Document:

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                                                                     EXHIBIT 4.1

                           SPEEDWAY MOTORPORTS, INC.

                         EMPLOYEE STOCK PURCHASE PLAN

                             AMENDED AND RESTATED

                                     AS OF

                                  MAY 3, 2000
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                           SPEEDWAY MOTORSPORTS, INC.

                          EMPLOYEE STOCK PURCHASE PLAN

                              AMENDED AND RESTATED

                                      AS OF

                                   MAY 3, 2000

                                TABLE OF CONTENTS

                                                                         Page

ARTICLE I. PURPOSE; DEFINITIONS; CONSTRUCTION...............................1

         1.1    Purpose of Plan.............................................1

         1.2    Definitions.................................................1

                (a)    "Account"............................................1

                (b)    "Base Pay"...........................................1

                (c)    "Board of Directors".................................1

                (d)    "Business Day".......................................1

                (e)    "Cause"..............................................1

                (f)    "Code"...............................................1

                (g)    "Committee"..........................................2

                (h)    "Company"............................................2

                (i)    "Company Stock"......................................2

                (j)    "Contributions"......................................2

                (k)    "Effective Date".....................................2

                (l)    "Employee"...........................................2

                (m)    "Employer"...........................................2

                (n)    "Exercise Date"......................................2

                (o)    "Grant Date".........................................2

                (p)    "Option".............................................2

                (q)    "Participant"........................................2

                (r)    "Plan"...............................................2

         1.3    Construction................................................3

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<S>     <C>     <C>                                                                                           <C>
ARTICLE II. ADMINISTRATION....................................................................................3

         2.1    Appointment and Procedure of Committee........................................................3

         2.2    Authority of Committee........................................................................3

ARTICLE III. PARTICIPATION....................................................................................3

         3.1    Eligibility to Participate....................................................................3

         3.2    Restrictions on Participation.................................................................4

         3.3    Leave of Absence..............................................................................4

ARTICLE IV. CONTRIBUTIONS.....................................................................................4

         4.1    Payroll Deductions............................................................................4

         4.2    Direct Payment................................................................................5

         4.3    Leave of Absence..............................................................................5

         4.4    Contributions to Accounts.....................................................................5

         4.5    Withdrawal of Contributions from Plan.........................................................5

         4.6    Termination of Employment.....................................................................5

ARTICLE V. OPTIONS............................................................................................5

         5.1    Company Stock Available for Options...........................................................5

         5.2    Granting of Options...........................................................................6

         5.3    Option Price..................................................................................6

         5.4    Option Period.................................................................................6

         5.5    Exercise of Options...........................................................................7

                (a)    Automatic Exercise.....................................................................7

                (b)    Nontransferability of Options..........................................................7

                (c)    Effect of Termination of Employment....................................................7

                       (i)    Termination of Employment Related to Cause......................................7

                       (ii)   Termination of Employment Due to Death..........................................7

                       (iii)  Other Termination of Employment.................................................8

                (d)    Leave of Absence.......................................................................8

                (e)    Delivery of Stock......................................................................8

</TABLE>

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<S>     <C>     <C>                                                                                          <C>

                (f)    Acceleration of Exercisability of Options Upon Occurrence  of Certain Events...........8

                (g)    Registration, Listing and Qualification of Shares of Stock.............................9

ARTICLE VI.  MISCELLANEOUS....................................................................................9

         6.1    Adjustments Upon Changes in Capitalization....................................................9

         6.2    Approval of Stockholders......................................................................9

         6.3    Amendment, Suspension and Termination.........................................................9

         6.4    Intent to Comply With Code Section 423.......................................................10

         6.5    Equal Rights and Privileges..................................................................10

         6.6    Use of Funds.................................................................................10

         6.7    Withholding..................................................................................10

         6.8    Effect of Plan...............................................................................10

         6.9    No Employment Rights.........................................................................10

         6.10   Governing Law................................................................................11

         6.11   Other Actions................................................................................11
</TABLE>

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                           SPEEDWAY MOTORSPORTS, INC.
                          EMPLOYEE STOCK PURCHASE PLAN

                              AMENDED AND RESTATED
                                      AS OF
                                   MAY 3, 2000

                 ARTICLE I. PURPOSE; DEFINITIONS; CONSTRUCTION

        1.1 Purpose of Plan. The purpose of the Plan, which shall be known as
            ---------------
the Speedway Motorsports, Inc. Employee Stock Purchase Plan (the "Plan"), is to
provide employees of Speedway Motorsports, Inc. (the "Company") and its
participating subsidiaries (which hereinafter shall be referred to collectively
with the Company as the "Employer") an opportunity to acquire a proprietary
interest in the Company through the purchase of the common stock, $.01 par value
per share, of the Company. This Plan is intended to qualify as an "employee
stock purchase plan" within the meaning of Section 423 of the Internal Revenue
Code of 1986, as amended (the "Code").

        1.2 Definitions. Throughout this Plan, the following terms shall have
            -----------
the meanings indicated:

            (a) "Account" shall mean a memorandum account maintained to record
each Participant's Contributions pending purchase of Company Stock.

            (b) "Base Pay" shall mean the Participant's regular cash
compensation (excluding overtime pay, bonuses, shift premiums, commissions,
fringe benefits, other special payments and imputed income) determined without
reduction for Contributions made under this Plan or contributions to any Code
Section 401(k) or Section 125 Plan.

            (c) "Board of Directors" shall mean the Board of Directors of the
Company.

            (d) "Business Day" shall mean any day other than a Saturday, Sunday
or holiday.

            (e) "Cause" shall mean any act, action or series of acts or actions
or any omission, omissions or series of omissions which, in the opinion of the
Committee, result in, or which have the effect of resulting in, (i) the
commission of a crime by the Participant involving moral turpitude, which crime
has a material adverse impact on the Employer, (ii) gross negligence or willful
misconduct which is continuous and results in material damage to the Employer,
or (iii) the continuous, willful failure of the person in question to follow the
reasonable directives of the Employer.

            (f) "Code" shall mean the Internal Revenue Code of 1986, as amended,
any successor revenue laws of the United States, and the rules and regulations
promulgated thereunder.

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        (g) "Committee" shall mean the Compensation Committee of the Board of
Directors, or in the event that there is no Compensation Committee or to the
extent the authority of the Compensation Committee is limited, the Board of
Directors.

        (h) "Company" shall mean Speedway Motorsports, Inc., a company organized
and existing under the laws of the State of Delaware.

        (i) "Company Stock" shall mean the common stock, $.0l par value per
share, of the Company.

        (j) "Contributions" shall mean the after-tax payroll deductions or other
permissible contributions made by Participants to the Plan pursuant to Article
IV.

        (k) "Effective Date" shall mean July 1, 1996 or as soon as
administratively practicable thereafter. The Plan's original effective date was
April 1, 1996.

        (l) "Employee" shall mean any person who (i) is employed on a full-time
or part-time basis by a participating Employer, (ii) is regularly scheduled to
work more than twenty hours per week, and (iii) is customarily employed more
than five months in any calendar year. Independent contractors and outside
directors shall not be included in the definition of Employee for purposes of
this Plan.

        (m) "Employer" shall mean the Company and any of its present or future
subsidiaries (within the meaning of Sections 424(f) and (g) of the Code) which
the Committee may designate from time to time as participating Employers under
this Plan for purposes of a Grant Date.

        (n) "Exercise Date" shall mean the last Business Day of March, June,
September and December on which the principal trading market for Company Stock
is open for trading, plus any other interim dates during the year which the
Committee designates as Exercise Dates.

        (o) "Grant Date" shall mean January 1 of each year during the term of
the Plan, plus any other interim dates during the year designated by the Board
of Directors or the Committee.

        (p) "Option" shall mean an option to purchase shares of Company Stock
granted to a Participant pursuant to this Plan.

        (q) "Participant" shall mean an Employee participating in this Plan in
accordance with Article III.

        (r) "Plan" shall mean this Speedway Motorsports, Inc. Employee Stock
Purchase Plan, as amended and restated as of May 3, 2000, and as subsequently
amended from time to time.

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        1.3 Construction. The masculine gender, where appearing in the Plan,
            ------------
shall be deemed to include the feminine gender, unless the context clearly
indicates to the contrary. The words "hereof," "herein," "hereunder" and other
similar compounds of the word "here" shall mean and refer to the entire Plan and
not to any particular provision or Section.

                           ARTICLE II. ADMINISTRATION

        2.1 Appointment and Procedure of Committee. The Plan shall be
            --------------------------------------
administered by the Board of Directors or the Compensation Committee appointed
by the Board of Directors. The Committee shall be appointed from time to time by
the Board of Directors and shall consist of not fewer than two of its members.
No member of the Board of Directors who serves on the Committee shall be
eligible to participate in the Plan. The Committee shall hold its meetings at
such times and places as it may determine. A majority of its members shall
constitute a quorum. All determinations of the Committee shall be made by a
majority of its members. Any decision or determination reduced to writing and
signed by all members shall be as effective as if it had been made by a majority
vote at a meeting duly called and held. The Committee may appoint a Secretary
(who need not be a member of the Committee).

        2.2 Authority of Committee. The Committee, subject to the terms of the
            ----------------------
Plan, shall have plenary authority in its discretion to interpret and construe
the Plan (including, without limitation, any of its terms which are uncertain,
doubtful or disputed); to decide all questions of Employee eligibility
hereunder; to determine the amount, manner and timing of all Options and
purchases of Company Stock hereunder; to establish, amend and rescind rules and
regulations pertaining to the administration of the Plan; and to make
determinations and interpretations and take such other administrative actions as
it deems necessary or advisable for the administration of this Plan. The express
grant in the Plan of any specific power to the Committee shall not be construed
as limiting any power or authority of the Committee. No member of the Committee
shall be liable for any act, determination or omission with respect to his
service on the Committee, if he acts in good faith and in a manner he reasonably
believes to be in or not opposed to the best interests of the Employer. All
expenses of administering this Plan shall be borne by the Employer.

                           ARTICLE III. PARTICIPATION

        3.1 Eligibility to Participate. Subject to the restrictions of Section
            --------------------------
3.2 below, effective January 1, 2001, an Employee shall be eligible to
participate in this Plan on a Grant Date if, as of such Grant Date, the Employee
has been in the continuous service of the Employer for at least six consecutive
months and remains employed with the Employer. Prior to January 1, 2001, an
Employee shall be eligible to participate in this Plan on a Grant Date if, as of
such Grant Date, the Employee has been in the continuous service of the Employer
for at least one year and remains employed with the Employer. For this purpose,
years of employment prior to the Effective Date will be considered. If the Board
of Directors or the Committee designates an interim Grant Date after January 1,
2000 and before January 1, 2001, an Employee shall be eligible to participate in
this Plan on such Grant Date if the Employee had been in the continuous service
of the Employer for at least six consecutive months as of January 1, 2000 and
remains employed with the Employer; provided, however, that an Employee who
already had been

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eligible to participate in the Plan on January 1, 2000 shall not be eligible to
participate on such interim Grant Date.

        For purposes of eligibility to participate in this Plan, the following
service also shall be recognized: (a) service with an entity prior to the
acquisition by the Company, or one of its subsidiaries, of a controlling
interest in or substantially all of the assets of such entity, and (b) service
with Sonic Automotive, Inc. and its subsidiaries.

        3.2 Restrictions on Participation. Notwithstanding the foregoing Section
            -----------------------------
3.1, no Employee shall be eligible to participate in the Plan if such Employee
owns or holds options to purchase (or upon participation in this Plan would own
or hold options to purchase) stock possessing an aggregate of 5% or more of the
total combined voting power or value of all classes of stock of the Company or
any of its subsidiaries (as determined in accordance with the rules of Code
Section 424(d) relating to attribution of stock ownership).

        3.3 Leave of Absence. Termination by the Company of an Employee's bona
            ----------------
fide leave on absence, other than termination of such leave of absence on return
to regular full-time or part-time employment, shall terminate an Employee's
employment for all purposes of the Plan. Notwithstanding the foregoing, for
purposes of participation in the Plan, an Employee on a leave of absence shall
be deemed to continue to be an Employee for the first ninety days of such leave
of absence and such Employee's employment shall be deemed to have terminated at
the close of business on the ninetieth day of such leave of absence unless such
Employee shall have returned to regular full-time or part-time employment prior
to the close of business on such ninetieth day (or unless the Employee's
reemployment is guaranteed by law or contract).

                           ARTICLE IV. CONTRIBUTIONS

        4.1 Payroll Deductions. By written election, made and filed with the
            ------------------
Committee pursuant to the Committee's rules and procedures, a Participant may
elect to designate a whole percentage between one percent and ten percent (or
such higher or lower percentage as may be allowed by the Committee's rules and
procedures) of his Base Pay to be deferred by payroll deduction as a
Contribution to the Plan. Payroll deductions shall commence as soon as
administratively practicable following the filing of such written election with
the Committee. The Committee may develop in its discretion additional rules and
procedures regarding payroll deduction elections.

        A Participant may change or revoke his payroll deduction amount by
filing, on such forms and in accordance with such rules and procedures as the
Committee may prescribe in its discretion, a revised written election with the
Committee. Such modification or revocation shall take effect as soon as
administratively practicable after the Committee's receipt of such revised
election. Notwithstanding the foregoing, a Participant may change his payroll
deduction election only once each calendar quarter, or as otherwise specifically
allowed by the Committee's rules and procedures. If payroll deductions are
discontinued, payroll deductions may not be resumed by the Participant until the
payroll period which begins on or after the following Exercise Date, or as
otherwise specifically allowed by the Committee's rules and procedures. Under no

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circumstances may a Participant's payroll deduction election be made, modified
or revoked retroactively.

        4.2 Direct Payment. In accordance with such rules and procedures as the
            --------------
Committee may prescribe in its discretion, in lieu of payroll deductions
pursuant to Section 4.1, a Participant may elect to make Contributions by direct
cash payment (including by check, subject to the Committee's rules and
procedures) to the Plan rather than by payroll deduction. Such direct payments
must be received by the Plan at least ten Business Days prior to an Exercise
Date in order for such payments to be applied in the exercise of an Option
toward the purchase of Company Stock on such Exercise Date.

        4.3 Leave of Absence. If a Participant goes on a bona fide leave of
            ----------------
absence, such Participant shall have the right to elect to (a) withdraw from the
Plan and receive a distribution of the balance in his Account pursuant to
Section 4.5, (b) discontinue Contributions to the Plan but remain a Participant
in the Plan, or (c) subject to Section 3.3, remain a Participant in the Plan
during such leave of absence, authorizing deductions to be made from payments by
the Company to the Participant during such leave of absence or making direct
cash payments to the Plan pursuant to Section 4.2.

        4.4 Contributions to Accounts. A memorandum Account shall be established
            -------------------------
by the Committee for each Participant for the purpose of accounting for
Contributions. Contributions shall be credited to Accounts as soon as
administratively practicable following payroll withholding or receipt of other
permissible direct cash payment. Amounts credited to Accounts will not accrue
interest.

        4.5 Withdrawal of Contributions from Plan. Prior to the end of a
            -------------------------------------
calendar quarter, a Participant may elect to withdraw the Contributions then
credited to his Account by filing written notice thereof with the Committee on
such forms and in accordance with such procedures as the Committee may
prescribe. The Participant's Contributions shall be distributed to him as soon
as administratively practicable after the Committee's receipt of his notice of
withdrawal and, if applicable, payroll deductions from his Base Pay shall cease.

        4.6 Termination of Employment. Upon termination of a Participant's
            -------------------------
employment for any reason, such Participant may no longer make Contributions to
the Plan or be granted Options under the Plan. A Participant's right to exercise
any unexpired Option he holds as of his termination of employment for any reason
unrelated to Cause may continue, if he so elects, until the next Exercise Date
following such termination of employment pursuant to Section 5.5(c)(ii) or
(iii), or he may withdraw the Contributions then credited to his Account in
accordance with Section 4.5.

                               ARTICLE V. OPTIONS

        5.1 Company Stock Available for Options. There shall be available for
            -----------------------------------
Options under the Plan an aggregate maximum of 400,000 shares of Company Stock,
subject to any adjustments which may be made pursuant to Section 6.1 of the Plan
in connection with changes in capitalization of the Company. Shares of Company
Stock used for purposes of the Plan may

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be either authorized and unissued shares, or previously issued shares held in
the treasury of the Company, or both. Shares of Company Stock covered by Options
which have expired prior to exercise shall be available for further Options
granted hereunder.

        5.2 Granting of Options. The Plan shall be implemented by annual
            -------------------
offerings of approximately twelve months duration (except as otherwise provided
in Section 5.4 or in the event of interim Grant Dates designated by the Board of
Directors or the Committee). On each Grant Date, all Employees eligible to
receive an Option on such Grant Date shall be granted an Option to purchase
shares of Company Stock. Prior to each Grant Date, the Committee shall determine
the number of shares of Company Stock available for purchase under each Option
to be granted on such Grant Date; provided that, the same number of shares will
be available under each Option granted on such Grant Date. No Participant may be
granted an Option which permits his rights to purchase stock under this Plan and
all other employee stock purchase plans of the Company or Employer to accrue at
a rate which exceeds $25,000 of the fair market value of such stock (determined
at the time such Option is granted) for each calendar year in which such Option
is outstanding at any time. Furthermore, no Participant may be granted Options
in any calendar year which permits the Participant to purchase more than 500
shares of Company Stock, subject to any adjustments which are made pursuant to
Section 6.1 (or such higher or lower number as the Committee may establish with
respect to all subsequently granted Options for all Participants in the Plan,
subject to the limitations of Code Section 423).

        5.3 Option Price. The purchase price per share of Company Stock acquired
            ------------
pursuant to the exercise of all or any portion of an Option granted under this
Plan shall be ninety percent of the lesser of (i) the fair market value per
share of Company Stock on the applicable Grant Date, and (ii) the fair market
value per share of Company Stock on the applicable Exercise Date. For purposes
of this Section 5.3, the fair market value per share of Company Stock shall be
the closing price on the last Business Day prior to the date of reference, or in
the event that no sales take place on such date, the average of the closing high
bid and low asked prices, in either case on the principal national securities
exchange on which the Company Stock is listed or admitted to trading, or if the
Company Stock is not listed or admitted to trading on any national securities
exchange, the last sale price reported on the National Market System of the
National Association of Securities Dealers Automated Quotation system ("NASDAQ")
on such date, or the average of the closing high bid and low asked prices of the
Company Stock in the over-the-counter market reported on NASDAQ on such date, as
furnished to the Committee by any New York Stock Exchange member selected from
time to time by the Committee for such purposes. If there is no bid or asked
price reported on any such date, the fair market value shall be determined by
the Committee in accordance with the regulations promulgated under Code Section
2031, or by any other appropriate method selected by the Committee.

        5.4 Option Period. Each Option granted to a Participant under the Plan
            -------------
shall expire on the earliest of (a) the last Exercise Date of the calendar year
in which the Option was granted, (b) the Participant's voluntary withdrawal from
the Plan following termination of employment, and (c) the date of the
Participant's termination of employment related to Cause, or the Exercise Date
immediately following the Participant's termination of employment for any reason
unrelated to Cause. In no event will the duration of an Option period exceed
twenty-seven

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months (or such other applicable period permitted under Code Section 423(b)(7))
from the date on which such Option is granted.

        5.5 Exercise of Options.
            -------------------

            (a) Automatic Exercise. Any Option granted to a Participant shall be
                ------------------
exercised automatically on each Exercise Date during the calendar year of the
Option's Grant Date in whole or in part such that the Participant's accumulated
Contributions as of such Exercise Date shall be applied to the purchase of the
maximum number of whole shares of Company Stock that his Contributions will
allow at the applicable Option price (determined in accordance with Section
5.3), limited to the number of shares subject to such Option. In the event that
the number of shares of Company Stock that may be purchased by all Participants
in the Plan exceeds the number of shares then available for issuance under the
Plan, the Committee shall make a pro rata allocation of the available shares in
as uniform a manner as it determines to be practicable and equitable. Any
remaining Contributions in the Participant's Account amounting to less than the
Option price of a whole share of Company Stock shall be carried forward and
applied on the next Exercise Date; provided that, Contributions remaining after
the last Exercise Date of the calendar year may be distributed to the
Participant at his election.

            (b) Nontransferability of Options. During a Participant's lifetime,
                -----------------------------
Options held by such Participant shall be exercisable only by that Participant.
No Option shall be transferable other than by will or the laws of descent and
distribution.

            (c) Effect of Termination of Employment.
                -----------------------------------

                (i)  Termination of Employment Related to Cause. Upon
                     ------------------------------------------
termination of a Participant's employment related to Cause, the Participant's
participation in the Plan also shall terminate. Any unexpired Option he holds
will expire as of the date of his termination of employment. Remaining
contributions credited to his Account shall be distributed to the Participant as
soon as administratively practicable following termination of employment.

                (ii) Termination of Employment Due to Death. In the event of the
                     --------------------------------------
death of the Participant while employed, or during the period following his
termination of employment for any reason unrelated to Cause but prior to the
next Exercise Date, the Participant's estate shall have the right to elect by
written notice to the Committee prior to the earlier of the expiration of sixty
days commencing with the date of the Participant's death and the Exercise Date
next following the date of the Participant's death:

                     (A) To withdraw all of the Contributions then credited to
the Participant's Account under the Plan, or

                     (B) To allow any unexercised Options held by the
Participant as of the date of his death for the purchase of Company Stock to be
exercised on the Exercise Date next following the date of the Participant's
death in accordance with Section 5.5(a), but only to the extent such Options
were exercisable on the date of the Participant's death, with any

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remaining Contributions credited to the Participant's Account being distributed
to the Participant's estate as soon as administratively practicable after such
Exercise Date.

In the event that no such written election is timely and properly received by
the Committee, all Contributions credited to the Participant's Account shall be
distributed to the Participant's estate. In no event shall any Option be
exercisable beyond the applicable exercise period specified in Section 5.4 of
the Plan.

                (iii) Other Termination of Employment. Upon termination of a
                      -------------------------------
Participant's employment for any reason unrelated to Cause or death, the
Participant may at his election:

                      (A) Withdraw from the Plan pursuant to Section 4.5 and
request the return of the remaining Contributions then credited to his Account,
or

                      (B) Continue participation in the Plan, subject to the
provisions of Section 4.6, until the Exercise Date next following his date of
termination of employment for the limited purpose of allowing any unexpired
Options he holds as of his termination of employment to be exercised
automatically in accordance with Section 5.5(a) on the Exercise Date next
following his termination of employment, but only to the extent such Options
were exercisable on the date of the Participant's termination of employment,
with any remaining Contributions credited to the Participant's Account being
distributed to the Participant as soon as administratively practicable after
such Exercise Date.

            (d) Leave of Absence. A Participant on a bona fide leave of absence
                ----------------
shall, subject to the election made by such Participant pursuant to Section 4.3
and subject to this Section 5.5(d), continue to be a Participant in the Plan so
long as such Participant is on such bona fide leave of absence. A Participant
who has been on a bona fide leave of absence for more than ninety days and who
therefore is not an Employee for purposes of the Plan (unless the right to
reemployment is guaranteed by statute or contract) shall not be entitled to
participate in any offering commencing on any Grant Date following the ninetieth
day of such leave of absence. Notwithstanding any other provisions of the Plan,
unless a Participant on a bona fide leave of absence returns to regular
full-time or part-time employment with the Employer at the earlier of (i) the
termination of such leave of absence, or (ii) the day after the ninetieth day of
such leave of absence, such Participant's employment shall be deemed to have
terminated for purposes of the Plan on whichever of such dates first occurs
(unless the Participant's right to reemployment is guaranteed by statute or
contract).

            (e) Delivery of Stock. As soon as administratively practicable after
                -----------------
each Exercise Date, the Company or the Committee will deliver, as applicable,
certificates evidencing shares of Company Stock purchased under this Plan.

            (f) Acceleration of Exercisability of Options Upon Occurrence of
                ------------------------------------------------------------
Certain Events. In connection with any merger or consolidation in which the
--------------
Company is not the surviving corporation and which results in the holders of the
outstanding voting securities of the Company (determined immediately prior to
such merger or consolidation) owning less than a

                                       8
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majority of the outstanding voting securities of the surviving corporation
(determined immediately following such merger or consolidation), or any sale or
transfer by the Company of all or substantially all its assets or any tender
offer or exchange offer for or the acquisition, directly or indirectly, by any
person or group of all or a majority of the then-outstanding voting securities
of the Company, all outstanding Options under the Plan shall become exercisable
in full, notwithstanding any other provision of the Plan or of any outstanding
Options granted thereunder, on and after (i) the fifteenth day prior to the
effective date of such merger, consolidation, sale, transfer or acquisition or
(ii) the date of commencement of such tender offer or exchange offer, as the
case may be. Notwithstanding the foregoing, in no event shall any Option be
exercisable after the date of termination of the exercise period of such Option
specified in Section 5.4.

            (g) Registration, Listing and Qualification of Shares of Stock. Each
                ----------------------------------------------------------
Option shall be subject to the requirement that if at any time the Company shall
determine that the registration, listing or qualification of shares of Company
Stock covered thereby upon any securities exchange or under any federal or state
law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting of
such option or the purchase of shares of Company Stock thereunder, no such
Option may be exercised unless and until such registration, listing,
qualification, consent or approval shall have been effected or obtained free of
any conditions not acceptable to the Company. The Company may require that any
person for whom an Option is being exercised make such representations and
agreements and furnish such information as it deems appropriate to assure
compliance with the foregoing or any other applicable legal requirement.

                           ARTICLE VI. MISCELLANEOUS

        6.1 Adjustments Upon Changes in Capitalization. In the event of a
            ------------------------------------------
reorganization, stock split, stock dividend, combination of shares, merger,
consolidation, rights offering or any other change in the corporate structure or
shares of the Company, the Committee may make such adjustments to the extent and
in the manner it deems appropriate in the number and/or kind of shares of
Company Stock available for issuance under the Plan, the number and/or kind of
shares of Company Stock subject to outstanding Options under the Plan, and in
the Option exercise price per share. In addition, the Committee may make such
other adjustments as it determines to be equitable. Any adjustments made
pursuant to this Section 6.1 remain subject to the limitations of Code Section
423 (including its $25,000 annual limitations).

        6.2 Approval of Stockholders. Within twelve months before or after the
            ------------------------
Plan is originally adopted, this Plan must be approved by a majority of the
votes cast thereon by the stockholders of the Company at a meeting of
stockholders duly called and held for such purpose or by unanimous written
consent of such stockholders, and no Option granted hereunder shall be
exercisable prior to such approval.

        6.3 Amendment, Suspension and Termination. The Board of Directors may at
            -------------------------------------
any time amend, suspend or terminate this Plan; provided, however, that no
amendment, suspension or termination may, without the consent of a Participant,
adversely affect the rights of the Participant under any Option he then holds;
and provided further, that approval by the

                                       9
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stockholders of the Company shall be required for an amendment, suspension or
termination to the extent necessary to comply with any applicable law or
regulation or the rules of any self-regulatory organization that are applicable
to the Company or this Plan. Any required stockholder approval shall be deemed
to have been given upon approval by a majority of the votes cast on such
amendment, suspension or termination by the stockholders of the Company at a
meeting of stockholders duly called and held for such purpose or by unanimous
written consent of such stockholders. The Plan will continue until terminated by
the Board of Directors or until all of the shares of Company Stock reserved for
issuance under the Plan have been issued, whichever first occurs.

        6.4 Intent to Comply With Code Section 423. It is intended that this
            --------------------------------------
Plan qualify as an "employee stock purchase plan" under Code Section 423. The
provisions of this Plan shall be construed so as to extend and limit
participation in a manner consistent with the requirements of that Section of
the Code. In the event of an inconsistency between the Plan and Code Section
423, the Plan shall be interpreted in a manner which complies with the
requirements of Code Section 423 and the regulations thereunder, without further
act or amendment by the Company or the Board of Directors unless otherwise
required pursuant to Section 6.3 of this Plan.

        6.5 Equal Rights and Privileges. All Participants granted Options under
            ---------------------------
this Plan shall have equal rights and privileges within the meaning of Code
Section 423(b)(5) and the regulations thereunder. The provisions applying to one
Option granted on a Grant Date must apply in the same manner to all other
Options granted on such Grant Date.

        6.6 Use of Funds. All Contributions received and held by the Employer
            ------------
under this Plan may be used by the Employer for any corporate purpose and the
Employer shall not be obligated to segregate such Contributions.

        6.7 Withholding. It shall be a condition to the obligation of the
            -----------
Company to issue shares of Company Stock upon exercise of an Option that the
Participant (or his estate pursuant to Section 5.5(c)(ii)), through payroll
withholding, cash payment or otherwise, make adequate provision acceptable to
the Company to satisfy any tax withholding obligations arising in connection
with Options granted hereunder or Common Stock acquired upon the exercise
thereof, including taxes owed by the Participant due to the disposition of
Company Stock by the Participant prior to the expiration of the holding periods
described in Code Section 423 (a).

        6.8 Effect of Plan. This Plan shall be binding upon each Participant and
            --------------
his successors, including, without limitation, such Participant's estate and the
executors, administrators or trustees thereof, heirs and legatees, and any
receiver, trustee in bankruptcy or representative of creditors of such
Participant.

        6.9 No Employment Rights. Nothing in this Plan or in any Option granted
            --------------------
pursuant to the Plan shall be construed as a contract of employment between the
Employer and any employee, or as a right of any employee to continue in the
employ of the Employer, or as a limitation of the right of the Employer to
discharge any of its employees, with or without cause.

                                       10
<PAGE>

        6.10 Governing Law. This Plan and all rights and obligations hereunder
             -------------
shall be construed in accordance with and governed by the laws of the State of
North Carolina (excluding the principles of conflict of laws thereof), except to
the extent such laws are preempted by the laws of the United States.

        6.11 Other Actions. Nothing contained in the Plan shall be construed to
             -------------
limit the authority of the Company to exercise its corporate rights and powers,
including, but not by way of limitation, the right of the Company to grant or
assume options for proper corporate purposes other than under the Plan with
respect to any employee or other person, firm, corporation or association.

                                       11<PAGE>

                                                                       Ex (4)(a)
                                                                       ---------

                            SINGLE PURCHASE PAYMENT
                              MODIFIED GUARANTEED
                               ANNUITY CONTRACT
--------------------------------------------------------------------------------

To the Contract Owner:

Please read your Contract carefully. This Contract is a legal contract between
you and the Company. You, the Owner, have benefits and rights described in this
Contract. The Annuitant is named in the Contract. We will make Income Payments
beginning on the Annuity Date, if the Annuitant is still living on that date.

BENEFITS AND VALUES UNDER THIS CONTRACT MAY BE ADJUSTED UPWARD OR DOWNWARD BY
THE APPLICATION OF A MARKET VALUE ADJUSTMENT FORMULA. ANY DEATH BENEFIT WILL NOT
BE SUBJECT TO A MARKET VALUE ADJUSTMENT. SEE THE MARKET VALUE ADJUSTMENT
PROVISION FOR A DESCRIPTION OF THE FORMULA.

RIGHT TO CANCEL. You may return this Contract to our Home Office within 20 days
after its delivery for a refund. The amount of the refund will equal the Single
Purchase Payment adjusted by any Market Value Adjustment.

                   For GE Life and Annuity Assurance Company

               /s/ Pamela S. Schutz          /s/ Donita M. King

                 PAMELA S. SCHUTZ               DONITA M. KING
                    PRESIDENT                      SECRETARY

--------------------------------------------------------------------------------
 .  Single Purchase Payment Modified Guaranteed Annuity
 .  Income Payments begin on Annuity Date
 .  No Dividends
 .  Benefits may reflect a Market Value Adjustment
--------------------------------------------------------------------------------

                              GE LIFE AND ANNUITY
                               ASSURANCE COMPANY
               6610 West Broad Street, Richmond, Virginia 23230
                                1-800-352-9910
                                A Stock Company
<PAGE>

CONTRACT DATA PAGES

SCHEDULE OF BENEFITS

ANNUITY

SINGLE PURCHASE PAYMENT:                                    [$5,000.00]

WITHDRAWAL LIMITATIONS:       [CONTRACT VALUE AFTER THE WITHDRAWAL NOT LESS THAN
                              $2,000.00]

PREMIUM TAX RATE:                                           [0.00%]

INITIAL GUARANTEE TERM:                                     [5 YEAR]

INITIAL GUARANTEE TERM ENDS:                                [MAY 1, 2006]

INITIAL ANNUALIZED INTEREST RATES:
       [FIRST CONTRACT YEAR OF INITIAL TERM:                5.00% (4.87% DAILY)]
       [REMAINING PERIOD OF INITIAL TERM:                   3.00% (2.95% DAILY)]

          OWNER     [THE ANNUITANT]

      ANNUITANT     [JOHN DOE]               [MALE] [35] [LAST] BIRTHDAY

CONTRACT NUMBER     [000000000]

  CONTRACT DATE     [MAY 1, 2001][MAY 1, 2056] ANNUITY COMMENCEMENT DATE

           PLAN     SINGLE PURCHASE PAYMENT MODIFIED GUARANTEED ANNUITY
<PAGE>

CONTRACT DATA PAGES

CONTRACT NUMBER [000000000]

                                TABLE OF VALUES
                       SINGLE PURCHASE PAYMENT $5,000.00

       CONTRACT          CONTRACT          SURRENDER           SURRENDER
         YEAR             VALUE             CHARGE               VALUE

           1              5,250              7.00%               4,900
           2              5,408              6.00%               5,093
           3              5,570              5.00%               5,299
           4              5,737              4.00%               5,514
           5              5,909              3.00%               5,737
           6              6,086              2.00%               5,968
           7              6,269              1.00%               6,208
           8              6,457              0.00%               6,457
           9              6,651              0.00%               6,651
          10              6,850              0.00%               6,850
          11              7,056              0.00%               7,056
          12              7,267              0.00%               7,267
          13              7,485              0.00%               7,485
          14              7,710              0.00%               7,710
          15              7,941              0.00%               7,941
          16              8,179              0.00%               8,179
          17              8,425              0.00%               8,425
          18              8,677              0.00%               8,677
          19              8,938              0.00%               8,938
          20              9,206              0.00%               9,206

         AGES
          60             10,672              0.00%              10,672
          65             12,372              0.00%              12,372
          70             14,343              0.00%              14,343
          90             25,904              0.00%              25,904

VALUES SHOWN ARE AS OF THE END OF EACH CONTRACT YEAR AND MAY BE SUBJECT TO A
MARKET VALUE ADJUSTMENT. THE SURRENDER VALUE REFLECTS THE PENALTY FREE
WITHDRAWAL. THIS PENALTY FREE WITHDRAWAL AMOUNT IS THE INTEREST CREDITED DURING
THE PREVIOUS 12 MONTHS. NO SURRENDER CHARGE OR MVA WILL APPLY DURING THE 30-DAY
PERIOD PRIOR TO THE END OF EACH GUARANTEE TERM PROVIDED THAT YOUR CONTRACT HAS
BEEN IN EFFECT FOR AT LEAST 3 CONTRACT YEARS.

VALUES ARE BASED ON 5.00% ANNUALIZED INTEREST FOR THE FIRST CONTRACT YEAR AND
3.00% THEREAFTER. THE ACTUAL INTEREST CREDITED UNDER THE ANNUITY WILL BE
REPORTED TO THE OWNER AT LEAST ONCE EACH YEAR ON THE STATEMENT OF VALUES.

IF YOU HAVE A QUESTION OR WOULD LIKE TO OBTAIN INFORMATION ABOUT YOUR COVERAGE,
OR IF YOU NEED ASSISTANCE RESOLVING A COMPLAINT, PLEASE CONTACT YOUR SALES
REPRESENTATIVE OR CALL OUR ANNUITY SERVICE DEPARTMENT TOLL FREE AT
(800) 352-9910.

                                  CONTINUED                 EFFECTIVE [05/01/01]
<PAGE>

CONTRACT DATA PAGES

CONTRACT NUMBER [000000000]

SEPARATE ACCOUNT 6

                          TABLE OF SURRENDER CHARGES

          CONTRACT YEAR IN WHICH            SURRENDER CHARGE AS A
       SURRENDER OR WITHDRAWAL MADE          PERCENTAGE OF AMOUNT
                                                  WITHDRAWN

                    1                                [7]
                    2                                [6]
                    3                                [5]
                    4                                [4]
                    5                                [3]
                    6                                [2]
                    7                                [1]
                THEREAFTER                           [0]

   FREE WITHDRAWAL AMOUNT: [ANY INTEREST CREDITED DURING THE 12-MONTH PERIOD
      PRIOR TO THE WITHDRAWAL DATE, AND NOT PREVIOUSLY WITHDRAWN, MAY BE
                WITHDRAWN WITHOUT A SURRENDER CHARGE OR A MVA.]
<PAGE>

CONTRACT DATA PAGES

SCHEDULE OF BENEFITS

ANNUITY

SINGLE PURCHASE PAYMENT:                               [$5,000.00]

WITHDRAWAL LIMITATIONS:   [CONTRACT VALUE AFTER THE WITHDRAWAL NOT LESS THAN
                          $2,000.00]

PREMIUM TAX RATE:                                      [0.00%]

INITIAL GUARANTEE TERM:                                [5 YEAR]

INITIAL GUARANTEE TERM ENDS:                           [MAY 1, 2006]

INITIAL ANNUALIZED INTEREST RATES:
        [FIRST CONTRACT YEAR OF INITIAL TERM:          5.00% (4.87% DAILY)]
        [REMAINING PERIOD OF INITIAL TERM:             3.00% (2.95% DAILY)]

          OWNER    [THE ANNUITANT]

      ANNUITANT    [JOHN DOE]                 [MALE][35]AGE [LAST] BIRTHDAY

CONTRACT NUMBER    [000000000]

  CONTRACT DATE    [MAY 1, 2001][MAY 1, 2056] ANNUITY COMMENCEMENT DATE

           PLAN    SINGLE PURCHASE PAYMENT MODIFIED GUARANTEED ANNUITY

<PAGE>

CONTRACT DATA PAGES

CONTRACT NUMBER [000000000]

                                TABLE OF VALUES
                       SINGLE PURCHASE PAYMENT $5,000.00

  CONTRACT             CONTRACT          SURRENDER           SURRENDER
    YEAR                 VALUE            CHARGE               VALUE

     1                   5,250             6.00%               4,950
     2                   5,408             6.00%               5,093
     3                   5,570             5.00%               5,299
     4                   5,737             4.00%               5,514
     5                   5,909             3.00%               5,737
     6                   6,086             2.00%               5,968
     7                   6,269             2.00%               6,147
     8                   6,457             2.00%               6,331
     9                   6,651             2.00%               6,521
     10                  6,850             2.00%               6,717
     11                  7,056             2.00%               6,919
     12                  7,267             2.00%               7,126
     13                  7,485             2.00%               7,340
     14                  7,710             2.00%               7,560
     15                  7,941             2.00%               7,787
     16                  8,179             2.00%               8,021
     17                  8,425             2.00%               8,261
     18                  8,677             2.00%               8,509
     19                  8,938             2.00%               8,764
     20                  9,206             2.00%               9,027

    AGES

     60                 10,672             2.00%              10,465
     65                 12,372             2.00%              12,132
     70                 14,343             2.00%              14,064
     90                 25,904             0.00%              25,904

VALUES SHOWN ARE AS OF THE END OF EACH CONTRACT YEAR AND MAY BE SUBJECT TO A
MARKET VALUE ADJUSTMENT. THE SURRENDER VALUE REFLECTS THE PENALTY FREE
WITHDRAWAL. THIS PENALTY FREE WITHDRAWAL AMOUNT IS THE INTEREST CREDITED DURING
THE PREVIOUS 12 MONTHS. NO SURRENDER CHARGE OR MVA WILL APPLY DURING THE 30-DAY
PERIOD PRIOR TO THE END OF EACH GUARANTEE TERM PROVIDED THAT YOUR CONTRACT HAS
BEEN IN EFFECT FOR AT LEAST 3 CONTRACT YEARS.

VALUES ARE BASED ON 5.00% ANNUALIZED INTEREST FOR THE FIRST CONTRACT YEAR AND
3.00% THEREAFTER. THE ACTUAL INTEREST CREDITED UNDER THE ANNUITY WILL BE
REPORTED TO THE OWNER AT LEAST ONCE EACH YEAR ON THE STATEMENT OF VALUES.

IF YOU HAVE A QUESTION OR WOULD LIKE TO OBTAIN INFORMATION ABOUT YOUR COVERAGE,
OR IF YOU NEED ASSISTANCE RESOLVING A COMPLAINT, PLEASE CONTACT YOUR SALES
REPRESENTATIVE OR CALL OUR ANNUITY SERVICE DEPARTMENT TOLL FREE AT
(800)352-9910.

<PAGE>

CONTRACT DATA PAGES

CONTRACT NUMBER [000000000]

SEPARATE ACCOUNT 6

                           TABLE OF SURRENDER CHARGES

             CONTRACT YEAR IN WHICH               SURRENDER CHARGE AS A
          SURRENDER OR WITHDRAWAL MADE            PERCENTAGE OF AMOUNT
                                                        WITHDRAWN

                      1                                    [6]
                      2                                    [6]
                      3                                    [5]
                      4                                    [4]
                      5                                    [3]
                      6                                    [2]
                      7                                    [2]
                      8 AND THEREAFTER *                   [2]

* SURRENDER CHARGE PERCENTAGE DECREASES TO 1% DURING THE CONTRACT YEAR PRIOR TO
THE ANNUITY COMMENCEMENT DATE. THERE IS NO SURRENDER CHARGE ASSESSED ON THE
ANNUITY COMMENCEMENT DATE.

FREE WITHDRAWAL AMOUNT: [ANY INTEREST CREDITED DURING THE 12-MONTH PERIOD PRIOR
         TO THE WITHDRAWAL DATE, AND NOT PREVIOUSLY WITHDRAWN, MAY BE WITHDRAWN
         WITHOUT A SURRENDER CHARGE OR A MVA.]
<PAGE>

                                TABLE OF CONTENTS

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

    Contract Data Pages ...................................................3
    Definitions ...........................................................4
    Introduction ..........................................................5
    Owner, Annuitant and Beneficiary Provisions ...........................6
    Single Purchase Payment ...............................................7
    Interest ..............................................................7
    Contract Value ........................................................8
    Monthly Income Benefit ...............................................10
    Death Benefit Provisions .............................................11
    General Information ..................................................12
    Optional Payment Plans ...............................................13
    Copies of any riders and endorsements follow page 16.

                                   DEFINITIONS

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

ANNUITANT / JOINT ANNUITANT - The person(s) named on the Contract data pages
whose age and, where appropriate, gender are used in determining the amount of
the monthly income benefits.

ANNUITY COMMENCEMENT DATE - The date stated on the Contract data page on which
Income Payments are scheduled to commence, if the Annuitant(s) is living on that
date. This date can be changed after issue during any 30-day period immediately
prior to the end of each Guarantee Term.

ANNUITY COMMENCEMENT VALUE - The Surrender Value on the day immediately
preceding the Annuity Date adjusted by any MVA.

ANNUITY DATE - The date on which Income Payments start. The date that the
Annuity Commencement Value is transferred from the separate account to our
General Account.

THE COMPANY - GE Life and Annuity Assurance Company. "We", "us" or "our" refers
to the Company.

CONTRACT - This Contract with any attached riders and endorsements.

CONTRACT ANNIVERSARY - The same day in each Contract Year as the Contract Date.

CONTRACT DATE - The date the Contract is issued and becomes effective. The
Contract Date is shown on the Contract data pages.

CONTRACT VALUE - The value in your Contract denominated in United States
dollars.

CONTRACT YEAR - A one year period of time beginning on the Contract Date or a
Contract Anniversary.

DEATH BENEFIT - The benefit provided under the Contract upon the death of the
Owner or any Annuitant, if any Owner is a non-natural person, prior to the
Annuity Date.

DESIGNATED BENEFICIARY - The person(s) designated in the Contract to whom we pay
a Death Benefit when one becomes payable.

GENERAL ACCOUNT - The assets of the Company other than those allocated to the
separate accounts of the Company.

                                       4
<PAGE>

GUARANTEE TERM - The period of time for which an interest rate(s) is guaranteed.
Your initial Guarantee Term is shown on the Contract data pages.

HOME OFFICE - The Company's offices at 6610 West Broad Street, Richmond,
Virginia 23230.

INCOME PAYMENT - One of a series of payments made under either the monthly
income benefit or one of the Optional Payment Plans.

MARKET VALUE ADJUSTMENT ("MVA") - An adjustment that may be made to a surrender,
withdrawal or transfer. The MVA may also be made to the Annuity Commencement
Value.

MEDICAL CARE FACILITY - A state-licensed facility providing medically necessary
care that is prescribed by a physician, in writing.

OPTIONAL PAYMENT PLAN - A plan whereby any part of a Death Benefit, Surrender
Value or Annuity Commencement Value can be left with us to provide Income
Payments to a Payee.

OWNER / JOINT OWNERS - The person(s) or non-natural person entitled to receive
Income Payments after the Annuity Date. The Owner or Joint Owners are also
entitled to the ownership rights stated in the Contract during the lifetime of
the Annuitant(s) and are shown on the Contract data pages. "You" or "your"
refers to the Owner or Joint Owners.

PAYEE - The person or non-natural person who receives Income Payments under an
Optional Payment Plan.

SETTLEMENT AGE - The Annuitant(s)'s or Payee(s)'s age last birthday on the date
Income Payments begin, minus an age adjustment from the Maximum Age Adjustment
table.

SINGLE PURCHASE PAYMENT - A payment received by the Company and applied to this
Contract in United States dollars.

SURRENDER VALUE - The Contract Value, on the date we receive your written
request for surrender in our Home Office, less any premium tax and any surrender
charge.

                                  INTRODUCTION

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

This is a single purchase payment modified guaranteed annuity contract. The
Single Purchase Payment is due on the Contract Date. In return for your payment,
we provide certain benefits.

The Contract provides for monthly Income Payments beginning on the Annuity Date.
The amount of Income Payments will depend on:
     .    the Annuity Commencement Value;
     .    the Annuitant(s)'s gender, where appropriate, and Settlement Age on
          the Annuity Date; and
     .    the payment plan chosen.

See Optional Payment Plans section for the payout plans available. See
conditions described in the Death Benefit Provisions section for details
regarding payment of any Death Benefit or the continuation of the Contract prior
to the Annuity Date.

The Contract and Its Parts

This Contract is a legal contract. It is the entire contract between you and us.
An agent cannot change this Contract. Any change to it must be in writing and
approved by us. Only an authorized officer can give our approval. READ THIS
CONTRACT CAREFULLY.
<PAGE>

This Contract is intended to constitute an annuity within the meaning of the
Internal Revenue Code. Its provisions will be interpreted consistently with this
intent. We reserve the right to amend this Contract as needed to maintain its
status as an annuity under the Internal Revenue Code. If the Contract is
amended, we will send you a copy of the amendment complying with the
requirements imposed by the Internal Revenue Service ("IRS").

                  OWNER, ANNUITANT AND BENEFICIARY PROVISIONS
--------------------------------------------------------------------------------
The Owner

You have rights while this contract is in effect. These rights are subject to
the rights of any irrevocable beneficiary and any assignee under an assignment
filed with us. At the death of the Annuitant, you will become the Annuitant
unless a Death Benefit is payable as described in the Death Benefit Provisions
section. If an Owner is a non-natural person, an Annuitant's death will be
treated as the death of the Owner, as provided in Internal Revenue Code Section
72.

You may name a Joint Owner. Joint Owners own the Contract equally with the right
of survivorship. Right of survivorship means that if a Joint Owner dies, his or
her interest in the Contract will pass to the surviving Joint Owner. You and a
non-spouse Joint Owner must exercise rights jointly for any change. You and a
spouse Joint Owner may exercise rights on behalf of the other except for
ownership changes. We must approve the addition of a Joint Owner after issue.
Disposition of the Contract on the death of an Owner is subject to the Death
Provisions.

The Annuitant

The Contract names you or someone else as the Annuitant. You may name a Joint
Annuitant. If there is a non-natural Owner, the Owner cannot change, add or
remove an Annuitant.

The Beneficiary

The primary beneficiary and any contingent beneficiary can be named for this
Contract by sending a written request to our Home Office. You may name more than
one primary or contingent beneficiary. If you do, any Death Benefit will be paid
in equal shares to the survivors in the appropriate beneficiary class, unless
you request otherwise.

Changing the Owner or Beneficiary

During the Annuitant(s)'s life, you can change the Owner(s) and any beneficiary
except an irrevocable beneficiary. A person named irrevocably may be changed
only with that person's written consent. To make a change, send a written
request to our Home Office. The request and the change must be in a form
satisfactory to us. The change will take effect as of the date you sign the
request. The change will be subject to any transaction we make before we record
the change.

Using the Contract as Collateral for a Loan

This Contract may be assigned as collateral security for a loan. We must be
notified in writing if you assign the Contract. Any payment we make before we
record the assignment at our Home Office will not be affected. We are not
responsible for the validity of an assignment. Your rights and the rights of a
beneficiary may be affected by an assignment. The benefits of the Contract are
assignable.

                                       6
<PAGE>

                                       7

Trustee

If a trustee is named as the Owner or beneficiary of this Contract subsequently
exercises ownership rights or claims benefits hereunder, we will have no
obligation to verify that a trust is in effect. We will have no obligation to
verify that the trustee is acting within the scope of his/her authority. Payment
of Contract benefits to the trustee will release us from all obligations under
the Contract to the extent of the payment. When we make a payment to the
trustee, we will have no obligation to ensure that such payment is applied
according to the terms of the trust agreement.

                            SINGLE PURCHASE PAYMENT
--------------------------------------------------------------------------------

The Single Purchase Payment is due on the Contract Date. The Single Purchase
Payment, less any applicable premium tax, will be allocated to a non-unitized
separate account that we have established for Contract Owners. The separate
account is shown on the Contract data pages. The non-unitized separate account
is a separate account under state insurance law and is not required to be
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940. The non-unitized separate account includes your Single
Purchase Payment which we credit with fixed rates of interest for the Guarantee
Term you select. We reset the interest rates for subsequent Guarantee Terms
based on our sole discretion. All of our General Account assets are available to
meet the guarantees under this Contract and are available to meet our general
obligations.

Insulation of Assets

The separate account assets equal the reserves and other Contract liabilities
supported by the separate account. These assets will not be charged with
liabilities arising from any other business we conduct. We have the right to
transfer to our General Account any assets of the separate account which are in
excess of such reserves and other Contract liabilities. We have the right to
obtain any tax benefits generated by the separate account.

                                   INTEREST
--------------------------------------------------------------------------------

We will credit interest as shown on the Contract data pages from the Contract
Date to the end of the initial Guarantee Term unless a transfer is made during
this term. After that, we may declare an interest rate that is higher than the
minimum guaranteed annualized interest rate of 3%. We will notify you of new
interest guarantees and any terms and conditions that apply.

Guarantee Terms

You have 30 days, prior to the end of each Guarantee Term, to elect a new
Guarantee Term from those we offer at that time. Contract Values transferred to
a new Guarantee Term during this 30-day period will not be subject to a MVA.
Only one transfer will be allowed during this 30-day period. If you do not
notify us in writing of your election before the end of the current Guarantee
Term, a subsequent Guarantee Term of the same duration as your current Guarantee
Term will apply. If we do not offer your current Guarantee Term, a subsequent
Guarantee Term of the next shortest term will apply. If there is no shorter
Guarantee Term, the subsequent Guarantee Term will be the shortest Guarantee
Term that we then offer. Transfers will be processed at the end of the current
Guarantee Term.

Once each Contract year, beginning on your first Contract Anniversary, you may
transfer your total Contract Value from your current Guarantee Term to another
Guarantee Term with a period of 5 years or longer. This annual transfer of
Contract Value is subject to a MVA. Transfers will be processed as of the date
we receive the written request in our Home Office and will receive the interest
rate for the new Guarantee Term in effect on that date.

<PAGE>

If your chosen Guarantee Term would expire after the Annuity Commencement Date,
your new Guarantee Term will be the longest Guarantee Term we offer that expires
on or before the Annuity Commencement Date. If we do not offer an Guarantee Term
that expires on or before the Annuity Commencement Date, you must choose the
Guarantee Term that first expires after the Annuity Commencement Date.

                                CONTRACT VALUE
--------------------------------------------------------------------------------

Contract Value

On the date the initial Single Purchase Payment is received and accepted, the
Contract Value equals the Single Purchase Payment less any applicable premium
tax. Thereafter, the Contract Value equals the sum of the Single Purchase
Payment and all interest earned, less any withdrawals made including any
surrender charges and any MVA imposed.

Surrender

You may surrender this Contract by sending the Contract and a written request to
our Home Office. We must receive the request before the Annuity Date. The amount
payable is the Surrender Value adjusted by any MVA as of the date we receive the
request.

Withdrawal

You may make a withdrawal from the Contract Value before the Annuity Date. The
withdrawal amount is subject to limitations as defined on the Contract data
pages. Any request withdrawal that does not satisfy these limitations will not
be allowed. The amount payable will be the amount of the withdrawal, less any
surrender charge, any premium tax and adjusted by any MVA as of the date we
receive your request.

Withdrawals, up to any free withdrawal amount stated on the Contract data pages,
are not subject to surrender charges or a MVA.

Surrender Charge

All or part of the amount withdrawn or surrendered may be subject to a surrender
charge. The surrender charge is a percentage of the Contract Value withdrawn.
The applicable percentage is shown in the Table of Surrender Charges on the
Contract data pages. The free withdrawal amount is not subject to a surrender
charge and we do not use the free withdrawal amount in the calculation of the
surrender charge. Surrender charges will not apply to amounts withdrawn or
surrender during the 30-day period immediately prior to the end of each
Guarantee Term provided that your Contract has been in effect for at least three
Contract Years.

There will be no surrender charge if you choose one of the following Optional
Payment Plans:
     .  Life Income with Period Certain;
     .  Income for a Fixed Period of 5 or more years;
     .  Joint Life and Survivor Income.

                                       8
<PAGE>

                                       9

Waiver of Surrender Charges

We will waive surrender charges for any surrender or withdrawal if all of the
following conditions are met:
     (1) No earlier than 90 days after the Contract Date, any Owner entered a
         Medical Care Facility;
     (2) That Owner has spent at least 30 consecutive days in a Medical Care
         Facility;
     (3) At the time of surrender or withdrawal, that Owner was either still
         confined to the Medical Care Facility or was discharged no more than 90
         days prior to the requested surrender or withdrawal; and
     (4) All Owners were under the age of 76 on the Contract Date.

Market Value Adjustment

Except as listed below, all withdrawals, surrenders or transfers will be subject
to a MVA. The MVA may result in both upward and downward adjustments for
withdrawals, surrenders or transfers. The MVA factor will be determined by the
following formula:

                             ((1+1)/(1+j))/n/365/

     n  = the number of days remaining in your current Guarantee Term
     i  = your interest rate for your current Guarantee Term
     j  = our currently offered interest rate for an Guarantee Term for
          durations equal to "n"

The interest rate used for "i" and "j" is the interst rate in effect for the
final year of the Guarantee Term.

If we do not offer an Guarantee Term for the duration of "n", the current rate
"j" will be a linear interpolation of the rates for the Guarantee Terms with
durations that immediately precede and follow the duration of "n". If we offer
only Guarantee Terms with longer durations than the number of years remaining in
the current Guarantee Term, the current interest rate "j" will be for the
Guarantee Term with the shortest duration we offer. If we offer only Guarantee
Terms with shorter durations than the number of years remaining in the current
Guarantee Term, the current interest rate "j" will be for the Guarantee Term
with the longest duration we offer.

If at any time we no longer set current interest rates, we will use an interest
rate that is equal to the most recent U.S. Treasury Yield, for the applicable
duration for "n". If there is no U.S. Treasury Yield that is equal to "n", we
will interpolate the interest rate as defined above.

The amount payable for a surrender or the Annuity Commencement Value will be (a)
minus (b), multiplied by (c), plus (d), where:
     (a) is the Contract Value as of the date of the surrender less any free
         withdrawal amount;
     (b) is the total of any surrender charge and any applicable premium tax;
     (c) is any MVA factor; and
     (d) is any free withdrawal amount.

The amount payable for a withdrawal will be (a) minus (b), multiplied by (c),
plus (d), where:
     (a) is the withdrawal amount less any free withdrawal amount;
     (b) is the total of any surrender charge and any applicable premium tax;
     (c) is any MVA factor; and
     (d) is any free withdrawal amount.

The amount payable for a transfer will be (a) multiplied by (b), where:
     (a) is the Contract Value as of the date of the transfer; and
     (b) is any MVA factor.

A MVA will not apply to the following transactions:
     .   a surrender or withdrawal made during the 30-day period prior to the
         end of each Guarantee Term provided that your Contract has been in
         effect for at least 3 Contract Years;
     .   the transfer of your Contract Value to a new Guarantee Term at the end
         of an Guarantee Term;
     .   annuity commencement during the 30-day period prior to the end of each
         Guarantee Term;
     .   payment of the free withdrawal amount;
     .   payment of the Death Benefit.

<PAGE>

Postponement of Payments

We reserve the right to defer payment of any withdrawal or surrender for up to
six months. We will not defer payment if we are required by law to pay earlier.
We will not defer payment if the amount is used to pay Purchase Payments on
contracts with us.

We have the right to defer payment wich is derived from any amount recently paid
to us by check or draft. We will make payment when we are satisfied the check or
draft has been paid by the bank on which it is drawn.

                            MONTHLY INCOME BENEFIT
--------------------------------------------------------------------------------

We will pay you a monthly income for a guaranteed minimum period beginning on
the Annuity Date if the Annuitant(s) is still living. For a single Annuitant,
payments will be made automatically under a Life Income with 10 Years Certain
plan unless you choose otherwise. For Joint Annuitants, payment will be made
automatically under a Joint Life and Survivor Income with 10 Years Certain plan
unless you choose otherwise.

Under the Life Income 10 Years Certain plan, if the Annuitant lives longer than
10 years, payments will continue for his or her life. If the Annuitant dies
before the end of ten years, the remaining payments for the ten year period will
be discounted at the same rate used to calculate the monthly income.
"Discounted" means we will deduct the amount of interest each remaining payment
would have earned had it not been paid out early. The discounted amount will be
paid in one sum to you.

Under the Joint Life and Survivor Income plan, payments will continue as long as
either Annuitant is living. If both Annuitants die before the end of ten years,
the remaining payments for the ten year period will be discounted at the same
rate used to calculate the monthly income. The discounted amount will be paid
in one sum to you.

At any time, while the Annuitant(s) is living, and before the Annuity Date, you
may choose to change the payment plan by written request. If you do choose a
different plan, the monthly income will reflect the plan chosen. Payment plans
which base payment on the life or lives of one or more individuals will base
such payment on the life of the Annuitant or the Annuitant and Joint Annuitant.
You may elect to receive the Annuity Commencement Value in a lump sum instead of
receiving a monthly income. If we pay the Annuity Commencement Value in a lump
sum, we will have no further obligation under the Contract.

The Income Payments under the automatic monthly payment plan is calculated by
multiplying (a) times (b), divided by (c) where:
     (a)  is the monthly payment rate per $1000, shown under the Optional
          Payment Plans for either the Life Income 10 years Certain or the Joint
          Life and Survivor Income, using the gender(s) and Settlement Age(s) of
          the Annuitant(s), instead of the Payee, on the Annuity Date;
     (b)  is the Annuity Commencement Value; and
     (c)  is $1000.

If Income Payments begin on the Annuity Commencement Date, the Contract Value
instead of the Annuity Commencement Value will be used to calculate the Income
Payments.

                                      10

<PAGE>

                                      11

Income Payments will be made monthly unless quarterly, semi-annual or annual
payments are chosen by written request. However, if any payment made more
frequently than annually would be or becomes less than $100, we reserve the
right to reduce the frequency of payments to an interval that would result in
each payment being at least $100. If the annual payment would be less than $20,
we will pay the Annuity Commencement Value and the Contract will terminate
effective as of the Annuity Date.

Annuity Commencement Date

Annuity Commencement Date is provided on the Contract data pages. This date can
be changed after issue during any 30-day period prior to the end of each
Guarantee Term. You may change the Annuity Commencement Date to any date at
least ten years after the Contract Date. The Annuity Commencement Date cannot be
a date later than the Contract Anniversary on which the Annuitant, or younger of
the Joint Annuitants, reaches age 90, unless a later date is approved by the
Company. To make a change, send us written notice before the Annuity
Commencement Date then in effect. If you change the Annuity Commencement Date,
Annuity Commencement Date will then mean the new Annuity Commencement Date you
selected.

                           DEATH BENEFIT PROVISIONS

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

Death Benefit When Death Occurs Before Income Payments Begin

At the death of any Owner (or any Annuitant, if any Owner is a non-natural
person) a Death Benefit is payable. The Death Benefit is the Contract Value as
of the date of receipt of due proof of death. Interest will be added to the
Death Benefit if required by state law.

When a Distribution is Required

In certain circumstances, federal tax law requires that distributions be made
under this Contract. Except as described below, a distribution is required at
the first death of:
  (a) an Owner or Joint Owner; or
  (b) the Annuitant or Joint Annuitant if any Owner is a non-natural person.

The amount of proceeds payable on death and the methods available for
distributing such proceeds are also described in this section.

Designated Beneficiary

At the first death of (a) an Owner or Joint Owner, or (b) the Annuitant or Joint
Annuitant if any Owner is a non-natural person, the person or non-natural person
first listed below is alive or in existence on the date of that death is the
Designated Beneficiary:
  (1) Owner or Joint Owner
  (2) primary beneficiary
  (3) contingent beneficiary
  (4) Owner's estate

The Designated Beneficiary may choose one of the Payment Choices below, subject
to the distribution rules stated below. For purposes of this section, if there
is more than one Designated Beneficiary, each one will be treated separately
with respect to their portion of the Contract.

<PAGE>

Distribution Rules When death Occurs Before Income Payments Begin

If the Designated Beneficiary is the surviving spouse of the deceased person,
the surviving spouse may received the Death Benefit in a lump sum or instead
continue the Contract with the surviving spouse as the new Owner. If the
Contract is continued and if the deceased person was an Annuitant, the surviving
spouse will become the new Annuitant. Any other surviving Annuitant will be
removed from the Contract. At the death of the surviving spouse, this Contract
continuation provision may not be used again. The provision below regarding If
the Designated Beneficiary is not the surviving spouse must be used instead.

If the Designated Beneficiary is not the surviving spouse of the deceased
person, this Contract cannot be continued indefinitely. Instead, after the date
of death:
   .   Payments must be made to, or for the benefit of, the Designated
       Beneficiary under one of the payment choices listed below.
   .   If no choice is made by the Designated Beneficiary within 30 days
       following receipt of due proof of death, we will pay the Death Benefit as
       a lump sum within the earlier of 5 years of the date of death or 60 days
       following receipt of due proof of death.
   .   If the Designated Beneficiary dies before the entire Contract Value has
       been distributed, we will pay in a lump sum payment any Contract Value
       still remaining to the person named by the Designated Beneficiary or, if
       no person is so named, to the Designated Beneficiary's estate.

Payment Choices:
   (1) Receive the Death Benefit in one lump sum payment upon receipt of due
       proof of death;
   (2) Receive the Contract Value at any time during the five year period
       following the date of death by withdrawing the Contract Value or
       surrendering the Contract. At the end of that five year period, we will
       pay in a lump sum payment any Contract Value still remaining. Whenever
       paid the Contract Value will be adjusted for the MVA unless the payment
       is made within the 30-day period prior to the end of the Guarantee Term;
   (3) Apply the Death Benefit, within 60 days of receipt of due proof of death,
       to provide an income under Optional Payment Plan 1 or 2. The first Income
       Payment must be made no later than one year after the date of death. The
       Income Payment period must be either (1) the lifetime of the Designated
       Beneficiary, or (2) a period not exceeding the Designated Beneficiary's
       life expectancy.

Under Payment Choices (1) and (2), this Contract will terminate upon payment of
the entire proceeds. Under Payment Choices (3), this Contract will terminate
when the Death Benefit is applied to the Optional Payment Plan.

Distribution Rules When Death Occurs After Income Payments Begin

If any Owner, Annuitant or Payee dies after Income Payments have begun, the
entire interest remaining in the Contract will be distributed at least as
rapidly as under the method of distribution being used on the date of death.
Entire interest means any guaranteed payments remaining under the payment plan
in effect on the date of death.

                              GENERAL INFORMATION

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

Statement of Values

At least once each year, we will send you a Contract statement. The statement
will be mailed within 30 days of the statement date.

                                      12

<PAGE>

                                      13

Calculation of Values

The Contract Value, Death Benefit or the benefits under any Optional Payment
Plan chosen will not be less than the minimum benefits required by the law of
the state in which the Contract is delivered.

Evidence of Death, Age, Gender or Survival

We will require proof of death before we act on Contract provisions relating to
the death of any person or persons. We may also require proof of the age,
gender, or survival of any person or persons before we act on any Contract
provision dependent upon age, gender or survival.

Incontestability

We will not contest this Contract.

Misstatement of Age or Gender

If any Annuitant's age or gender, where appropriate, is misstated, any Contract
benefits or proceeds will be determined using the correct age and gender. If any
overpayments have been made, adjustment will be made to the next payment(s).
Any underpayments will be paid in full with the next payment.

Premium Tax

Premium tax rules vary and change from time to time. Some states assess a tax
against us on receipt of the Single Purchase Payment and some states assess a
tax on annuitization of proceeds. We reserve the right to deduct any such tax
either from your Single Purchase Payment when received or from proceeds when
later paid. Proceeds include benefits from surrender, withdrawal, annuity
commencement and death.

The premium tax rate, shown on the Contract data pages, is the rate that was in
effect in your state on the Contract Date. To calculate any premium tax in
effect on the date we receive the Single Purchase Payment, multiply the Single
Purchase Payment by the premium tax rate.

Nonparticipating

This Contract is nonparticipating. No dividends are payable.

Written Notice

You must send written notice to our Home Office for any Contract changes. Please
include the Contract number and the Annuitant(s)'s and Owner(s)'s full name.

We will send all correspondence relating to your Contract to your last known
address. You may request an address change form if you move.

                            OPTIONAL PAYMENT PLANS
--------------------------------------------------------------------------------

Death Benefit and Surrender Value proceeds may be paid in a lump sum. The
Annuity Commencement Value will be paid as described in the Monthly Income
Benefit section. Subject to the rules stated below, any part of the Death
Benefit or Surrender Value can be left with us and paid under an Optional
Payment Plan. If you choose to do so, the proceeds less any premium tax will be
applied to calculate your Income Payment. During the Annuitant(s)'s life you
(or the Designated Beneficiary at your death) may choose a plan. If you have not
chosen a plan for the payment of the Death Benefit, the Designated Beneficiary
can choose a plan.

<PAGE>

There are several important Optional Payment Plan rules:
     .  Our consent must be obtained prior to selecting an Optional Payment Plan
        if any Payee is not a natural person.
     .  Payment made under an Optional Payment Plan at the death of any Owner or
        any Annuitant, if any Owner is a non-natural person, must conform to the
        rules in the Death Provisions section.
     .  If you change a beneficiary, your Optional Payment Plan selection will
        no longer be in effect unless you request that it continue.
     .  Any choice or change of an Optional Payment Plan must be sent in writing
        to our Home Office.
     .  The amount of each payment under an Optional Payment Plan must be at
        least $100.
     .  Income Payments will begin on the date we receive proof of any
        Annuitant's or Owner's death, on surrender , or on the Annuity Date.
     .  Payments under the Interest Income plan will begin at the end of the
        first period after the date proceeds are otherwise payable.

Payment Plans

Income options are shown below. The monthly payment rate is based on the 1983
Table "a", using 3% interest. Other plans may be available upon request.

Plan 1. Life Income with Period Certain. We will make monthly payments for a
guaranteed minimum period. If the Annuitant/Payee lives longer than the minimum
period, payments will continue for his or her life. The minimum period can be
10, 15 or 20 years. Payments are determined according to the table below.
Guaranteed amounts payable under this plan are determined assuming an interest
rate of 3% compounded yearly. We may increase the interest rate and the amount
of any payment. If the Annuitant/Payee dies before the end of the guaranteed
period, the amount of the remaining payments for the minimum period will be
discounted at the same rate used in calculating Income Payments. The discounted
amounts will be paid in a lump sum to the Annuitant/Payee's estate unless
otherwise provided.

                                 Plan 1 Table

Monthly payment rates for each $1,000 of proceeds under Plan 1.

--------------------------------------------------------------------------------
                          Male                               Female
            --------------------------------------------------------------------
Settlement  10 Years    15 Years    20 Years    10 Years    15 Years    20 Years
   Age       Certain     Certain     Certain     Certain     Certain     Certain
--------------------------------------------------------------------------------
    20        $2.90       $2.90       $2.89       $2.81       $2.81       $2.81
    25         3.00        2.99        2.99        2.88        2.88        2.88
    30         3.11        3.11        3.10        2.97        2.97        2.97
    35         3.26        3.25        3.24        3.09        3.08        3.08
    40         3.45        3.43        3.41        3.23        3.23        3.22
    45         3.68        3.66        3.62        3.42        3.41        3.39
    50         3.98        3.94        3.88        3.65        3.64        3.61
    51         4.05        4.00        3.93        3.71        3.69        3.66
    52         4.12        4.07        3.99        3.77        3.74        3.71
    53         4.20        4.14        4.05        3.83        3.80        3.76
    54         4.28        4.21        4.11        3.89        3.86        3.82
    55         4.36        4.29        4.18        3.96        3.93        3.88
    56         4.45        4.37        4.24        4.03        3.99        3.94
    57         4.55        4.45        4.31        4.11        4.07        4.00
    58         4.65        4.53        4.38        4.19        4.14        4.07
    59         4.75        4.62        4.45        4.28        4.22        4.13
    60         4.86        4.72        4.52        4.37        4.30        4.20
    61         4.98        4.81        4.59        4.45        4.39        4.27
    62         5.10        4.91        4.65        4.56        4.48        4.35
    63         5.23        5.01        4.72        4.67        4.57        4.42
    64         5.37        5.11        4.79        4.79        4.67        4.50
    65         5.51        5.22        4.86        4.91        4.77        4.58
    66         5.66        5.33        4.92        5.03        4.88        4.65
    67         5.81        5.43        4.99        5.17        4.99        4.73
    68         5.97        5.54        5.05        5.31        5.10        4.80
    69         6.13        5.65        5.10        5.46        5.21        4.86
    70         5.30        5.75        5.16        5.62        5.33        4.95
    71         6.48        5.85        5.21        5.79        5.45        5.02
    72         6.66        5.95        5.25        5.97        5.57        5.08
    73         6.84        6.05        5.29        6.15        5.69        5.14
    74         7.02        6.14        5.33        6.34        5.81        5.20
    75         7.20        6.23        5.36        6.54        5.92        5.25
    76         7.39        6.31        5.39        6.74        6.03        5.29
    77         7.57        6.39        5.41        6.95        6.13        5.33
    78         7.75        6.46        5.43        7.15        6.23        5.36
    79         7.93        6.52        5.45        7.36        6.32        5.39
    80         8.09        6.58        5.47        7.57        6.41        5.42
    81         8.26        6.63        5.48        7.78        6.48        5.44
    82         8.41        6.67        5.49        7.97        6.55        5.46
    83         8.56        6.71        5.49        8.16        6.60        5.47
    84         8.69        6.74        5.50        8.34        6.65        5.48
 85 & over     8.81        6.77        5.50        8.50        6.70        5.49
--------------------------------------------------------------------------------
 Values for ages not shown will be furnished upon request.

                                      14
<PAGE>

                                      15

Plan 2. Income for a Fixed Period. We will make periodic payments for a fixed
period, not longer than 30 years. Payments can be annual, semi-annual, quarterly
or monthly. Payments will be made according to the table below. Guaranteed
amounts payable under this plan are determined assuming an interest rate of 3%
compounded yearly. We may increase the interest rate and the amount of any
payment. If the Annuitant/Payee dies, the amount of the remaining guaranteed
payments will be discounted to the date of the Annuitant/Payee's death at the
same rate used in calculating Income Payments. The discounted amount will be
paid in a lump sum to the Annuitant/Payee's estate unless otherwise provided.

<TABLE>
<CAPTION>
                                                           Plan 2 Table

  Monthly payment rates for each $1,000 of proceeds under Plan 2.
------------------------------------------------------------------------------------------------------------------------------------
Years        1        2        3        4        5        6        7        8        9      10      11     12     13     14     15
Payable
------------------------------------------------------------------------------------------------------------------------------------
<S>       <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>    <C>    <C>    <C>    <C>    <C>
Monthly   $84.47   $42.86   $28.99   $22.06   $17.91   $15.14   $13.16   $11.68   $10.53   $9.61  $8.86  $8.24  $7.71  $7.26  $6.87
Payment
------------------------------------------------------------------------------------------------------------------------------------
Years        16       17       18       19       20       21       22       23       24      25     26     27     28     29     30
Payable
------------------------------------------------------------------------------------------------------------------------------------
Monthly    $6.53    $6.23    $5.96    $5.73    $5.51    $5.32    $5.15    $4.99    $4.84   $4.71  $4.59  $4.47  $4.37  $4.27  $4.16
Payment
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
  Annual, semi-annual or quarterly payments are determined by multiplying the
monthly payment by 11.836, 5.963 or 2.992, respectively.

Plan 3. Income of a Definite Amount. We will make periodic payments of a
definite amount. Payments can be annual, semi-annual, quarterly or monthly. The
amount paid each year must be at least $120 for each $1,000 of proceeds.
Payments will continue until the proceeds are exhausted. The last payment will
equal the amount of any unpaid proceeds. Unpaid proceeds will earn interest at
3% compounded yearly. We may increase the interest rate. If we do, the payment
period will be extended. If the Annuitant/Payee dies, the amount of the
remaining proceeds with earned interest will be paid in a lump sum to the
Annuitant/Payee's estate unless otherwise provided.

Plan 4. Interest Income. We will make periodic payments of interest earned from
the proceeds left with us. Payments can be annual, semi-annual, quarterly or
monthly, and will begin at the end of the first period chosen. Proceeds left
under this plan will earn interest at 3% compounded yearly. We may increase the
interest rate and the amount of any payment. If the Annuitant/Payee dies, the
amount of remaining proceeds and any earned but unpaid interest will be paid in
a lump sum to the Annuitant/Payee's estate unless otherwise provided.

Plan 5. Joint Life and Survivor Income. We will make monthly payments for a
guaranteed minimum of 10 years. Each Annuitant/Payee's Settlement Age must be at
least 35 years old when payments begin. The amounts payable under this plan are
determined assuming an interest rate of 3% compounded yearly. We may increase
the interest rate and the amount of any payment. Payments will continue as long
as either Annuitant/Payee is living. If both Annuitants/Payees die before the
end of the minimum period, the amount of the remaining payments for the 10 year
period will be discounted at the same rate used in calculating the monthly
income. The discounted amount will be paid in a lump sum to the survivor's
estate unless otherwise provided.

<PAGE>

                                 Plan 5 Table
   Monthly payment rates for each $1000 of proceeds under Plan 5.

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------------------------------------
Male Settlement                                                  Female Settlement Age
    Age
                 -------------------------------------------------------------------------------------------------------------------
                          35         40         45        50       55       60       65       70       75        80     85 & over
<S>                       <C>        <C>        <C>       <C>      <C>      <C>      <C>      <C>      <C>       <C>    <C>
------------------------------------------------------------------------------------------------------------------------------------
     35                 $2.95       $3.02      $3.07     $3.12    $3.16    $3.19    $3.21    $3.23    $3.24     $3.25     $3.26
     40                  2.99        3.07       3.15      3.22     3.28     3.33     3.37     3.40     3.42      3.43      3.44
     45                  3.02        3.11       3.21      3.31     3.41     3.49     3.55     3.60     3.64      3.66      3.68
     50                  3.04        3.15       3.27      3.40     3.53     3.65     3.76     3.84     3.90      3.94      3.97
     55                  3.05        3.18       3.32      3.48     3.65     3.82     3.98     4.12     4.22      4.29      4.33
     60                  3.07        3.20       3.35      3.54     3.75     3.97     4.21     4.42     4.60      4.73      4.80
     65                  3.07        3.21       3.38      3.58     3.82     4.11     4.42     4.74     5.03      5.25      5.39
     70                  3.08        3.22       3.39      3.61     3.88     4.21     4.60     5.04     5.47      5.84      6.09
     75                  3.08        3.22       3.40      3.63     3.92     4.28     4.74     5.28     5.87      6.42      6.82
     80                  3.09        3.23       3.41      3.64     3.94     4.33     4.82     5.45     6.18      6.91      7.50
  85 & over              3.09        3.23       3.41      3.65     3.95     4.35     4.87     5.55     6.37      7.26      8.00
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                            Maximum Age Adjustment

The actual age adjustment may be less than the numbers shown.

         -------------------------------------------------------------
                  Year Payments Begin               Maximum Age
                After             Prior to           Adjustment
         -------------------------------------------------------------
                ....                2001                 0

                2000                2026                 5

                2025                2051                 10

                2050                ....                 15
         -------------------------------------------------------------

                                      16

<PAGE>

                            SINGLE PURCHASE PAYMENT
                              MODIFIED GUARANTEED
                               ANNUITY CONTRACT

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

   .  Income Payments begin on Annuity Date
   .  No Dividends
   .  Benefits may reflect a Market Value Adjustment

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

                              GE LIFE AND ANNUITY
                               ASSURANCE COMPANY

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