Document:

<PAGE>
                     FIRST SUNAMERICA LIFE INSURANCE COMPANY
                       A STOCK COMPANY NEW YORK, NEW YORK

CONTRACT NUMBER   [P9999999999]
OWNER   [JOHN DOE]

          EXECUTIVE OFFICE                  ANNUITY SERVICE CENTER
    733 THIRD AVENUE, 4th FLOOR                  PO BOX 54299
      NEW YORK, NEW YORK 10017           LOS ANGELES, CA 90054-0299

FIRST SUNAMERICA LIFE INSURANCE COMPANY ("We", "Us", the "Company", or "First
SunAmerica") agrees to provide benefits to the Owner in accordance with the
provisions set forth in this Contract and in consideration of the Application
and Purchase Payments We receive.

THE VALUE OF AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DURING THE ACCUMULATION
AND ANNUITY PERIODS IS NOT GUARANTEED, AND WILL INCREASE OR DECREASE BASED UPON
THE INVESTMENT EXPERIENCE OF THE VARIABLE PORTFOLIOS YOU CHOOSE.

THE SEPARATE ACCOUNT CHARGE IS CHARGED AGAINST THE ASSETS OF THE SEPARATE
ACCOUNT. THIS CHARGE INCLUDES FEES FOR MORTALITY AND EXPENSE RISK AND THE
DISTRIBUTION EXPENSE. ON AN ANNUALIZED BASIS THE CHARGE EQUALS [1.52%]. THESE
CHARGES ARE ASSESSED, ON A SIMPLE INTEREST BASIS, AS A PERCENTAGE OF THE AVERAGE
DAILY ENDING VALUE OF THE ASSETS ATTRIBUTABLE TO THE ACCUMULATION UNITS OF THE
VARIABLE PORTFOLIOS TO WHICH YOUR CONTRACT VALUE IS ALLOCATED. THE DAILY CHARGE
IS 1/365TH OF THE ANNUALIZED CHARGE. THUS, THE SMALLEST ANNUAL EFFECTIVE RATE OF
THE INVESTMENT RETURN THAT WOULD HAVE TO BE EARNED ON ASSETS OF THE SEPARATE
ACCOUNT SO THAT THE DOLLAR AMOUNT OF VARIABLE ANNUITY PAYMENTS WILL NOT DECREASE
IS [5.09%], COMPOUNDED DAILY. THE CONTRACT'S RATE OF RETURN IS BASED ON COMPOUND
INTEREST.

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RIGHT TO EXAMINE -- IF, WITHIN 10 DAYS OF RECEIPT OF THIS CONTRACT (60 DAYS IF
THE CONTRACT REPLACED ANY OTHER LIFE INSURANCE OR ANNUITY CONTRACT(s)) YOU ARE
NOT SATISFIED WITH IT, YOU MAY RETURN THIS CONTRACT TO OUR ANNUITY SERVICE
CENTER OR TO THE AGENT THROUGH WHOM THE CONTRACT WAS PURCHASED. THE COMPANY WILL
REFUND THE PURCHASE PAYMENT OR THE CONTRACT VALUE REDUCED BY THE LESSER OF: (a)
THE VALUE OF ALL PAYMENT ENHANCEMENT(s) AS OF THE DATE ON WHICH WE RECEIVE YOUR
REQUEST TO CANCEL YOUR CONTRACT; OR (b) THE AMOUNT OF ALL PAYMENT ENHANCEMENT(s)
WE ALLOCATED TO YOUR CONTRACT VALUE, WHICHEVER IS GREATER, COMPUTED AS OF THE
BUSINESS DAY DURING WHICH WE RECEIVE THE CONTRACT. UPON SUCH REFUND, THE
CONTRACT SHALL BE VOID.
G-097R (3/07)
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For Individual Retirement Annuities, or if a refund of the Purchase Payment(s)
is otherwise required We reserve the right to allocate your Purchase Payment(s)
to the Cash Management Portfolio until the end of the Right To Examine period.
Thereafter, allocations will be made as selected by You on Your Application.

With 30 days advance notice, we may cease offering Fixed Account Guarantee
Period Options and/or Dollar Cost Averaging Options if market conditions are
such that we are not able to credit the Minimum Guarantee Rate shown on the
Contract Data Page.

                  THIS IS A LEGAL DOCUMENT. READ IT CAREFULLY.

                               /s/ Jay S. Wintrob
                          ---------------------------
                                 Jay S. Wintrob
                                   President

                              INDIVIDUAL FIXED AND
                            VARIABLE ANNUITY CONTRACT

                                       1
FS-982 (6/07)
<PAGE>

                                Nonparticipating

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                   <C>
CONTRACT DATA PAGE....................................................PAGE 3

DEFINITIONS...........................................................PAGE 4

PURCHASE PAYMENT PROVISIONS...........................................PAGE 7

PAYMENT ENHANCEMENT PROVISIONS........................................PAGE 8

ACCUMULATION PROVISIONS...............................................PAGE 8

CHARGES AND DEDUCTIONS...............................................PAGE 10

TRANSFER PROVISIONS..................................................PAGE 10

WITHDRAWAL PROVISIONS................................................PAGE 11

DEATH PROVISIONS.....................................................PAGE 12

ANNUITY PROVISIONS...................................................PAGE 15

GENERAL PROVISIONS...................................................PAGE 16

ANNUITY PAYMENT OPTIONS .............................................PAGE 19

FIXED ANNUITY PAYMENT OPTIONS TABLE..................................PAGE 20

VARIABLE ANNUITY PAYMENT OPTIONS TABLE...............................PAGE 23
</TABLE>

                                       2
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<PAGE>

                               CONTRACT DATA PAGE
<Table>
<S>                                                 <C>
CONTRACT NUMBER:                                    ANNUITY SERVICE CENTER:
   [P9999999999]                                    P. O. BOX 54299
                                                    LOS ANGELES, CA 90054-0299

OWNER:                                              AGE AT ISSUE:   [35]
   [JOHN DOE]
                                                    INITIAL PURCHASE PAYMENT:   [$25,000.00]
ANNUITANT:
   [JOHN DOE]                                       CONTRACT DATE:   [June 7, 2007]

SPECIFIED ANNUITY DATE:                             CURRENT INTEREST RATE FOR FIXED ACCOUNT
   [April 15, 2034]                                 OPTIONS:
                                                       1 Year Guarantee Period: [1.50%]
LATEST ANNUITY DATE:                                   6-Month DCA Account: [1.50%]
   [June 7, 2067]                                      12-Month DCA Account: [1.50%]

BENEFICIARY:                                        MINIMUM GUARANTEE RATE FOR FIXED ACCOUNT
   As named by You                                  OPTIONS:    [1.0% - 3.0%]

SEPARATE ACCOUNT:                                   With 30 days advance notice, we may cease offering
[FS VARIABLE SEPARATE ACCOUNT]                      the Fixed Account Options, Fixed  Account Guarantee
                                                    Period Options and/or Dollar Cost Averaging Account
SEPARATE ACCOUNT CHARGE:  1.65%                     Options if market conditions are such that we are not
                                                    able to credit the Minimum Guarantee Rate shown on
Of the above percentage, the charge for
this page. Guaranteed death benefit risk
is 0.10%

TRANSFER FEE:
   Current: [$25.00]. Maximum: $25.00
   Waived for systematic transfers                  ANNUAL CONTRACT MAINTENANCE FEE:
   (i.e. DCA)and for the first 15 transfers in         Current:  [$35.00]  Maximum: $50.00
   any Contract Year.
</Table>

WITHDRAWAL CHARGE SCHEDULE:

<Table>
<Caption>
----------------------------------------------------------------------
   Number of Contribution Years Elapsed        Withdrawal Charge as a
   From the Date any Purchase Payment is       Percentage of Withdrawn
   allocated to the Contract and to the           Purchase Payment
             Date of Withdrawal
----------------------------------------------------------------------
<S>                                            <C>
                     0                                   9%
----------------------------------------------------------------------
                     1                                   8%
----------------------------------------------------------------------
                     2                                   8%
----------------------------------------------------------------------
                     3                                   7%
----------------------------------------------------------------------
                     4                                   7%
----------------------------------------------------------------------
                     5                                   6%
----------------------------------------------------------------------
                     6                                   5%
----------------------------------------------------------------------
                     7                                   4%
----------------------------------------------------------------------
                     8                                   3%
----------------------------------------------------------------------
                    9+                                   0%
----------------------------------------------------------------------
</Table>

<TABLE>
<S>                                                 <C>
OPTIONAL ELECTIONS:                                 OPTIONAL ELECTION DETAILS:
   Maximum Anniversary Value                           See attached Endorsement FSE-6191-2
</TABLE>

                                       3
FS-982 (6/07)
<PAGE>

                                  FOR INQUIRIES
                               CALL 1-800-996-9786
                                   DEFINITIONS

Defined in this section are some of the words and phrases used in this Contract.
These terms are capitalized when used in the Contract with the meaning set forth
below.

ACCUMULATION UNIT

A unit of measurement used to compute the Contract Value in a Variable Portfolio
before to the Annuity Date.

AGE

Age as of last birthday.

ANNUITANT

The natural person(s) whose life (lives) is (are) used to determine the annuity
benefits under the Contract. If the Contract is in force and the Annuitant(s) is
(are) alive on the Annuity Date, We will begin payments to the Payee. This
Contract cannot have Joint Annuitants if it is issued in connection with a
tax-qualified retirement plan.

ANNUITY DATE

The date on which annuity payments ("income payments") to the Payee begin. This
date cannot be later than the Latest Annuity Date.

ANNUITY SERVICE CENTER

The address as specified on the Contract Data Page.

ANNUITY UNIT

A unit of measurement determined on or after the Annuity Date used to compute
annuity payments from the Variable Portfolio(s).

BENEFICIARY

The Beneficiary You name at issue to receive the death benefit under this
Contract upon your death. You may later change Your Beneficiary in a written
request to Us at Our Annuity Service Center.

CONTINUATION DATE

The date on which We receive, at Our Annuity Service Center: (a) the Spousal
Beneficiary's written request to continue the Contract, and (b) Due Proof of
Death of the Owner. If We receive (a) and (b) on different dates, the
Continuation Date will be the later date.

CONTRACT DATE

The date Your Contract is issued, as shown on the Contract Data Page. It is the
date from which Contract Years and anniversaries are measured.

CONTRACT VALUE

The sum of: (1) Your share of the Variable Portfolios' Accumulation Unit Values,
and (2) the value of amounts if any, allocated to any available Fixed Account
Options.

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<PAGE>

CONTRACT YEAR

One year starting from the Contract Date in one calendar year and ending on the
day preceding the anniversary of such date in the succeeding calendar year.

CONTRIBUTION YEAR

The one year period starting from the date a Purchase Payment is made in one
calendar year and ending on the day preceding the anniversary of such date in
the following calendar years.

DEATH BENEFIT ADJUSTMENT

Any increase or reduction to the amount of the death benefit payable to account
for Purchase Payment and/or Withdrawal activity after a specified point in time
which will equal (a), (b), or (c), whichever is applicable, as follows:

              (a) Where only Purchase Payments are received after the specified
                  point in time, the dollar value of the Purchase Payments will
                  be added to the death benefit payable; or

              (b) Where only Withdrawals are made after the specified point in
                  time, the Withdrawal will reduce the death benefit payable in
                  the same proportion that the Contract Value was reduced at the
                  time of the Withdrawal; or

              (c) Where Purchase Payments have been received and Withdrawals
                  made after the specified point in time, the death benefit
                  amount payable will be adjusted by Purchase Payment(s)
                  received after a specified point in time, reduced by any
                  Withdrawal, made after that specified point in time in the
                  same proportion that the Contract Value was reduced at the
                  time of the Withdrawal.

DOLLAR COST AVERAGING (DCA)

An optional program under which You authorize the systematic transfer of
specified amounts or percentages from any source account to any target account.

FIXED ACCOUNT OPTIONS

The investment options, if available under this Contract, which become part of
the Company's general asset account and are credited with a fixed rate of
interest declared by the Company. The general asset account contains all the
assets of the Company except for the Separate Account and other segregated asset
accounts. The amount You have in any Fixed Account Option at a given time is a
result of Purchase Payment(s) You have allocated to it or any part of Your
Contract Value You have transferred to it.

FIXED ANNUITIZATION

A series of periodic income payments of predetermined amounts that do not vary
with investment experience. Such payments are made from the Company's general
asset account. This Contract provides several fixed annuity payment options.

GUARANTEE PERIOD

The period for which interest is credited to amounts allocated to any available
Fixed Account Options. We determine in Our sole discretion the periods, if any,
that will be offered.

IRC

The Internal Revenue Code of 1986, as it may be amended or superseded.

JOINT OWNER

Any person named as Joint Owner on the Application and listed on the Contract
Data Page, unless subsequently changed. The Joint Owner, if any, possesses an
undivided interest in this Contract in

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FS-982 (6/07)
<PAGE>

conjunction with the Owner. All references within this Contract to Owner will
also apply to the Joint Owner.

LATEST ANNUITY DATE

The later of the Owner's 90th birthday or ten years after the Contract Date. If
the Owner is a non-natural person, the Latest Annuity Date is the later of the
Annuitant's 90th birthday or ten years after the Contract Date.

NET PURCHASE PAYMENT

The sum of all Purchase Payment(s), reduced for each Withdrawal in the same
proportion that the Contract Value is reduced by such Withdrawal.

NYSE

New York Stock Exchange.

OWNER

The person or entity named in the Contract who is entitled to exercise all
rights and privileges of ownership under the Contract. Owner means both Joint
Owners, if applicable.

PAYEE

The person receiving payment of annuity benefits under this Contract.

PAYMENT ENHANCEMENT

Amounts allocated to Your Contract Value by Us prior to Your 86th birthday.
Payment Enhancements are not considered Purchase Payments.

PAYMENT ENHANCEMENT RATE

The percentage applied to each Purchase Payment to calculate the Payment
Enhancement.

PURCHASE PAYMENTS

Payments in U.S. currency made by or on behalf of the Owner to the Company to
fund the Contract.

REQUIRED DOCUMENTATION

Is: (a) Due Proof of Death that the Owner or the Spousal Beneficiary died before
the Annuity Date; and, (b) an election form specifying the payment options and
(c) any other documentation We may require.

SEPARATE ACCOUNT

A segregated asset account named on the Contract Data Page. The Separate Account
consists of several Variable Portfolios, each investing in shares of the
Underlying Fund(s) of the trust(s). The assets of the Separate Account are not
commingled with the general assets and liabilities of the Company. The value of
amounts allocated to the Variable Portfolios of the Separate Account is not
guaranteed.

SPECIFIED ANNUITY DATE

The anticipated Annuity Date specified by You on the Application and as shown on
the Contract Data Page. You may change this date in writing before the Annuity
Date, but in no event can the date be later than the Latest Annuity Date. If
this date is not specified, it will be the Latest Annuity Date.

SPOUSAL BENEFICIARY

The original deceased Owner's surviving spouse who is designated as the primary
Beneficiary at the time of the Owner's death and may continue the Contract as
the Owner on the Continuation Date.

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<PAGE>

SUBSEQUENT PURCHASE PAYMENTS

Purchase Payments made after the initial Purchase Payment.

TOTAL INVESTED AMOUNT

The sum of all Purchase Payments less amounts previously withdrawn that incurred
a Withdrawal Charge, less Purchase Payments withdrawn that are no longer subject
to a Withdrawal Charge.

UNDERLYING FUND

The variable investment options in which the corresponding Variable Portfolio(s)
invest.

VARIABLE ANNUITIZATION

A series of periodic income payments which vary in amount according to the
investment experience of one or more Variable Portfolios, as selected by You.
This Contract provides several variable annuity payment options.

VARIABLE PORTFOLIO

One or more divisions of the Separate Account which provides for the variable
investment options available under this Contract. Each Variable Portfolio has
its own investment objective and is invested in the Underlying Fund(s) of the
trusts. A Variable Portfolio is not chargeable with liabilities arising out of
any other Variable Portfolio. The available Variable Portfolios are shown on the
Application. Additional Variable Portfolios may become available in the future.
The Variable Portfolios may also be referred to as a Variable Subaccount and/or
Subaccount.

WE, OUR, US, THE COMPANY

First SunAmerica Life Insurance Company.

WITHDRAWAL(S)

Amount(s) withdrawn from the Contract Value including any charges and fees
applicable to each such withdrawal.

YOU, YOUR

The Owner.

                           PURCHASE PAYMENT PROVISIONS

PURCHASE PAYMENTS

Purchase Payments are flexible. This means that, subject to Company disclosed
restrictions, You may change the amounts, frequency and/or timing of Purchase
Payments. Purchase Payments can be made at any time after the Contract Date, but
before the older Owner's 86th birthday. With instructions from You, Purchase
Payments will be allocated to the Variable Portfolio(s) and/or Fixed Account
Option(s), if available. The minimum Purchase Payment that may be allocated to a
Variable Portfolio or available Fixed Account Option under the Contract is $100.
Subject to prior Company approval, the maximum of all Purchase Payments made to
the Contract may not exceed $1,000,000.

DOLLAR COST AVERAGING PROGRAM

To facilitate a dollar cost averaging program, a source account and target
account(s) must be identified. Subject to Company disclosed restrictions, a
source account can be any available 1-year fixed account, available fixed
accounts designed to facilitate Dollar Cost Averaging (DCA Fixed Accounts) or a

                                       7
FS-982 (6/07)
<PAGE>

Variable Portfolio. The target account must be a Variable Portfolio. Any portion
of a Purchase Payment allocated to any available DCA Fixed Account Options must
be transferred out to the Variable Portfolio(s) within the specified DCA Fixed
Account period. Upon termination of a DCA program using the DCA Fixed Account as
a source account, any amounts remaining in the DCA Fixed Account will be
transferred to the target allocation(s) for the program being terminated. If
money remains in a DCA Fixed Account at the time of annuitization, that amount
will be applied towards a Fixed Annuitization. The unit values credited and
applied to your Contract are determined on the date of transfer. The minimum
amount that may be allocated to the 6-month DCA Fixed Account Option is $600.
The minimum amount that may be allocated to the 12-month DCA Fixed Account
Option is $1,200. If market conditions exist such that we are not able to credit
at least the Minimum Guarantee Rate for Fixed Account Options shown on the
Contract Data Page, we reserve the right to cease offering DCA Fixed Account
Options. We will notify you 30 days before the end of a Fixed Account Option if
we exercise this right. The DCA Fixed Accounts are not available if the Optional
Payment Enhancement Endorsement has been elected.

CHANGES TO VARIABLE PORTFOLIO OFFERINGS

If the shares of an Underlying Fund should no longer be available for investment
by the Separate Account, then We may substitute shares of another Underlying
Fund, for shares already purchased, or to be purchased in the future. At any
given time, some Variable Portfolios may not be available for receipt of
Purchase Payment(s) or transfers. Substitutions of securities will be carried
out in accordance with any applicable state and/or federal laws or regulations.

                         PAYMENT ENHANCEMENT PROVISIONS

We will allocate Payment Enhancements to available Variable Portfolio(s) and/or
Fixed Account Option(s) in the same proportion as each corresponding Purchase
Payment.

Payment Enhancements for Subsequent Purchase Payment(s) will be determined by
the Payment Enhancement Rate in effect at the time Your Subsequent Purchase
Payment is received by Us. We will send You a confirmation of the Payment
Enhancement allocated to Your Contract Value.

                             ACCUMULATION PROVISIONS

Prior to the Annuity Date, the Contract Value is the sum of the Separate Account
Accumulation Value and the Fixed Account Accumulation Value, if any. If Your
Contract Value falls below $2,500, subject to applicable state and federal laws,
rules and regulations, we may terminate Your Contract and send you the remaining
dollar amount.

SEPARATE ACCOUNT ACCUMULATION VALUE

The Separate Account Accumulation Value under the Contract is the sum of the
Accumulation Unit Values held in the Variable Portfolios for You.

NUMBER OF ACCUMULATION UNITS

Your Contract is credited with Accumulation Units of the Separate Account when
amounts are allocated to the Variable Portfolio(s). For that portion of each
Purchase Payment and/or transfer amount allocated to a Variable Portfolio, the
number of Accumulation Units credited is equal:

                                       8
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<PAGE>

The sum of each Purchase Payment and/or transfer amount allocated to the
Variable Portfolio reduced by premium taxes, if any:

Divided by

The Accumulation Unit Value for that Variable Portfolio for the NYSE business
day in which the Purchase Payment or transfer amount is received.

The number of Accumulation Units will be reduced for Withdrawals of Contract
Value, annuitizations, amounts transferred out of a Variable Portfolio, the
Contract Maintenance Fee and applicable charges for optional features as set
forth in endorsements to this Contract. Any reduction to the Contract Value will
be made as of the NYSE business day in which We receive all requirements for the
transaction, as appropriate.

ACCUMULATION UNIT VALUE (AUV)

The AUV of a Variable Portfolio for any NYSE business day is calculated by
subtracting (2) from (1) and dividing the result by (3) where:

(1)  is the total value at the end of the given NYSE business day of the assets
     attributable to the Variable Portfolio minus any applicable liabilities
     other than those owed to the Contractholders;

(2)  is the amount equal to the daily Separate Account Charge plus the daily
     charge for any optional features that impose a daily charge;

(3)  is the number of Accumulation Units outstanding at the end of the given
     NYSE business day.

FIXED ACCOUNT ACCUMULATION VALUE

The Fixed Account Accumulation Value, if any, shall be the sum of all monies
allocated or transferred to the Fixed Account Option(s), if available, reduced
by any applicable premium taxes, plus all interest credited on the Fixed Account
Option(s) during the period that You have Contract Value allocated to the Fixed
Account Options. This amount shall be adjusted for Withdrawals, annuitizations,
transfers, and the deduction of the Contract Maintenance Fee and applicable
charges for elected features as set forth in endorsements to this Contract. The
Fixed Account Accumulation Value will not be less than the minimum values
required by law in the State of New York.

FIXED ACCOUNT GUARANTEE PERIOD OPTIONS AND INTEREST CREDITING

The portion of Your Contract Value within the Fixed Account, if any, is credited
with interest at rates guaranteed by Us for the Guarantee Period(s) selected.
Interest is credited on a daily basis at the then applicable effective interest
rate for the applicable Guarantee Period. You may select from one or more
Guarantee Periods which We may offer at any particular time. We reserve the
right at any time to add Guarantee Periods. We also reserve the right to cease
offering Guarantee Periods if market conditions are such that we are not able to
credit the Minimum Guarantee Rate for Fixed Account Options shown on the
Contract Data Page. We will notify you 30 days before the end of a Guarantee
Period if we exercise this right. If You have allocated any part of Your initial
Purchase Payment to a Guarantee Period, the amount allocated, as well as the
duration of the Guarantee Period is shown on the Application as completed by
You. The interest rate applicable to an allocation of Purchase Payment or
transfer of Contract Value to a Guarantee Period is the rate in effect for that
Guarantee Period at the time of the allocation or transfer. If You have
allocated or transferred amounts at different times to the Fixed Account, each
allocation or transfer may have a unique effective interest rate associated with
that amount. We guarantee the effective annual rate of interest for the Fixed
Account, including any of the Guarantee Periods will not be less the Minimum
Guarantee Rate as mandated by Your state, and shown on the Contract Data Page.
The minimum guarantee rate under Your Contract as referenced on the Contract
Data Page is at least equal to the lesser of: (a) 3% per annum; or (b) the
three-month average value of the five-year Constant

                                       9
FS-982 (6/07)
<PAGE>

Maturity Treasury Rate reported by the Federal Reserve, rounded up to the
nearest 1/4th of 1%, for the second, third and fourth month preceding the first
day of the calendar quarter during which the Contract is issued, reduced by
1.25% and where the resulting interest rate is not less than 1%.

                             CHARGES AND DEDUCTIONS

We will deduct the following charges from the Contract:

CONTRACT MAINTENANCE FEE

The charge as shown on the Contract Data Page will be deducted on each Contract
anniversary before to the Annuity Date. It will also be deducted when the
Contract Value is withdrawn in full if the Withdrawal is not on the Contract
anniversary. We also reserve the right to waive the fee for Contracts with a
value of $50,000.00 or greater on the Contract anniversary.

WITHDRAWAL CHARGE

The charge, as shown on the Contract Data Page, if any, may be deducted upon
Withdrawal of any portion of the Contract Value. See the Contract Data Page.

SEPARATE ACCOUNT CHARGE

This charge, as shown on the Contract Data Page, on an annualized basis equals a
percentage of the average daily ending value of the assets attributable to the
Accumulation Units of the Variable Portfolio(s) to which the Contract is
allocated. This charge compensates Us for mortality and expense risks, and
distribution expenses associated with the Contract. We subtract this charge
daily.

                               TRANSFER PROVISIONS

Subject to applicable restrictions, You may transfer all of part of Your
Contract Value amont the Variable Portfolios and/or available Fixed Account
Options (unless otherwise noted). The minimum amount that can be transferred is
$100 and the amount that can remain in a Variable Portfolio or available Fixed
Account Option is $500. We reserve the right to charge a fee, as shown on the
Contract Data Page, for transfers if the number of transfers exceeds a limit of
fifteen (15) in any Contract Year. Automatic asset rebalancing and/or transfers
arising out of the DCA program are not counted against the 15 allowable free
transfers. We further reserve the right to restrict Your transfer privileges,
including but not limited to possible termination of those privileges in our
sole discretion.

Furthermore, the Underlying Funds, may have their own transfer policies that are
applicable to this Contract as a result of investment in the Variable
Portfolios. These policies, likewise may include termination of Your transfer
privileges and/or penalty fees resulting from transfer activity that is defined
as excessive according to the Underlying Funds' policies.

TRANSFERS OF ACCUMULATION UNITS BETWEEN VARIABLE PORTFOLIOS AND FIXED ACCOUNTS

Before the Annuity Date, transfers are subject to certain restrictions. You may
transfer all or a portion of Your Contract Value from one Variable Portfolio to
another Variable Portfolio(s) or any available Fixed Account Option(s), other
than the DCA Account Options. You may also transfer from any available Fixed
Account Option(s) to the Variable Portfolio(s) and/or any available Fixed
Account Option(s) of the Contract. A transfer will result in the redemption of
Accumulation Units in a Variable Portfolio and the purchase of Accumulation
Units in the other Variable Portfolio. Transfers will be effected at the end of
the NYSE business day in which We receive Your completed request for the
transfer.

                                       10
FS-982 (6/07)
<PAGE>

TRANSFERS OF ANNUITY UNITS BETWEEN VARIABLE PORTFOLIOS

On and after the Annuity Date, transfers into and out of any available Fixed
Account Option(s) are not allowed. You may transfer all or a portion of Your
Contract Value from one Variable Portfolio to another Variable Portfolio(s). A
transfer will result in the redemption of Annuity Units in a Variable Portfolio
and the purchase of Annuity Units in the other Variable Portfolio. Transfers
will be effected for the last NYSE business day of the month in which We receive
Your request for the transfer.

                              WITHDRAWAL PROVISIONS

On or before the Annuity Date and while You are living, You may withdraw all or
part of Your Contract Value under this Contract by informing Us at Our Annuity
Service Center, subject to the requirement that the amount remaining after
withdrawal must be at least $2,500. For a full withdrawal, this Contract must be
returned to Our Annuity Service Center. The minimum amount that can be withdrawn
is $1,000, subject to the minimums set forth by the laws of the State of New
York.

Unless You tell Us otherwise in writing, Withdrawals will be deducted from the
Contract Value in proportion to their allocation among any available Fixed
Account Options and the Variable Portfolios. Withdrawals will be based on values
for the NYSE business day in which the request for withdrawal and the Contract
(in the case of a full withdrawal), are received at Our Annuity Service Center.
Unless the SUSPENSION OF PAYMENTS or DEFERMENT OF PAYMENTS sections are in
effect, payment of withdrawals will be made within seven calendar days.

WITHDRAWAL CHARGE

Withdrawals of all or a portion of the Contract Value may be subject to a
Withdrawal Charge as shown on the Contract Data Page. The Withdrawal Charge
percentage applied to any withdrawal will depend on how long the Purchase
Payment to which the withdrawal is attributed has been in the Contract. No
Withdrawal Charge is deducted on an amount which is considered a Penalty-Free
Withdrawal or a Purchase Payment no longer subject to a Withdrawal Charge.

For the purpose of determining the Withdrawal Charge, a Withdrawal will be
attributed to amounts in the following order: (1) penalty-free earnings in the
Contract; (2) Purchase Payments no longer subject to the Withdrawal Charge and
not yet withdrawn; (3) any remaining Penalty-Free Withdrawal amount (except in
the case of a full Withdrawal); and (4) Purchase Payments subject to a
Withdrawal Charge. Purchase Payments, when withdrawn, are assumed to be
withdrawn on a first-in-first-out (FIFO) basis. You will not receive the benefit
of a Penalty-Free Withdrawal in case of a full surrender.

The Withdrawal Charge will be assessed against the Variable Portfolio(s) and the
available Fixed Account Option(s) in the same proportion as the remaining
Contract Value is allocated unless You request that the Withdrawal come from a
particular Variable Portfolio or available Fixed Account Option. After a
Withdrawal is taken, the remaining Contract Value must be sufficient to cover
any Withdrawal Charge remaining upon full Withdrawal of the Contract.

PENALTY-FREE WITHDRAWALS

On any day before the Annuity Date, You may make a Withdrawal of up to the
Penalty-Free Withdrawal amount for that day without incurring a Withdrawal
Charge. Any portion of the Penalty-Free

                                       11
FS-982 (6/07)
<PAGE>

Withdrawal made in excess of the penalty-free earnings in the Contract is
considered to be a Withdrawal of future penalty-free earnings and is therefore
not a withdrawal of the Total Invested Amount. On any day, penalty-free earnings
in the Contract are calculated as the Contract Value at the end of that day less
the Total Invested Amount.

During the first Contract Year, the maximum Penalty-Free Withdrawal amount is
equal to the penalty-free earnings in the Contract as of the date of Withdrawal.

Alternatively, during the first Contract Year, You may make Withdrawals of the
Penalty-Free Withdrawal amount through the Systematic Withdrawal Program. The
maximum Penalty-Free Withdrawal amount as of any systematic withdrawal date is
10% of the Total Invested Amount less any Withdrawals already made during the
Contract Year.

After the first Contract Year, the maximum Penalty-Free Withdrawal amount as of
the date of the Withdrawal is the greater of:

(a)  penalty-free earnings in the Contract as of that date; or

(b)  10% of the Total Invested Amount, less any withdrawals already made during
     the year.

Although amounts withdrawn free of a Withdrawal Charge reduce Contract Value,
they do not reduce the Total Invested Amount for purposes of calculating the
Withdrawal Charge or for the purposes of calculating penalty-free earnings in
the Contract. As a result, You will not receive the benefit of a Penalty-Free
Withdrawal in a full Withdrawal.

SYSTEMATIC WITHDRAWAL PROGRAM

Prior to the Annuity Date, You may elect to participate in a Systematic
Withdrawal Program by informing Us at Our Annuity Service Center. The Systematic
Withdrawal Program allows You to make automatic withdrawals from Your Contract
monthly, quarterly, semiannually or annually. The minimum systematic withdrawal
amount is $100, provided that the amount remaining after withdrawal is $500. Any
amount withdrawn through the Systematic Withdrawal Program may be subject to a
Withdrawal Charge as discussed in the WITHDRAWAL CHARGE and PENALTY-FREE
WITHDRAWALS provisions. You may terminate Your participation in the Systematic
Withdrawal Program at any time by sending Us a written request. We reserve the
right to modify, suspend or terminate the Systematic Withdrawal Program at any
time.

Systematic withdrawals will be deducted first from the Penalty-Free Withdrawal
amount available each Contract Year.

                                DEATH PROVISIONS

Notwithstanding any provision of this Contract to the contrary, all payments of
benefits under this Contract will be made in a manner that satisfies the
requirements of IRC Section 72(s), as amended from time to time, and complies
with requirements set forth by the laws of the State of New York. If the
Contract is owned by a trust or other non-natural person, We will treat the
death of any Annuitant as the death of the "Primary Annuitant" and as the death
of any Owner.

                                       12
FS-982 (6/07)
<PAGE>

DUE PROOF OF DEATH

Due Proof of Death means:

     1.   a certified copy of a death certificate; or

     2.   a certified copy of a decree of a court of competent jurisdiction as
          to the finding of death; or

     3.   a written statement by a medical doctor who attended the deceased
          Owner at the time of death; or

     4.   any other proof satisfactory to Us.

DEATH OF OWNER BEFORE THE ANNUITY DATE

We will pay a death benefit to the Beneficiary upon Our receiving all Required
Documentation at Our Annuity Service Center. Unless You have previously
designated a payment option on behalf of the Beneficiary, the Beneficiary must
select one of the following options:

     1.   Immediately collect the death benefit in a lump sum payment. If a lump
          sum payment is elected, payment will be in accordance with any
          applicable laws and regulations governing payments on death; or

     2.   Collect the death benefit in the form of one of the Annuity Payment
          Options. If an Annuity Payment Option is desired, an option must be
          elected within 60 days of Our receipt of: (a) Due Proof of Death of
          the Owner; (b) an election form specifying the payment option and (c)
          any other documentation We may require. The payments must be over the
          life of the Beneficiary or over a period not extending beyond the life
          expectancy of the Beneficiary. Payments under this option must begin
          within one year after the Owner's death, otherwise, the death benefit
          will be paid in accordance with option 1 above; or

     3.   If eligible, continue the Contract as the Spousal Beneficiary. On the
          Continuation Date, We will contribute to the Contract any amount by
          which the death benefit exceeds the Contract Value, calculated as of
          the Owner's date of death. This amount is not considered a Purchase
          Payment except in the calculation of certain death benefits upon the
          death of the Spousal Beneficiary. If this option is elected, no death
          benefit is paid.

Upon the Spousal Beneficiary's death, the entire interest of the Contract must
be distributed immediately under option 1 or 2 as provided under DEATH OF OWNER
BEFORE THE ANNUITY DATE.

AMOUNT OF DEATH BENEFIT

If the Owner was age 80 or younger on the Contract Date, upon Our receipt of all
Required Documentation at Our Annuity Service Center, We will calculate the
death benefit and it will be the greater of:

     (1)  The Contract Value as of the later of: (a) the date of death of the
          Owner; and (b) the NYSE business day during which We receive all
          Required Documentation at Our Annuity Service Center; or

     (2)  Net Purchase Payment(s) received prior to the Owner's 86th birthday.

     NOTE: In declining market environments, the death benefit payable may be
     less than the Net Purchase Payments received.

                                       13
FS-982 (6/07)
<PAGE>

SPOUSAL BENEFICIARY CONTINUATION

If the Spousal Beneficiary was age 80 or younger on the Continuation Date, upon
Our receipt of all Required Documentation at Our Annuity Service Center, We will
calculate the death benefit and it will be the greater of:

     (1)  The Contract Value as of the later of: (a) the date of death of the
          Spousal Beneficiary; and (b) the NYSE business day during which We
          receive all Required Documentation at Our Annuity Service Center; or

     (2)  The Contract Value on the Continuation Date, and a Death Benefit
          Adjustment for Purchase Payment(s) received after the Continuation
          Date but prior to the Spousal Beneficiary's 86th birthday and/or
          Withdrawals taken after the Continuation Date.

If the Spousal Beneficiary was age 81 or older on the Continuation Date, the
death benefit will be the Contract Value as of the later of: (a) the date of
death of the Spousal Beneficiary and (b) the NYSE business day during which We
receive all Required Documentation at Our Annuity Service Center.

The death benefit payable will accrue interest at Our current rate from the date
of death to the date the death benefit is distributed.

In any event, the entire interest in the Contract will be distributed within
five years from the date of Owner's death.

DEATH OF OWNER OR ANNUITANT ON OR AFTER THE ANNUITY DATE

If any Owner or Annuitant dies on or after the Annuity Date and before the
entire interest in the Contract has been distributed, We will pay the remaining
portion of the annuity payout to the Beneficiary upon Our receipt of Required
Documentation. For further information pertaining to death of the Annuitant, see
ANNUITY PAYMENT OPTIONS.

BENEFICIARY

The Beneficiary is selected by the Owner. While the Owner is living and before
the Annuity Date, the Owner may change the Beneficiary by written notice in a
form satisfactory to Us. A change in Beneficiary will take effect on the date
the notice is signed by the Owner, subject to any action we have taken before
receipt of such notice. If two or more persons are named as Beneficiaries under
the Contract, those surviving the Owner will share equally unless otherwise
stated; and each must elect to receive their respective portions of the death
benefit according to the options listed under DEATH OF OWNER BEFORE THE ANNUITY
DATE. If the Annuitant survives the Owner, and there are no surviving
Beneficiaries, the Annuitant will be deemed the Beneficiary.

Joint Owners, if applicable, shall be each other's primary Beneficiary. Joint
Annuitants, if any, when the Owner is a non-natural person, shall be each
other's primary Beneficiary. Any other Beneficiary designation will be treated
as a contingent Beneficiary.

If the Owner is also the Annuitant and dies before the Annuity Date, with no
surviving Beneficiaries, upon Our receipt of all Required Documentation We will
pay the death benefit, and We will pay the death benefit to the estate of the
Owner in accordance with option 1, under DEATH OF OWNER BEFORE THE ANNUITY DATE.

                                       14
FS-982 (6/07)
<PAGE>

                               ANNUITY PROVISIONS

ANNUITY DATE

You specify an anticipated Annuity Date on the Application as shown on the
Contract Data Page. You may change the Annuity Date at any time at least seven
days before to the Annuity Date, by written notice to Us at Our Annuity Service
Center. The Annuity Date must always be the first day of the calendar month and
must be at least thirteen (13) months after the Contract Date, but not beyond
the Latest Annuity Date. If no Annuity Date is specified on the Application, the
Annuity Date will be the Latest Annuity Date.

PAYMENTS TO OWNER

Unless You request otherwise, We will make annuity payments to You. If You want
the annuity payments to be made to some other Payee, We will make such payments
subject to receipt of a written request filed at the Annuity Service Center no
later than thirty (30) days before the due date of the first annuity payment.
All payments will comply with the laws of the State of New York.

Any such request is subject to the rights of any assignee. No payments available
to or being paid to the Payee while the Annuitant is alive can be transferred,
commuted, anticipated or encumbered.

BETTERMENT OF RATES

The amount of the Owner's monthly payment will be at least equal to the monthly
payment produced by the application of an amount equal to the Contract Value of
this Contract to purchase any single consideration immediate annuity contract
offered by the Company at the same time to the same class of annuitants. We are
not currently offering any single premium immediate annuity contracts.

AMOUNT OF FIXED ANNUITY PAYMENTS

The amount of each fixed annuity payment will be determined by applying the
portion of the Contract Value allocated by You for Fixed Annuitization, less any
applicable premium taxes, to the annuity table applicable to the fixed annuity
payment option chosen. In no event will the Fixed Annuitization be changed once
it begins.

AMOUNT OF VARIABLE ANNUITY PAYMENTS

     (a)  FIRST VARIABLE ANNUITY PAYMENT: The dollar amount of the first
          Variable Annuitization payment will be determined by applying the
          portion of the Contract Value allocated to the Variable Portfolio(s),
          less any applicable premium taxes, to rates which are at least equal
          to the annuity rates based upon the annuity table applicable to the
          variable annuity payment option chosen. If the Contract Value is
          allocated to more than one Variable Portfolio, the value of Your
          interest in each Variable Portfolio is applied separately to the
          variable annuity payment option table to determine the amount of the
          first annuity payment attributable to each Variable Portfolio.

     (b)  NUMBER OF VARIABLE ANNUITY UNITS: The number of Annuity Units for each
          applicable Variable Portfolio is the amount of the first annuity
          payment attributable to that Variable Portfolio divided by the value
          of the applicable Annuity Unit for that Variable Portfolio as of the
          Annuity Date. The number will not change as a result of investment
          experience.

     (c)  VALUE OF EACH VARIABLE ANNUITY UNIT: The value of an Annuity Unit may
          increase or decrease from one month to the next. For any month, the
          value of an Annuity Unit of a particular Variable Portfolio is the
          value of that Annuity Unit as of the last NYSE business day of the
          preceding month, multiplied by the Net Investment Factor for that
          Variable Portfolio for the last NYSE business day of the current
          month.

                                       15
FS-982 (6/07)
<PAGE>

          The Net Investment Factor for any Variable Portfolio for a certain
          month is determined by dividing (1) by (2) and multiplying by (3)
          where:

               (1)  is the Annuity Unit Value of the Variable Portfolio
                    determined as of the last business day at the end of that
                    month,

               (2)  is the Annuity Unit Value of the Variable Portfolio
                    determined as of the last business day at the end of the
                    preceding month., and

               (3)  is a factor that neutralizes the assumed investment rate of
                    3.5% per annum upon which the annuity payment tables are
                    based. The monthly factor that neutralizes the assumed
                    investment rate of 3.5% per annum is:
                    1/1.035(1/12)=0.99713732.

     (d)  SUBSEQUENT VARIABLE ANNUITY PAYMENTS: After the first Variable
          Annuitization payment future payments will vary in amount according to
          the investment performance of the applicable Variable Portfolio(s) to
          which Your Purchase Payments are allocated. The amount may change from
          month to month. The amount of each subsequent payment for each
          Variable Portfolio is :

The number of Annuity Units for each Variable Portfolio as determined for the
first annuity payment

Multiplied by

The value of an Annuity Unit for that Variable Portfolio at the end of the month
immediately preceding the month in which payment is due.

We guarantee that the amount of each Variable Annuitization payment will not be
affected by variations in expenses or mortality experience.

                               GENERAL PROVISIONS

ENTIRE CONTRACT

The Entire Contract between You and Us consists of this Contract, the
Application completed by You and attached to this Contract, and any attached
endorsement(s) or rider(s). An agent cannot change the terms or conditions of
this Contract. Any change must be in writing and approved by Us. Only Our
President, Secretary, or one of Our Vice-Presidents can give Our approval.

CHANGE OF ANNUITANT

If the Owner is an individual, the Owner may change the Annuitant(s) at any time
prior to the Annuity Date. To make a change, the Owner must send a written
notice to Us at least 30 days before the Annuity Date. The change will become
effective on the date the notice is signed by the Owner, subject to any action
We have taken before receipt of such notice. If the Owner is a non-natural
person, the Owner may not change the Annuitant.

DEATH OF ANNUITANT

If the Owner is a natural person, the Owner and Annuitant are different, and the
Annuitant dies before the Annuity Date, the Owner becomes the Annuitant until
the Owner elects a new Annuitant. If there are Joint Annuitants, upon the death
of any Annuitant before the Annuity Date, the Owner may elect a new Joint
Annuitant. However, if the Owner is a non-natural person, We will treat the
death of any Annuitant as the death of the "Primary Annuitant" and as the death
of the Owner, asexplained in the DEATH PROVISIONS.

                                       16
FS-982 (6/07)
<PAGE>

MISSTATEMENT OF AGE OR SEX

If the Age or sex of any Annuitant has been misstated, future annuity payments
will be adjusted using the correct Age and sex, according to Our rates in effect
on the date that annuity payments were determined. Any overpayment, plus
interest at the rate of 4% per year, will be deducted from the next payment(s)
due. Any underpayment, plus interest at the rate of 4% per year, will be paid in
full with the next payment due.

With respect to Contract issue Age and other age driven features in the
Contract, should We discover a misstatement of Age, We reserve the right to
fully pursue Our remedies including possible termination of the Contract and/or
revocation of any Age driven benefits.

PROOF OF AGE, SEX, OR SURVIVAL

We may require satisfactory proof of correct Age or sex at any time. If any
payment under this Contract depends on the Annuitant being alive, We may require
satisfactory proof of survival.

DEFERMENT OF PAYMENTS

We may defer making payments from the available Fixed Account Options for up to
six (6) months. Interest, subject to state requirements, will be credited during
the deferral period.

SUSPENSION OF PAYMENTS

We may suspend or postpone any payments from the Variable Portfolios if any of
the following occur:

(a)  the NYSE is closed;

(b)  trading on the NYSE is restricted;

(c)  an emergency exists such that it is not reasonably practical to dispose of
     securities in the Variable Portfolios or to determine the value of its
     assets; or

(d)  the Securities and Exchange Commission, by order, so permits for the
     protection of Owners. Conditions in (b) and (c) will be decided by or in
     accordance with rules of the Securities and Exchange Commission.

CONFORMITY WITH STATE LAWS

The provisions of this Contract will be interpreted by the laws of the State of
New York, the state in which this Contract is delivered. Any provision which, on
the Contract Date, is in conflict with the law of such state is amended to
conform to the minimum requirements of such law.

CHANGES IN LAW

If the laws governing this Contract or the taxation of benefits under the
Contract change, We will amend this Contract, subject to New York Insurance
Department approval, to comply with any changes.

ASSIGNMENT

You may assign this Contract before the Annuity Date, but We will not be bound
by an assignment unless the request for assignment is signed by You and received
by Us. Your rights and those of any other person referred to in this Contract
will be subject to the assignment. Certain assignments may be taxable. We do not
assume any responsibility for the validity or tax consequences of any
assignment. We reserve the right to not recognize assignments if it changes the
risk profile of the Owner of the Contract as determined in Our sole discretion.

CLAIMS OF CREDITORS

To the extent permitted by law, no right or proceeds payable under this Contract
will be subject to claims of creditors or legal process.

                                       17
FS-982 (6/07)
<PAGE>

PREMIUM TAXES OR OTHER TAXES

We may deduct from Your Contract Value any premium tax or other taxes payable to
a state or other government entity, if applicable. Should We advance any amount
so due, We are not waiving any right to collect such amount at a later date. We
will deduct any withholding taxes required by applicable law.

WRITTEN NOTICE

Any notice We send to You will be sent to Your address shown in the Application
unless You request otherwise. Any written request or notice to Us must be sent
to Our Annuity Service Center, as specified on the Contract Data Page.

PERIODIC REPORTS

At least once during each Contract Year, We will send You a statement of the
account activity of the Contract. The statement will include all transactions
which have occurred during the accounting period shown on the statement.

INCONTESTABILITY

This Contract shall be incontestable after it has been in force for a period of
two years from the Contract Date during Your lifetime or during the lifetimes of
each of the persons who are required to provide Us with information concerning
their age, sex and identity. The incontestability of this Contract applies to
any statements You make, except as otherwise stated in the Misstatement of Age
or Sex provision. Accurate statements as to Your age, sex and identity are
required as a condition of issuing this Contract.

NONPARTICIPATING

This Contract does not share in Our surplus.

WAIVER

Our waiver of any of the terms and conditions under this Contract will not be
deemed to constitute waiver of the right to enforce strict compliance.

                                       18
FS-982 (6/07)
<PAGE>

                             ANNUITY PAYMENT OPTIONS

During the Annuitant's life, upon written election and the return of this
Contract to Us at Our Annuity Service Center, the Contract Value may be applied
to provide one of the following options or any annuity payment option that is
mutually agreeable. After one year from the Contract Date, and before to the
Annuity Date, You can choose one of the options described below. If no option
has been selected by the Annuity Date, You will automatically receive Option 4
below, with payments for 10 years guaranteed.

OPTIONS 1 & 1V - LIFE ANNUITY, LIFETIME PAYMENTS GUARANTEED

Payments payable to a Payee during the lifetime of the Annuitant. No further
payments are payable after the death of the Annuitant.

OPTIONS 2 & 2V - JOINT AND SURVIVOR LIFE ANNUITY

Payments payable to the Payee during the lifetime of the Annuitant and during
the lifetime of a designated second person. No further payments are payable
after the deaths of both the Annuitant and the designated second person.

OPTIONS 3 & 3V - JOINT AND SURVIVOR LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10
YEARS

Payments are payable to the Payee during the lifetime of the Annuitant and
during the lifetime of a designated second person. If, at the death of the
survivor, payments have been made for less than 10 years, the remaining
guaranteed annuity payments will be continued to the Beneficiary.

OPTIONS 4 & 4V - LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10 OR 20 YEARS

Payments payable to the Payee during the lifetime of the Annuitant. If, at the
death of the Annuitant, payments have been made for less than the 10 or 20
years, as selected at the time of annuitization, the remaining guaranteed
annuity payments will be continued to the Beneficiary.

OPTIONS 5 & 5V - FIXED PAYMENTS FOR A SPECIFIED PERIOD CERTAIN

Payments payable to the Payee for any specified period of time for [5] years or
more, but not exceeding [30] years, as selected at the time of annuitization.
The selection must be made for full twelve month periods. In the event of death
of the Annuitant, any remaining annuity payments will be continued to the
Beneficiary. If Variable Annuity Payments are elected under this Annuity Payment
Option, any remaining guaranteed Variable Annuity payments may be redeemed for a
discounted value determined by Us. Any applicable Withdrawal Charges will be
deducted from the discounted value as if You fully surrendered Your Contract.

                                       19
FS-982 (6/07)
<PAGE>
                       FIXED ANNUITY PAYMENT OPTIONS TABLE

BASIS OF COMPUTATION

The actuarial basis for the Table of Annuity Rates is the Annuity 2000 Mortality
Table with a guaranteed interest rate of [1.50%], with quinquennial age
setbacks. For every five years that the Contract has been in effect at the time
of annuitization, the Annuitant's age will be set back by one year to determine
the applicable factors. The Fixed Annuity Payment Options Table does not include
any applicable premium tax.

            OPTIONS 1 & 4 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)

<TABLE>
<CAPTION>
                        OPTION 1                       OPTION 4                         OPTION 4
    AGE OF                                           LIFE ANNUITY                     LIFE ANNUITY
   ANNUITANT          LIFE ANNUITY           (W/120 PAYMENTS GUARANTEED)      (W/240 PAYMENTS GUARANTEED)
                    MALE      FEMALE           MALE              FEMALE         MALE               FEMALE
<S>                 <C>       <C>              <C>               <C>            <C>                <C>
      55            3.68       3.38            3.64               3.35          3.48                3.27
      56            3.77       3.46            3.73               3.43          3.55                3.34
      57            3.87       3.54            3.82               3.51          3.62                3.40
      58            3.98       3.63            3.92               3.60          3.69                3.47
      59            4.09       3.73            4.02               3.69          3.76                3.54
      60            4.21       3.83            4.13               3.78          3.83                3.62
      61            4.34       3.93            4.24               3.89          3.90                3.69
      62            4.47       4.05            4.36               3.99          3.97                3.77
      63            4.62       4.17            4.49               4.10          4.04                3.84
      64            4.77       4.30            4.62               4.22          4.10                3.92
      65            4.93       4.44            4.76               4.35          4.17                4.00
      66            5.11       4.58            4.90               4.48          4.24                4.07
      67            5.30       4.74            5.05               4.62          4.30                4.15
      68            5.49       4.91            5.20               4.76          4.36                4.22
      69            5.71       5.09            5.36               4.92          4.41                4.29
      70            5.93       5.29            5.53               5.08          4.47                4.36
      71            6.17       5.50            5.70               5.25          4.51                4.42
      72            6.43       5.73            5.87               5.43          4.56                4.48
      73            6.70       5.98            6.05               5.62          4.60                4.53
      74            6.99       6.24            6.23               5.81          4.63                4.58
      75            7.31       6.53            6.41               6.01          4.67                4.62
      76            7.64       6.84            6.59               6.21          4.69                4.65
      77            8.00       7.18            6.78               6.41          4.72                4.69
      78            8.38       7.55            6.96               6.62          4.74                4.71
      79            8.79       7.94            7.13               6.83          4.75                4.74
      80            9.23       8.37            7.31               7.03          4.77                4.75
      81            9.70       8.84            7.47               7.23          4.78                4.77
      82            10.20      9.34            7.63               7.42          4.79                4.78
      83            10.73      9.88            7.78               7.60          4.80                4.79
      84            11.30      10.47           7.93               7.77          4.80                4.80
      85            11.90      11.10           8.06               7.93          4.81                4.80
</Table>

                                       20
FS-982 (6/07)
<PAGE>
              OPTION 2 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
                       JOINT & 100% SURVIVOR LIFE ANNUITY

<TABLE>
<CAPTION>
      AGE OF
       MALE
    ANNUITANT                                   AGE OF FEMALE ANNUITANT
    --------     ---------------------------------------------------------------------------------------
                  55            60            65            70           75           80            85
<S>              <C>           <C>           <C>           <C>          <C>          <C>           <C>
        55       3.01          3.18          3.33          3.45         3.54         3.60          3.64
        60       3.12          3.36          3.59          3.78         3.94         4.05          4.12
        65       3.21          3.51          3.83          4.13         4.40         4.61          4.75
        70       3.27          3.63          4.03          4.46         4.89         5.26          5.53
        75       3.32          3.70          4.18          4.74         5.35         5.95          6.45
        80       3.34          3.76          4.29          4.95         5.75         6.62          7.45
        85       3.36          3.79          4.35          5.09         6.05         7.20          8.44
</TABLE>

              OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
         JOINT & 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
      AGE OF
       MALE
    ANNUITANT                                    AGE OF FEMALE ANNUITANT
    ---------     --------------------------------------------------------------------------------------
                  55            60            65            70           75           80            85
<S>              <C>           <C>           <C>           <C>          <C>          <C>           <C>
        55       3.01          3.18          3.33          3.45         3.53         3.59          3.62
        60       3.12          3.36          3.58          3.78         3.93         4.03          4.09
        65       3.21          3.51          3.82          4.12         4.38         4.56          4.67
        70       3.27          3.62          4.02          4.44         4.84         5.16          5.36
        75       3.31          3.70          4.16          4.70         5.26         5.76          6.11
        80       3.33          3.74          4.25          4.88         5.59         6.28          6.80
        85       3.35          3.77          4.31          4.99         5.81         6.66          7.35
</TABLE>

              OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
         JOINT & 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
      AGE OF
      MALE
    ANNUITANT                                    AGE OF FEMALE ANNUITANT
    ---------    --------------------------------------------------------------------------------------
                  55            60            65            70           75           80            85
<S>              <C>           <C>           <C>           <C>          <C>          <C>           <C>
        55       3.00          3.16          3.30          3.39         3.45         3.47          3.48
        60       3.11          3.33          3.53          3.68         3.77         3.81          3.82
        65       3.18          3.46          3.72          3.94         4.08         4.15          4.17
        70       3.23          3.54          3.86          4.14         4.33         4.43          4.46
        75       3.26          3.59          3.94          4.27         4.50         4.62          4.66
        80       3.27          3.61          3.98          4.33         4.58         4.71          4.76
        85       3.27          3.62          3.99          4.35         4.61         4.75          4.80

</Table>

                                       21
FS-982 (6/07)
<PAGE>
              OPTION 5 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
                       FIXED PAYMENT FOR SPECIFIED PERIOD

<TABLE>
<CAPTION>
      NUMBER            MONTHLY        NUMBER        MONTHLY       NUMBER       MONTHLY      NUMBER       MONTHLY
     OF YEARS           PAYMENT       OF YEARS       PAYMENT      OF YEARS      PAYMENT     OF YEARS      PAYMENT
     --------           -------       --------       -------      --------      -------     --------      -------
<S>                     <C>           <C>          <C>            <C>         <C>           <C>          <C>
                                         10           8.96           17          5.55          24           4.13
                                         11           8.21           18          5.27          25           3.99
        5                17.28           12           7.58           19          5.03          26           3.86
        6                14.51           13           7.05           20          4.81          27           3.75
        7                12.53           14           6.59           21          4.62          28           3.64
        8                11.04           15           6.20           22          4.44          29           3.54
        9                 9.89           16           5.85           23          4.28          30           3.44
</TABLE>

                                       22
FS-982 (6/07)
<PAGE>
                     VARIABLE ANNUITY PAYMENT OPTIONS TABLE

BASIS OF COMPUTATION

The actuarial basis for the Table of Annuity Rates is the Annuity 2000 Mortality
Table with an effective annual Assumed Investment Rate of 3.50%, with
quinquennial age setbacks. For every five years that the Contract has been in
effect at the time of annuitization, the Annuitant's age will be set back by one
year to determine the applicable factors. The Variable Annuity Payment Options
Table does not include any applicable premium tax.

            OPTIONS 1V& 4V - TABLE OF MONTHLY INSTALLMENTS PER $1,000
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)

<TABLE>
<CAPTION>
                      OPTION 1V                      OPTION 4V                              OPTION 4V
                                                   LIFE ANNUITY                           LIFE ANNUITY
    AGE OF                                        (W/120 PAYMENTS                        (W/240 PAYMENTS
  ANNUITANT          LIFE ANNUITY                   GUARANTEED)                            GUARANTEED)
                  MALE       FEMALE          MALE               FEMALE              MALE               FEMALE
<S>               <C>         <C>            <C>                 <C>                <C>                 <C>
      55          4.80        4.48           4.74                4.45               4.54                4.34
      56          4.89        4.56           4.82                4.52               4.60                4.40
      57          4.99        4.64           4.91                4.60               4.67                4.46
      58          5.09        4.73           5.01                4.68               4.73                4.53
      59          5.21        4.82           5.11                4.77               4.79                4.59
      60          5.33        4.92           5.21                4.86               4.86                4.66
      61          5.45        5.03           5.32                4.96               4.92                4.73
      62          5.59        5.14           5.44                5.06               4.98                4.80
      63          5.73        5.26           5.56                5.17               5.05                4.87
      64          5.89        5.39           5.69                5.29               5.11                4.94
      65          6.06        5.53           5.83                5.41               5.17                5.01
      66          6.24        5.68           5.97                5.54               5.23                5.08
      67          6.43        5.84           6.11                5.67               5.29                5.14
      68          6.63        6.01           6.26                5.82               5.34                5.21
      69          6.84        6.19           6.42                5.97               5.39                5.28
      70          7.07        6.39           6.57                6.12               5.44                5.34
      71          7.32        6.60           6.74                6.29               5.48                5.39
      72          7.58        6.84           6.91                6.46               5.52                5.45
      73          7.86        7.09           7.08                6.64               5.56                5.49
      74          8.16        7.36           7.25                6.83               5.59                5.54
      75          8.47        7.65           7.42                7.02               5.62                5.57
      76          8.82        7.97           7.59                7.22               5.64                5.61
      77          9.18        8.31           7.77                7.41               5.67                5.64
      78          9.57        8.69           7.94                7.61               5.68                5.66
      79          9.99        9.09           8.11                7.81               5.70                5.68
      80          10.43       9.53           8.27                8.00               5.71                5.70
      81          10.91      10.00           8.43                8.19               5.72                5.71
      82          11.42      10.51           8.58                8.38               5.73                5.72
      83          11.96      11.07           8.72                8.55               5.74                5.73
      84          12.53      11.67           8.85                8.71               5.74                5.74
      85          13.15      12.31           8.98                8.86               5.75                5.74
</TABLE>

                                       23
FS-982 (6/07)
<PAGE>
              OPTION 2V - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
                       JOINT & 100% SURVIVOR LIFE ANNUITY

<TABLE>
<CAPTION>
    AGE OF
     MALE
   ANNUITANT                                     AGE OF FEMALE ANNUITANT
   ---------    ------------------------------------------------------------------------------------------
                 55             60             65           70            75            80            85
<S>             <C>            <C>            <C>          <C>           <C>           <C>           <C>
      55        4.09           4.25           4.40         4.52          4.62          4.69          4.74
      60        4.20           4.42           4.64         4.84          5.00          5.13          5.21
      65        4.29           4.56           4.87         5.17          5.45          5.67          5.83
      70        4.35           4.68           5.07         5.49          5.92          6.30          6.60
      75        4.40           4.77           5.23         5.78          6.38          6.99          7.50
      80        4.43           4.83           5.34         6.00          6.79          7.66          8.50
      85        4.45           4.87           5.42         6.15          7.10          8.25          9.49
</TABLE>

              OPTION 3V - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
        JOINT AND 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
    AGE OF
     MALE
   ANNUITANT                                      AGE OF FEMALE ANNUITANT
   ---------    ------------------------------------------------------------------------------------------
                 55             60             65           70            75            80            85
<S>             <C>            <C>            <C>          <C>           <C>           <C>           <C>
      55        4.08           4.25           4.40         4.52          4.61          4.68          4.71
      60        4.19           4.41           4.63         4.83          4.99          5.10          5.16
      65        4.28           4.56           4.86         5.15          5.41          5.61          5.73
      70        4.35           4.68           5.05         5.46          5.86          6.18          6.40
      75        4.39           4.76           5.20         5.72          6.27          6.76          7.11
      80        4.42           4.81           5.30         5.91          6.60          7.26          7.77
      85        4.44           4.84           5.36         6.03          6.82          7.63          8.29
</TABLE>

              OPTION 3V - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
        JOINT AND 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
    AGE OF
     MALE
   ANNUITANT                                      AGE OF FEMALE ANNUITANT
   ---------    ------------------------------------------------------------------------------------------
                 55             60             65           70            75            80            85
<S>             <C>            <C>            <C>          <C>           <C>           <C>           <C>
      55        4.07           4.22           4.36         4.45          4.51          4.53          4.54
      60        4.17           4.38           4.56         4.71          4.80          4.84          4.85
      65        4.25           4.50           4.74         4.95          5.08          5.14          5.17
      70        4.30           4.58           4.88         5.14          5.31          5.40          5.43
      75        4.32           4.63           4.96         5.25          5.46          5.57          5.61
      80        4.34           4.65           4.99         5.31          5.54          5.66          5.70
      85        4.34           4.66           5.00         5.33          5.57          5.69          5.74
</TABLE>

                                       24
FS-982 (6/07)
<PAGE>
              OPTION 5V - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
                         PAYMENTS FOR A SPECIFIED PERIOD

<TABLE>
<CAPTION>
    NUMBER       MONTHLY        NUMBER        MONTHLY       NUMBER        MONTHLY       NUMBER        MONTHLY
   OF YEARS      PAYMENT       OF YEARS       PAYMENT      OF YEARS       PAYMENT      OF YEARS       PAYMENT
   --------      -------       --------       -------      --------       -------      --------       -------
<S>              <C>           <C>            <C>          <C>            <C>          <C>            <C>
                                  10            8.96          17           5.55           24           4.13
                                  11            8.21          18           5.27           25           3.99
       5          17.28           12            7.58          19           5.03           26           3.86
       6          14.51           13            7.05          20           4.81           27           3.75
       7          12.53           14            6.59          21           4.62           28           3.64
       8          11.04           15            6.20          22           4.44           29           3.54
       9          9.89            16            5.85          23           4.28           30           3.44
</TABLE>

                                       25
FS-982 (6/07)
<PAGE>
                     FIRST SUNAMERICA LIFE INSURANCE COMPANY
                       A STOCK COMPANY NEW YORK, NEW YORK

                              INDIVIDUAL FIXED AND
                            VARIABLE ANNUITY CONTRACT

                                Nonparticipating

                                       26
FS-982 (6/07)exv10w2

 

Exhibit 10.2

CONTRIBUTION, CONVEYANCE

AND ASSUMPTION AGREEMENT

     THIS CONTRIBUTION, CONVEYANCE AND ASSUMPTION AGREEMENT, dated as of July ___, 2007, is
entered into by and among SPECTRA ENERGY PARTNERS, LP, a Delaware limited partnership
(“MLP”), SPECTRA ENERGY PARTNERS OLP, LP, a Delaware limited partnership (“OLP”),
SPECTRA ENERGY PARTNERS GP, LLC, a Delaware limited liability company (“SEP GP LLC”),
SPECTRA ENERGY PARTNERS OLP GP, LLC, a Delaware limited liability company (“OLP GP”),
SPECTRA ENERGY PARTNERS (DE) GP, LP, a Delaware limited partnership (“SEP GP LP”), SPECTRA
ENERGY TRANSMISSION, LLC, a Delaware limited liability company (“SET”), SPECTRA ENERGY
SOUTHEAST PIPELINE CORP, a Delaware corporation (“SESPC”), Spectra Capital LLC, a Delaware
limited liability company (“Spectra Capital”), EAST TENNESSEE NATURAL GAS, LLC, a Tennessee
limited liability company (“East Tennessee”), EGAN HUB STORAGE, LLC, a Delaware limited
liability company (“Egan”), MOSS BLUFF HUB LLC, a Delaware limited liability company
(“Moss Bluff”) and MARKET HUB PARTNERS HOLDING, LLC, a Delaware limited liability company
(“Market Hub”). The parties to this agreement are collectively referred to herein as the
“Parties.” Capitalized terms used herein shall have the meanings assigned to such terms in
Section 1.1.

RECITALS

     WHEREAS, SET and SEP GP LP have formed MLP, pursuant to the Delaware Revised Uniform Limited
Partnership Act (the “Delaware LP Act”), for the purpose of engaging in any business
activity that is approved by SEP GP LP and that lawfully may be conducted by a limited partnership
organized pursuant to the Delaware LP Act.

     WHEREAS, in order to accomplish the objectives and purposes in the preceding recital, the
following actions have been taken prior to the date hereof:

          1. SET formed SEP GP LLC, under the terms of the Delaware Limited Liability Company Act (the
“Delaware LLC Act”) and contributed $1,000 in exchange for all of the member interests in
SEP GP LLC.

          2. SEP GP LLC and SET formed SEP GP LP, under the terms of the Delaware LP Act, to which SEP
GP LLC contributed $10.00 and SET contributed $990.00 in exchange for a 1.00% general partner
interest and 99.00% limited partner interest, respectively.

          3. SEP GP LP and SET formed MLP, under the terms of the Delaware LP Act, to which SEP GP LP
contributed $60 and SET contributed $2,940 in exchange for a 2% general partner interest and 98%
limited partner interest (the “SET MLP Interest”), respectively.

          4. MLP formed OLP GP under the terms of the Delaware LLC Act, and contributed $1,000 in
exchange for all of the member interests in OLP GP.

 

 

          5. OLP GP and MLP formed OLP, under the terms of the Delaware LP Act, to which OLP GP
contributed $0.01 and MLP contributed $999.99 in exchange for a 0.001% general partner interest and
99.999% limited partner interest, respectively.

          6. SET formed Spectra Energy MHP Holding, LLC, a Delaware limited liability company (“SET
MHP”), under the terms of the Delaware LLC Act, and contributed $1,000 in exchange for all of
the member interests in SET MHP.

          7. SET formed Spectra Energy Southeast MHP Holding, LLC, a Delaware limited liability company
(“SESPC MHP”), under the terms of the Delaware LLC Act, and contributed $1,000 in exchange
for all of the member interests in SESPC MHP.

          8. SET formed Spectra Energy Partners MHP Holding, LLC, a Delaware limited liability company
(“SEP MHP”), under the terms of the Delaware LLC Act, and contributed $1,000 in exchange
for all of the member interests in SEP MHP.

          9. SET formed Spectra Energy GP MHP Holding, LLC, a Delaware limited liability company
(“GP MHP”), under the terms of the Delaware LLC Act, and contributed $1,000 in exchange for
all of the member interests in GP MHP.

          10. Market Hub formed Moss Bluff under the terms of the Delaware LLC Act and contributed
$1,000 in exchange for all of the member interests in Moss Bluff.

          11. Moss Bluff Hub Partners, L.P. merged with and into Moss Bluff under the terms of the
Delaware LLC Act and Delaware LP Act with Moss Bluff surviving.

          12. Moss Bluff Hub Partners, L.L.C dissolved under the terms of the Delaware LLC Act and
liquidated its assets into Market Hub.

     WHEREAS, concurrently with the consummation of the transactions contemplated hereby, each of
the following matters shall occur:

          1. Each of East Tennessee, Egan and Moss Bluff will distribute approximately all of their cash
and accounts receivable as of the closing of the Offering (“Closing Time”) to their
respective equity owners, and each such equity owner will in turn distribute these accounts
receivable to their equity owners, and this process of distributions will continue until such
accounts receivable are distributed to SET.

          2. Market Hub will distribute all of its member interests in Copiah Storage LLC, a [Delaware]
limited liability company (“Copiah”), and Spectra Energy County Line, LLC, a [Delaware]
limited liability company (“County Line”), and all of its stock in TPC Storage Holding
Corp., a [Delaware] corporation (“TPC”), to SET.

          3. SESPC, MLP and East Tennessee, will enter into an indemnity agreement pursuant to which MLP
will indemnity East Tennessee for $150 million in indebtedness and SESPC will in turn indemnify MLP
for the same amount.

2

 

          4. SET will convey its limited partner interests in SEP GP LP and MLP to SESPC as a capital
contribution.

          5. SET will convey a 0.1% member interest in Market Hub to SESPC MHP as a capital
contribution.

          6. SET will convey a 49.9% member interest in Market Hub to SET MHP as a capital contribution.

          7. SET will convey a member interest in Market Hub to GP MHP with a value equal to (a) 1% of
2% of the sum of the equity value of MLP at the Closing plus (b) the amount of any cash distributed
to SEP GP LP by MLP at the Closing (including any proceeds from the Option (as hereinafter defined)
(the “Market Hub GP Interest”) as a capital contribution.

          8. SET will convey a member interest in Market Hub to SEP MHP with a value equal to 50% of
Market Hub less the Market Hub GP Interest (the “Market Hub Remainder Interest”) as a
capital contribution.

          9. SET will convey a 100% member interest in GP MHP to SEP GP LLC as a capital contribution.

          10. SET will convey a 100% member interest in East Tennessee to SESPC as a capital
contribution.

          11. SET will convey a (a) 100% interest in SESPC MHP to SESPC as a capital contribution and
(b) its 100% membership interest in SEP MHP to MLP in exchange for the right to receive (i)
7,873,950 Common Units in MLP (representing a ___% interest) and (ii) 5,142,858 Sub Units in MLP
(representing a ___% interest) (the “Deferred Consideration”) and the right to receive
approximately $[24.95] million to reimburse SET for certain capital expenditures.

          12. SEP GP LLC will convey a 100% membership interest in GP MHP to SEP GP LP as a capital
contribution and in exchange for the right to receive $[ ] million to reimburse SEP GP LLC for
certain capital expenditures related to Market Hub.

          13. SESPC will convey a membership interest in Gulfstream Natural Gas System, L.L.C., a
Delaware limited liability company (“Gulfstream”), to SEP GP LP with a value equal to (a) 99% of 2%
of the sum of the equity value of MLP at the Closing plus (b) the amount of any cash distributed to
SEP GP LP by MLP at the Closing (including any proceeds from the Option (as hereinafter defined)
(the “Gulfstream GP Interest” and together with SEP GP LP’s 100% interest in GP MHP, the
“Interest”)) as a capital contribution.

          14. Market Hub will file a certificate of conversion with the Delaware Secretary of State to
convert into a general partnership named Market Hub Partners Holding (“Market Hub GP”)
under the Delaware Revised Uniform Partnership Act.

3

 

          15. SEP GP LP will contribute the Interest to MLP in exchange for (a) a continuation of its 2%
general partner interest in MLP, (b) 1,500,000 Common Units, (c) the issuance of the IDRs of MLP,
(d) the right to receive $[270.3] million sourced to new indebtedness recourse to SEP GP LP (the
“Initial Recourse Debt”) and (e) the right to receive approximately $[0.05] million to
reimburse SEP GP LP for certain capital expenditures.

          16. SESPC will contribute its 100% member interests in East Tennessee and a member interest in
Gulfstream equal to 24.5% of Gulfstream less the Gulfstream GP Interest (the “Gulfstream
Remainder Interest”) to MLP in exchange for (a) 25,255,930 Common Units in MLP (representing a
___% interest) and (b) 16,495,872 Sub Units in MLP (representing a ___% interest).

          17. SET will receive, in exchange for the interest it conveyed in paragraph 12 above (a) the
Deferred Compensation and (b) the right to receive approximately $[24.95] million to reimburse SET
for certain capital expenditures.

          18. MLP will redeem and cancel the SET MLP Interest in exchange for $2,940 payable to [SET]
and MLP shall distribute $60 to SEP GP LP.

          19. The public, through the Underwriters, will contribute $[ ] million in cash, less the net
amount of $[  ] payable to the Underwriters after taking into account the Underwriters’ discount,
[the structuring fees payable to the Underwriters] and the Underwriters’ reimbursement of certain
expenses incurred by MLP in connection with the Offering, in exchange for 10,000,000 Common Units
in MLP (representing a [    ]% interest).

          20. MLP will (a) pay transaction expenses associated with the transactions contemplated by
this Agreement in the amount of approximately $[  ] million (exclusive of the Underwriter’s spread
[but including debt placement costs]), (b) distribute approximately $[  ] million to SET to
reimburse SET for certain capital expenditures, (c) distribute approximately $[  ] million to SEP
GP LP to reimburse SEP GP LP for certain capital expenditures, (d) contribute $[10.0] million in
the aggregate to OLP to replenish working capital (of which 0.001% of such contribution will be
made to OLP on behalf of OLP GP), and (e) contribute $[  ] million in cash and its membership
interests in East Tennessee, Gulfstream, SEP MHP and GP MHP to OLP as a capital contribution (of
which 0.001% of such contribution will be made to OLP on behalf of OLP GP).

          21. GP MHP will merge with and into SEP MHP under the Delaware LLC Act with SEP MHP surviving.

          22. OLP will buy U.S. Treasury securities or other qualifying securities permitted to be
pledged as collateral pursuant to the terms of the Term Loan Capacity under the Credit Agreement
(the “Securities”) for $[145.3] million in cash and will incur the Initial Recourse Debt by
borrowing $[270.3] million from lenders using the Securities as collateral security for all of the
borrowings under the Term Loan Capacity under the Credit Agreement with MLP guaranteeing the
Initial Recourse Debt.

4

 

          23. OLP will distribute the borrowed funds of $[270.3] million to (less debt issuance costs of
$[0.9] million) MLP (of which 0.001% of such distribution will be made to MLP on behalf of OLP GP)
and MLP, in turn, will distribute the funds to SEP GP LP.

          24. SEP GP LP will loan the funds to Spectra Capital distributed to it pursuant to the
preceding paragraph 23.

          25. SEP GP LP will distribute $[ ] million to SEP GP LLC to reimburse it for certain capital
expenditures and SEP GP LLC will in turn distribute such cash to SET.

          26. If the Underwriters exercise their option to purchase up to an additional 1,500,000 Common
Units (the “Option”), the proceeds of that exercise, net of the applicable Underwriter’s
spread, shall be contributed by MLP to OLP (of which .001% of such contribution will be made to OLP
on behalf of OLP GP) and then OLP will buy additional Securities, which will be used as collateral
for borrowings by OLP of up to $[ ] million pursuant to the Term Loan Capacity guaranteed by MLP
(the “Subsequent Recourse Debt”); the funds borrowed by OLP will then be distributed to MLP
(of which .001% of such distribution will be made to MLP on behalf of OLP GP) which will use them
to redeem from SEP GP LP the number of Common Units sold by MLP pursuant to the exercise of the
Option.

          27. The agreements of limited partnership and the limited liability company agreements of the
aforementioned entities will be amended and restated to the extent necessary to reflect the
applicable matters set forth above and as contained in this Agreement.

     NOW, THEREFORE, in consideration of their mutual undertakings and agreements hereunder, the
Parties undertake and agree as follows:

ARTICLE 1

DEFINITIONS

          Section 1.1 The following capitalized terms shall have the meanings given below.

          (a) “Agreement” means this Contribution, Conveyance and Assumption Agreement.

          (b) “Common Unit” has the meaning assigned to such term in the Partnership Agreement.

          (c) “Credit Agreement” means the $500 million Credit Agreement, dated as of May 24,
2007, among the OLP as the borrower, MLP as the parent guarantor and Wachovia Bank, National
Association as administrative agent for the lenders named therein.

          (d) “Effective Time” shall mean 8:00 a.m. New York, New York time on July ___, 2007.

          (e) “IDRs” means “Incentive Distribution Rights” as such term is defined in the
Partnership Agreement.

5

 

          (f) “MLP” has the meaning assigned to such term in the opening paragraph of this
Agreement.

          (g) “Offering” means the initial public offering by MLP of Common Units.

          (h) “Omnibus Agreement” means that certain Omnibus Agreement of even date herewith,
among SET, SEP GP LLC, SEP GP LP and MLP.

          (i) “Partnership Agreement” means the First Amended and Restated Agreement of Limited
Partnership of Spectra Energy Partners, LP dated as of July ___, 2007.

          (j) “Partnership Group” has the meaning assigned to such term in the Omnibus
Agreement.

          (k) “Registration Statement” means the registration statement on Form S-1
(Registration No. 333-141687) filed by MLP relating to the Offering.

          (l) “Sub Unit” means “Subordinated Unit” as such term is defined in the Partnership
Agreement.

          (m) “Term Loan Capacity” means the term loan capacity under the Credit Agreement.

          (n) “Underwriters” means Citigroup Global Markets Inc., Lehman Brothers Inc., Merrill,
Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC, Wachovia Capital Markets, LLC, A.G.
Edwards & Sons, Inc. and Raymond James & Associates, Inc.

ARTICLE 2

CONTRIBUTIONS, ACKNOWLEDGMENTS AND DISTRIBUTIONS

          Section 2.1 Distribution of Working Capital Assets by East Tennessee. East Tennessee
hereby distributes, grants, bargains, conveys, assigns, transfers, sets over and delivers to SET,
its successors and assigns, for its use forever, all of its cash and accounts receivable as of the
Closing Time. SET hereby accepts such cash and accounts receivable as a distribution.

          Section 2.2 Distribution of Working Capital Assets by Egan. Egan hereby distributes,
grants, bargains, conveys, assigns, transfers, sets over and delivers to SET, its successors and
assigns, for its use forever, all of its cash and accounts receivable as of the Closing Time. SET
hereby accepts such cash and accounts receivable as a distribution.

          Section 2.3 Distribution of Working Capital Assets by Moss Bluff. Moss Bluff hereby
distributes, grants, bargains, conveys, assigns, transfers, sets over and delivers to SET, its
successors and assigns, for its use forever, all of its cash and accounts receivable as of the
Closing Time. SET hereby accepts such cash and accounts receivable as a distribution.

          Section 2.4 Distribution of Copiah by Market Hub. Market Hub hereby distributes,
grants, bargains, conveys, assigns, transfers, sets over and delivers to SET, its

6

 

successors and assigns, for its use forever, all right, title and interest in and to all of
its member interest in Copiah. SET hereby accepts such member interest in Copiah as a distribution.

          Section 2.5 Distribution of County Line by Market Hub. Market Hub hereby distributes,
grants, bargains, conveys, assigns, transfers, sets over and delivers to SET, its successors and
assigns, for its use forever, all right, title and interest in and to all of its member interest in
County Line. SET hereby accepts such member interest in County Line as a distribution.

          Section 2.6 Distribution of TPC by Market Hub. Market Hub hereby distributes, grants,
bargains, conveys, assigns, transfers, sets over and delivers to SET, its successors and assigns,
for its use forever, all right, title and interest in and to all of its shares of TPC common stock.
SET hereby accepts such shares of common stock in TPC as a distribution.

          Section 2.7 Indemnification by MLP and SESPC of East Tennessee Indebtedness. The
Parties acknowledge that MLP, SESPC and East Tennessee have entered into indemnity agreements
pursuant to which MLP will indemnify East Tennessee for $150 million in indebtedness and SESPC will
indemnify MLP for the same amount.

          Section 2.8 Conveyance of SEP GP LP Limited Partner Interest to SESPC. SET hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SESPC, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
all of its limited partner interest in SEP GP LP, as a capital contribution, and SESPC hereby
accepts such limited partner interest in SEP GP LP as a contribution to the capital of SESPC.

          Section 2.9 Conveyance of MLP Limited Partner Interest to SESPC. SET hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to SESPC, its successors
and assigns, for its and their own use forever, all right, title and interest in and to all of its
limited partner interest in MLP, as a capital contribution, and SESPC hereby accepts such limited
partner interest in MLP as a contribution to the capital of SESPC.

          Section 2.10 Conveyance of 0.1% Market Hub Member Interest to SESPC MHP. SET hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SESPC MHP,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to a 0.1% member interest in Market Hub, as a capital contribution, and SESPC MHP hereby accepts
such member interest in Market Hub as a contribution to the capital of SESPC MHP.

          Section 2.11 Conveyance of 49.9% Market Hub Member Interest to SET MHP. SET hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SET MHP, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
a 49.9% member interest in Market Hub, as a capital contribution, and SET MHP hereby accepts such
member interest in Market Hub as a contribution to the capital of SET MHP.

          Section 2.12 Conveyance of Market Hub GP Interest to GP MHP. SET hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to GP

7

 

MHP, its successors and assigns, for its and their own use forever, all right, title and
interest in and to all of the Market Hub GP Interest, as a capital contribution, and GP MHP hereby
accepts such member interest in Market Hub as a contribution to the capital of GP MHP.

          Section 2.13 Conveyance of Market Hub Remainder Interest to SEP MHP. SET hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SEP MHP, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
all of the Market Hub Remainder Interest, as a capital contribution, and SEP MHP hereby accepts
such member interest in Market Hub as a contribution to the capital of SEP MHP.

          Section 2.14 Conveyance of GP MHP Member Interest to SEP GP LLC. SET hereby grants,
contributes, bargains, conveys, assigns, transfers, sets over and delivers to SEP GP LLC, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
all of its member interest in GP MHP, as a capital contribution, and SEP GP LLC hereby accepts such
member interest in GP MHP as a contribution to the capital of SEP GP LLC.

          Section 2.15 Conveyance of East Tennessee Member Interest to SESPC. SET hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SESPC, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
all of its member interest in East Tennessee, as a capital contribution, and SESPC hereby accepts
such member interest in East Tennessee as a contribution to the capital of SESPC.

          Section 2.16 Conveyance of SESPC MHP to SESPC. SET hereby grants, contributes,
bargains, conveys, assigns, transfers, sets over and delivers to SESPC, its successors and assigns,
for its and their own use forever, all right, title and interest in and to all of its member
interest in SESPC MHP, as a capital contribution, and SESPC hereby accepts such member interest in
SESPC MHP as a contribution to the capital of SESPC.

          Section 2.17 Conveyance of SEP MHP to MLP. SET hereby grants, contributes, bargains,
conveys, assigns, transfers, sets over and delivers to MLP, its successors and assigns, for its and
their own use forever, all right, title and interest in and to all of its member interest in SEP
MHP, as a capital contribution, in exchange for the right to receive the Deferred Consideration and
the right to receive $[24.95] million to reimburse SET for certain capital expenditures, and MLP
hereby accepts such member interests in SEP MHP as a contribution to the capital of MLP.

          Section 2.18 Conveyance of GP MHP Member Interest to SEP GP LP. SEP GP LLC hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to SEP GP LP,
its successors and assigns, for its and their own use forever, all right, title and interest in and
to all of its member interest in GP MHP, as a capital contribution, in exchange for the right to
receive $[___] million to reimburse SEP GP LLC for certain capital expenditures, and SEP GP LP
hereby accepts such member interest in GP MHP as a contribution to the capital of SEP GP LP.

          Section 2.19 Contribution of Gulfstream GP Interest to SEP GP LP. SESPC hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to

8

 

SEP GP LP, its successors and assigns, for its and their own use forever, all right, title and
interest in and to the Gulfstream GP Interest, as a capital contribution, and SEP GP LP hereby
accepts such interest as a contribution to the capital of SEP GP LP.

          Section 2.20 Conversion of Market Hub to Market Hub GP. The Parties acknowledge that
Market Hub has adopted a certificate of conversion and pursuant thereto has converted to Market Hub
GP.

          Section 2.21 Contribution of the Interest by SEP GP LP to MLP. SEP GP LP hereby
grants, contributes, bargains, conveys, assigns, transfers, sets over and delivers to MLP, its
successors and assigns, for its and their own use forever, all right, title and interest in and to
the Interest, as a capital contribution, in exchange for (a) a continuation of its 2% general
partner interest in MLP, (b) 1,500,000 Common Units, (c) the issuance of the IDRs, (d) the right to
receive the Initial Recourse Debt and (e) the right to receive $[0.05] million to reimburse it for
certain capital expenditures, and MLP hereby accepts the Interest as a contribution to the capital
of MLP.

          Section 2.22 Contribution of East Tennessee Member Interest and Gulfstream Remainder
Interest to MLP. SESPC hereby grants, contributes, bargains, conveys, assigns, transfers, sets
over and delivers to MLP, its successors and assigns, for its and their own use forever, all right,
title and interest in and to all of its member interest in East Tennessee and the Gulfstream
Remainder Interest, as a capital contribution, in exchange for the right to receive (a) 25,255,930
Common Units, representing a ___% interest in MLP and (b) 16,495,872 Sub Units, representing a ___%
interest in MLP, and MLP hereby accepts such member interest in East Tennessee and the Gulfstream
Remainder Interest as a contribution to the capital of MLP.

          Section 2.23 Payment of Deferred Consideration. The Parties acknowledge the issuance
by MLP to SET of the Deferred Consideration in accordance with its right to receive it pursuant to
Section 2.17.

          Section 2.24 Redemption of SET MLP Interest; Distribution to SEP GP LP. MLP hereby
redeems the SET MLP Interest from SET and retires the SET MLP Interest in exchange for a payment in
cash to [SET] equal to an aggregate $2,940. MLP hereby distributes $60 to SEP GP LP.

          Section 2.25 Public Cash Contribution. The Parties acknowledge a capital contribution
by the public through the Underwriters to MLP of $[200.00] million in cash ($[187.5] million net to
MLP after taking into account the Underwriters’ discount [and the structuring fees payable to the
Underwriters] and the Underwriters’ reimbursement of certain expenses incurred by MLP in connection
with the Offering) in exchange for 10,000,000 Common Units, representing a [15.4]% interest in MLP.

          Section 2.26 Payment of Transaction Costs. The Parties acknowledge (a) the payment by
MLP, in connection with the transactions contemplated by this Agreement, of transaction expenses in
the amount of approximately $[6.3] million (exclusive of the Underwriter’s spread [but including
debt placement costs]), (b) the distribution by MLP of

9

 

approximately $[24.95] million to SET to reimburse it for certain capital expenditures
pursuant to Section 2.17 above, (c) the distribution by MLP of approximately $[0.05] million to SEP
GP LP to reimburse it for certain capital expenditures and (d) the contribution by MLP of
approximately $[10.0] million to OLP (of which 0.001% is being contributed on behalf of OLP GP) to
replenish working capital.

          Section 2.27 Contribution of Member Interest in Gulfstream, East Tennessee, SEP MHP, GP
MHP and Cash to OLP. MLP hereby grants, contributes, bargains, conveys, assigns, transfers,
sets over and delivers to OLP, its successors and assigns, for its and their own use forever, all
right, title and interest in and to its member interest in Gulfstream, East Tennessee, SEP MHP and
GP MHP and $[145.3] million in cash (of which 0.001% is being contributed on behalf of OLP GP), as
a capital contribution, and OLP hereby accepts such member interests and cash as a contribution to
the capital of OLP.

          Section 2.28 Merger of GP MHP with and into SEP MHP. The Parties acknowledge that GP
MHP has adopted a certificate and plan of merger and pursuant thereto has merged with and into SEP
MHP with SEP MHP surviving.

          Section 2.29 Purchase of Securities by OLP and Incurrence of Initial Recourse Debt by
OLP. The Parties acknowledge (a) the purchase by OLP of $[145.3] million in principal amount
of Securities, (b) the incurrence of the Initial Recourse Debt by OLP, (c) the pledge of the
Securities referred to in clause (a) of this Section 2.29 as collateral for the borrowings under
the Term Loan Capacity under the Credit Agreement and (d) the guarantee of the Initial Recourse
Debt by MLP.

          Section 2.30 Distribution of Proceeds from Initial Recourse Debt by OLP to MLP. OLP
hereby distributes, grants, bargains, conveys, assigns, transfers, sets over and delivers to MLP,
its successors and assigns, for its use forever, all right, title and interest in and to cash in an
amount equal to the principal amount of the Initial Recourse Debt (less debt issuance costs of $0.9
million) (of which 0.001% of such distribution is being made on behalf of OLP GP).

          Section 2.31 Distribution of Cash by MLP to SEP GP LP. MLP hereby distributes, grants,
bargains, conveys, assigns, transfers, sets over and delivers to SEP GP LP, its successors and
assigns, for its and their own use forever, all right, title and interest in and to cash in an
amount equal to the amount to be received by MLP pursuant to Section 2.30.

          Section 2.32 Loan of Cash by SEP GP LP to Spectra Capital. SEP GP LP hereby loans to
Spectra Capital cash in an amount equal to the amount received by SEP GP LP pursuant to Section
2.31 and, in connection therewith, Spectra Capital agrees to execute a promissory note in the form
attached hereto as Exhibit A as completed to reflect the principal amount of the loan from
SEP GP LP to Spectra Capital.

          Section 2.33 Distribution of Cash by SEP GP LP to SEP GP LLC. SEP GP LP hereby
distributes $[  ] million to SEP GP LLC to reimburse it for certain capital expenditures, and SEP
GP LLC, in turn, will distribute the funds to SET.

10

 

ARTICLE 3

ADDITIONAL TRANSACTIONS

     Section 3.1 Purchase of Additional Common Units. If the Option is exercised in whole
or in part, the public, through the Underwriters, will contribute additional cash to MLP in
exchange for up to an additional 1,500,000 Common Units.

     Section 3.2 Purchase of Securities by OLP and Incurrence of Recourse Debt by OLP. The
Parties acknowledge, in the event that the Option is exercised in whole or in part, (a) the
contribution by MLP to OLP of an amount of cash equal to the net proceeds received by MLP pursuant
to Section 3.1, (b) the purchase by OLP of up to $[ ] million in principal amount of Securities
utilizing the cash received by OLP from MLP pursuant to clause (a) of this Section 3.2, (c) the
incurrence of the Subsequent Recourse Debt by OLP, (d) the pledge of the Securities referred to in
clause (b) of this Section 3.2 as collateral for the borrowings under the Term Loan Capacity and
(e) the guarantee of the Subsequent Recourse Debt, if any, by MLP.

     Section 3.3 Distribution of Proceeds from Additional Borrowings by OLP to MLP. In the
event the Option is exercised in whole or in part, OLP hereby agrees to distribute, grant, bargain,
convey, assign, transfer, set over and deliver to MLP, its successors and assigns, for its and
their own use forever, all right, title and interest in and to cash in an amount equal to the
principal amount of the Subsequent Recourse Debt (of which 0.001% of such distribution will be made
on behalf of OLP GP).

     Section 3.4 Redemption of Common Units. MLP hereby agrees to redeem a number of Common
Units held by SEP GP LP equal to the number of Common Units issued to the public, through the
underwriters, upon exercise of the Option, if any, at a redemption price per Common Unit equal to
the initial public offering price per Common Unit, net of underwriting discounts.

     Section 3.5 Loan of Cash by SEP GP LP to Spectra Capital. SEP GP LP hereby agrees to
loan to Spectra Capital cash in an amount equal to the amount to be received by SEP GP LP pursuant
to Section 3.4, if any, and, in connection therewith, Spectra Capital agrees to execute a
promissory note in the form attached hereto as Exhibit A as completed to reflect the
principal amount of the loan from SEP GP LP to Spectra Capital.

ARTICLE 4

TITLE MATTERS

          Section 4.1 Encumbrances.

          (a) Except to the extent provided in any other document executed in connection with this
Agreement or the Offering, the contribution and conveyance (by operation of law or otherwise) of
the various physical assets owned as reflected in this Agreement (collectively, the
“Assets”) are made expressly subject to all recorded and unrecorded liens (other than
consensual liens), encumbrances, agreements, defects, restrictions, adverse claims and all laws,
rules, regulations, ordinances, judgments and orders of governmental authorities or tribunals
having or asserting jurisdictions over the Assets and operations conducted thereon or in connection
therewith, in each case to the extent the same are valid and enforceable and affect the

11

 

Assets, including all matters that a current survey or visual inspection of the Assets would
reflect.

          (b) To the extent that certain jurisdictions in which the Assets are located may require that
documents be recorded in order to evidence the transfers of title reflected in this Agreement, then
the provisions set forth in Section 4.1(a) immediately above shall also be applicable to the
conveyances under such documents.

          Section 4.2 Disclaimer of Warranties; Subrogation; Waiver of Bulk Sales Laws.

          (a) EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION
WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION THE OMNIBUS AGREEMENT, THE
PARTIES ACKNOWLEDGE AND AGREE THAT NONE OF THE PARTIES HAS MADE, DOES NOT MAKE, AND EACH SUCH PARTY
SPECIFICALLY NEGATES AND DISCLAIMS, ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS,
AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS, IMPLIED OR
STATUTORY, ORAL OR WRITTEN, PAST OR PRESENT, REGARDING (A) THE VALUE, NATURE, QUALITY OR CONDITION
OF THE ASSETS INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL, GEOLOGY OR ENVIRONMENTAL CONDITION OF
THE ASSETS GENERALLY, INCLUDING THE PRESENCE OR LACK OF HAZARDOUS SUBSTANCES OR OTHER MATTERS ON
THE ASSETS, (B) THE INCOME TO BE DERIVED FROM THE ASSETS, (C) THE SUITABILITY OF THE ASSETS FOR ANY
AND ALL ACTIVITIES AND USES THAT MAY BE CONDUCTED THEREON, (D) THE COMPLIANCE OF OR BY THE ASSETS
OR THEIR OPERATION WITH ANY LAWS (INCLUDING WITHOUT LIMITATION ANY ZONING, ENVIRONMENTAL
PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS), OR (E) THE
HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF
THE ASSETS. EXCEPT TO THE EXTENT PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT OR THE OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS
AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT EACH HAS HAD THE OPPORTUNITY TO INSPECT THE
RESPECTIVE ASSETS, AND EACH IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE RESPECTIVE ASSETS AND
NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY ANY OF THE PARTIES. EXCEPT TO THE EXTENT
PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE
OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT, NONE OF THE PARTIES IS LIABLE OR
BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING
TO THE ASSETS FURNISHED BY ANY AGENT, EMPLOYEE, SERVANT OR THIRD PARTY. EXCEPT TO THE EXTENT
PROVIDED IN ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION WITH THIS AGREEMENT OR THE
OFFERING INCLUDING, WITHOUT LIMITATION, THE OMNIBUS AGREEMENT, EACH OF THE PARTIES ACKNOWLEDGES
THAT TO THE

12

 

MAXIMUM EXTENT PERMITTED BY LAW, THE CONTRIBUTION OF THE ASSETS AS PROVIDED FOR HEREIN IS MADE
IN AN “AS IS”, “WHERE IS” CONDITION WITH ALL FAULTS, AND THE ASSETS ARE CONTRIBUTED AND CONVEYED
SUBJECT TO ALL OF THE MATTERS CONTAINED IN THIS SECTION. THIS SECTION SHALL SURVIVE SUCH
CONTRIBUTION AND CONVEYANCE OR THE TERMINATION OF THIS AGREEMENT. THE PROVISIONS OF THIS SECTION
HAVE BEEN NEGOTIATED BY THE PARTIES AFTER DUE CONSIDERATION AND ARE INTENDED TO BE A COMPLETE
EXCLUSION AND NEGATION OF ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,
WITH RESPECT TO THE ASSETS THAT MAY ARISE PURSUANT TO ANY LAW NOW OR HEREAFTER IN EFFECT, OR
OTHERWISE, EXCEPT AS SET FORTH IN THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN
CONNECTION WITH THIS AGREEMENT OR THE OFFERING, INCLUDING, WITHOUT LIMITATION, THE OMNIBUS
AGREEMENT.

          (b) The contributions of the Assets made under this Agreement are made with full rights of
substitution and subrogation of the respective parties receiving such contributions, and all
persons claiming by, through and under such parties, to the extent assignable, in and to all
covenants and warranties by the predecessors-in-title of the parties contributing the Assets, and
with full subrogation of all rights accruing under applicable statutes of limitation and all rights
of action of warranty against all former owners of the Assets.

          (c) Each of the Parties agrees that the disclaimers contained in this Section 4.2 are
“conspicuous” disclaimers. Any covenants implied by statute or law by the use of the words
“grant,” “convey,” “bargain,” “sell,” “assign,” “transfer,” “deliver,” or “set over” or any of them
or any other words used in this Agreement or any exhibits hereto are hereby expressly disclaimed,
waived or negated.

          (d) Each of the Parties hereby waives compliance with any applicable bulk sales law or any
similar law in any applicable jurisdiction in respect of the transactions contemplated by this
Agreement.

ARTICLE 5

FURTHER ASSURANCES

          Section 5.1 Further Assurances. From time to time after the Effective Time, and
without any further consideration, the Parties agree to execute, acknowledge and deliver all such
additional deeds, assignments, bills of sale, conveyances, instruments, notices, releases,
acquittances and other documents, and will do all such other acts and things, all in accordance
with applicable law, as may be necessary or appropriate (a) more fully to assure that the
applicable Parties own all of the properties, rights, titles, interests, estates, remedies, powers
and privileges granted by this Agreement, or which are intended to be so granted, or (b) more fully
and effectively to vest in the applicable Parties and their respective successors and assigns
beneficial and record title to the interests contributed and assigned by this Agreement or intended
so to be and to more fully and effectively carry out the purposes and intent of this Agreement.

13

 

          Section 5.2 Other Assurances. From time to time after the Effective Time, and without
any further consideration, each of the Parties shall execute, acknowledge and deliver all such
additional instruments, notices and other documents, and will do all such other acts and things,
all in accordance with applicable law, as may be necessary or appropriate to more fully and
effectively carry out the purposes and intent of this Agreement. Without limiting the generality
of the foregoing, the Parties acknowledge that the parties have used their good faith efforts to
attempt to identify all of the assets being contributed to MLP or its subsidiaries as required in
connection with the Offering. However, due to the age of some of those assets and the difficulties
in locating appropriate data with respect to some of the assets it is possible that assets intended
to be contributed to MLP or its subsidiaries were not identified and therefore are not included in
the assets contributed to MLP or its subsidiaries. It is the express intent of the Parties that
MLP or its subsidiaries own all assets necessary to operate the assets that are identified in this
Agreement and in the Registration Statement. To the extent any assets were not identified but are
necessary to the operation of assets that were identified, then the intent of the Parties is that
all such unidentified assets are intended to be conveyed to the appropriate members of the
Partnership Group. To the extent such assets are identified at a later date, the Parties shall
take the appropriate actions required in order to convey all such assets to the appropriate members
of the Partnership Group. Likewise, to the extent that assets are identified at a later date that
were not intended by the parties to be conveyed as reflected in the Registration Statement, the
Parties shall take the appropriate actions required in order to convey all such assets to the
appropriate party.

ARTICLE 6

EFFECTIVE TIME

     Notwithstanding anything contained in this Agreement to the contrary, none of the provisions
of Article 2 or Article 3 of this Agreement shall be operative or have any effect until the
Effective Time, at which time all the provisions of Article 2 and Article 3 of this Agreement shall
be effective and operative in accordance with Section 7.1, without further action by any party
hereto.

ARTICLE 7

MISCELLANEOUS

          Section 7.1 Order of Completion of Transactions. The transactions provided for in
Article 2 and Article 3 of this Agreement shall be completed immediately following the Effective
Time in the following order: first, the transactions provided for in Article 2 shall be completed
in the order set forth therein; and second, following the completion of the transactions as
provided in Article 2, the transactions, if they occur, provided for in Article 3 shall be
completed.

          Section 7.2 Costs. Except for the transaction costs set forth in Section 2.26, OLP
shall pay all expenses, fees and costs, including but not limited to, all sales, use and similar
taxes arising out of the contributions, conveyances and deliveries to be made hereunder and shall
pay all documentary, filing, recording, transfer, deed, and conveyance taxes and fees required in
connection therewith. In addition, OLP shall be responsible for all costs, liabilities and
expenses

14

 

(including court costs and reasonable attorneys’ fees) incurred in connection with the
implementation of any conveyance or delivery pursuant to Section 5.1 or Section 5.2.

          Section 7.3 Headings; References; Interpretation. All Article and Section headings in
this Agreement are for convenience only and shall not be deemed to control or affect the meaning or
construction of any of the provisions hereof. The words “hereof,” “herein” and “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole,
including, without limitation, all Schedules and Exhibits attached hereto, and not to any
particular provision of this Agreement. All references herein to Articles, Sections, Schedules and
Exhibits shall, unless the context requires a different construction, be deemed to be references to
the Articles and Sections of this Agreement and the Schedules and Exhibits attached hereto, and all
such Schedules and Exhibits attached hereto are hereby incorporated herein and made a part hereof
for all purposes. All personal pronouns used in this Agreement, whether used in the masculine,
feminine or neuter gender, shall include all other genders, and the singular shall include the
plural and vice versa. The use herein of the word “including” following any general statement,
term or matter shall not be construed to limit such statement, term or matter to the specific items
or matters set forth immediately following such word or to similar items or matters, whether or not
non-limiting language (such as “without limitation”, “but not limited to”, or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or
matters that could reasonably fall within the broadest possible scope of such general statement,
term or matter.

Section 7.4 Successors and Assigns. The Agreement shall be binding upon and inure to
the benefit of the Parties and their respective successors and assigns.

          Section 7.5 No Third Party Rights. The provisions of this Agreement are intended to
bind the Parties as to each other and are not intended to and do not create rights in any other
person or confer upon any other person any benefits, rights or remedies and no person is or is
intended to be a third party beneficiary of any of the provisions of this Agreement.

          Section 7.6 Counterparts. This Agreement may be executed in any number of
counterparts, all of which together shall constitute one agreement binding on the parties hereto.

          Section 7.7 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Texas applicable to contracts made and to be performed
wholly within such state without giving effect to conflict of law principles thereof.

          Section 7.8 Severability. If any of the provisions of this Agreement are held by any
court of competent jurisdiction to contravene, or to be invalid under, the laws of any political
body having jurisdiction over the subject matter hereof, such contravention or invalidity shall not
invalidate the entire Agreement. Instead, this Agreement shall be construed as if it did not
contain the particular provision or provisions held to be invalid and an equitable adjustment shall
be made and necessary provision added so as to give effect to the intention of the Parties as
expressed in this Agreement at the time of execution of this Agreement.

15

 

          Section 7.9 Amendment or Modification. This Agreement may be amended or modified from
time to time only by the written agreement of all the Parties. Each such instrument shall be
reduced to writing and shall be designated on its face as an Amendment to this Agreement.

          Section 7.10 Integration. This Agreement and the instruments referenced herein
supersede all previous understandings or agreements among the Parties, whether oral or written,
with respect to their subject matter. This document and such instruments contain the entire
understanding of the Parties with respect to the subject matter hereof and thereof. No
understanding, representation, promise or agreement, whether oral or written, is intended to be or
shall be included in or form part of this Agreement unless it is contained in a written amendment
hereto executed by the parties hereto after the date of this Agreement.

     Section 7.11 Deed; Bill of Sale; Assignment. To the extent required and permitted by
applicable law, this Agreement shall also constitute a “deed,” “bill of sale” or “assignment” of
the assets and interests referenced herein.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

16

 

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto as of the date
first above written.

	 	 	 	 	 
	 	SPECTRA ENERGY PARTNERS, LP

 	 
	 	By:  	Spectra Energy Partners (DE) GP, LP, its
general partner
 	 
	 
	 	 	 
	 	By:  	                 Spectra Energy Partners GP, LLC, its
general partner
 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	SPECTRA ENERGY PARTNERS (DE) GP, LP

 	 
	 	By:  	Spectra Energy Partners GP, LLC, its
general partner
 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	SPECTRA ENERGY PARTNERS GP, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to the Contribution, Conveyance and Assumption Agreement]

 

 

	 	 	 	 	 
	 	SPECTRA ENERGY PARTNERS OLP, LP

 	 
	 	By:  	Spectra Energy Partners OLP GP, LLC, its
general partner
 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	SPECTRA ENERGY PARTNERS OLP GP, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SPECTRA ENERGY TRANSMISSION, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SPECTRA ENERGY SOUTHEAST PIPELINE CORP

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to the Contribution, Conveyance and Assumption Agreement]

 

 

	 	 	 	 	 
	 	SPECTRA CAPITAL LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	EAST TENNESSEE NATURAL GAS, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MARKET HUB PARTNERS HOLDING, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MOSS BLUFF HUB LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	EGAN HUB STORAGE, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to the Contribution, Conveyance and Assumption Agreement]

 

 

Exhibit A

PROMISSORY NOTE

 

			
	$___,000,000
	 	July ___, 2007

     FOR VALUE RECEIVED, the undersigned, Spectra Capital LLC a Delaware limited liability company
(the “Borrower”), promises to pay to the order of Spectra Energy Partners (DE) GP, LP, a Delaware
limited partnership (the “Lender”), at its office at 5400 Westheimer Court, Houston, Texas
77056 ON DEMAND, the principal sum of [___MILLION DOLLARS AND NO CENTS
($___,000,000.00)], together with interest on the principal amount from time to time outstanding
hereunder payable without necessity for demand therefor, as set forth herein.

     The Lender shall record on its books or records the principal amount of this Note and the
principal balances from time to time outstanding. The record thereof shall be prima facie evidence
as to all such amounts; provided, however, that the failure of the Lender to record any of the
foregoing shall not limit or otherwise affect the obligation of the Borrower to repay amounts owing
under this Note.

     Interest on the principal amount from time to time outstanding hereunder shall accrue at an
interest rate equal to the greater of 5.0% per annum or at the applicable short-term federal rate
in effect under Section 1274(d) of the Internal Revenue Code of 1986, as amended, for the period in
which interest is being accrued; provided, however, that upon the occurrence and during the
continuance of any default by the Borrower in the payment of any amount due under this Note,
interest shall accrue and be payable by the Borrower on such unpaid amount at a rate per annum
equal to two percentage points above the rate otherwise applicable as set forth herein. Interest
shall be due and payable on January 1, April 1, July 1 and October 1 of each year commencing on the
date of this Note until paid or on the date on which the outstanding principal amount of this Note
shall become due and payable upon demand or by acceleration. Interest shall be computed on the
basis of a year of 365 (or 366, as the case may be) days and for the actual number of days elapsed
(including the first day but excluding the last day) occurring in the period for which payable.

     Prepayments may be made on this Note at any time, without any penalty or premium. All
payments hereunder shall be in such lawful money of the United States of America as shall be legal
tender for public and private debts at the time of payment.

     This Note shall be governed by and construed in accordance with the laws of the State of
Texas.

	 	 	 	 	 
	 	SPECTRA CAPITAL LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]