Document:

Assignment, Assumption and Amendment of Lease Agreement

 Exhibit 10.3 
  

			
	 STATE OF FLORIDA
	  	    )
	 PINELLAS COUNTY
	  	    )

  
 ASSIGNMENT,
ASSUMPTION AND AMENDMENT OF LEASE 
  
 THIS ASSIGNMENT,
ASSUMPTION AND AMENDMENT OF LEASE (this “Agreement”) is made as of the 21st day of April, 2005, by and between Air International Incorporated, a Delaware corporation (“Assignor”), AvAero Services, LLC, a Florida
limited liability company (“Assignee”), Mark Dessy, an individual (“Guarantor”), Joe McAdams, an individual (“Guarantor”), and Pinellas County, Florida (the “County”). 
  
 Recitals 
  
 WHEREAS, Avantair, Incorporated, a Nevada corporation
(“Avantair”), and Assignor have entered into that certain Asset Purchase Agreement dated as of September 2, 2004 (the “Purchase Contract”) pursuant to which Assignor agreed to transfer and assign to Avantair, and Avantair agreed
to assume from Assignor, all of Assignor’s right, title and interest in, to and under that certain Lease Agreement with Option to Renew dated July 8, 1986 (the “Lease”) between Assignor and the County. All capitalized terms not
otherwise defined herein shall have the meanings set forth in the Purchase Contract. 
  
 WHEREAS, pursuant to that certain assignment agreement dated January 12, 2005, Avantair assigned all if its rights and obligations under the Purchase Contract to Assignee. 
  
 WHEREAS, in the interest of reducing noise impacts to residents who live
within close proximity to the St. Petersburg-Clearwater International Airport, the Airport has established voluntary noise abatement and mitigation measures. Assignee is requested to honor said noise abatement and mitigation measures. 
  
 Agreement 
  
 NOW, THEREFORE, for and in consideration of the Purchase Price and the
representations, warranties and covenants contained in the Purchase Contract, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor, Assignee and the County here agree as follows:

  
 1. Assignment and Assumption. 
  
 (a) Assignor does hereby, by these presents, convey, set over and assign to
Assignee all right, title and interest in to and under and to the Lease. 
  
 (b) Assignee hereby accepts the assignment by Assignor of all of its right, title and interest in, to and under the Lease, and hereby assumes and agrees to fully and faithfully observe, perform and fulfill all
obligations and liabilities of Assignor under the terms of the Lease beginning on the date hereof. 

 2. Consent and Release by County. The County hereby (i) acknowledges and consents to the
assignment of the Lease as set forth above, (b) releases and forever discharges Assignor from any and all liabilities and obligations imposed on Assignor under or in connection with the Lease, the leased premises and the improvements constructed
thereon arising after the date of the foregoing assignment to Assignee, (c) releases and forever discharges Assignor and its affiliates, including without limitation, Pemco Aeroplex, Inc., an Alabama corporation formerly known as Hayes International
Corporation, as the Guarantor under the Lease, and (d) confirms that all payments due under the Lease to date have been paid and that no default on the part of Assignor exists under the Lease. 
  
 3. Amendment to Lease. The notice address for the Lessee under
Section 34 of the Lease is hereby deleted and replaced with the following: 
  

					
	 	 	Assignee:	  	AvAero Services, LLC
	 	 	 	  	15831 Fairchild Drive, Hangar 5B
	 	 	 	  	Clearwater, FL 33762
	 	 	 	  	Attn: Kevin McKamey
			
	 	 	Guarantor:	  	Mark Dessy
	 	 	 	  	8 Maverick Lane
	 	 	 	  	Rolling Hills, CA 90274
			
	 	 	Gurantor:	  	Joe B. McAdams
	 	 	 	  	158 Long Island Dr.
	 	 	 	  	Hot Springs, AK 71913

  
 4. Environmental
Matters. Assignee agrees to remove and properly dispose of, off the Leased Premises, the Storage Tanks and their contents within thirty (30) days of the date of this Agreement. Assignee agrees that all documents associated with the removal
and off-site disposal of the Storage Tanks and their contents shall reflect only the Assignee’s name. Assignee unconditionally agrees to indemnify, defend, and hold harmless Assignor and County from and against all claims and losses directly or
indirectly resulting from the removal and disposal of said Storage Tanks, including any spills or releases that might occur during said removal, transportation, and disposal. Assignee further agrees to provide Assignor and County written
documentation reflecting this removal and disposal within ten (10) business days of completion. Notwithstanding the provisions of Sections 2 and 4 herein, nothing under Sections 2 or 4 shall be construed as a release by the County of any party
hereto of any environmental liability under state and/or federal laws. 
  
 5. Guarantee. The obligations of the Assignee, as Lessee under the Lease, for payment of rentals pursuant to paragraphs 3 and 15 of the Lease are hereby unconditionally guaranteed by the Guarantor. Payment of said rental
amounts shall be due and payable by Guarantor to the County, as Lessor under the Lease, upon receipt of notice from the County that Assignee has failed to make said payments in accordance with the terms of the Lease. 
  

 2 

 6. Miscellaneous. 
  

	 	(a)	This Agreement shall inure to the benefit of Assignor, Guarantor, County and Assignee and their respective successors and assigns; provided however, notwithstanding the forgoing,
the provisions of Section 4 of this Agreement shall remain personal to Assignor, County and Assignee and shall not be transferable or assignable to third parties, subsequent parties to the Lease, subsequent owners of any interest in any property
that is the subject of the Lease or any other potential successors. This Agreement may be executed in multiple original counterparts, each which shall be deemed an original, but all of which taken together shall constitute one and the same
instrument. 

  

	 	(b)	Unless expressly set forth herein to the contrary, this Agreement is subject to and is to be construed according to the terms of the Purchase Contract, including, without
limitation, Assignor Seller’s disclaimer of warranties set forth therein. 

  
 7. Noise Abatement Procedures: Lessee/Airline acknowledges that the St. Petersburg-Clearwater International Airport have set in place a number of voluntary noise mitigation measures that are outlined on
the attached Exhibit “    ” (Voluntary Noise Abatement and Mitigation Program) that maybe amended from time to time. The Lessor/Airport requests Lessee/Airline to make its best faith effort on a purely voluntary
basis, to become acquainted with, and to abide by these noise abatement and mitigation measures. 
  
 All other provisions of the Lease Agreement with Options to Renew dated July 8, 1986 between Air International Incorporated shall remain in full force and effect. 
  
 [Remainder of page intentionally left blank] 
  

 3 

 IN WITNESS WHEREOF, Assignor, Assignee, Guarantor and County have executed this Agreement as of
the date first set forth above. 
  

					
	 	 	“Assignor”
		
	 	 	Air International Incorporated,
	 	 	a Delaware corporation
			
	 	 	By:	 	 /s/ John R. Lee

	 	 	Name:	 	John R. Lee
	 	 	Its:	 	CFO
		
	 	 	“ Assignee”
		
	 	 	AvAero Services, LLC
	 	 	a Florida limited liability company
			
	 	 	By:	 	 /s/ Kevin V. McKamey

	 	 	Name:	 	Kevin V. McKamey
	 	 	Its:	 	Managing Member
		
	 	 	“County”
		
	 	 	Pinellas County, Florida, by and through its Board of County Commissioners
			
	 	 	By:	 	 /s/ John Monnoni

	 	 	Name:	 	John Monnoni
	 	 	Its:	 	Chairman
	Attest:	 	 	 	 
	  
  

	 	 	 	 
	Ken Burke, Clerk	 	 	 	 
			
	(seal)	 	 	 	 

  
 (The remainder of this
page is left intentionally blank.) 
  

 4 

	
	 “Guarantor”

	
	 /s/ Mark Dessy

	 Mark Dessy

	
	 “Guarantor”

	
	 /s/ Joe McAdams

	 Joe McAdams

  

			
	Approved as to Form:	 	Approved as to Content:
		
	  

	 	  

	Senior Assistant County Attorney	 	Airport Director

  

 5<PAGE>

GE LIFE AND ANNUITY ASSURANCE COMPANY
GUARANTEED INCOME RIDER

This rider is added to the Contract. The rider provides a guaranteed income
benefit. The benefit is a series of payments determined on the earlier of the
Income Start Date or the Annuity Commencement Date with respect to payments you
have made to the designated Subaccount(s). Each series of monthly payments is
referred to as a Segment. The guaranteed income benefit is comprised of one or
more guaranteed income Segments (GIS). Each Segment has its own effective date,
Income Start Date, Scheduled Transfer, Monthly Income plan and Guaranteed Annual
Income Factor as shown on the Contract Data Pages. Any time a new Segment is
added, a new set of Contract Data Pages will be sent to you. You may add
additional Segments on any Contract monthly anniversary. In order to add a
Segment, the attained age for any Annuitant must not exceed the age limit shown
on the Contract Data Pages. We allow a maximum of [five] Segments. We reserve
the right to allow additional Segments. You may not terminate this rider, except
under the terms specified under the Termination of Rider provision.

All rider terms will have the same meaning as under the Contract, unless
otherwise provided. Each Segment will operate as follows:

Adjustment Account - The account that is established when the Monthly Income is
calculated on the Income Start Date.

Annual Income Amount - The amount equal to Annuity Units multiplied by Annuity
Unit value on the Valuation Day each Annuity Year starts for any benefits
calculated under this rider.

Annuity Year - A one-year period of time beginning on the Income Start Date or
the annual anniversary of the Income Start Date.

GIS Subaccount - The Subaccount(s) indicated on the Contract Data Pages into
which the Scheduled Transfers are made.

GIS Value - On any Valuation Day, the sum of the values in each GIS Subaccount
on the earlier of the Income Start Date and the Annuity Commencement Date.

Guaranteed Annual Income Factor - A factor used to calculate the annual
Guaranteed Income Floor acquired with each Scheduled Transfer.

Guaranteed Income Floor - The guaranteed amount of Monthly Income as of the
Income Start Date.

Income Start Date - The date stated on the Contract Data Pages on which Monthly
Income from the GIS Subaccount(s) is scheduled to commence, provided any
Annuitant is living on that date. This date cannot be changed after issue. Any
restriction as to when this date must occur will be shown on the Contract Data
Pages.

Income Start Value - The GIS Value as of the Income Start Date.

Level Income Amount - The amount that would result from applying the Annual
Income Amount to a 12-month, period certain, single payment immediate annuity
made available to this rider. We will declare the interest rate at the start of
each Annuity Year.

Form P5283 11/04                       1

<PAGE>

Monthly Income - The amount added each month on a prorata basis to the
Investment Options in which assets are then allocated, excluding the GIS
Subaccount(s), on and after the Income Start Date. The amount of the Monthly
Income remains constant throughout an Annuity Year. This amount may increase or
decrease from Annuity Year to Annuity Year. You have the option to have the
Monthly Income paid to you.

Scheduled Transfer - The amount transferred into the GIS Subaccount(s) from the
Investment Options, excluding the GIS Subaccount(s). This amount is shown on the
Contract Data Pages. Once established, this amount may not be changed.

Segment - A series of monthly payments. Each Segment comprises the guaranteed
income benefit.

Scheduled Transfers

The first Scheduled Transfer is made to the GIS Subaccount(s) as of the
effective date. Scheduled Transfers if due will continue to be made on each
monthly anniversary of that date until the earlier of the Income Start Date or
the Annuity Commencement Date. Scheduled Transfers may be made in advance of the
monthly anniversaries on which they become due. If any month ends before the
monthly anniversary or on a day that is not a Valuation Day, the next Valuation
Day will be treated as the monthly anniversary for that month.

Only Scheduled Transfers can be made into the GIS Subaccount(s). Purchase
Payments may not be made directly to the GIS Subaccount(s). Scheduled Transfers
are made first to the GIS Subaccount(s) of the Segment that has been in effect
for the longest period of time.

Scheduled Transfers will first be made from the Subaccounts, excluding the GIS
Subaccount(s), on a prorata basis. Transfers will be made from any Guarantee
Account to the extent that the value in the Subaccounts is insufficient to cover
the Scheduled Transfer amount. Transfers from the Guarantee Account will be
taken first from the amounts that have been in the Guarantee Account for the
longest period of time.

There is a minimum Scheduled Transfer amount unless we agree otherwise. This
minimum is shown on the Contract Data Pages. If amounts available for transfer
on the date of the Scheduled Transfer are not enough to make the Scheduled
Transfer, that Scheduled Transfer and any future Scheduled Transfers will not be
made with respect to that Segment. Your Guaranteed Income Floor will be
determined based upon Scheduled Transfers made to that date.

Withdrawals and Transfers

You may take a withdrawal or make transfers from the GIS Subaccount(s) at any
time prior to the earlier of the Income Start Date or the Annuity Commencement
Date. Except for the annual Contract charge and any transfer charge (if
applicable), any rider and Contract charges not taken as an asset based charge
from the GIS Subaccount(s) will be treated as withdrawals for purposes of
calculating the Guaranteed Income Floor and Scheduled Transfers made. Once you
take a withdrawal or make a transfer from a Segment, you will not be permitted
to make any additional Scheduled Transfers to that Segment. Your Guaranteed
Income Floor will be adjusted to reflect the amount withdrawn or transferred.
After such withdrawal or transfer, the Scheduled Transfers made will equal (a)
multiplied by (b) divided by (c), where: (a) is the Scheduled Transfers made
prior to such withdrawal or transfer; (b) is the GIS Value after such withdrawal
or transfer; and (c) is the GIS Value before such withdrawal or transfer.

                                        2

<PAGE>

Unless you instruct us otherwise, withdrawals will first be deducted from your
Subaccounts, excluding the GIS Subaccount(s). These deductions will be taken on
a prorata basis. Then withdrawals will be deducted from the amounts that have
been in the Guarantee Account for the longest period of time. Finally,
withdrawals will be deducted from the GIS Subaccount(s) of the Segments
beginning with the Segment that has been in effect for the shortest period of
time.

Transfers from the GIS Subaccount(s) will be administered as described under the
Contract.

Monthly Income

You may elect to receive Monthly Income under this rider or you may elect to
transfer your GIS Value to another Investment Option under your Contract and
receive Income Payments.

On the Income Start Date, we will begin your Monthly Income. The Income Start
Value will be applied to the Monthly Income plan shown on the Contract Data
Pages. The Monthly Income plan's value is received as payments over a specific
period of time. As a result, there is no redeemable value in the GIS
Subaccount(s) once Monthly Income begins. The Monthly Income will be allocated
on a prorata basis to the Investment Options in which assets are then allocated,
excluding the GIS Subaccount(s), unless you choose to have the Monthly Income
paid directly to you. Monthly Income is calculated as of the first Valuation Day
of each Annuity Year. If the first day of the Annuity Year does not begin on a
Valuation Day, payments will be calculated on the next succeeding Valuation Day.
Monthly Income will not vary from month to month during an Annuity Year.

Your Monthly Income plan is shown on the Contract Data Pages. For purposes of
this rider only, income rates are based on the Annuity 2000 Mortality Table,
using an interest rate of [3.5%]. The following tables have annual income rates
per $1,000 for a Life Income with 10 Year Period Certain Plan and a Joint Life
and Survivor Income with 10 Year Period Certain Plan. Under the Life Income with
10 Year Period Certain plan, if the Annuitant lives longer than 10 years,
Monthly Income will continue for his or her life. Under the Joint Life and
Survivor Income with 10 Year Period Certain plan, if any Annuitants live longer
than 10 years, Monthly Income will continue as long as any Annuitant is living.

Life Income with 10 Year Period Certain Plan Table

Annual income rates for each $1,000 of Income Start Value less any applicable
premium tax.

<TABLE>
<CAPTION>

                            Male Annuitant                                                 Female Annuitant
-----------------------------------------------------------------  ----------------------------------------------------------------
Settlement  10 Years   Settlement  10 Years  Settlement  10 Years  Settlement  10 Years  Settlement  10 Years  Settlement  10 Years
    Age      Certain       Age      Certain      Age      Certain      Age      Certain      Age      Certain      Age      Certain
----------  ---------  ----------  --------  ----------  --------- ----------  --------  ----------  --------- ----------  --------
    <S>        <C>          <C>       <C>         <C>       <C>         <C>       <C>         <C>       <C>        <C>        <C>
    55         55.46        62        63.55       69        74.78       55        52.14       62        59.19       69        69.56
    56         56.45        63        64.96       70        76.63       56        52.99       63        60.44       70        71.38
    57         57.48        64        66.44       71        78.52       57        53.88       64        61.76       71        73.29
    58         58.57        65        67.98       72        80.46       58        54.83       65        63.15       72        75.28
    59         59.72        66        69.59       73        82.44       59        55.83       66        64.63       73        77.36
    60         60.93        67        71.26       74        84.45       60        56.89       67        66.18       74        79.51
    61         62.21        68        72.99       75        86.48       61        58.01       68        67.83       75        81.73
</TABLE>

Values for ages not shown will be furnished upon request.

                                        3

<PAGE>

Joint Life and Survivor Income with 10 Year Period Certain Plan Table

Annual income rates for each $1,000 of Income Start Value less any applicable
premium tax.

                            Female Settlement Age
   Male       -------------------------------------------------
Settlement      55         60         65         70        75
   Age        ------    -------    -------    -------    ------
   55         47.94      49.80      51.50      52.92      54.00
   60         49.20      51.71      54.20      56.45      58.28
   65         50.21      53.39      56.79      60.16      63.14
   70         50.97      54.71      59.02      63.68      68.20
   75         51.48      55.65      60.73      66.64      72.90

Values for ages not shown will be furnished upon request.

Maximum Age Adjustment

The settlement age(s) is the Annuitant(s)'s age last birthday on the date
Monthly Income begins, minus an age adjustment from the table below. The actual
age adjustment may be less than the numbers shown.

   Year Payments Begin     Maximum Age
   After      Prior To     Adjustment
   -----      --------     -----------
   2000         2026            5
   2025         2051           10
   2050         ----           15

The initial Annual Income Amount under the applicable payment plan is calculated
by (a) multiplied by (b), divided by (c), where:
(a)  is the annual income rate per $1,000, for the Monthly Income plan shown on
     the Contract Data Pages, using the gender(s) and settlement age(s) of the
     Annuitant(s) as of the Income Start Date;
(b)  is the Income Start Value less any applicable premium tax; and
(c)  is $1,000.

The Guaranteed Income Floor is equal to (a) multiplied by (b), where:
(a)  is the Scheduled Transfers made into the GIS Subaccount(s), adjusted for
     withdrawals and transfers; and
(b)  is the Guaranteed Annual Income Factor shown on the Contract Data Pages
     divided by 12.

The initial Monthly Income is the greater of the Level Income Amount and the
Guaranteed Income Floor.

The subsequent Annual Income Amounts under the applicable income plan are
determined by means of Annuity Units. The amount of any subsequent Annual Income
Amount may be greater or less than the initial amount. We guarantee that each
subsequent Annual Income Amount will not be affected by variations in mortality
experience from the mortality assumptions on which the first amount is based.
The number of Annuity Units is determined by dividing the portion of the initial
Annual Income Amount attributable to that Subaccount by the Annuity Unit value
for that Subaccount as of the Income Start Date. The dollar amount of each
subsequent Annual Income Amount is the sum of the amounts from each Subaccount.
The amount is determined by multiplying your number of Annuity Units in each
Subaccount by the Annuity Unit value for that Subaccount as of the Valuation Day
each Annuity Year starts.

                                        4

<PAGE>

An Adjustment Account is established on the Income Start Date. The value of the
Adjustment Account will be the greater of (a) and (b), where:
(a)  is zero; and
(b)  is 12 multiplied by the Guaranteed Income Floor minus 12 multiplied by the
     initial Level Income Amount.

The actual Monthly Income in subsequent Annuity Years is the greater of (a) and
(b), where:
(a)  is the subsequent Level Income Amount minus any value in the Adjustment
     Account as of the date the last Monthly Income was made divided by 12; and
(b)  is the Guaranteed Income Floor.

For Monthly Income in subsequent Annuity Years, the value of the Adjustment
Account will be the greater of (a) and (b), where:
(a)  is zero; and
(b)  is the value of the Adjustment Account as of the date that the last Monthly
     Income was made, plus 12 multiplied by the actual subsequent Monthly
     Income, minus 12 multiplied by the subsequent Level Income Amount.

On the Income Start Date, if any Monthly Income would be $100 or less, we
reserve the right to reduce the frequency of transfers or payments to an
interval that would result in each amount being at least $100. If the annual
amount is less than $100, we will pay you the Income Start Value and the Segment
will terminate on the Income Start Date.

On the Annuity Commencement Date, no further amount can be added to the GIS
Subaccount(s). On this date, Monthly Income will be included as part of Income
Payments in accordance with your Income Payment plan selected under the
Contract.

Rider Provisions

Death Provisions

The following provisions apply to any and all Segments with regard to the death
of any Annuitant.

Special Distribution Rules when Death Occurs Before Income Start Date and
Annuity Commencement Date

For a surviving spouse who is an Annuitant and Designated Beneficiary, the
following will apply:
(1)  Upon notification of death:
(a)  the value of all Subaccounts, excluding the value of the GIS Subaccount(s),
     will be transferred to the Money Market Fund; and
(b)  Scheduled Transfers if due will continue to be made.
(2)  On receipt of proof of death and all required forms at our Home Office, but
     only if the surviving spouse elects to continue the Contract:
(a)  the Death Benefit under the Contract will be allocated on a prorata basis
     to the Investment Options in which assets are then allocated;
(b)  all current Segments will continue; and
(c)  the surviving spouse may elect to fund new Segments on a Contract monthly
     anniversary, if then eligible.

                                        5

<PAGE>

For a surviving spouse, who is the Designated Beneficiary of any portion of the
Contract and not an Annuitant, the following will apply;
(1)  Upon notification of death:
(a)  the value of all Subaccounts, including the GIS Subaccount(s), will be
     transferred to the Money Market Fund; and
(b)  all existing Segments will terminate.
(2)  On receipt of proof of death and all required forms at our Home Office, but
     only if the surviving spouse elects to continue the Contract:
(a)  we will allocate the Death Benefit under the Contract on a prorata basis to
     the Investment Options in which assets are then allocated; and
(b)  the surviving spouse may elect to fund new Segments on a Contract monthly
     anniversary, if then eligible.

Special Distribution Rules when Death Occurs on or After Income Start Date and
Before Annuity Commencement Date

On the Income Start Date, the [Death Benefit] is reduced prorata by the same
proportion that the Income Start Value is to the total Contract Value.

If any Annuitant dies after the Income Start Date but before the Annuity
Commencement Date, proceeds, in addition to proceeds paid under other provisions
of the Contract, will be paid under this rider, unless the surviving spouse
continues the Contract. The amount of additional proceeds will be the greater of
(a) and (b), where:
(a)  is the commuted value of the remaining period certain of the Guaranteed
     Income Floor; and
(b)  is the commuted value of the remaining period certain of the Annual Income
     Amount.

Commuted values will be calculated at a rate not greater than 1% above the rate
at which the payments and Annuity Units were calculated. We will calculate the
commuted values on the date that we receive proof of death and all required
forms at our Home Office.

For a surviving spouse who is an Annuitant and Designated Beneficiary, the
following will apply:
(1)  Upon notification of death:
(a)  the value of all Subaccounts, excluding the value of the GIS Subaccount(s),
     will be transferred to the Money Market Fund; and
(b)  Scheduled Transfers if due will continue to be made.
(2)  On receipt of proof of death and all required forms at our Home Office, but
     only if the surviving spouse elects to continue the Contract:
(a)  the Death Benefit will be allocated on a prorata basis to the Investment
     Options under the Contract in which assets are then allocated including any
     rider Segments that are before the Income Start Date;
(b)  all current Segments will continue; and
(c)  the surviving spouse may elect to fund new Segments on a Contract monthly
     anniversary, if then eligible.

For a surviving spouse, who is the Designated Beneficiary of any portion of the
Contract and not an Annuitant, the following will apply;
(1)  Upon notification of death:
(a)  all value of the Subaccounts will be transferred to the Money Market Fund;
     and
(b)  all existing Segments not past the Income Start Date will terminate.

                                        6

<PAGE>

(2)  On receipt of proof of death and all required forms at our Home Office, but
     only if the surviving spouse elects to continue the Contract:
(a)  the Death Benefit will be allocated on a prorata basis to the Investment
     Options under the Contract in which assets are then allocated;
(b)  any Segment past its Income Start Date will continue any remaining period
     certain payments; and
(c)  the surviving spouse may elect to fund new Segments on a Contract monthly
     anniversary, if then eligible.

Rider Charge

There will be a daily asset charge made for this rider. This charge is added to
the Contract's daily asset charge and applied against all amounts in the
Subaccounts. This charge is shown on the Contract Data Pages. There will be no
further rider charge if you elect to receive Income Payments only in a form
other than Monthly Income.

Other Charges

Any rider and Contract charges not taken on a daily basis, will first be
deducted on a prorata basis from all Subaccounts, excluding the GIS
Subaccount(s). If the assets in the Subaccounts are insufficient to cover the
charges, the remaining amount will be deducted from any Guarantee Account.
Deductions from the Guarantee Account will be taken first from the amounts that
have been in the Guarantee Account for the longest period of time. Finally, any
remaining charges will be deducted from the GIS Subaccount(s) of the Segments
beginning with the Segment that has been in effect for the shortest period of
time and that has not reached its Income Start Date. Except for the annual
Contract charge and any transfer charge (if applicable), any rider and Contract
charges not taken as an asset based charge from the GIS Subaccount(s) will be
treated as withdrawals for purposes of calculating the Guaranteed Income Floor
and Scheduled Transfers made.

When this Rider is Effective

The effective dates of this rider and each Segment are shown on the Contract
Data Pages.

Termination of Rider

This rider will terminate on the Contract anniversary following the first date
that there are no Segments, unless you are eligible to add a Segment on that
date.

Change of Ownership

On the date that the Contract is assigned or sold, unless under an involuntary
assignment effected by legal process, all amounts in the GIS Subaccount(s) will
be transferred to the Money Market Fund.

If you marry after the Contract Date, you may add your spouse as a Joint Owner
and Joint Annuitant or as a Joint Annuitant only, subject to our approval.

General Provisions

For purposes of this rider:
..    A non-natural entity Owner must name an Annuitant and may name a Joint
     Annuitant.
..    An individual Owner must also be an Annuitant.
..    If there is only one Owner, that Owner may name his or her spouse as a
     Joint Annuitant.

                                        7

<PAGE>

For GE Life and Annuity Assurance Company,

Pamela S. Schutz
President

                                        8

<PAGE>

GE LIFE AND ANNUITY ASSURANCE COMPANY
GUARANTEED INCOME RIDER

This rider is added to the Contract. The rider provides a guaranteed income
benefit. The benefit is a series of payments determined on the earlier of the
Income Start Date or the Annuity Commencement Date with respect to payments you
have made to the designated Subaccount(s). Each series of monthly payments is
referred to as a Segment. The guaranteed income benefit is comprised of one or
more guaranteed income Segments (GIS). Each Segment has its own effective date,
Income Start Date, Scheduled Transfer, Monthly Income plan and Guaranteed Annual
Income Factor as shown on the Contract Data Pages. Any time a new Segment is
added, a new set of Contract Data Pages will be sent to you. You may add
additional Segments on any Contract monthly anniversary. In order to add a
Segment, the attained age for any Annuitant must not exceed the age limit shown
on the Contract Data Pages. We allow a maximum of [five] Segments. We reserve
the right to allow additional Segments. You may not terminate this rider, except
under the terms specified under the Termination of Rider provision.

All rider terms will have the same meaning as under the Contract, unless
otherwise provided. Each Segment will operate as follows:

Adjustment Account - The account that is established when the Monthly Income is
calculated on the Income Start Date.

Annual Income Amount - The amount equal to Annuity Units multiplied by Annuity
Unit value on the Valuation Day each Annuity Year starts for any benefits
calculated under this rider.

Annuity Year - A one-year period of time beginning on the Income Start Date or
the annual anniversary of the Income Start Date.

GIS Subaccount - The Subaccount(s) indicated on the Contract Data Pages into
which the Scheduled Transfers are made.

GIS Value - On any Valuation Day, the sum of the values in each GIS Subaccount
on the earlier of the Income Start Date and the Annuity Commencement Date.

Guaranteed Annual Income Factor - A factor used to calculate the annual
Guaranteed Income Floor acquired with each Scheduled Transfer.

Guaranteed Income Floor - The guaranteed amount of Monthly Income as of the
Income Start Date.

Income Start Date - The date stated on the Contract Data Pages on which Monthly
Income from the GIS Subaccount(s) is scheduled to commence, provided any
Annuitant is living on that date. This date cannot be changed after issue. Any
restriction as to when this date must occur will be shown on the Contract Data
Pages.

Income Start Value - The GIS Value as of the Income Start Date.

Level Income Amount - The amount that would result from applying the Annual
Income Amount to a 12-month, period certain, single payment immediate annuity
made available to this rider. We will declare the interest rate at the start of
each Annuity Year.

Form P5283U 11/04                       1

<PAGE>

Monthly Income - The amount added each month on a prorata basis to the
Investment Options in which assets are then allocated, excluding the GIS
Subaccount(s), on and after the Income Start Date. The amount of the Monthly
Income remains constant throughout an Annuity Year. This amount may increase or
decrease from Annuity Year to Annuity Year. You have the option to have the
Monthly Income paid to you.

Scheduled Transfer - The amount transferred into the GIS Subaccount(s) from the
Investment Options, excluding the GIS Subaccount(s). This amount is shown on the
Contract Data Pages. Once established, this amount may not be changed.

Segment - A series of monthly payments. Each Segment comprises the guaranteed
income benefit.

Scheduled Transfers

The first Scheduled Transfer is made to the GIS Subaccount(s) as of the
effective date. Scheduled Transfers if due will continue to be made on each
monthly anniversary of that date until the earlier of the Income Start Date or
the Annuity Commencement Date. Scheduled Transfers may be made in advance of the
monthly anniversaries on which they become due. If any month ends before the
monthly anniversary or on a day that is not a Valuation Day, the next Valuation
Day will be treated as the monthly anniversary for that month.

Only Scheduled Transfers can be made into the GIS Subaccount(s). Purchase
Payments may not be made directly to the GIS Subaccount(s). Scheduled Transfers
are made first to the GIS Subaccount(s) of the Segment that has been in effect
for the longest period of time.

Scheduled Transfers will first be made from the Subaccounts, excluding the GIS
Subaccount(s), on a prorata basis. Transfers will be made from any Guarantee
Account to the extent that the value in the Subaccounts is insufficient to cover
the Scheduled Transfer amount. Transfers from the Guarantee Account will be
taken first from the amounts that have been in the Guarantee Account for the
longest period of time.

There is a minimum Scheduled Transfer amount unless we agree otherwise. This
minimum is shown on the Contract Data Pages. If amounts available for transfer
on the date of the Scheduled Transfer are not enough to make the Scheduled
Transfer, that Scheduled Transfer and any future Scheduled Transfers will not be
made with respect to that Segment. Your Guaranteed Income Floor will be
determined based upon Scheduled Transfers made to that date.

Withdrawals and Transfers

You may take a withdrawal or make transfers from the GIS Subaccount(s) at any
time prior to the earlier of the Income Start Date or the Annuity Commencement
Date. Except for the annual Contract charge and any transfer charge (if
applicable), any rider and Contract charges not taken as an asset based charge
from the GIS Subaccount(s) will be treated as withdrawals for purposes of
calculating the Guaranteed Income Floor and Scheduled Transfers made. Once you
take a withdrawal or make a transfer from a Segment, you will not be permitted
to make any additional Scheduled Transfers to that Segment. Your Guaranteed
Income Floor will be adjusted to reflect the amount withdrawn or transferred.
After such withdrawal or transfer, the Scheduled Transfers made will equal (a)
multiplied by (b) divided by (c), where: (a)  is the Scheduled Transfers made
prior to such withdrawal or transfer; (b)  is the GIS Value after such
withdrawal or transfer; and (c)  is the GIS Value before such withdrawal or
transfer.

                                        2

<PAGE>

Unless you instruct us otherwise, withdrawals will first be deducted from your
Subaccounts, excluding the GIS Subaccount(s). These deductions will be taken on
a prorata basis. Then withdrawals will be deducted from the amounts that have
been in the Guarantee Account for the longest period of time. Finally,
withdrawals will be deducted from the GIS Subaccount(s) of the Segments
beginning with the Segment that has been in effect for the shortest period of
time.

Transfers from the GIS Subaccount(s) will be administered as described under the
Contract.

Monthly Income

You may elect to receive Monthly Income under this rider or you may elect to
transfer your GIS Value to another Investment Option under your Contract and
receive Income Payments.

On the Income Start Date, we will begin your Monthly Income. The Income Start
Value will be applied to the Monthly Income plan shown on the Contract Data
Pages. The Monthly Income plan's value is received as payments over a specific
period of time. As a result, there is no redeemable value in the GIS
Subaccount(s) once Monthly Income begins. The Monthly Income will be allocated
on a prorata basis to the Investment Options in which assets are then allocated,
excluding the GIS Subaccount(s), unless you choose to have the Monthly Income
paid directly to you. Monthly Income is calculated as of the first Valuation Day
of each Annuity Year. If the first day of the Annuity Year does not begin on a
Valuation Day, payments will be calculated on the next succeeding Valuation Day.
Monthly Income will not vary from month to month during an Annuity Year.

Your Monthly Income plan is shown on the Contract Data Pages. For purposes of
this rider only, income rates are based on the Annuity 2000 Mortality Table,
using an interest rate of [3.5%]. The following tables have annual income rates
per $1,000 for a Life Income with 10 Year Period Certain Plan and a Joint Life
and Survivor Income with 10 Year Period Certain Plan. Under the Life Income with
10 Year Period Certain plan, if the Annuitant lives longer than 10 years,
Monthly Income will continue for his or her life. Under the Joint Life and
Survivor Income with 10 Year Period Certain plan, if any Annuitants live longer
than 10 years, Monthly Income will continue as long as any Annuitant is living.

Life Income with 10 Year Period Certain Plan Table

Annual income rates for each $1,000 of Income Start Value less any applicable
premium tax.

Age*    10 Years Certain    Age*    10 Years Certain    Age*    10 Years Certain
----    ----------------    ----    ----------------    ----    ----------------
55            52.14          62           59.19          69           69.56
56            52.99          63           60.44          70           71.38
57            53.88          64           61.76          71           73.29
58            54.83          65           63.15          72           75.28
59            55.83          66           64.63          73           77.36
60            56.89          67           66.18          74           79.51
61            58.01          68           67.83          75           81.73

*Age means settlement age. Values for ages not shown will be furnished upon
request.

                                        3

<PAGE>

Joint Life and Survivor Income with 10 Year Period Certain Plan Table

Annual income rates for each $1,000 of Income Start Value less any applicable
premium tax.

                              Settlement Age
              -------------------------------------------------
Settlement      55         60         65         70        75
   Age        ------    -------    -------    -------    ------
   55         47.09      48.52      49.73      50.65     51.31
   60         48.52      50.62      52.54      54.14     55.33
   65         49.73      52.54      55.39      58.01     60.13
   70         50.65      54.14      58.01      61.96     65.53
   75         51.31      55.33      60.13      65.53     70.99

Values for ages not shown will be furnished upon request.

Maximum Age Adjustment

The settlement age(s) is the Annuitant(s)'s age last birthday on the date
Monthly Income begins, minus an age adjustment from the table below. The actual
age adjustment may be less than the numbers shown.

   Year Payments Begin     Maximum Age
   After      Prior To     Adjustment
   -----      --------     -----------
   2000         2026            5
   2025         2051           10
   2050         ----           15

The initial Annual Income Amount under the applicable payment plan is calculated
by (a) multiplied by (b), divided by (c), where:
(a)  is the annual income rate per $1,000, for the Monthly Income plan shown on
     the Contract Data Pages, using the settlement age(s) of the Annuitant(s) as
     of the Income Start Date;
(b)  is the Income Start Value less any applicable premium tax; and
(c)  is $1,000.

The Guaranteed Income Floor is equal to (a) multiplied by (b), where:
(a)  is the Scheduled Transfers made into the GIS Subaccount(s), adjusted for
     withdrawals and transfers; and
(b)  is the Guaranteed Annual Income Factor shown on the Contract Data Pages
     divided by 12.

The initial Monthly Income is the greater of the Level Income Amount and the
Guaranteed Income Floor.

The subsequent Annual Income Amounts under the applicable income plan are
determined by means of Annuity Units. The amount of any subsequent Annual Income
Amount may be greater or less than the initial amount. We guarantee that each
subsequent Annual Income Amount will not be affected by variations in mortality
experience from the mortality assumptions on which the first amount is based.
The number of Annuity Units is determined by dividing the portion of the initial
Annual Income Amount attributable to that Subaccount by the Annuity Unit value
for that Subaccount as of the Income Start Date. The dollar amount of each
subsequent Annual Income Amount is the sum of the amounts from each Subaccount.
The amount is determined by multiplying your number of Annuity Units in each
Subaccount by the Annuity Unit value for that Subaccount as of the Valuation Day
each Annuity Year starts.

                                        4

<PAGE>

An Adjustment Account is established on the Income Start Date. The value of the
Adjustment Account will be the greater of (a) and (b), where:
(a)  is zero; and
(b)  is 12 multiplied by the Guaranteed Income Floor minus 12 multiplied by the
     initial Level Income Amount.

The actual Monthly Income in subsequent Annuity Years is the greater of (a) and
(b), where:
(a)  is the subsequent Level Income Amount minus any value in the Adjustment
     Account as of the date the last Monthly Income was made divided by 12; and
(b)  is the Guaranteed Income Floor.

For Monthly Income in subsequent Annuity Years, the value of the Adjustment
Account will be the greater of (a) and (b), where:
(a)  is zero; and
(b)  is the value of the Adjustment Account as of the date that the last Monthly
     Income was made, plus 12 multiplied by the actual subsequent Monthly
     Income, minus 12 multiplied by the subsequent Level Income Amount.

On the Income Start Date, if any Monthly Income would be $100 or less, we
reserve the right to reduce the frequency of transfers or payments to an
interval that would result in each amount being at least $100. If the annual
amount is less than $100, we will pay you the Income Start Value and the Segment
will terminate on the Income Start Date.

On the Annuity Commencement Date, no further amount can be added to the GIS
Subaccount(s). On this date, Monthly Income will be included as part of Income
Payments in accordance with your Income Payment plan selected under the
Contract.

Rider Provisions

Death Provisions

The following provisions apply to any and all Segments with regard to the death
of any Annuitant.

Special Distribution Rules when Death Occurs Before Income Start Date and
Annuity Commencement Date

For a surviving spouse who is an Annuitant and Designated Beneficiary, the
following will apply:
(1)  Upon notification of death:
(a)  the value of all Subaccounts, excluding the value of the GIS Subaccount(s),
     will be transferred to the Money Market Fund; and
(b)  Scheduled Transfers if due will continue to be made.
(2)  On receipt of proof of death and all required forms at our Home Office, but
     only if the surviving spouse elects to continue the Contract:
(a)  the Death Benefit under the Contract will be allocated on a prorata basis
     to the Investment Options in which assets are then allocated;
(b)  all current Segments will continue; and
(c)  the surviving spouse may elect to fund new Segments on a Contract monthly
     anniversary, if then eligible.

                                        5

<PAGE>

For a surviving spouse, who is the Designated Beneficiary of any portion of the
Contract and not an Annuitant, the following will apply;
(1)  Upon notification of death:
(a)  the value of all Subaccounts, including the GIS Subaccount(s), will be
     transferred to the Money Market Fund; and
(b)  all existing Segments will terminate.
(2)  On receipt of proof of death and all required forms at our Home Office, but
     only if the surviving spouse elects to continue the Contract:
(a)  we will allocate the Death Benefit under the Contract on a prorata basis to
     the Investment Options in which assets are then allocated; and
(b)  the surviving spouse may elect to fund new Segments on a Contract monthly
     anniversary, if then eligible.

Special Distribution Rules when Death Occurs on or After Income Start Date and
Before Annuity Commencement Date

On the Income Start Date, the [Death Benefit] is reduced prorata by the same
proportion that the Income Start Value is to the total Contract Value.

If any Annuitant dies after the Income Start Date but before the Annuity
Commencement Date, proceeds, in addition to proceeds paid under other provisions
of the Contract, will be paid under this rider, unless the surviving spouse
continues the Contract. The amount of additional proceeds will be the greater of
(a) and (b), where:
(a)  is the commuted value of the remaining period certain of the Guaranteed
     Income Floor; and
(b)  is the commuted value of the remaining period certain of the Annual Income
     Amount.

Commuted values will be calculated at a rate not greater than 1% above the rate
at which the payments and Annuity Units were calculated. We will calculate the
commuted values on the date that we receive proof of death and all required
forms at our Home Office.

For a surviving spouse who is an Annuitant and Designated Beneficiary, the
following will apply:
(1)  Upon notification of death:
(a)  the value of all Subaccounts, excluding the value of the GIS Subaccount(s),
     will be transferred to the Money Market Fund; and
(b)  Scheduled Transfers if due will continue to be made.
(2)  On receipt of proof of death and all required forms at our Home Office, but
     only if the surviving spouse elects to continue the Contract:
(a)  the Death Benefit will be allocated on a prorata basis to the Investment
     Options under the Contract in which assets are then allocated including any
     rider Segments that are before the Income Start Date;
(b)  all current Segments will continue; and
(c)  the surviving spouse may elect to fund new Segments on a Contract monthly
     anniversary, if then eligible.

For a surviving spouse, who is the Designated Beneficiary of any portion of the
Contract and not an Annuitant, the following will apply;
(1)  Upon notification of death:
(a)  all value of the Subaccounts will be transferred to the Money Market Fund;
     and
(b)  all existing Segments not past the Income Start Date will terminate.

                                        6

<PAGE>

(2)  On receipt of proof of death and all required forms at our Home Office, but
     only if the surviving spouse elects to continue the Contract:
(a)  the Death Benefit will be allocated on a prorata basis to the Investment
     Options under the Contract in which assets are then allocated;
(b)  any Segment past its Income Start Date will continue any remaining period
     certain payments; and
(c)  the surviving spouse may elect to fund new Segments on a Contract monthly
     anniversary, if then eligible.

Rider Charge

There will be a daily asset charge made for this rider. This charge is added to
the Contract's daily asset charge and applied against all amounts in the
Subaccounts. This charge is shown on the Contract Data Pages. There will be no
further rider charge if you elect to receive Income Payments only in a form
other than Monthly Income.

Other Charges

Any rider and Contract charges not taken on a daily basis, will first be
deducted on a prorata basis from all Subaccounts, excluding the GIS
Subaccount(s). If the assets in the Subaccounts are insufficient to cover the
charges, the remaining amount will be deducted from any Guarantee Account.
Deductions from the Guarantee Account will be taken first from the amounts that
have been in the Guarantee Account for the longest period of time. Finally, any
remaining charges will be deducted from the GIS Subaccount(s) of the Segments
beginning with the Segment that has been in effect for the shortest period of
time and that has not reached its Income Start Date. Except for the annual
Contract charge and any transfer charge (if applicable), any rider and Contract
charges not taken as an asset based charge from the GIS Subaccount(s) will be
treated as withdrawals for purposes of calculating the Guaranteed Income Floor
and Scheduled Transfers made.

When this Rider is Effective

The effective dates of this rider and each Segment are shown on the Contract
Data Pages.

Termination of Rider

This rider will terminate on the Contract anniversary following the first date
that there are no Segments, unless you are eligible to add a Segment on that
date.

Change of Ownership

On the date that the Contract is assigned or sold, unless under an involuntary
assignment effected by legal process, all amounts in the GIS Subaccount(s) will
be transferred to the Money Market Fund.

If you marry after the Contract Date, you may add your spouse as a Joint Owner
and Joint Annuitant or as a Joint Annuitant only, subject to our approval.

General Provisions

For purposes of this rider:
..    A non-natural entity Owner must name an Annuitant and may name a Joint
     Annuitant.
..    An individual Owner must also be an Annuitant.
..    If there is only one Owner, that Owner may name his or her spouse as a
     Joint Annuitant.

                                        7

<PAGE>

For GE Life and Annuity Assurance Company,

Pamela S. Schutz
President

                                        8

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