Document:

<PAGE>   1
                                                                   EXHIBIT 10.43

                                                                      Attachment
                     METROPOLITAN LIFE INSURANCE COMPANY

                        ANNUAL VARIABLE INCENTIVE PLAN

         (For performance periods starting on or after January 1, 1999)

  I. PURPOSE OF THE PLAN

     - Align total annual pay with the Company's annual financial business
       results.

     - Provide competitive levels of pay for competitive levels of Company
       performance.

     - Make a competitive portion of total compensation variable based on
       Company, business unit and individual performance.

 II. PARTICIPATION

     All associates in salary grade 29 and above who have signed the "Agreement
     to Protect Corporate Property", other than those participating in incentive
     plans which are alternatives to, and not supplementary to, the Annual
     Variable Incentive Plan.

     In addition, the Officers may impose such other reasonable conditions for
     participation in the Annual Variable Incentive Plan as they deem necessary
     or appropriate.

III. DETERMINATION OF THE INCENTIVE POOL FOR DISTRIBUTION

     The Board determines at the beginning of the performance year financial
     objectives consistent with the Company's Annual Business Plan that will
     provide the basis for determining the maximum aggregate incentive pool for
     distribution. The pool will be determined using a formula approved by the
     Board, which will be expressed in terms of percentages of operating
     earnings and return on equity ("ROE"). The formula will be reviewed each
     year by the Board to determine its appropriateness in connection with the
     Company's Business Plan, and may be revised by the Board as a result of
     such review. The maximum pool may also be increased by the Nominating and
     Compensation Committee ("Committee") based on the recommendation of the
     Chief Executive Officer ("CEO").

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Annual Variable Incentive Plan                                      Page 2 of 4

     For purposes of this Plan: (a) "Operating earnings" means earnings net of
     all taxes (other than the surplus tax), and excludes the impact of
     demutualization costs; and (b) "Return on Equity" means operating earnings
     divided by GAAP equity, where GAAP equity excludes unrealized investment
     gains.

     A portion of the aggregate incentive pool resulting from the formula will
     be allocated by the CEO among the various business units based on their
     performance relative to certain agreed upon objectives set at the beginning
     of the performance year by the CEO. Following the performance year,
     business unit performance will be evaluated by the CEO. All or a portion of
     the aggregate incentive pool allocated to a particular business unit may be
     distributed to Plan participants in that business unit, depending on the
     performance of that business unit. A portion of the pool will be applied to
     the Company's Performance Incentive Plan, as determined by the CEO.

IV.  CALCULATION OF TARGET INCENTIVE OPPORTUNITIES

     A.   Incentive opportunity percentages for various position levels are
          determined based on competitive total compensation market factors and
          take into account incentive compensation opportunities for comparable
          positions at our comparator companies, including major insurance
          companies, banks and diversified financial services companies.

     B.   The schedule of the incentive opportunity percentages for the various
          categories of participants is:

<TABLE>
<CAPTION>
                                                            INCENTIVE
          POSITION LEVEL                            OPPORTUNITY PERCENTAGE
          --------------                            ----------------------
          <S>                                     <C>

          #1 (Chief Executive Officer)                        150%
          #2 (President)                                       90%
          #3 (Senior Executive Vice-President)                 80%
          #4 (Executive Vice-President)                        70%
          #5 (Senior Vice-President)                           50%
          #6 (Vice-President)                                  40%
          #7 (Assistant Vice-President)                        25%
          #8 (Non-Officer Participant)  (Grade 31)             15%
                                        (Grade 30)             10%
                                        (Grade 29)              5%

</TABLE>
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Annual Variable Incentive Plan                                       Page 3 of 4

     Participants' actual base earnings (excluding payments under any incentive
     compensation plan) during the performance year are used as the base to
     calculate individual incentive opportunities. In general, target incentive
     opportunities are calculated by multiplying the participant's actual
     annual base earnings by the applicable incentive opportunity percentage.
     Where an individual becomes eligible to participate in the Plan during the
     performance year, or where a Plan participant's status changes during the
     performance year, the participant's target incentive opportunity will be
     prorated accordingly.

V.   CALCULATION OF INDIVIDUAL AWARDS

     In considering individual award recommendations, significant weight is
     given to business unit and individual performance. Relative contributions
     among plan participants is also considered. It is anticipated that there
     will be significant differentiation of annual incentive awards based on
     individual performance. Where performance indicates, individuals may
     receive no award at all.

     The total of all individual awards under the Plan may not exceed the
     maximum aggregate incentive pool.

VI.  ADMINISTRATION OF AWARDS

     A.   Incentive awards for any performance year shall be made as soon as
          possible during the following calendar year in the form of lump sum
          payments.

     B.   Participants terminating employment after the performance year, but
          before the payout, are eligible to receive an award, at the Company's
          discretion.

     C.   Participants terminating employment during the performance year due
          to death, disability, retirement, or staffing adjustment programs
          adopted by the Company, may be eligible to receive awards on a
          pro-rata basis, at the Company's discretion. Participants terminating
          employment for reasons other than death, disability, retirement, or
          such staffing adjustment programs during a performance year are not
          eligible for an award.

     D.   Participants terminating employment "for cause" at any time before
          payment of awards are not eligible for an award.

     E.   Incentive awards paid prior to retirement or discontinuance of
          employment will be taken into account for purposes of determining the
          level of Insurance
<PAGE>   4
                                                                    Page 4 of 4

Annual Variable Incentive Plan

          and Retirement benefits and contributions to the Savings and
          Investment Plan, subject to any regulatory limitations or approvals.
          Incentive awards paid subsequent to retirement or discontinuance of
          employment will not be taken into account for purposes of determining
          the level of Insurance and Retirement benefits or contributions to the
          Savings and Investment Plan, except as may be provided otherwise in
          any other Company plan or program.

VII. ROLE OF THE NOMINATING AND COMPENSATION COMMITTEE
     _________________________________________________

     The Committee exercises overall responsibility and has broad discretion in
     the administration of the Plan.

     With respect to corporate performance, inasmuch as other unforeseen matters
     have an impact on overall performance during the year, the Committee, at
     its discretion, may adjust performance either positively or negatively. The
     Committee may use its discretion to adjust for unusual events that are
     beyond the control of management and obviously influence performance
     results unduly, such as material changes in accounting policy, tax and
     other government regulations, and the acquisition or sale of a business.

     With respect to individual awards, the Committee will report its
     recommendations for individual incentive awards for Officers of the rank of
     Executive Vice-President and above to the Board following the performance
     year. Following the determination of awards, the Committee will receive a
     summary report of all incentive award payments. In addition, an annual
     report listing individual awards paid to participants in the Long Term
     Performance Compensation Plan will be submitted to the Committee.

                                      -0-<PAGE>   1
                                                                   EXHIBIT 10.44

                              FORM OF CAPITAL NOTE

           THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, AND MAY NOT BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.

           THE ISSUER MAY ONLY MAKE PAYMENTS OF THE INTEREST ON AND THE
PRINCIPAL OF THIS NOTE, IF NONE OF THE PAYMENT RESTRICTIONS (AS DEFINED ON THE
REVERSE HEREOF) THEN EXISTS.
<PAGE>   2
                       METROPOLITAN LIFE INSURANCE COMPANY

        ____% Mandatorily Convertible Capital Note, due __________, 2005

No. A-1                                                            $___________

           METROPOLITAN LIFE INSURANCE COMPANY ("Issuer"), a stock life
insurance company organized and existing under the laws of the State of New
York, for value received, hereby promises to pay, subject to the Payment
Restrictions (as set forth in paragraph 4 on the reverse hereof, to METLIFE,
INC., or the registered assigns thereof, the principal sum of _____ United
States dollars ($) on __________, 2005 ("Maturity Date"), through the conversion
of such amount into shares of Common Stock, par value $.01 per share ("Common
Capital Stock") of the Issuer, and to pay interest thereon from the date hereof
quarterly in arrears on ________, ________, ________ and ________ in each year,
commencing ________, 2000 (each such date a "Payment Date"), initially at the
rate of __% per annum through and including ________ __, 2003, and at the Reset
Rate (as defined below) thereafter, until the principal hereof is paid in full
or duly provided for. The Maturity Date will also occur on the date on which any
state or federal authority or agency obtains an order or grants approval for the
rehabilitation, liquidation, conservation or dissolution of the Issuer.

           The Issuer shall pay the interest due on each Payment Date to the
person ("Registered Holder") in whose name this Note is registered on the
Register (as defined on the reverse hereof) at the close of business on the
________, ________, ________ or ________ (each a "Regular Record Date") (whether
or not a Business Day (as defined on the reverse hereof)), as the case may be,
next preceding such Payment Date. The Issuer shall calculate such interest on
the basis of a 360-day year of twelve 30-day months.

           Subject to the Payment Restrictions, the Issuer shall pay the
principal of this Note on the Maturity Date, but only against surrender of this
Note to the Issuer.

           The unpaid principal amount of this Note will, without any further
action by the Issuer or the Registered Holder, be converted into 500 shares of
Common Capital Stock, at each of -, 2004 and the Maturity Date.

           So long as no Event of Default has occurred and is continuing, the
Issuer shall have the right at any time, and from time to time, during the term
of this Note, to defer payments of interest for up to 5 consecutive years by
extending the interest payment period of such Note for a period not extending,
in the aggregate, beyond the Maturity Date (the "Deferral Period"), during which
Deferral Period no interest shall be due and payable. To the extent permitted by
applicable law, interest, the payment of which has

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been deferred because of the extension of the interest payment period pursuant
to the provisions of this Note, will bear interest thereon at the rate of -%
through and including __________ __, 2003, and at the Reset Rate thereafter,
compounded quarterly for each quarter of the Deferral Period ("Compounded
Interest"). At the end of the Deferral Period, the Issuer shall pay all interest
accrued and unpaid on this Note and Compounded Interest (together, "Deferred
Interest") that shall be payable to the Registered Holder. Prior to the
termination of any Deferral Period, the Issuer may further extend such period,
provided that such period together with all such previous and further extensions
thereof shall not extend beyond the Maturity Date. Upon the termination of any
Deferral Period and the payment of all Deferred Interest then due, the Issuer
may commence a new Deferral Period, subject to the foregoing requirements. No
interest shall be due and payable during an Deferral Period, except at the end
thereof, but the Issuer, at its option, may prepay on any Payment Date all or
any portion of the interest accrued during the then elapsed portion of a
Deferral Period.

           The Issuer shall give notice of the Issuer's election to begin a
Deferral Period to the Registered Holder in writing at least five business days
prior to the commencement of the Deferral Period.

           The interest rate on this Note may be reset for the Payment Date
falling on the Maturity Date to the rate (the "Reset Rate") determined by the
Issuer.

           Any interest on this Note not so punctually paid or duly provided for
shall forthwith cease to be payable to the Registered Holder on the affected
Payment Date. Thereafter, the Issuer shall pay such interest to the Registered
Holder at the close of business on a special record date ("Special Record Date")
for the payment of such interest. Subject to the requirement that any Deferral
Period end on a Payment Date or the Maturity Date, the Issuer shall establish
the Special Record Date and a special payment date ("Special Payment Date") for
the payment of such interest, and shall give notice of such Special Record Date
and such Special Payment Date to the Registered Holder not less than 15 days
prior to such Special Payment Date.

           The Issuer shall pay the interest on this Note, in accordance with
the foregoing and subject to applicable laws and regulations, by check mailed on
or before each Payment Date or Special Payment Date to the Registered Holder at
such Registered Holder's address appearing on the Register or by wire transfer
to a United States dollar account maintained by such Registered Holder with a
bank, if such Registered Holder so elects by giving notice to the Issuer not
less than 15 days (or such fewer days as the Issuer may accept at its
discretion) prior to the applicable Payment Date or Special Payment Date, of
such election and of the account to which payments are to be made. Unless such

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Registered Holder revokes such designation, each such designation shall remain
in effect with respect to all future payments as to such Notes.

           The Issuer hereby refers to the provisions of this Note set forth on
the reverse hereof. Such provisions shall have the same effect as if set forth
at this place.

           The Issuer may execute this Note by manual or facsimile signatures.

           IN WITNESS WHEREOF, the Issuer has duly executed this Note.

Dated:

                           METROPOLITAN LIFE INSURANCE
                           COMPANY

                           By_______________________________
                             Name
                             Title

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                                 FORM OF REVERSE

           1. This Note is designated as the ___% Mandatorily Convertible
Capital Note of the Issuer due on ________, 2005, in a principal amount of
$_____________.

                This Note is a direct and unsecured obligation of the Issuer,
and, subject to the Payment Restrictions contained in paragraph 4 hereof, will
mature on the Maturity Date. This Note is a liability of the Issuer.

           2. This Note is issuable only in fully registered form without
coupons.

           3. The Issuer shall act as a registrar of this Note, and shall cause
to be kept at its office a register ("Register") in which, subject to such
reasonable regulations as the Issuer may prescribe, the Issuer shall provide for
the registration of this Note and registration of transfers and exchanges of
this Note.

           4. This Note shall not be assignable or otherwise transferable by the
Registered Holder without the written consent of the Issuer and any attempt to
so assign or transfer this Note without such consent shall be void and of no
effect.

           5. (a) As required by Section 1323 ("Section 1323") of the insurance
law ("Insurance Law") of the State of New York, the Issuer may not make any
payment of the interest on or the principal of this Note if (based on the
Issuer's Annual Statement for the immediately preceding calendar year
("Preceding Annual Statement") filed with the Superintendent of Insurance
(together with each successor thereto from time to time, "Superintendent") of
the Insurance Department of the State of New York (together with each successor
thereto from time to time, "N.Y. Department")) (1) the Issuer's total adjusted
capital ("TAC") is less than (i) 250% of the Issuer's authorized control level
risk-based capital ("ACLRBC") if a Negative Trend (as defined below) exists or
(ii) the Issuer's company action level risk-based capital ("CALRBC") (the
limitations set forth in clauses (i) and (ii) collectively, "RBC Payment
Thresholds"), or (2) the aggregate amount of all payments of the interest on or
the principal of this Note made during the current calendar year would, if made
immediately prior to the end of the immediately preceding calendar year, have
caused the Issuer's TAC to be less than either of the RBC Payment Thresholds,
computed as of the end of such calendar year (the restrictions on payment set
forth in clauses (1) and (2) of this sentence collectively, "Automatic Payment
Restrictions"). In addition, if at the end of any calendar year, the Issuer's
TAC, including all Outstanding Notes (as hereinafter defined), is less than 300%
of the then outstanding aggregate principal amount of the Issuer's capital notes
and surplus notes and other advances or borrowings issued, made or incurred
pursuant to Section 1307 or 1323 of the Insurance Law (all such capital notes,
surplus notes, advances and borrowings collectively,

                                      A-5
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"Outstanding Notes"), the Superintendent may notify the Issuer that the
financial condition of the Issuer does not warrant the making, in whole or in
part, of any payment of the interest on or the principal of this Note, thereby
automatically deferring such payment until such time as the Superintendent finds
that the Issuer's financial condition warrants such payment. The limitation set
forth in the preceding sentence is hereinafter referred to as the "Conditional
Payment Restriction," and the Conditional Payment Restriction and the Automatic
Payment Restrictions are herein referred to collectively as "Payment
Restrictions."

           For purposes of this Note, "Negative Trend" means a negative trend
over a period of time, as determined in accordance with the "trend test
calculation" included in the RBC Instructions, and "RBC Instructions" means the
RBC report including risk-based capital instructions, which in addition to any
other matter which may be required to be stated therein, either by law or by the
Superintendent pursuant to law, shall conform substantially to the form of the
report and instructions adopted from time to time for such purpose by, or by the
authority of, the National Association of Insurance Commissioners, together with
such additions, omissions or modifications, similarly adopted from time to time,
as may be approved by the Superintendent.

                (b) If any Payment Restriction exists, the Issuer may not make
any of the affected payments of interest or principal until such time as (a)
none of the Payment Restrictions exists or (b) the Superintendent has concluded
that the Issuer's financial condition warrants the making of such payments, and
has waived all existing Payment Restrictions as permitted by Section 1323 and
has so notified the Issuer. The Issuer will make each payment so prevented or
suspended on the first Business Day (as defined below) on which (and, if the
Issuer may make only a part of such payment, to the extent that) none of the
Payment Restrictions exists or the Superintendent has waived all existing
Payment Restrictions. Until paid, interest will continue to accrue, at the rate
of % through and including _______ __, 2003, and at the Reset Rate thereafter,
on the unpaid principal amount of this Note whose payment is so prevented or
suspended. However, interest will not accrue on any interest payment which has
been so prevented or suspended, during the period of such prevention or
suspension. "Business Day" means any day that is not a Saturday, Sunday or day
on which banking institutions and trust companies in The City of New York or at
a place of payment are authorized or required by law, regulation or executive
order to close.

                (c) Even if either of the Automatic Payment Restrictions
prevents the Issuer from making any payment of the interest on or the principal
of Note, Section 1323(c) of the Insurance Law nevertheless permits, upon the
Issuer's request, the Superintendent to approve, in whole or in part, the making
of any such payment, if and at such time or times as, in the Superintendent's
judgment, the financial condition of the Issuer warrants the

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making of such payment. Even if as a result of the existence of the Conditional
Payment Restriction the Superintendent has suspended the making of any payment
of the interest on or the principal of this Note by notifying the Issuer that
its financial condition does not warrant the making of any such payment, under
Section 1323(d) of the Insurance Law the Superintendent may approve, in whole or
in part, the making of any such payment, if and at such time or times as, in the
Superintendent's judgment, the financial condition of the Issuer warrants the
making of such payment. The Issuer will use its best efforts to obtain promptly
all approvals from the Superintendent, in accordance with Section 1323(c) or
(d), which may hereafter become necessary, if any, in order to permit the Issuer
to make each payment of the interest on and the principal of this Note on its
stated due date.

                (d) Any payment ("Unpaid Amount") of the interest on or the
principal of this Note as to which (i) the approval of the Superintendent has
been obtained, if necessary, and (ii) payment is not restricted by any
Subordination Provision (as defined below) and which is not punctually paid or
duly provided for on, or within 15 days after, the related Payment Date or on
the Maturity Date, as set forth herein, will forthwith cease to be payable to
the Registered Holder on the Regular Record Date therefor, and the Issuer will
pay such Unpaid Amount to the Registered Holder on a subsequent Special Record
Date. Subject to the requirement that any Deferral Period end on a Payment Date
or the Maturity Date, the Issuer shall fix the Special Record Date and the date
("Special Payment Date") for the payment of such Unpaid Amount. At least 15 days
before the Special Payment Date, the Issuer shall mail to the Registered Holder
a notice that states the Special Record Date, the Special Payment Date and all
amounts of the interest on or the principal of this Note which the Issuer
intends to pay on the Special Payment Date. On such Special Payment Date,
subject to compliance by the Issuer with the provisions of paragraph 5 (a)
hereof, the Issuer shall pay the amount of interest or principal to be so paid
to the Registered Holder.

           6. (a) If, on any Payment Date or on the Maturity Date or on any
Special Payment Date, MetLife may make, under Section 1323, the payment or
payments then due on this Note and the Superintendent has not acted, under
Section 1323, to suspend such payment or payments, the Issuer will make all
payments in respect of the interest on or the principal of this Note due on such
Payment Date, Maturity Date or Special Payment Date, as the case may be. The
Issuer will make, on such Payment Date or Special Payment Date, each such
payment to the person which was the Registered Holder of this Note on the
________, ________, ________ or ________ immediately preceding such Payment Date
or Maturity Date (or on the related Special Record Date, if any), by United
States dollar check drawn on the Issuer or by wire transfer to a United States
dollar account maintained by such Registered Holder with a bank, if such
Registered Holder so elects by giving notice to the Issuer not less than 15 days
(or such fewer days as the Issuer may accept at its discretion) prior to the
applicable Payment Date, Maturity Date or Special

                                      A-7
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Payment Date, of such election and of the account to which payments are to be
made. Unless such Registered Holder revokes such designation, each such
designation shall remain in effect with respect to all future payments as to
such Notes. The Issuer shall pay all reasonable administrative costs in
connection with making all such payments.

                (b) In the event that any date on which interest is payable on
this Note is not a Business Day, then payment of interest payable on such date
will be made on the next succeeding day which is a Business Day (and without any
interest or other payment in respect of any such delay), except that, if such
Business Day is in the next succeeding calendar year, such payment shall be made
on the immediately preceding Business Day, in each case with the same force and
effect as if made on such date.

           7. The Issuer shall pay all stamp and other duties, if any, which may
be imposed by the United States of America or any governmental entity or any
political subdivision or taxing authority of or in the United States of America
with respect to the initial issuance of this Note. Except as otherwise
specifically provided in this Note, the Issuer shall not be required to make any
payment with respect to any tax, duty, assessment or other governmental charge
of whatever nature imposed or levied by any government or governmental entity or
any political subdivision or taxing authority thereof or therein.

           8. So long as any this Note remains outstanding or any amount remains
unpaid on this Note, as required by Section 1323(e), the Issuer will deduct
one-fifth of the aggregate original principal amount of this Note from its TAC
in each calendar year starting with 2005. As required by the RBC Instructions,
(a) the Issuer may not, at any given time, have over 33-1/3% of its TAC
comprised of the aggregate outstanding principal amount of its capital notes and
surplus notes, and, if such amount exceeds 33-1/3% of its TAC, the Issuer must
reduce the amount of its capital notes included in its TAC then shown on its
Annual Statement by such excess amount, (b) so long as any capital notes issued
by the Issuer are outstanding, the Issuer will file a statement with the
Superintendent at the same time as the Issuer files its Annual Statement and at
such other times as the Superintendent determines necessary, showing, in a
manner approved by the Superintendent, the calculation of the Issuer's ACLRBC,
CALRBC and TAC, which statement shall specifically identify any of the Issuer's
financial results which would cause any of the Payment Restrictions to exist,
and (c) the Issuer will notify the Superintendent, for informational purposes,
of each payment (whether of interest or principal) due on this Note, not less
than 10 nor more than 30 Business Days prior to the due date for such payment.

           9. (a) The Issuer and the Registered Holder by accepting this Note
agree that the payment of all interest on, all principal of and all other claims
as to this Note is expressly subordinate in right of payment, to the extent and
in the manner set forth in the

                                      A-8
<PAGE>   9
provisions ("Subordination Provisions") of this paragraph 8, to the prior
payment in full of all Indebtedness, Policy Claims and Other Creditor Claims
(each as defined below) of the Issuer, subject to and in accordance with Section
7435 ("Section 7435") of the Insurance Law. This Note will rank pari passu with
all Existing Surplus Notes (as defined below) and all capital notes, surplus
notes or similar obligations of the Issuer hereafter issued, made or incurred.

                (b) If the Issuer is subject to any rehabilitation, liquidation,
conservation or dissolution proceeding, holders of Indebtedness, Policy Claims
and Other Creditor Claims will, under Section 7435, have the right to be paid in
full before the Registered Holder may receive any payment as to this Note. In a
proceeding commenced under Article 74 of the Insurance Law, all claims for the
interest on or the principal of this Note constitute Class 7 claims under
Section 7435.

                (c) If any distribution is made to the Registered Holder that,
because of this paragraph, should not have been made to the Registered Holder,
the Registered Holder who receives the distribution shall hold it in trust for
holders of Policy Claims, Indebtedness and Other Creditor Claims, and pay it
over to them, as their interests may appear.

                (d) This paragraph defines the relative rights of the Registered
Holder, on the one hand, and holders of Indebtedness, Policy Claims and Other
Creditor Claims, in accordance with Section 7435, on the other hand. Nothing in
this Note shall (i) impair, as between the Issuer and the Registered Holder, the
obligation of the Issuer which is, subject to the Payment Restrictions and to
the Subordination Provisions, absolute and unconditional to pay the interest on
and the principal of this Note in accordance with their terms; (ii) affect the
relative rights of the Registered Holder and creditors of the Issuer, other than
holders of Policy Claims, Indebtedness or Other Creditor Claims; or (iii)
prevent the Registered Holder from exercising any available remedies upon a
breach by the Issuer of its obligations hereunder, subject to the Payment
Restrictions and to the rights of holders of Indebtedness, Policy Claims or
Other Creditor Claims to receive distributions otherwise payable to the
Registered Holder.

                (e) No right of any holder of Indebtedness, Policy Claims or
Other Creditor Claims to enforce the subordination of the indebtedness evidenced
by this Note shall be impaired by any act or failure to act by the Issuer.

                As used herein, "Indebtedness" of the Issuer shall mean all
existing or future (i) indebtedness of the Issuer for borrowed money, (ii)
indebtedness for borrowed money of other persons, the payment of which is
guaranteed by the Issuer, (iii) obligations of the Issuer pursuant to any
agreement obligating the Issuer to cause another person to maintain

                                      A-9
<PAGE>   10
a minimum level of net worth, or otherwise to ensure the solvency of such person
and (iv) expenses, claims or amounts, to the extent that payment of the interest
on or the principal of this Note is required by law to be subordinated to the
prior payment thereof. However, any indebtedness of the Issuer which by its
express terms is subordinated in right of payment to, or ranks equally with,
this Note shall not constitute Indebtedness. Under current law, the Issuer
cannot issue any indebtedness which by its terms is subordinate to this Note.
"Indebtedness" shall not include this Note, the Issuer's presently outstanding
surplus notes ("Existing Surplus Notes") which are designated as (A) 6.30%
Surplus Notes scheduled to mature on November 1, 2003, (B) 7.45% Surplus Notes
scheduled to mature on November 1, 2023, (C) 7% Surplus Notes scheduled to
mature on November 1, 2005, (D) 7.70% Surplus Notes scheduled to mature on
November 1, 2015, (E) 7.80% Surplus Notes scheduled to mature on November 1,
2025 and (F) 7.875% Surplus Notes due 2024 (previously issued by New England
Mutual Life Insurance Company which was merged into the Issuer effective on
August 30, 1996), or any future capital notes, surplus notes or similar
obligations of the Issuer which will rank pari passu with this Note.

                As used herein, "Other Creditor Claims" shall mean all existing
or future other claims against the Issuer which, under Section 7435, have
priority over claims with respect to this Note. Under Section 7435 such other
claims include (i) claims with respect to the actual and necessary costs and
expenses of administration incurred by a liquidator, conservator, rehabilitator
or ancillary rehabilitator under Section 7435; (ii) claims with respect to the
actual and necessary costs and expenses of administration incurred by The Life
Insurance Guaranty Corporation or The Life Insurance Company Guaranty
Corporation of New York ("LICGC"); (iii) claims of LICGC for certain funds
loaned to the Superintendent under Section 7713(d) of the Insurance Law; (iv)
debts up to $1,200 due to employees for services performed within one year
before the commencement of rehabilitation, liquidation, conservation or
dissolution proceedings; (v) claims for payment for goods furnished or services
rendered in the ordinary course of business within 90 days prior to the
declaration of the impairment or insolvency of the Issuer; (vi) claims of the
federal or any state or local government (except in the case of claims for a
penalty or forfeiture which are included only to the extent of pecuniary loss
and reasonable costs occasioned by the act giving rise to the forfeiture or
penalty); and (vii) claims of general creditors and all other claims having
priority under Section 7435.

                As used herein, "Policy Claims" shall mean all existing or
future claims of policyholders or beneficiaries, as the case may be, pursuant to
any and all existing or future policies, endorsements, riders and other
contracts of insurance, annuity contracts, including, without limitation,
guaranteed investment contracts and funding agreements, issued, assumed or
renewed by the Issuer on or prior to the date hereof or hereafter created, all
claims pursuant to separate account agreements to the extent such claims are not
fully discharged by the assets held by the Issuer in the applicable separate
accounts and

                                      A-10
<PAGE>   11
all claims of LICGC or any other guaranty corporation or association of the
State of New York or another jurisdiction against the Issuer, other than claims
described in clause (i) of the definition of "Other Creditor Claims" and claims
for interest.

           10. In case this Note shall become mutilated, defaced, destroyed,
lost or stolen, the Issuer will execute and deliver a new Note, having a number
not contemporaneously outstanding, of like tenor and for the same aggregate
principal amount as the then unpaid principal amount of this Note, registered in
the same manner, dated the date of its issuance and bearing interest from the
date to which interest has been paid on this Note, in exchange and substitution
for this Note (upon surrender and cancellation hereof) or in lieu of and
substitution for this Note. If this Note is destroyed, lost or stolen, the
applicant for a substituted Note shall furnish to the Issuer such security or
indemnity as may be required by either of them to save each of them harmless
from all claims related to the issuance of such substituted Note, and, in every
case of destruction, loss or theft of this Note, the applicant shall also
furnish to the Issuer satisfactory evidence of the destruction, loss or theft of
this Note and of the ownership thereof. However, if the Registered Holder hereof
is, in the judgment of the Issuer, an institution of recognized responsibility,
such Registered Holder's written agreement of indemnity shall be deemed to be
satisfactory for the issuance of a new Note in lieu of and substitution for this
Note. Upon the issuance of any substituted Note, the Issuer may require the
payment by the Registered Holder thereof of a sum sufficient to all cover fees
and expenses connected therewith. If this Note has matured or is about to mature
and shall become mutilated or defaced or shall be destroyed, lost or stolen, the
Issuer may, subject to the Payment Restrictions and to the Subordination
Provisions, instead of issuing a substitute Note, pay or authorize the payment
of the same (without surrender thereof except if this Note is mutilated or
defaced) upon compliance by the Registered Holder with the provisions of this
paragraph 9.

           11. With the written consent of the Registered Holder of this Note,
the Issuer may, with the prior approval of the Superintendent, modify, amend or
supplement the terms of this Note, or may give consents or waivers or take other
actions with respect thereto. Any such modification, amendment, supplement,
consent, waiver or other action shall conclusively bind the Registered Holder.
The Issuer may, with the prior approval of the Superintendent but without the
consent of the Registered Holder of this Note, modify or amend this Note for the
purpose of (a) adding to the covenants of the Issuer for the benefit of the
Registered Holder of this Note, (b) surrendering any right or power conferred
upon the Issuer, (c) securing this Note, (d) evidencing the succession of
another corporation to the Issuer and the assumption by such successor of the
covenants and obligations of the Issuer in this Note as permitted by this Note,
(e) modifying the restrictions on, and procedures for, resales and other
transfers of this Note to the extent permitted or required by any change in
applicable law or regulation (or the interpretation

                                      A-11
<PAGE>   12
thereof) or in the practices relating to the resale or transfer of restricted
securities generally, (f) curing any ambiguity or correcting or supplementing
any defective provision contained in this Note in a manner which does not
adversely affect the interest of the Registered Holder of this Note in any
material respect, (g) providing for events of default in addition to those
specified in paragraph 12, or (h) effecting any amendment which the Issuer may
determine is necessary or desirable and which shall not adversely affect the
interest of the Registered Holder of this Note. The Registered Holder, by
acceptance hereof, consents to each modification or amendment made pursuant to
the preceding sentence.

           12. The Registered Holder of this Note may enforce this Note only in
the manner set forth below.

           (a) If any Event of Default with respect to this Note, other than an
Event of Default specified in clause (d) of paragraph 12, occurs and is
continuing, the Registered Holder may declare the principal of, and any accrued
interest on, this Note due and payable immediately. Upon any such declaration
this Note shall automatically convert, without any further action by the Issuer
or the Registered Holder, into 1,000 shares of Common Stock. If an Event of
Default specified in clause (d) of paragraph 12 occurs, the principal of, and
any accrued interest on, this Note shall ipso facto convert, without any further
action by the Issuer or the Registered Holder, into 1,000 shares of Common
Stock.

           (b) If an Event of Default occurs and is continuing, the Registered
Holder may institute, pursue and prosecute any proceeding, including but not
limited to, any action at law or suit in equity or other judicial or
administrative proceeding to collect the payment of principal or interest on
this Note that is in default, to enforce the performance of any provision of
this Note or to obtain any other available remedy.

           13. "Event of Default," wherever used herein with respect to this
Note, means any one of the following events (whatever the reason for such Event
of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

           (a) default in the payment, when due, of interest on this Note and
      the default continues for a period of 30 days; provided that during any
      Deferral Period for this Note, failure to pay interest on this Note shall
      not constitute an Event of Default hereunder;

           (b) default in the payment of the principal of this Note when it
      becomes due, whether at maturity, by declaration of acceleration of
      maturity or otherwise; or

                                      A-12
<PAGE>   13
           (c) default in the performance or breach of any covenant or agreement
      of the Issuer in this Note, and continuance of such breach or default for
      a period of 90 days after receipt by the Issuer of written notice thereof;
      or

           (d) any state or federal agency obtains an order or grants approval
      for the rehabilitation, liquidation, conservation or dissolution of the
      Issuer.

           A default under clause (c) above is not an Event of Default until (i)
the Registered Holder provides written notice thereof to the Issuer and (ii) the
Issuer does not cure such default within the time specified in clause (c) above
after receipt of such notice. Any such notice must specify the default, demand
that it be remedied and state that such notice is a notice of default.

           If an Event of Default has occurred and is continuing, the Registered
Holder, by written notice to the Issuer, may waive an Event of Default and its
consequences hereunder. When an Event of Default is waived, it is deemed cured
and shall cease to exist, but no such waiver shall extend to any subsequent or
other Event of Default or impair any consequent right.

           14. The Issuer may not merge with or into or consolidate with, or
sell, assign, transfer, lease or convey all or substantially all of its
properties and assets to, any entity, other than a wholly-owned subsidiary of
the Issuer, and no entity, other than a wholly-owned subsidiary of the Issuer,
shall merge with or into or consolidate with the Issuer, or sell, assign,
transfer, lease or convey all or substantially all of its properties and assets
to the Issuer, unless:

           (a) the Issuer is the surviving corporation or the entity formed by
or surviving such merger or consolidation or to which such sale, assignment,
transfer, lease or conveyance shall have been made (the "Successor") if other
than the Issuer (i) is organized and existing under the laws of the United
States of America or any state thereof or the District of Columbia, and (ii)
shall expressly assume, in form satisfactory to the Registered Holder, all the
obligations of the Issuer under this Note; and

           (b) immediately after giving effect to such transaction, no Event of
Default shall have occurred and be continuing.

           The Successor will be the successor to the Issuer, and will be
substituted for, and may exercise every right and power and become the obligor
on this Note with the same effect as if the Successor had been named as the
Issuer herein but, in the case of a sale, assignment, transfer, lease or
conveyance of all or substantially all of the properties and

                                      A-13
<PAGE>   14
assets of the Issuer, the predecessor Issuer will not be released from its
obligation to pay the principal of and premium, if any, and interest on this
Note.

           15. (a) The unpaid principal amount of this Note will, without any
further action by the Issuer or the Registered Holder, at -, 2004 and at the
Maturity Date (each a "Conversion Date") be converted into 500 shares of common
stock, par value $.01 per share, of the Issuer at each such date ("Conversion
Shares").

                (b) In order to be converted, this Note must be surrendered to
the Issuer by the Registered Holder at the location then provided for the
payment of this Note.

                (c) A conversion shall be deemed to have been effected on a
Conversion Date (or such earlier date as this Note may become due and payable
following an Event of Default in accordance with paragraph 11), and at such time
the Registered Holder in whose name any certificate or certificates for shares
of Common Stock shall be issuable upon such conversion shall be deemed to have
become the holder or holders of record thereof.

                (d) Promptly upon, and in any case within seven days after, the
conversion of this Note, the Issuer shall pay to the Registered Holder
converting this Note all interest accrued and unpaid on the principal amount of
this Note to and including the date of conversion, without any adjustment of
such interest in respect of any dividend or other distribution payable on the
Common Stock issued upon such conversion.

                (e) As soon as practicable after the conversion of this Note,
and in any event within 21 days thereafter, the Issuer at its expense (including
the payment by it of any applicable issue taxes) will cause to be issued in the
name of and delivered to the Registered Holder of this Note, a certificate or
certificates for the Common Shares.

           16. No provision of this Note shall alter or impair the obligation of
the Issuer, subject to the Payment Restrictions and to the Subordination
Provisions, to pay the interest on and the principal of this Note at the times,
place and rate, and in the coin or currency, herein prescribed.

           17. THIS NOTE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS
OF LAWS.

                                      A-14

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