Document:

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                                                           Exhibit 4.4

                       FIRST AMENDMENT TO RIGHTS AGREEMENT

         THIS FIRST AMENDMENT TO RIGHTS AGREEMENT (this "Amendment"), dated to
be effective as of February 14, 2001, is between WADDELL & REED FINANCIAL, INC.,
a Delaware corporation (the "Company"), and FIRST CHICAGO TRUST COMPANY OF NEW
YORK, a New York trust company (the "Rights Agent"), at the direction of the
Company. Capitalized terms not defined herein have the same meaning as defined
in the Rights Agreement (as defined below).

         WHEREAS, the Company and the Rights Agent entered into a Rights
Agreement dated as of April 28, 1999 (the "Rights Agreement");

         WHEREAS,  SECTION 27 of the  Rights  Agreement  permits  the  amendment
of the Rights Agreement at the direction of the Company;

         WHEREAS, the Company has entered into that certain merger agreement,
dated to be effective as of February 14, 2001, by and between the Company and
WDR Sub, Inc., a Delaware corporation wholly-owned by the Company (the "Merger
Agreement"), pursuant to which all the issued shares of the Company's Class B
Common Stock, $.01 par value per share, will be converted into shares of the
Company's Class A Common Stock, $.01 par value per share, (the "Converted
Shares");

         WHEREAS, the Rights Agreement does not explicitly address the effects a
conversion of the shares of Class B Common Stock into shares of Class A Common
Stock will have upon the Rights attached to the shares of Class B Common Stock
or the Converted Shares;

         WHEREAS, pursuant to a resolution duly adopted on January 18, 2001, the
Board of Directors of the Company adopted and authorized an amendment to the
Rights Agreement to clarify how the transactions contemplated by the Merger
Agreement will effect the Rights granted under the Rights Agreement;

         WHEREAS, the Board of Directors of the Company has resolved and
determined that such amendment is desirable and consistent with, and for the
purpose of fulfilling, the objectives of the Board of Directors in connection
with the original adoption of the Rights Agreement;

         NOW, THEREFORE, the Rights Agreement is hereby amended as follows:

A.       The Rights  Agreement shall be amended by inserting the following text
immediately  following the text of Section 34:

         "Section 35. CONVERSION OF SHARES OF COMMON STOCK. If the Company
consummates the merger (the "Merger") contemplated by that certain merger
agreement, dated as of February 14, 2001, by and between the Company and WDR
Sub, Inc., a Delaware corporation wholly-owned by the Company, each issued share
of Class B Common Stock, shall, by virtue of the Merger, and without any action
on the part of the holder thereof, become and be

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converted into one fully paid and validly issued, non-assessable share of Class
A Common Stock (a "Converted Share"). For purposes of this Agreement,
simultaneously upon the conversion of each share of Class B Common Stock into a
share of Class A Common Stock, the Right attached to such share of Class B
Common Stock shall be cancelled, and a Right shall be issued for each Converted
Share in accordance with Section 3(c) hereof except that the legend referred to
therein shall only be required to be borne by new certificates issued for
Converted Shares."

B.       Upon the Effective  Time, as defined in the Merger  Agreement,  the
Rights  Agreement  shall be amended as follows:

1.       AMENDMENT TO THE PREAMBLE.
         -------------------------

         The preamble of the Rights Agreement is amended by deleting the phrase
"form of Certificate of" and inserting the phrase "Section 4.3.4 of the
Company's Amended and Restated Certificate of Incorporation (the "Designation of
the Rights and Preferences of the Series A Junior Participating Preferred
Stock")

2.       AMENDMENT OF SECTION 1.
         ----------------------

         a.       SECTION 1(g) of the Rights Agreement is hereby amended in its
entirety to read as follows:

                  "(g)     [intentionally left blank]"

         b.       SECTION 1(i) of the Rights Agreement is hereby amended in its
entirety to read as follows:

                  (i) "Common Stock" shall mean the Class A Common Stock, except
                  that "Common Stock" when used with reference to any Person
                  other than the Company shall mean the capital stock of such
                  Person with the greatest voting power, or the equity
                  securities or other equity interest having power to control or
                  direct the management, of such Person.

3.       AMENDMENT TO THE TABLE OF CONTENTS.
         ----------------------------------

         The Table of Contents of the Rights Agreement is hereby amended by
substituting the phrase "Designation of the Rights and Preferences of the Series
A Junior Participating Preferred Stock" for the phrase "Certificate of
Designation, Preferences and Rights" in the reference to EXHIBIT A in the Table
of Contents.

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4.       AMENDMENT OF EXHIBIT A.
         ----------------------

         EXHIBIT A to the Rights Agreement is hereby replaced with EXHIBIT A to
this Amendment.

5.       AMENDMENT OF EXHIBIT C. The first full  paragraph of EXHIBIT C to the
Rights  Agreement is hereby  amended in its entirety to read as follows:

                           On April 28, 1999, the Board of Directors of Waddell
                  & Reed Financial, Inc. (the "Company") declared a dividend
                  distribution of one Right for each outstanding share of Class
                  A Common Stock and Class B Common Stock of the Company to
                  stockholders of record at the close of business on May 12,
                  1999 (the "Record Date"). Subsequently, the Company converted
                  all issued shares of Class B Common Stock into shares of Class
                  A Common Stock, and therefore, the Rights attached to the
                  shares of Class B Common Stock were cancelled and new Rights
                  were issued with the shares of Class A Common Stock into which
                  the shares of Class B Common Stock were converted. In this
                  summary, the Class A Common Stock is referred to as "Common
                  Stock". Each Right entitles the registered holder to purchase
                  from the Company a unit consisting of one one-hundredth of a
                  share (a "Unit") of Series A Junior Participating Preferred
                  Stock, par value $1.00 per share (the "Series A Preferred
                  Stock") at a Purchase Price of $85.00 per Unit, subject to
                  adjustment. The description and terms of the Rights are set
                  forth in a Rights Agreement (the "Rights Agreement") between
                  the Company and First Chicago Trust Company of New York, as
                  Rights Agent.

4.       EFFECTIVENESS.

         Subject to the condition in Section B of this Amendment, this Amendment
shall be effective as of the date above first written, and all references to the
Rights Agreement shall, from and after such time, be deemed to be references to
the Rights Agreement as amended hereby.

5.       CERTIFICATION.

         The undersigned officer of the Company certifies by execution hereof
that this Amendment is in compliance with the terms of SECTION 27 of the Rights
Agreement.

6.       MISCELLANEOUS.

         This Amendment may be executed in any number of counterparts, each of
such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute but one and the same instrument. If
any term, provision, covenant or

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restriction of this Amendment is held by a court of competent jurisdiction or
other authority to be invalid, illegal, or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Amendment shall remain in
full force and effect and shall in no way be affected, impaired or invalidated.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date and year first above written.

                                   WADDELL & REED FINANCIAL, INC.

                                   By:     /s/ Keith A. Tucker
                                           -------------------
                                   Name:   Keith A. Tucker
                                   Title:  Chairman and CEO

                                   FIRST CHICAGO TRUST COMPANY OF NEW YORK,
                                   as Rights Agent

                                   By:     /s/ Laurence A. Woods
                                           ---------------------
                                   Name:   Laurence A. Woods
                                   Title:  Vice President

                                       5

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                                    EXHIBIT A

                RIGHTS, POWERS AND PREFERENCES OF THE SERIES A JUNIOR
                         PARTICIPATING PREFERRED STOCK

                  4.3.4 DESIGNATION OF THE RIGHTS AND PREFERENCES OF THE SERIES
         A JUNIOR PARTICIPATING PREFERRED STOCK. 750,000 shares of the
         authorized Preferred Stock are hereby designated Series A Junior
         Participating Preferred Stock ("Series A Junior Participating Preferred
         Stock"). The rights and preferences of the Series A Junior
         Participating Preferred Stock are as follows:

                  (a)      DIVIDENDS.

                           (1)      Subject to the prior and superior rights of
                                    the holders of any shares of any series of
                                    Preferred Stock ranking prior and superior
                                    to the shares of Series A Junior
                                    Participating Preferred Stock with respect
                                    to dividends, the holders of shares of
                                    Series A Junior Participating Preferred
                                    Stock shall be entitled to receive, when, as
                                    and if declared by the Board of Directors
                                    out of funds legally available for the
                                    purpose, quarterly dividends payable in cash
                                    on the first day of February, May, August
                                    and November in each year (each such date
                                    being referred to herein as a "Quarterly
                                    Dividend Payment Date"), commencing on the
                                    first Quarterly Dividend Payment Date after
                                    the first issuance of a share or fraction of
                                    a share of Series A Junior Participating
                                    Preferred Stock, in an amount per share
                                    (rounded to the nearest cent) equal to the
                                    greater of (a) $1.00 or (b) subject to the
                                    provision for adjustment hereinafter set
                                    forth, 100 times the aggregate per share
                                    amount of all cash dividends, and 100 times
                                    the aggregate per share amount (payable in
                                    kind) of all non-cash dividends or other
                                    distributions other than a dividend payable
                                    in shares of Common Stock or a subdivision
                                    of the outstanding shares of Common Stock
                                    (by reclassification or otherwise), declared
                                    on the Common Stock since the immediately
                                    preceding Quarterly Dividend Payment Date,
                                    or, with respect to the first Quarterly
                                    Dividend Payment Date, since the first
                                    issuance of any share or fraction of a share
                                    of Series A Junior Participating Preferred
                                    Stock. In the event the Corporation shall at
                                    any time after April 28, 1999 (the "Rights
                                    Declaration Date") (i) declare any dividend
                                    on Common Stock payable in shares of Common
                                    Stock, (ii) subdivide the outstanding Common
                                    Stock, or (iii) combine the outstanding
                                    Common Stock into a smaller number of
                                    shares, then in each such case the amount to
                                    which holders of shares of Series A Junior
                                    Participating Preferred Stock were entitled
                                    immediately prior to such event under clause
                                    (b) of the preceding sentence shall be
                                    adjusted by multiplying such amount by a
                                    fraction the numerator of which is the
                                    number of shares of Common Stock outstanding
                                    immediately after such event and the
                                    denominator of

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                                    which is the number of shares of Common
                                    Stock that were outstanding immediately
                                    prior to such event.

                           (2)      The Corporation shall declare a dividend or
                                    distribution on the Series A Junior
                                    Participating Preferred Stock as provided in
                                    Paragraph 4.3.4(a)(1) above immediately
                                    after it declares a dividend or distribution
                                    on the Common Stock (other than a dividend
                                    payable in shares of Common Stock); provided
                                    that, in the event no dividend or
                                    distribution shall have been declared on the
                                    Common Stock during the period between any
                                    Quarterly Dividend Payment Date and the next
                                    subsequent Quarterly Dividend Payment Date,
                                    a dividend of $1.00 per share on the Series
                                    A Junior Participating Preferred Stock shall
                                    nevertheless be payable on such subsequent
                                    Quarterly Dividend Payment Date.

                           (3)      Dividends shall begin to accrue and be
                                    cumulative on outstanding shares of Series A
                                    Junior Participating Preferred Stock from
                                    the Quarterly Dividend Payment Date next
                                    preceding the date of issue of such shares
                                    of Series A Junior Participating Preferred
                                    Stock, unless the date of issue of such
                                    shares is prior to the record date for the
                                    first Quarterly Dividend Payment Date, in
                                    which case dividends on such shares shall
                                    begin to accrue from the date of issue of
                                    such shares, or unless the date of issue is
                                    a Quarterly Dividend Payment Date or is a
                                    date after the record date for the
                                    determination of holders of shares of Series
                                    A Junior Participating Preferred Stock
                                    entitled to receive a quarterly dividend and
                                    before such Quarterly Dividend Payment Date,
                                    in either of which events such dividends
                                    shall begin to accrue and be cumulative from
                                    such Quarterly Dividend Payment Date.
                                    Accrued but unpaid dividends shall not bear
                                    interest. Dividends paid on the shares of
                                    Series A Junior Participating Preferred
                                    Stock in an amount less than the total
                                    amount of such dividends at the time accrued
                                    and payable on such shares shall be
                                    allocated pro rata on a share-by-share basis
                                    among all such shares at the time
                                    outstanding. The Board of Directors may fix
                                    a record date for the determination of
                                    holders of shares of Series A Junior
                                    Participating Preferred Stock entitled to
                                    receive payment of a dividend or
                                    distribution declared thereon, which record
                                    date shall be no more than 30 days prior to
                                    the date fixed for the payment thereof.

                  (b)      VOTING RIGHTS.  The holders of shares of Series A
                           Junior  Participating  Preferred Stock shall have the
                           following voting rights:

                           (1)      Subject to the provision for adjustment
                                    hereinafter set forth, each share of Series
                                    A Junior Participating Preferred Stock shall
                                    entitle the holder thereof to 100 votes on
                                    all matters submitted to a vote of the
                                    stockholders of the Corporation. In the
                                    event the Corporation shall at any time
                                    after the Rights Declaration Date (i)
                                    declare any dividend on

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                                    the Common Stock payable in shares of Common
                                    Stock, (ii) subdivide the outstanding Common
                                    Stock, or (iii) combine the outstanding
                                    Common Stock into a smaller number of
                                    shares, then in each such case the number of
                                    votes per share to which holders of shares
                                    of Series A Junior Participating Preferred
                                    Stock were entitled immediately prior to
                                    such event shall be adjusted by multiplying
                                    such number by a fraction the numerator of
                                    which is the number of shares of Common
                                    Stock outstanding immediately after such
                                    event and the denominator of which is the
                                    number of shares of Common Stock that were
                                    outstanding immediately prior to such event.

                           (2)      Except as otherwise provided herein or by
                                    law, the holders of shares of Series A
                                    Junior Participating Preferred Stock and the
                                    holders of shares of Common Stock shall vote
                                    together as one class on all matters
                                    submitted to a vote of stockholders of the
                                    Corporation.

                           (4)      If at any time dividends on any Series A
                                    Junior Participating Preferred Stock shall
                                    be in arrears in an amount equal to six (6)
                                    quarterly dividends thereon, the occurrence
                                    of such contingency shall mark the beginning
                                    of a period (herein called a "default
                                    period") which shall extend until such time
                                    when all accrued and unpaid dividends for
                                    all previous quarterly dividend periods and
                                    for the current quarterly dividend period on
                                    all shares of Series A Junior Participating
                                    Preferred Stock then outstanding shall have
                                    been declared and paid or set apart for
                                    payment. During each default period, all
                                    holders of Preferred Stock (including
                                    holders of the Series A Junior Participating
                                    Preferred Stock) with dividends in arrears
                                    in an amount equal to six (6) quarterly
                                    dividends thereon, voting as a class,
                                    irrespective of series, shall have the right
                                    to elect two (2) directors.

                           (5)      During any default period, the voting right
                                    described in section 4.3.4(b)(4) of the
                                    holders of Series A Junior Participating
                                    Preferred Stock may be exercised initially
                                    at a special meeting called pursuant to
                                    section 4.3.4(b)(6) or at any annual meeting
                                    of stockholders, and thereafter at annual
                                    meetings of stockholders, provided that
                                    neither such voting right nor the right of
                                    the holders of any other series of Preferred
                                    Stock, if any, to increase, in certain
                                    cases, the authorized number of directors
                                    shall be exercised unless the holders of ten
                                    percent (10%) in number of shares of
                                    Preferred Stock outstanding shall be present
                                    in person or by proxy. The absence of a
                                    quorum of the holders of Common Stock shall
                                    not affect the exercise by the holders of
                                    Preferred Stock of such voting right. At any
                                    meeting at which the holders of Preferred
                                    Stock shall exercise such voting right
                                    initially during an existing default period,
                                    they shall have the right, voting as a
                                    class, to elect directors to fill such
                                    vacancies, if any, in the Board of Directors
                                    as may then exist up to two (2) directors
                                    or, if such right is exercised at an annual
                                    meeting, to elect two (2) directors.

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                                    If the number which may be so elected at any
                                    special meeting does not amount to the
                                    required number, the holders of the
                                    Preferred Stock shall have the right to make
                                    such increase in the number of directors as
                                    shall be necessary to permit the election by
                                    them of the required number. After the
                                    holders of the Preferred Stock shall have
                                    exercised their right to elect directors in
                                    any default period and during the
                                    continuance of such period, the number of
                                    directors shall not be increased or
                                    decreased except by vote of the holders of
                                    Preferred Stock as herein provided or
                                    pursuant to the rights of any equity
                                    securities ranking senior to or PARI PASSU
                                    with the Series A Junior Participating
                                    Preferred Stock.

                           (6)      Unless the holders of Preferred Stock shall,
                                    during an existing default period, have
                                    previously exercised their right to elect
                                    directors, the Board of Directors may order,
                                    or any stockholder or stockholders owning in
                                    the aggregate not less than ten percent
                                    (10%) of the total number of shares of
                                    Preferred Stock outstanding, irrespective of
                                    series, may request, the calling of a
                                    special meeting of the holders of Preferred
                                    Stock, which meeting shall thereupon be
                                    called by the President, a Vice-President or
                                    the Secretary of the Corporation. Notice of
                                    such meeting and of any annual meeting at
                                    which holders of Preferred Stock are
                                    entitled to vote pursuant to this section
                                    4.3.4(b)(6) shall be given to each holder of
                                    record of Preferred Stock by mailing a copy
                                    of such notice to him at his last address as
                                    the same appears on the books of the
                                    Corporation. Such meeting shall be called
                                    for a time not earlier than 20 days and not
                                    later than 60 days after such order or
                                    request or in default of the calling of such
                                    meeting within 60 days after such order or
                                    request, such meeting may be called on
                                    similar notice by any stockholder or
                                    stockholders owning in the aggregate not
                                    less than ten percent (10%) of the total
                                    number of shares of Preferred Stock
                                    outstanding. Notwithstanding the provisions
                                    of this section 4.3.4(b)(6), no such special
                                    meeting shall be called during the period
                                    within 60 days immediately preceding the
                                    date fixed for the next annual meeting of
                                    the stockholders.

                           (7)      In any default period, the holders of Common
                                    Stock, and other classes of stock of the
                                    Corporation if applicable, shall continue to
                                    be entitled to elect the whole number of
                                    directors until the holders of Preferred
                                    Stock shall have exercised their right to
                                    elect two (2) directors voting as a class,
                                    after the exercise of which right (x) the
                                    directors so elected by the holders of
                                    Preferred Stock shall continue in office
                                    until their successors shall have been
                                    elected by such holders or until the
                                    expiration of the default period, and (y)
                                    any vacancy in the Board of Directors may
                                    (except as provided in Section 4.3.4(b)(5))
                                    be filled by vote of a majority of the
                                    remaining directors theretofore elected by
                                    the holders of the class of stock which
                                    elected the director whose office shall have
                                    become vacant. References in this Section

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                                    4.3.4(b) to directors elected by the holders
                                    of a particular class of stock shall include
                                    directors elected by such directors to fill
                                    vacancies as provided in clause (y) of the
                                    foregoing sentence.

                           (8)      Immediately upon the expiration of a default
                                    period, (x) the right of the holders of
                                    Preferred Stock as a class to elect
                                    directors shall cease, (y) the term of any
                                    directors elected by the holders of
                                    Preferred Stock as a class shall terminate,
                                    and (z) the number of directors shall be
                                    such number as may be provided for in the
                                    certificate of incorporation or by-laws
                                    irrespective of any increase made pursuant
                                    to the provisions of section 4.3.4(b)(5)
                                    (such number being subject, however, to
                                    change thereafter in any manner provided by
                                    law or in the certificate of incorporation
                                    or by-laws). Any vacancies in the Board of
                                    Directors effected by the provisions of
                                    clauses (y) and (z) in the preceding
                                    sentence may be filled by a majority of the
                                    remaining directors.

                           (9)      Except as set forth herein, holders of
                                    Series A Junior Participating Preferred
                                    Stock shall have no special voting rights
                                    and their consent shall not be required
                                    (except to the extent they are entitled to
                                    vote with holders of Common Stock as set
                                    forth herein) for taking any corporate
                                    action.

                  (c)      CERTAIN RESTRICTIONS.

                           (1)      Whenever quarterly dividends or other
                                    dividends or distributions payable on the
                                    Series A Junior Participating Preferred
                                    Stock as provided in Section 4.3.4(a) are in
                                    arrears, thereafter and until all accrued
                                    and unpaid dividends and distributions,
                                    whether or not declared, on shares of Series
                                    A Junior Participating Preferred Stock
                                    outstanding shall have been paid in full,
                                    the Corporation shall not:

                                    (i)     declare or pay dividends on, make
                                            any other distributions on, or
                                            redeem or purchase or otherwise
                                            acquire for consideration any shares
                                            of stock ranking junior (either as
                                            to dividends or upon liquidation,
                                            dissolution or winding up) to the
                                            Series A Junior Participating
                                            Preferred Stock;

                                    (ii)    declare  or pay  dividends  on or
                                            make any other distributions on any
                                            shares of stock ranking on a parity
                                            (either as to dividends or upon
                                            liquidation, dissolution or winding
                                            up) with the Series A Junior
                                            Participating Preferred Stock,
                                            except dividends paid ratably
                                            on the Series A Junior Participating
                                            Preferred Stock and all such parity
                                            stock on which dividends are payable
                                            or in arrears in proportion to the
                                            total amounts to which the holders
                                            of all such shares are then
                                            entitled;

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                                    (iii)   redeem or purchase or otherwise
                                            acquire for consideration shares of
                                            any stock ranking on a parity
                                            (either as to dividends or upon
                                            liquidation, dissolution or winding
                                            up) with the Series A Junior
                                            Participating Preferred Stock,
                                            provided that the Corporation
                                            may at any time redeem, purchase or
                                            otherwise acquire shares of any such
                                            parity stock in exchange for shares
                                            of any stock of the Corporation
                                            ranking junior (either as to
                                            dividends or upon dissolution,
                                            liquidation or winding up) to the
                                            Series A Junior Participating
                                            Preferred Stock; or

                                    (iv)    purchase or otherwise acquire for
                                            consideration any shares of Series A
                                            Junior Participating Preferred
                                            Stock, or any shares of stock
                                            ranking on a parity with the
                                            Series A Junior Participating
                                            Preferred Stock, except in
                                            accordance with a purchase offer
                                            made in writing or by publication
                                            (as determined by the Board of
                                            Directors) to all holders of such
                                            shares upon such terms as the Board
                                            of Directors, after consideration of
                                            the respective annual dividend rates
                                            and other relative rights and
                                            preferences of the respective series
                                            and classes, shall determine in good
                                            faith will result in fair and
                                            equitable treatment among the
                                            respective series or classes.

                           (2)      The Corporation shall not permit any
                                    subsidiary of the Corporation to purchase or
                                    otherwise acquire for consideration any
                                    shares of stock of the Corporation unless
                                    the Corporation could, under Section (1) of
                                    this 4.3.4(c), purchase or otherwise acquire
                                    such shares at such time and in such manner.

                  (d)      REACQUIRED SHARES. Any shares of Series A Junior
                           Participating Preferred Stock purchased or otherwise
                           acquired by the Corporation in any manner whatsoever
                           shall be retired and cancelled promptly after the
                           acquisition thereof. All such shares shall upon their
                           cancellation become authorized but unissued shares of
                           Preferred Stock and may be reissued as part of a new
                           series of Preferred Stock to be created by resolution
                           or resolutions of the Board of Directors, subject to
                           the conditions and restrictions on issuance set forth
                           herein.

                  (e)      LIQUIDATION, DISSOLUTION OR WINDING UP.

                           (1)      Upon any liquidation (voluntary or
                                    otherwise), dissolution or winding up of the
                                    Corporation, no distribution shall be made
                                    to the holders of shares of stock ranking
                                    junior (either as to dividends or upon
                                    liquidation, dissolution or winding up) to
                                    the Series A Junior Participating Preferred
                                    Stock unless, prior thereto, the holders of
                                    shares of Series A Junior Participating
                                    Preferred Stock shall have received an
                                    amount equal to $100 per share of Series A
                                    Junior

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                                    Participating Preferred Stock, plus an
                                    amount equal to accrued and unpaid
                                    dividends and distributions thereon, whether
                                    or not declared, to the date of such payment
                                    (the "Series A Liquidation Preference").
                                    Following the payment of the full amount of
                                    the Series A Liquidation Preference, no
                                    additional distributions shall be made to
                                    the holders of shares of Series A Junior
                                    Participating Preferred Stock unless, prior
                                    thereto, the holders of shares of Common
                                    Stock shall have received an amount per
                                    share (the "Common Adjustment") equal to the
                                    quotient obtained by dividing (i) the Series
                                    A Liquidation Preference by (ii) 100 (as
                                    appropriately adjusted as set forth in
                                    subparagraph (3) below to reflect such
                                    events as stock splits, stock dividends and
                                    recapitalizations with respect to the Common
                                    Stock) (such number in clause (ii), the
                                    "Adjustment Number"). Following the payment
                                    of the full amount of the Series A
                                    Liquidation Preference and the Common
                                    Adjustment in respect of all outstanding
                                    shares of Series A Junior Participating
                                    Preferred Stock and Common Stock,
                                    respectively, holders of Series A Junior
                                    Participating Preferred Stock and holders of
                                    shares of Common Stock shall receive their
                                    ratable and proportionate share of the
                                    remaining assets to be distributed in the
                                    ratio of the Adjustment Number to 1 with
                                    respect to such Preferred Stock and Common
                                    Stock, on a per share basis, respectively.

                           (2)      In the event, however, that there are not
                                    sufficient assets available to permit
                                    payment in full of the Series A Liquidation
                                    Preference and the liquidation preferences
                                    of all other series of preferred stock, if
                                    any, which rank on a parity with the Series
                                    A Junior Participating Preferred Stock, then
                                    such remaining assets shall be distributed
                                    ratably to the holders of the Series A
                                    Junior Participating Preferred Stock and
                                    such parity shares in proportion to their
                                    respective liquidation preferences. In the
                                    event, however, that there are not
                                    sufficient assets available to permit
                                    payment in full of the Common Adjustment,
                                    then such remaining assets shall be
                                    distributed ratably to the holders of Common
                                    Stock.

                           (3)      In the event the Corporation shall at any
                                    time after the Rights Declaration Date (i)
                                    declare any dividend on Common Stock payable
                                    in shares of Common Stock, (ii) subdivide
                                    the outstanding Common Stock, or (iii)
                                    combine the outstanding Common Stock into a
                                    smaller number of shares, then in each such
                                    case the Adjustment Number in effect
                                    immediately prior to such event shall be
                                    adjusted by multiplying such Adjustment
                                    Number by a fraction the numerator of which
                                    is the number of shares of Common Stock
                                    outstanding immediately after such event and
                                    the denominator of which is the number of
                                    shares of Common Stock that were outstanding
                                    immediately prior to such event.

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                  (f)      CONSOLIDATION, MERGER, ETC. In case the Corporation
                           shall enter into any consolidation, merger,
                           combination or other transaction in which the shares
                           of Common Stock are exchanged for or changed into
                           other stock or securities, cash and/or any other
                           property, then in any such case the shares of
                           Series A Junior Participating Preferred Stock shall
                           at the same time be similarly exchanged or changed in
                           an amount per share (subject to the provision for
                           adjustment hereinafter set forth) equal to 100 times
                           the aggregate amount of stock, securities, cash
                           and/or any other property (payable in kind), as the
                           case may be, into which or for which each share of
                           Common Stock is changed or exchanged. In the event
                           the Corporation shall at any time after the Rights
                           Declaration Date (i) declare any dividend on Common
                           Stock payable in shares of Common Stock, (ii)
                           subdivide the outstanding Common Stock, or (iii)
                           combine the outstanding Common Stock into a smaller
                           number of shares, then in each such case the amount
                           set forth in the preceding sentence with respect to
                           the exchange or change of shares of Series A
                           Junior Participating Preferred Stock shall be
                           adjusted by multiplying such amount by a fraction the
                           numerator of which is the number of shares of Common
                           Stock outstanding immediately after such event and
                           the denominator of which is the number of shares of
                           Common Stock that were outstanding immediately prior
                           to such event.

                  (g)      NO REDEMPTION. The shares of Series A Junior
                           Participating  Preferred  Stock shall not be
                           redeemable.

                  (h)      RANKING. The Series A Junior Participating Preferred
                           Stock shall rank junior to all other series of the
                           Corporation's Preferred Stock as to the payment of
                           dividends and the distribution of assets, unless the
                           terms of any such series shall provide otherwise.

                  (i)      AMENDMENT. At any time when any shares of Series A
                           Junior Participating Preferred Stock are outstanding,
                           the Amended and Restated Certificate of Incorporation
                           of the Corporation shall not be amended in any manner
                           which would materially alter or change the powers,
                           preferences or special rights of the Series A Junior
                           Participating Preferred Stock so as to affect them
                           adversely without the affirmative vote of the holders
                           of a majority or more of the outstanding shares of
                           Series A Junior Participating Preferred Stock, voting
                           separately as a class.

                  (j)      FRACTIONAL SHARES. Series A Junior Participating
                           Preferred Stock may be issued in fractions of a share
                           which shall entitle the holder, in proportion to such
                           holder's fractional shares, to exercise voting
                           rights, receive dividends, participate in
                           distributions and to have the benefit of all other
                           rights of holders of Series A Junior Participating
                           Preferred Stock.

                                       8<PAGE>

                                                               Exhibit 10.5

                          GENERAL AGENT AGREEMENT

THIS AGREEMENT, effective this 20th day of October, 2000, is made by and
among Nationwide Life Insurance Company, Nationwide Life and Annuity
Insurance Company, (collectively, "Nationwide") WADDELL & REED, INC. on its
own behalf and on behalf of its affiliated Corporate Insurance Agencies
(Collectively referred to as "Agency") and ("Broker/Dealer").

Nationwide hereby appoints Broker/Dealer and Agency (collectively, "General
Agent") as General Agent with the rights, powers, duties and liabilities set
forth herein.  General Agent hereby accepts the appointment.

General Agent acknowledges, understands and agrees that although Nationwide
Life Insurance Company ("NWL") and Nationwide Life and Annuity Insurance
Company ("NWLAIC") are collectively referred to herein as "Nationwide", NWL
and NWLAIC are separate corporate entities, and that the rights and
obligations of each under this Agreement are to be exclusively determined on
the basis of which of the two entities (NWL or NWLAIC) is the issuing company
of the product(s) specified in Exhibit A, and being sold pursuant to this
Agreement.

Nationwide acknowledges, understands and agrees that although Broker/Dealer
and its affiliated Corporate insurance agencies are collectively, referred to
herein as "General Agent", Broker/Dealer and each of the Corporate insurance
agencies are separate corporate entities, and that the rights and obligations
of each under this Agreement are to be exclusively determined on the basis of
which of the entities is acting as agent with respect to the product(s)
specified in Exhibit A and being sold pursuant to this Agreement.

IN CONSIDERATION OF THE MUTUAL PROMISES HEREIN MADE, THE PARTIES AGREE AS
FOLLOWS:

1.   SCOPE.  This Agreement shall supersede the General Agent Agreement by
     and between Nationwide Life Insurance Company, Nationwide Life and
     Annuity Insurance Company, and Waddell & Reed, Inc. dated December 6,
     1999, and all other prior agreements between the parties, with respect
     to the matters addressed herein.  All of the insurance or annuity
     products sold under this Agreement shall be referred to as "Contract(s)"
     except when particular provisions relate solely to variable contracts
     required to be registered under the Securities Act of 1933 ("1933 Act")
     and/or the Investment Company Act of 1940 ("1940 Act") and such
     contracts shall be referred to as "Variable Contracts".  The Contracts
     which may be sold under this Agreement are listed in the Compensation
     Schedules which are included in Exhibit A.  These Compensation Schedules
     may be amended upon written agreement of Nationwide and General Agent.

     In consideration of the services to be performed hereunder, Nationwide
     agrees to pay General Agent compensation, in accordance with the
     Exhibits to this Agreement, as may be amended from time to time by
     mutual written agreement of the parties, based on purchase payments due
     and received by Nationwide on Contracts issued upon applications
     submitted either directly or through registered representatives and
     agents, on or after the date of this Agreement.

2.   EXCLUSIVITY.  Except as otherwise provided herein, Nationwide will be
     the exclusive provider to General Agent of the products specified in
     Exhibit B for a period of five- (5) years.  During this five- (5) year
     period, General Agent will not offer any other competitor's products to
     their clients, except as otherwise provided herein.  Notwithstanding the
     foregoing, this exclusivity provision will not apply to (a) clients
     transferring similar investment products from one investment advisor
     and/or broker-

                                       1

<PAGE>

     dealer to General Agent, but only to the extent of the transfer itself,
     (b) products offered by General Agent's former affiliate, United Investors
     Life Insurance Company, (c) additions made by General Agent clients to
     products owned prior to the commencement of distribution of like Nationwide
     products by General Agent pursuant to this agreement, (d) sales made in
     New York prior to the development by Nationwide of replacement products
     for sale in New York, and (e) sales made by new General Agent financial
     advisors to prospects to which non-Nationwide products were offered prior
     to their engagement by General Agent.  General Agent will make a good
     faith effort to monitor and report these exceptions to ensure that the
     principle of overall exclusivity is maintained.

     Nationwide will provide sufficient resources to fulfill mutually agreed
     upon product feature, support and service level standards.  It is
     understood and agreed that such exclusivity shall terminate at General
     Agent's option if (a) Nationwide fails to meet the agreed upon product
     feature, support and service standards and (b) Nationwide experiences a
     change of control involving an unaffiliated organization.  Nationwide may
     also terminate its exclusive relationship with General Agent if General
     Agent fails to meet its obligations as set forth herein.

     Notwithstanding the foregoing, if General Agent experiences a change of
     control involving an unaffiliated organization and such organization
     desires for General Agent to sell its products or the products of one or
     more of its affiliates ("Acquirer Products"), this exclusivity provision
     will not apply to the Acquirer Products.  It is understood and agreed
     that if such a change of control should occur, and General Agent
     commences offering Acquirer Products, General Agent shall use its best
     efforts to insure that Nationwide's products receive and maintain an
     equitable competitive position in General Agent's distribution system
     throughout the exclusive period.  For purposes of this provision, an
     "equitable competitive position" shall mean, the opportunity for
     Nationwide to provide products with substantially similar costs,
     features commissions, fund diversification and positioning as the
     Acquirer Products.  In the event such a change of control occurs and
     General Agent commences offering Acquirer Products, the exception from
     this exclusivity provision identified in section (b) of the previous
     paragraph, regarding a change of control at Nationwide involving an
     unaffiliated organization, shall cease to apply.

3.   AUTHORITY.  Agency and Broker/Dealer are hereby authorized, through
     their individual agents ("Agents"), representatives or duly licensed
     affiliated agencies who are duly licensed and registered as required by
     law, to solicit and procure applications for the Contracts in accordance
     with the terms and conditions of this Agreement, and are authorized in
     connection therewith:

     a.   to collect purchase payments on Contracts for which applications
          are submitted;

     b.   when requested and as directed by Nationwide to deliver Contracts
          after the terms and conditions governing such delivery are completed,
          provided that no such delivery of a Contract shall be deemed to
          constitute a warranty by General Agent that such terms and conditions
          have been complied with;

     c.   to perform any other act related to the Contracts that is
          authorized in writing by Nationwide and is permissible under the law;
          and

     d.   General Agent will pay all fees required to obtain and/or maintain
          any licenses or registrations required by state or federal law for
          General Agent and agents of General Agent.  Nationwide will pay the
          fees in connection with the initial appointment with Nationwide of
          agents of General Agent.  Any subsequent appointment fees will be the
          responsibility of the General Agent or as mutually agreed upon with
          Nationwide.

                                       2

<PAGE>

4.   Right to Sell; Regulatory Approvals.

     a.   General Agent is authorized to sell the Contracts set forth in the
          Compensation Schedule (Exhibit A) as now and hereafter attached to
          this Agreement. The Compensation Schedule is hereby incorporated by
          reference.

     b.   Except as disclosed to General Agent in writing, Nationwide
          represents and warrants that it has the authority to issue
          Contracts in the states where the General Agent is authorized to
          conduct business. Nationwide agrees to notify General Agent
          promptly of any change in such authority.

          General Agent agrees that it will solicit applications for
          Nationwide only in those states in which such Contracts are
          approved.

     c.   General Agent will not solicit applications in any state unless the
          Agent signing the application has been properly licensed by the
          appropriate regulatory agency in that state, which may include
          registrations as a registered representative of Broker/Dealer if
          Variable Contracts are being sold. As a licensed appointee of
          Nationwide, General Agent will comply with the statutory and
          regulatory obligations related to the solicitation and procurement
          of applications for Contracts.

     d.   If General Agent engages in sales of the Contracts on the premises
          of or in cooperation with financial institutions (including banks,
          savings and loan institutions, or credit unions), General Agent
          shall, as required by applicable law, maintain separation of its
          business from the business of such financial institution, including
          separation of records. General Agent shall also conduct its
          business at all times so as not to lead to confusion between the
          business conducted by General Agent and the business conducted by
          the financial institution.

          The parties to the Agreement hereby agree to abide by, observe, and
          otherwise conduct the business contemplated under the Agreement in
          a manner consistent with the Guidelines set forth in the
          Interagency Statement on Retail Sales of Non-Deposit Investment
          Products, issued jointly by the Board of Governors of the Federal
          Reserve System, the Federal Deposit Insurance Corporation, the
          Office of the Comptroller of the Currency, and the Office of Thrift
          Supervision on February 15, 1994, or any modifications or
          interpretations thereof.

5.   AGENT SUPERVISION

     a.   Before an Agent is permitted to solicit and procure applications
          for the Contracts, General Agent and Agent shall have entered into
          an agreement pursuant to which such Agent will be appointed as an
          agent of General Agent and in which Agent will agree that Agent's
          selling activities relating to the Contracts will be under the
          supervision and control of General Agent. The Agent's right to
          continue to sell the Contracts is subject to Agent's continued
          compliance with such agreement.

     b.   If an Agent fails to meet the rules and standards imposed by
          General Agent, General Agent shall take such disciplinary action as
          it deems appropriate. If an Agent fails or refuses to submit to
          supervision of General Agent in accordance with this Agreement,
          General Agent shall immediately notify such Agent that such Agent
          is no longer authorized to sell the Contracts and shall take
          whatever additional action may be necessary to terminate the sales
          activities of such Agent relating to the Contracts including
          immediate notification to Nationwide of such termination.

                                     3

<PAGE>

     c.   In the event that General Agent regards itself as exempt from the
          licensing requirements of a state insurance authority, then General
          Agent hereby warrants and guarantees that it shall exercise
          supervisory control over the training and conduct of its Agents in
          a manner consistent with state insurance requirements with respect
          to fair, accurate and good faith representations of product
          information in the solicitation process, with due regard to the
          financial status of individual consumers and the appropriateness of
          the Contract as an investment for such individual consumers. Any
          intentional or negligent failure in this regard, by any Agent of
          General Agent, shall require General Agent to immediately terminate
          such Agent's ability to sell the Contracts and to notify Nationwide
          of such termination. In addition, General Agent will ensure that
          its Agents comply with all applicable state insurance requirements
          and have obtained and maintain any security licenses required by
          the state insurance authorities.

6.   SALE OF VARIABLE CONTRACTS.

     a.   General Agent agrees that each Agent who sells Variable Contracts
          will be a registered representative of Broker/Dealer (for purposes
          of this section, "Registered Representative") with the National
          Association of Securities Dealers Inc. (the "NDAS") before the
          Agent engages into the offer and sale of Variable Contracts.
          Broker/Dealer shall certify the status of each Registered
          Representative's qualifications to Nationwide's satisfaction and
          shall notify Nationwide if any such person ceases to be a
          Registered Representative of Broker/Dealer.

     b.   Broker/Dealer shall have full responsibility for the training and
          supervision of the Registered Representatives that offer and sell
          the Variable Contracts. This training shall include training in the
          sale of variable contracts. All Registered Representatives shall be
          subject to the control of Broker/Dealer in connection with the
          offer and sale of such Variable Contracts.

     c.   Broker/Dealer will fully comply with the requirements of the NASD,
          the Securities Exchange Act of 1934, and all other applicable
          federal or state laws and will establish such rules and procedures
          as may be necessary to cause diligent supervision of the securities
          activities of the Registered Representatives. Broker/Dealer shall
          furnish records necessary to document such supervision at
          Nationwide's reasonable request.

     d.   Before a Registered Representative is permitted to solicit and
          procure applications for the Variable Contracts, Broker/Dealer and
          the Registered Representative shall have entered into an agreement
          pursuant to which the Registered Representative will become a
          Registered Representative of Broker/Dealer and will agree that
          their selling activities relating to the Variable Contracts will be
          under the supervision and control of Broker/Dealer. The right to
          continue to sell such Variable Contracts is subject to continued
          compliance with such agreement.

     e.   If a Registered Representative fails to meet the rules and
          standards imposed by Broker/Dealer, Broker/Dealer shall take such
          disciplinary action as it deems appropriate. If a Registered
          Representative fails or refuses to submit to supervision of
          Broker/Dealer in accordance with this Agreement, Broker/Dealer
          shall immediately notify such Registered Representative that he is
          no longer authorized to sell the Variable Contracts, and
          Broker/Dealer shall take whatever additional action may be
          necessary to terminate the sales activities of such Registered
          Representative relating to the Variable Contracts including
          immediate notification to Nationwide of such termination.

                                       4

<PAGE>

     f.   Nationwide represents that (a) the Variable Contracts are properly
          registered under the 1933 Act and/or 1940 Act and the registration
          statements and the Variable Contracts will remain in full force and
          effect for the duration of this Agreement, and (b) the Variable
          Contracts are exempted or excepted from registration under state
          securities laws. If any state should amend its current securities
          laws to require registration of insurance contracts, then Nationwide
          will comply with the amended state law.

     g.   In connection with the conduct of its business, Broker/Dealer shall
          be provided with prospectuses relating to the Variable Contracts
          and such other material as Nationwide determines to be necessary.
          Nationwide represents and warrants to Broker/Dealer that all
          prospectuses and other material, which Nationwide makes available
          to Broker/Dealer will comply in all respects with any and all
          applicable federal and state securities laws.

7.   INDEPENDENT CONTRACTOR.

     General Agent is free to exercise its own judgment as to the persons
     from whom it will solicit applications for Contracts as well as the
     time, manner and place of solicitation, and Nationwide will not
     unreasonably interfere with its activity or manner of performance under
     this Agreement as an independent contractor.

     Nothing contained in this Agreement shall create, or shall be construed
     to create, the relationship of an employer and employee between
     Nationwide and General Agent.

8.   COLLECTION OF PURCHASE PAYMENTS.

     All Contract purchase payments on applications procured by or through
     General Agent, which General Agent may collect, are collected on behalf
     of Nationwide. All purchase payments shall be in check or wire transfer.
     All such monies received by General Agent shall be collected and
     transmitted promptly to Nationwide in a manner agreed to by both General
     Agent and Nationwide.

9.   LIMITATIONS ON AUTHORITY.  Unless otherwise authorized by Nationwide in
     writing pursuant to Section 3(c), General Agent shall have no authority
     on behalf of Nationwide to:

     a.   make, alter or discharge any Contract,

     b.   incur any indebtedness or liability, expend or contract for the
          expenditure of funds of Nationwide,

     c.   extend the time for payment of any purchase payment, bind
          Nationwide to the reinstatement of any terminated Contract, or
          accept notes for payment of purchase payments,

     d.   waive or modify any terms, conditions or limitations of any
          Contract, adjust or settle any claim or commit Nationwide with
          respect thereto except as provided in Section 13 c.,

     e.   enter into legal proceedings in connection with any matter
          pertaining to Nationwide's business without the prior written consent
          of Nationwide unless General Agent is named in such proceedings or
          General Agent could be subject to paying all or a part of any
          judgment. General Agent must immediately give Nationwide written
          notification of the legal proceeding. Where General Agent is either
          named or may be subject to paying all or a portion of any judgment,
          General Agent may retain counsel of its choice,

     f.   use the registered marks of Nationwide without receiving prior
          written approval of Nationwide,

                                       5

<PAGE>

     g.   represent products of Nationwide except as referenced in the
          prospectus,

     h.   advertise or publish any matter or thing concerning Nationwide or
          the Contracts without the prior written permission of Nationwide,
          except as provided in Section 14.a.,

     i.   open any bank account or trust account on behalf of, for the
          benefit of, or containing the name of Nationwide.

     j.   directly or indirectly cause or endeavor to cause any General Agent
          or their Agents to terminate or alter their association with
          Nationwide, or will not advise or encourage any Nationwide Contract
          Owner to relinquish, surrender, replace or lapse their Nationwide
          contract unless such action is in the best interest of the Contract
          Owner as reasonably determined by the General Agent.

     k.   do or perform any acts or things other than expressly authorized
          herein.

10.  AGENTS.

     a.   General Agent shall select Agents subject to the provisions of this
          Agreement and Nationwide shall appoint the selected Agents or
          provide to General Agent in writing a reasonable basis for not
          making such appointment. General Agent shall notify Nationwide
          promptly, in writing, upon the giving or receipt of any notice of
          termination of an Agent. General Agent will provide Nationwide with
          any documentation necessary for the appointment of the Agents.
          Nationwide reserves the right to terminate the appointment of any
          Agent in its reasonable discretion. Nationwide will promptly notify
          the General Agent of the termination of the appointment of any
          Agent and the basis therefor.

     b.   At all times during which an Agent is appointed by Nationwide to
          sell Contracts, General Agent shall ensure that each Agent has
          obtained and maintains all applicable licenses in accordance with
          applicable state and federal laws and regulations. General Agent
          shall provide Nationwide on request evidence of applicable
          insurance licenses of General Agent's Agents.

     c.   General Agent maintains the responsibility to ensure its Agents
          comply with the terms of the Agreement.

11.  COMPENSATION.

     a.   Nationwide agrees to pay General Agent compensation, in accordance
          with the Compensation Schedules to this Agreement as may be amended
          from time to time by mutual written agreement of the parties.

     b.   Nationwide will pay all compensation due General Agent or any
          Agents, either directly to General Agent or, as necessary to meet
          legal requirements, to the licensed General Agent affiliate or
          other affiliated entity which is permitted to receive such
          compensation under applicable state law. In states where corporate
          licenses are not granted, General Agent represents and warrants
          that it or its affiliated entity has the necessary relationship
          with the Agents based upon which such affiliated entity is
          permitted to receive compensation under applicable state insurance
          law except as otherwise approved by Nationwide. General Agent
          hereby warrants that all necessary contractual arrangements are in
          place to enable Nationwide to pay General Agent, or any of its
          affiliates, for business produced by Agents in the jurisdiction in
          which they hold licenses. General Agent shall pay all compensation
          due to Agents or any other person with respect to the Contracts,
          and no such Agent or other person shall have any claim against
          Nationwide on account of the sale or service of any Contract.
          Nationwide shall have no obligation to make compensation payments
          except as

                                     6

<PAGE>

          provided above. If Nationwide permits the General Agent to retain
          compensation before remitting purchase payments, then the Net
          Compensation Addendum shall specify that authority. Should Nationwide
          pay General Agent for premiums later returned or credited to the
          customer or any other overpayment to General Agent, Nationwide shall
          have, in addition to all other creditor rights, the right to deduct
          such overpayment from any current or future compensation due General
          Agent.

     c.   All trail commissions, if any, shall be paid by Nationwide to
          General Agent with respect to all Contracts sold by Agents on or
          before the date of termination of this Agreement. In the event
          Nationwide receives written authorization from an appointed officer
          of the General Agent to transfer a Contract paying trail
          commissions to a new General Agent, all subsequent trail
          commissions as of the effective date of the transfer will be paid
          to the new General Agent of record. In the event Nationwide
          receives a written request from a contract owner to transfer a
          contract to a new General Agent, all subsequent trail commissions
          as of the effective date of the transfer will be paid to the new
          General Agent of record. This paragraph shall not be in derogation
          of any right of offset or other remedy Nationwide may have on
          monies owed by General Agent or by the new General Agent of record.
          General Agent agrees to maintain any or all federal or state
          license and appointment including any applicable renewal fees
          required, except to the extend Nationwide is responsible therefor
          pursuant to this Agreement, in order to receive trail commissions
          from Nationwide.

     d.   Notwithstanding any other provisions of this Agreement Nationwide
          shall not be obligated to pay any compensation which would be in
          violation of the applicable laws, rules or regulations of any
          jurisdiction, subject to Section 13 of this Agreement.

12.  SEGREGATED BANK ACCOUNT.

     All purchase payments received by General Agent on behalf of Nationwide,
     including purchase payments received by General Agent from Agents, shall be
     held in a segregated bank account and shall be forwarded to Nationwide in
     accordance with mutually agreed upon instructions.

13.  INDEMNIFICATION.

     a.   Nationwide agrees to indemnify and hold General Agent harmless from
          any and all losses, claims, damages, liabilities or expenses to which
          General Agent may become subject under any statute, regulation, common
          law or otherwise, insofar as such losses, claims, damages, liabilities
          or expenses relate directly to the sale of the Contracts and arise as
          a direct consequence of:

          1)   any material misrepresentation or omission, or alleged
               misrepresentation or omission, contained in the registration
               statement, prospectuses, the Contracts, this Agreement or any
               other document prepared or distributed by Nationwide including,
               but not limited to, advertising or sales literature;

          2)   any failure by Nationwide or its employees, whether negligent or
               intentional, to perform the duties and discharge the obligations
               contemplated in this Agreement; and

          3)   any fraudulent, unauthorized or wrongful act or omission by
               Nationwide or its employees or agents.

                                       7

<PAGE>

     b.   General Agent agrees to indemnify and hold Nationwide harmless from
          any and all losses, claims, damages, liabilities or expenses to which
          Nationwide may become subject under any statute, regulation, common
          law or otherwise, insofar as such losses, claims, damages, liabilities
          or expenses related directly to the sale of the Contracts and arise as
          a direct consequence of:

          1)   any material misrepresentation or omission, or alleged
               misrepresentation or omission involving the sales contained
               within this Agreement provided that such misrepresentations or
               omissions are not attributable to any failure by Nationwide;

          2)   any failure by General Agent or its employees or Agents, whether
               negligent or intentional, to perform the duties and discharge the
               obligations contemplated in this agreement; and

          3)   any fraudulent, unauthorized or wrongful act or omission by
               General Agent or its employees or Agents.

     c.   In the event that Nationwide is compelled or agrees to pay any amount
          in the settlement of any claim, judgment, arbitration or similar
          action and, in conjunction therewith, General Agent voluntarily agrees
          to reimburse Nationwide, either partially or totally, Nationwide may
          deduct the amount of the reimbursement from any sales compensation
          subsequently payable to General Agent. Nothing herein shall obligate
          General Agent to provide any such voluntary reimbursement.

     d.   Neither Nationwide or General Agent shall be liable, as the
          indemnifying party pursuant to Sections 13a and 13b, if the losses,
          claims, damages, liabilities or legal expenses incurred by the
          indemnified party arise out of the indemnified party's willful
          misfeasance, bad faith, or gross negligence in the performance of its
          duties, or through the reckless disregard of the indemnified party's
          duties under this Agreement.

     e.   Nationwide and General Agent will promptly notify each other of the
          commencement of any litigation or proceedings, or the assertion of any
          claim or any material inquiries related to the duties set forth in the
          Agreement.

     f.    This indemnification shall be in addition to any other course of
           action Nationwide or General Agent may have.

14.  AGREEMENTS.

     a.   All advertising material and sales promotional material published by
          General Agent or its Agents that specifically name Nationwide or
          reference the Contracts shall be and remain the sole and exclusive
          property of General Agent and shall be used solely and exclusively by
          General Agent and its Agents. Such material shall be submitted to
          Nationwide for its approval prior to its use by General Agent or
          Agents. Nationwide shall provide its approval in writing. Such
          material shall not be used by Nationwide or its other agents without
          prior written consent of General Agent.

     b.   Nationwide and General Agent shall keep thorough and correct records,
          books, and accounts on all transactions arising out of this Agreement,
          and shall preserve and hold all documents, correspondence and records
          relating to Contracts which come into its possession or under its
          control. All such books or accounts, documents, correspondence and
          records of each party pertaining to or used by it in connection with
          its operations hereunder shall belong to it, and

                                       8

<PAGE>

          at all times shall be open to inspection by any officer or duly
          authorized representative of the other party.

     c.   In the course of normal customer servicing of existing Contracts or
          if required by law, Nationwide may contact by mail or otherwise any
          client, agent, account executive, or employee of General Agent or
          other individual acting in a similar capacity if deemed appropriate
          by Nationwide.

     d.   Each party agrees to promptly notify the others in writing of any
          written customer complaint or notice of regulatory investigation it
          receives which may involve the others.

     e.   Each party represents and warrants that the entering into and
          performance of this Agreement does not and will not conflict with
          or cause a breach of any other agreement to which any of them is a
          party.

     f.   Each party represents and warrants that it has full power and
          authority to enter into this Agreement and to carry out its duties
          and obligations hereunder.

     g.   Agency represents and warrants that it has the authority to execute
          this Agreement on its own behalf and on behalf of any of its
          affiliated agencies providing the services set forth in this
          Agreement in order for General Agent to meet all applicable legal
          requirements. All the necessary arrangements are in place to bind
          Agency's affiliated agencies to the terms and conditions of this
          Agreement.

15.  TERMINATION.

     a.   Each party may terminate this Agreement for cause at any time,
          without prior written notice, if another party (1) fails to comply
          with the laws or regulations of any state or other governmental
          agency or body having jurisdiction over the sale of insurance or
          securities, (2) misappropriates any money or property belonging to
          another party, (3) subjects an other party to any actual or
          potential liability due to misfeasance, malfeasance, or
          nonfeasance, (4) commits any fraud upon another party, (5) has an
          assignment for the benefit of creditors, (6) incurs bankruptcy, or
          (7) commits a material breach of this Agreement.

     b.   Nationwide may terminate the relationship and any obligations set
          forth herein if Waddell & Reed experiences a change of control, if
          said change of control materially alters General Agent's ability to
          perform its obligations under this agreement.

     c.   This Agreement may be terminated by a party upon six months written
          notice to the other parties.

16.  MISCELLANEOUS PROVISIONS.

     a.   General Agent may assign or pledge any rights under this Agreement
          with Nationwide's prior written consent.

     b.   The forbearance or neglect of Nationwide, Broker/Dealer or Agency
          to insist upon strict compliance by a party, with any of the
          provisions of this Agreement, whether continuing or not, or to
          declare a forfeiture of termination against that party, shall not
          be construed as a waiver of any of the rights or privileges of the
          parties. No waiver of any right or privilege of Nationwide,
          Broker/Dealer or Agency arising from any default or failure of
          performance by a party shall affect

                                     9

<PAGE>

          the rights or privileges of the other parties in the event of a
          further default or failure of performance.

     c.   Communications sent pursuant to provisions of this item shall be in
          writing and shall be delivered personally or sent by U.S. mail or
          commercial courier:

          If to Nationwide:         Nationwide Life Insurance
                                    Company and/or
                                    Nationwide Life and Annuity
                                    Insurance Company
                                    One Nationwide Plaza
                                    Columbus, OH 43215
                                    Attn: Vice President,
                                    Individual Annuity Operations

          If to General Agent:      Waddell & Reed, Inc.
                                    Attn: Legal Department
                                    6300 Lamar Avenue
                                    Overland Park, KS 66202

     Any party may change its address by so notifying the other parties in
     writing. Any notice shall be deemed given only upon receipt by the party
     to be notified.

     d.   Except as otherwise provided in this Agreement, this Agreement may
          not be amended or modified except by a written Agreement executed
          by the parties.

     e.   This Agreement (including Amendments and Compensation Schedules)
          constitutes the entire agreement between the parties and supersedes
          all prior agreements, understandings and arrangements, oral and
          written, between the parties with respect to the subject matter
          hereof.

     f.   This Agreement shall be binding upon the parties and their
          respective successors and assigns.

     g.   This Agreement shall be governed and construed in accordance with
          the laws of the State of Ohio.

     h.   In case any provision in this Agreement shall be invalid, illegal
          or unenforceable, the validity, legality and enforceability of the
          remaining provisions shall not be affected or impaired.

     i.   The paragraph headings are for reference purposes only and shall
          not be deemed to be a part of this Agreement or to affect the
          meaning or interpretation of the Agreement.

     j.   This Agreement may be executed in any number of counterparts, each
          of which shall be deemed to be an original instrument and all of
          which together shall be deemed to be one and the same instrument.

                                    10

<PAGE>

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first above written.

WADDELL & REED, INC.                   NATIONWIDE LIFE INSURANCE
                                       COMPANY
on it's own behalf and on the behalf
of its affiliated Corporate Agencies   NATIONWIDE LIFE AND ANNUITY
(General Agent)                        INSURANCE COMPANY

By: /s/ Thomas W. Butch                By: /s/ Rhodes B. Baker
   --------------------------------       ---------------------------------

Title: Executive Vice President        Title:         VP
   --------------------------------       ---------------------------------

                                    11

<PAGE>

                                   EXHIBIT A

                              COMPENSATION SCHEDULE

                         Effective Date: October 20, 2000

This is the Compensation Schedule for the General Agent Agreement between
Nationwide and General Agent.

1.   Nationwide shall pay General Agent compensation computed on the premiums
     or purchase payments paid to, received and accepted by Nationwide on
     contract applications procured by General Agent in accordance with this
     Agreement, and at the rates set forth in this schedule and all
     amendments attached hereto.

2.   Unless otherwise provided in an applicable Net Compensation Addendum,
     nothing herein shall be construed as giving General Agent the right to
     withhold or net such compensation from premium or purchase payments it
     shall receive.

3.   Except as otherwise provided in this Agreement, Nationwide will prepare
     a compensation statement for periods ending on the 7th, 15th, 22nd and
     the last business day of each month and shall deliver the statement, and
     any compensation due there under, to General Agent within 15 business
     days of the end of such period for the following products:  Waddell &
     Reed Advisors Select Life, Waddell & Reed Advisors Survivorship Life,
     Waddell & Reed Advisors Term One/Ten/Twenty and Waddell & Reed Advisors
     Term Ten/Twenty-NY.

     The billing cycle for compensation associated with the Waddell & Reed
     Advisors Retirement Plan product, is the 1st day of the month through
     the 15th day and the 16th day through the last business day of the month.

     The compensation cycle for the following products will be daily:

          Waddell & Reed Advisor Select Annuity

          Waddell & Reed Advisors Select Plus Annuity

          Waddell & Reed Advisors Select Plus Annuity NY

4.   The compensation rates which shall apply to business produced by General
     Agent pursuant to this Agreement are attached to this Exhibit as one or
     more Compensation Schedules, which may be amended from time to time as
     provided for in this Agreement. The Compensation Schedules also apply to
     all state specific versions of the contract form numbers listed on the
     Compensation Schedules.

     Some of the Contracts listed in the Compensation Schedules may not be
     available for sale in all states. General Agent is responsible for
     ascertaining whether it has the authority, pursuant to state and federal
     law, to sell the Contracts in the jurisdictions in which the Contracts
     have been approved and in which General Agent is appointed by Nationwide.

5.   No compensation shall be payable, and Nationwide may chargeback any
     compensation that may have been paid in any of the following situations:
     (i) Nationwide, in its good faith discretion, determines not to issue
     the Contract applied for; (ii) Nationwide refunds the premiums or
     purchase payments upon the applicant's surrender or withdrawal pursuant
     to any "free-look" privilege; (iii) Nationwide refunds the premiums paid
     as a result of a complaint by the Contract holder or applicant; or (iv)
     Nationwide determines that any person soliciting an application was
     required to be licensed and was not or that any other person or entity
     receiving compensation for soliciting application or premiums for the
     Contracts is not or was not duly licensed as an insurance agent and
     appointed (v) if Nationwide determines at any time that the applicant
     did not meet applicable underwriting standards, including but not
     limited to, the maximum issue age.

6.   Compensations or replacements or conversions shall be allowed in
     accordance with the Company rules in force at the time such replacement
     or conversion is effected.

7.   Nationwide will not pay compensation on an internal exchange unless
     otherwise provided in this Agreement.
THIS EXHIBIT ESTABLISHES THE COMPENSATION RATES FOR PURCHASE PAYMENTS
SPECIFIED HEREIN AND IN NO WAY SUPERSEDES OR REVOKES ANY OTHER TERMS IN THE
AGREEMENT. ALL OTHER PROVISIONS OF THE AGREEMENT ARE UNAFFECTED BY THIS
EXHIBIT.

                                    12

<PAGE>

                                 EXHIBIT B

                                EXCLUSIVITY

Nationwide will be the exclusive provider to Waddell & Reed for the following
products:

1.   Waddell & Reed Advisor Select Annuity
2.   Waddell & Reed Advisors Select Plus Annuity
3.   Waddell & Reed Advisors Select Plus Annuity NY
4.   Waddell & Reed Advisors Select Life
5.   Waddell & Reed Advisors Retirement Plan

There will be no Exclusivity Arrangement regarding the following products:

1.   Waddell & Reed Advisors Survivorship Life
2.   Waddell & Reed Advisors Term Ten/Twenty
3.   Waddell & Reed Advisors Term Ten/Twenty NY

Upon the mutual agreement of both parties, this EXHIBIT may be amended from
time to time with the addition of certain other annuity or insurance products.

*Actual form numbers to be used in certain states may have different
identifying suffixes, which reflect certain unique characteristics of the
contract mandated by the particular state insurance authority.

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