract Anniversary. 

Suspension or Delay in Payment of Surrender — The Company may suspend or delay the date of payment of a partial or full surrender from the
Variable Account value for any period: 

	1)
	when
the New York Stock Exchange is closed; or

	2)
	when
trading on the New York Stock Exchange is restricted; or

	3)
	when
an emergency exists (as determined by the Securities and Exchange Commission) as a result of which: (a) the disposal of securities in the Variable Account is not
reasonably practical; or (b) it is not reasonably practical to determine fairly the value of the net assets of the Variable Account; or

	4)
	when
the Securities and Exchange Commission, by order, so permits for the protection of security holders. 

The
Company may delay payment of a partial or full surrender from the Guaranteed Account for up to six months where permitted. 

 
 

DEATH BENEFIT    
  

Death of an Owner — If any Owner dies before the Annuity Commencement Date and while this Contract is in force, we will pay the death
benefit, less any applicable premium tax, to the Beneficiary. If any Owner dies on or after the Annuity Commencement Date, the Beneficiary will become the new Owner and remaining payments must be
distributed at least as rapidly as under the Annuity Option in effect at the time of the Owner's death. 

Death of the Annuitant — If the Annuitant is not an Owner and dies prior to the Annuity Commencement Date, the Owner will become the new
Annuitant unless the Owner designates otherwise. If any Owner is not an individual, the death of the Annuitant will be treated as the death of an Owner. 

13

 

Death Benefit — The death benefit will be determined as of the end of the Valuation Period during which we receive due proof of death. The
death benefit will equal the greater of: (1) the Contract Value; or (2) aggregate Purchase Payments less aggregate amounts surrendered. Only one death benefit is payable under this
Contract, even though the Contract may, in some circumstances, continue beyond the time of an Owner's death. 

The
death benefit may be taken in one sum immediately and the Contract will terminate. If the death benefit is not taken in one sum immediately, the death benefit will become the new Contract Value as
of the end of the Valuation Period during which we receive due proof of death and the entire interest in the Contract must be distributed under one of the following options: 

	(1)
	the
entire interest must be distributed over the life of the Beneficiary, or over a period not extending beyond the life expectancy of the Beneficiary, with distribution beginning
within one year of the Owner's death; or,

	(2)
	the
entire interest must be distributed within 5 years of the Owner's death. 

If
the Beneficiary is the deceased Owner's spouse, the surviving spouse may elect, in lieu of receiving a death benefit, to continue the Contract and become the new Owner, provided the deceased
Owner's spouse's 85th birthday is after the Effective Date and 90th birthday is after the Annuity Commencement Date then in effect. The surviving spouse may select a new Beneficiary. Upon this
spouse's death, the Beneficiary may take the death benefit in one sum immediately and the Contract will terminate. If the death benefit is not taken in one sum immediately, the death benefit will
become the new Contract Value as of the end of the Valuation Period during which we receive due proof of death and must be distributed to the new Beneficiary according to either paragraph (1) or (2),
above. 

If
there is more than one Beneficiary, the foregoing provisions apply to each Beneficiary individually. 

The
death benefit provisions of this Contract shall be interpreted to comply with the requirements of §72(s) of the Internal Revenue Code. We reserve the right to endorse this Contract, as
necessary, to conform with regulatory requirements. We will send you a copy of any endorsement containing such Contract modifications. 

Suspension of Payment — Payment of the death benefit may be suspended or delayed under the circumstances described in the provision
"Suspension or Delay in Payment of Surrender". 

 
 

ANNUITIZATION    
  

Annuity Commencement Date — On the Effective Date, the Annuity Commencement Date is the later of: (1) the oldest Owner's or
Annuitant's 90th birthday, or (2) the 10th Contract Anniversary. It is shown on the Schedule. The Owner may change the Annuity Commencement Date by Written Notice. The proposed Annuity
Commencement Date must be at least 30 days beyond the date the written request is received by the Company, and at least 5 years after the Effective Date. The new Annuity Commencement Date may
not be later than: (1) the oldest Owner's or Annuitant's 90th birthday, or (2) the 10th Contract Anniversary. 

On
the Annuity Commencement Date, we will apply your Contract Value, less any applicable premium tax, to the Annuity Option you have selected to determine an annuity income payment. 

Annuity Income Payments — You may elect to receive a fixed income payment, a variable income payment, or a combination of both using the
same Annuity Option and certain period. 

Fixed Income Payments — Fixed income payments are periodic payments from the Company to the designated Payee, the amount of which is fixed
and guaranteed by the Company. It is not in any way dependent upon the investment experience of the Variable Account. 

14

 

Variable Income Payments — Variable income payments are periodic payments from the Company to the designated Payee, the amount of which
varies from one payment to the next as a reflection of the net investment experience of the Sub-Account(s) you select to support the payments. 

Using
an Assumed Investment Return of 5%, we determine the dollar amount of the variable income payment as if a payment were to be made on the Annuity Commencement Date. However, no payment is
actually made on that date. We then allocate that dollar amount among the Sub-Accounts you selected to support your variable income payments. Based on the Annuity Unit values of the selected
Sub-Accounts on that date, we determine the number of Annuity Units attributable to each Sub-Account. The number of Annuity Units attributable to each Sub-Account remains constant unless there is a
transfer of Annuity Units between Sub-Accounts. 

To
calculate the amount of each variable income payment, we multiply the number of Annuity Units attributable to each Sub-Account by the Annuity Unit value for that Sub-Account as of the Valuation
Period on which the payment is being determined. We then total results of these calculations for each Sub-Account. 

Annuity Unit Values — The Annuity Unit value of each Sub-Account for any Valuation Period is equal to (1) multiplied by
(2) divided by (3) where: 

	(1)
	is
the net investment factor for the Valuation Period for which the Annuity Unit value is being calculated using the mortality and expense risk charge and the administration charge
shown on the Schedule.

	(2)
	is
the Annuity Unit value for the preceding Valuation Period: and

	(3)
	is
a daily Assumed Investment Return factor adjusted for the number of days in the Valuation Period. 

You
may transfer Annuity Units between Sub-Accounts. This is done by converting Annuity Units of a Sub-Account into a dollar amount using the Annuity Unit value for that Sub-Account on the Valuation
Period during which the transfer occurs and reconverting that dollar amount into the appropriate number of Annuity Units of another Sub-Account using its Annuity Unit value for the same Valuation
Period. Thus, on the date of the transfer, the dollar amount of the portion of a variable income payment generated from the Annuity Units of either Sub-Account would be the same. Only one transfer
between Sub-Accounts is allowed in any calendar month, and no transfers are allowed involving the Guaranteed Account. 

Selection of Annuity Options — You may select an Annuity Option, or change your selection by Written Notice received by the Company not
later than 30 days before the Annuity Commencement Date. If you have not selected an Annuity Option within 30 days of the Annuity Commencement Date, we will apply your Contract Value to
Option B — Life Income with Payments for a 10 Year Certain Period, with the Variable Account value used to purchase variable income payments and the Guaranteed Account value
used to purchase fixed income payments. 

Annuity Options — You may select from among the following Annuity Options: 

OPTION
A — PAYMENTS FOR A CERTAIN PERIOD:  Payments will be made for the period you select. No certain period may be longer than 30 years. Payments under this Annuity
Option do not depend on the life of an Annuitant. Fixed income payments under Option A may not be surrendered, but you may fully surrender variable income payments under Option A. 

OPTION
B — LIFE INCOME WITH OR WITHOUT A CERTAIN PERIOD:  Payments are based on the life of an Annuitant. We reserve the right to demand proof that the Annuitant(s) is
living prior to making any income payment. If you elect to include a certain period, payments will be made for the lifetime of the
Annuitant, with payments guaranteed for the certain period you select. No certain period may be longer than 30 years. Payments stop at the end of the selected certain period or 

15

 

when the Annuitant(s) dies, whichever is later. If no certain period is selected, payments will stop upon the death of the Annuitant(s). Neither fixed nor variable income payments under Option B may
be surrendered. 

ADDITIONAL
OPTION:  The Contract Value, less applicable premium tax, may be used to purchase any annuity contract that we offer on the date this option is elected. 

Minimum Amounts — If your Contract Value is less than $5,000 on the Annuity Commencement Date, we reserve the right to pay the Contract
Value in one lump sum. If at any time your annuity income payments are less than the minimum payment amount according to the Company's rules then in effect, we reserve the right to change the
frequency of your income payments to an interval that will result in a payment amount at least equal to the minimum. 

Guaranteed Purchase Rates — The guaranteed interest basis, which is not applicable to variable income payments, is 3%. The mortality basis
is the 1983 Individual Annuitant Mortality Table A projected 14 years. One year will be deducted from the attained age of the Annuitant for every 3 completed years beyond the year
1997. Upon request, we will furnish you the guaranteed purchase rates for ages and periods not shown below. Annuity benefits available on the Annuity Commencement Date will not be less than those
provided by the application of an equivalent amount to the purchase of a single premium immediate annuity contract offered by us on the Annuity Commencement Date to the same class of Annuitants for
the same Annuity Option. 

FIXED ANNUITY TABLES  

	

OPTION A TABLE
	
 	

OPTION B TABLE

	Payments for a

Certain Period	 	Life Income with or

without a Certain Period

	 
	 	 
	 	 
	 	 
	 	 
	 	Life with 10 Year

Certain Period

	 
	 	 
	 	 
	 	Life Only

	 
	 	Monthly

Payment
	 	Age of

Annuitant

	
 Years
	
 	

Male
	
 	

Female
	
 	

Male
	
 	

Female

	5	 	17.91	 	60	 	4.77	 	4.25	 	4.68	 	4.21
	10	 	9.61	 	65	 	5.46	 	4.78	 	5.28	 	4.70
	15	 	6.87	 	70	 	6.44	 	5.53	 	6.03	 	5.36
	20	 	5.51	 	75	 	7.79	 	6.63	 	6.90	 	6.21
	25	 	4.71	 	80	 	9.70	 	8.26	 	7.81	 	7.22
	30	 	4.18	 	85 & over	 	12.38	 	10.70	 	8.60	 	8.20

These tables illustrate the minimum fixed monthly annuity payments rates for each $1,000 applied. 

Individual Flexible Premium Deferred Fixed and Variable Annuity Contract Non-Participating  

16

QuickLinks

TABLE OF CONTENTS

DEFINITIONS

GENERAL PROVISIONS

PARTIES TO THE CONTRACT

PURCHASE PAYMENTS

GUARANTEED ACCOUNT

VARIABLE ACCOUNT

TRANSFERS

SURRENDERS

DEATH BENEFIT

ANNUITIZATION

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