Document:

<PAGE>
                                                                    Exhibit 10.2

                          UNITED STATES DISTRICT COURT
                      FOR THE SOUTHERN DISTRICT OF NEW YORK

__________________________________________
                                          )
KARL M. THOMPSON and LUCILE ELLIS,        )
                                          )
On Behalf of Themselves and All Others    )        No. 00 Civ. 5071 (HB)
Similarly Situated,                       )
                                          )        Also applies to:
                        Plaintiffs,       )
                                          )        No. 00 Civ. 9068 (HB)
v.                                        )        No. 01 Civ. 2090 (HB)
                                          )        No. 01 Civ. 5579 (HB)
METROPOLITAN LIFE INSURANCE               )
COMPANY,                                  )
                                          )
                        Defendant.        )
__________________________________________)

                            STIPULATION OF SETTLEMENT

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                                TABLE OF CONTENTS

<TABLE>
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<S>    <C>                                                                                       <C>
I.     INTRODUCTION AND DEFINITIONS............................................................    2

       A.    Allegations and Response..........................................................    2
       B.    Discovery.........................................................................    4
       C.    Settlement Considerations.........................................................    5
       D.    Definitions.......................................................................    5

II.    SETTLEMENT AGREEMENT TERMS..............................................................   25

III.   BENEFITS FOR IN-FORCE POLICIES..........................................................   32

       A.    The Enhanced Future Death/Maturity Benefit........................................   32
       B.    The Enhanced Future Termination/Non-Forfeiture Benefit............................   34
       C.    The Enhanced Additional Insurance Benefit.........................................   37
       D.    The Cash Payment Option...........................................................   38
       E.    The Prospective Commitment........................................................   39

IV.    RELIEF FOR DEATH/MATURITY POLICIES:   THE ENHANCED PAST DEATH/MATURITY BENEFIT..........   40

       A.    Standard Enhancements.............................................................   40
       B.    Additional Enhancements...........................................................   41

V.     BENEFITS FOR TERMINATED POLICIES........................................................   42

       A.    The Enhanced Past Termination Benefit.............................................   42
       B.    The Settlement Death Benefit......................................................   43

VI.    MET SERIES ENHANCEMENT..................................................................   46

VII.   UNCLAIMED BENEFITS RELIEF...............................................................   47

VIII.  COMPANY CERTIFICATION OF RELIEF.........................................................   50

IX.    RELIEF QUALIFICATIONS...................................................................   51

X.     MINIMUM/MAXIMUM COST OF BENEFITS........................................................   57
</TABLE>

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                                TABLE OF CONTENTS
                                   (Continued)

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<CAPTION>
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<S>    <C>                                                                                       <C>
XI.    NOTICE TO CLASS MEMBERS AND COMMUNICATIONS WITH CLASS MEMBERS AND POLICYOWNERS..........   60

       A.    Class Notice Package..............................................................   60
       B.    Publication Notice and Other Media Notice.........................................   64
       C.    Remailing and Additional Notice...................................................   65
       D.    Post-Settlement Mailing...........................................................   66
       E.    Retention of Administrator........................................................   66
       F.    Communication with Class Members, Policyowners and Producers......................   72
       G.    Media Communications..............................................................   74

XII.   REQUESTS FOR EXCLUSION..................................................................   75

XIII.  OBJECTIONS TO THE SETTLEMENT............................................................   76

XIV.   RELEASE AND WAIVER, AND ORDER OF DISMISSAL..............................................   78

       A.    Release and Waiver................................................................   78
       B.    Order of Dismissal................................................................   83

XV.    ATTORNEYS' FEES AND EXPENSES............................................................   84

XVI.   ORDER OF NOTICE, FAIRNESS HEARING AND ADMINISTRATION....................................   85

XVII.  FINAL APPROVAL, AND FINAL JUDGMENT AND ORDER APPROVING SETTLEMENT.......................   92

XVIII. MODIFICATION OR TERMINATION OF THIS AGREEMENT...........................................   96

XIX.   GENERAL MATTERS AND RESERVATIONS........................................................  100
</TABLE>

                                       ii

<PAGE>

                          UNITED STATES DISTRICT COURT
                      FOR THE SOUTHERN DISTRICT OF NEW YORK

__________________________________________
                                          )
KARL M. THOMPSON and LUCILE ELLIS,        )
                                          )
On Behalf of Themselves and All Others    )        No. 00 Civ. 5071 (HB)
Similarly Situated,                       )
                                          )        Also applies to:
                        Plaintiffs,       )
                                          )        No. 00 Civ. 9068 (HB)
v.                                        )        No. 01 Civ. 2090 (HB)
                                          )        No. 01 Civ. 5579 (HB)
METROPOLITAN LIFE INSURANCE               )
COMPANY,                                  )
                                          )
                        Defendant.        )
__________________________________________)

                            STIPULATION OF SETTLEMENT

         IT IS HEREBY STIPULATED AND AGREED, by, between and among Karl M.
Thompson, Lucile Ellis, Charlene McCallop, Marguerite Guillmette Justin,
Adrienne Delpit Blazio, and Myron Billups (as administrator of the Estate of
Nellie Gillespie) ("Plaintiffs"), in their individual and representative
capacities, and Metropolitan Life Insurance Company (hereinafter referred to as
"Metropolitan Life," "Defendant" or the "Company"), through their duly
authorized counsel, that the lawsuit captioned Karl M. Thompson, et al. v.
Metropolitan Life Insurance Company, Case No. 00 Civ. 5071 (HB), and all other
cases currently consolidated with it (the "Action"), and the matters raised by
the Action, are settled and compromised on the terms and conditions set forth in
this

<PAGE>

Stipulation of Settlement with attached exhibits (the "Settlement
Agreement"), and the Release set forth in this Stipulation of Settlement,
subject to the approval of the Court.

I.       INTRODUCTION AND DEFINITIONS

         A.       ALLEGATIONS AND RESPONSE

                  1.       The Action asserts racial discrimination claims
relating to the pricing, underwriting, sale, issuance, characteristics,
administration, and the providing of information (or failure to provide
information) regarding the Policies. The Action alleges, among other things,
that the Company discriminated against Class Members by engaging in the
following practices:
                           a.       charging Class Members more in premiums for
their insurance policies than similarly situated Caucasians;

                           b.       designing and offering products to Class
Members that were inferior to products available to Caucasians;

                           c.       manipulating commissions paid to sales
agents in furtherance of a policy and practice of racial discrimination;

                           d.       requiring mercantile reports and medical
reports on Class Members in furtherance of a policy and practice of racial
discrimination;

                           e.       underwriting Class Members on the basis of
purportedly neutral social and economic factors (such as occupation, moral
hazard, income or place of residence) as a pretext for a policy and practice of
racial discrimination;

                           f.       selling and marketing Policies as "burial"
protection;

                                       2

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                           g.       selling a Policy or multiple Policies to
Class Members regardless of the suitability or appropriateness of such Policies
for an applicant or insured, when compared to other life insurance policies made
available to Caucasians;

                           h.       limiting the amount of insurance available
to Class Members;

                           i.       improperly training agents to sell inferior
and multiple life insurance policies to Class Members;

                           j.       selling Policies to Class Members for which
premiums were excessive and unconscionable based on their race or national
origin;

                           k.       allocating Class Members fewer shares in the
Company's demutualization in 2000 than the shares allocated to similarly
situated Caucasian policyholders;

                           l.       training and permitting agents to decrease
the frequency with which Policy premiums were to be collected;

                           m.       using discriminatory methods or actuarial
principles for the apportionment and payment of, determination of, or amount of
dividends on any Policy;

                           n.       failing to pay, delaying payment, or failing
to inform any person of death or maturity benefits under a Policy;

                           o.       failing to notify persons or entities to
whom Policy benefits have become payable, leading to improper escheatment of
Policy benefits;

                           p.       failing to discontinue, correct or remedy
effects of discrimination on the basis of race or national origin;

                                       3

<PAGE>

                           q.       concealing material information from Class
Members about the discriminatory nature of their Policies; and

                           r.       training or directing Company agents to
conceal or not disclose MetLife's discriminatory practices in the sale and
servicing of the Policies.

                  2.       Plaintiffs continue to believe that there was and is
a good faith basis for these allegations.

                  3.       The Company expressly denies any allegations of
wrongdoing against it and does not admit or concede any actual or potential
fault, wrongdoing or liability in connection with any facts or claims that
have been or could have been alleged against it in the Action and does not waive
any defenses or positions in any other dispute concerning the Policies. The
Company denies that any of the claims in the Action are meritorious.

         B.       DISCOVERY

                  1.       In the course of their examination and discovery in
the litigation, counsel for Plaintiffs reviewed, among other things,
approximately 450,000 pages of documents produced by the Company, deposed 21
current or former Company officials and employees and conducted other discovery
of the Company, its agents and its policyowners relating to the issues raised in
the Action.

                  2.       In the course of its examination and discovery in the
litigation, the Company (together with its counsel) reviewed the documents it
produced to Plaintiffs and documents produced to it by Plaintiffs. Defendant's
Counsel also conducted eight depositions of the Plaintiffs and other
individuals.

                                       4

<PAGE>

         C.       SETTLEMENT CONSIDERATIONS

                  1.       Based upon their discovery, investigation and
evaluation of the facts and law relating to the matters alleged in the
pleadings, Plaintiffs and counsel for Plaintiffs and the Class have agreed to
settle the Action pursuant to the provisions of this Settlement Agreement after
considering, among other things, (i) the substantial benefits available to
Plaintiffs and the Class under the terms of this Settlement Agreement, (ii) the
attendant risks and uncertainty of litigation, especially in complex actions
such as this, as well as the difficulties and delays inherent in such
litigation, and (iii) the desirability of consummating this settlement promptly
to provide effective relief to Plaintiffs and the Class.

                  2.       The Company, while expressly denying any wrongdoing
and the allegations made in the Action, considers it desirable for the Action to
be settled and dismissed because this Settlement Agreement will (i) provide
significant benefits to the Company's present and former policyowners and
insureds, (ii) avoid the substantial expense, burdens and uncertainties
associated with continued litigation of the claims asserted in the Action and
(iii) provide for a certain and prompt resolution of the claims asserted in the
Action.

         D.       DEFINITIONS

                  1.       As used in this Settlement Agreement and the annexed
exhibits (which are an integral part of this Settlement Agreement and are
incorporated in their entirety by reference), the following terms have the
following meanings, unless a Section or Subsection of this Settlement Agreement
or its exhibits expressly provides otherwise:

                                       5

<PAGE>

                           a.       "Action" shall mean the lawsuit
captioned Thompson, et al. v. Metropolitan Life Insurance Company, No. 00 Civ.
5071 (HB), and all cases consolidated with it, including, but not limited to,
Justin, et al. v. Metropolitan Life Insurance Company, No. 00 Civ. 9068 (HB),
McCallop v. Metropolitan Life Insurance Company, No. 01 Civ. 2090 (HB) and
Billups v. Metropolitan Life Insurance Company, No. 01 Civ. 5579 (HB).

                           b.       "Additional Enhancement" shall mean the
enhancements or payments, in addition to the enhancements or payments provided
as Standard Enhancements (defined in Section I.D.1.jjjj, below), that shall be
provided to Holders of certain In-Force Policies and Death/Maturity Policies
pursuant to this Settlement Agreement.

                           c.       "Additional Insurance" shall mean paid-up
insurance additional to the Face Amount of a Policy, having its own contractual
cash values.

                           d.       "Administrator" shall mean any third-party
agents or administrators whom the Company shall retain, upon approval of Lead
Counsel, to help implement the terms of this Settlement Agreement.

                           e.       "Affinity Group" shall mean (i) the Class
Member or his or her spouse, sibling, parent or child (including a stepchild
residing with the Class Member), and/or (ii) any person in whom the Class Member
has an insurable interest; provided however, that no member of the Affinity
Group shall be over age 72 as of January 1, 2004.

                                       6

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                           f.       "Agent Script" shall mean the script that
the Company shall disseminate to its current Producers, as further described in
Section XI.F.3 below.

                           g.       "Agreement" or "Settlement Agreement" shall
mean this Stipulation of Settlement and the attached exhibits, including any
subsequent amendments thereto and any exhibits to such amendments.

                           h.       "Alternate Covered Person" shall mean, for
purposes of any Settlement Death Benefit provided pursuant to Section V.B, a
person who is a member of the Class Member's Affinity Group who is designated
pursuant to the terms of Section V.B.7 as the person upon whose qualifying death
the Settlement Death Benefit provided under this Agreement will be paid.

                           i.       "Alternate Recipient" shall mean such person
as the Class Member may choose to receive the SDB payment pursuant to the terms
and conditions set forth in Section V.B below.

                           j.       "Amended Complaint" shall mean the Amended
Consolidated Class Action Complaint in this Action filed by Plaintiffs on
July 19, 2002.

                           k.       "Application File" shall mean the
application submitted for the Policy; any statement of the agent or other sales
representative submitted in connection with the application for the Policy; any
report of medical or paramedical examination obtained in connection with the
underwriting of the application; any mercantile report obtained in connection
with the underwriting of the application; and any other documents in the
application file for the Policy.

                                       7

<PAGE>

                           l.       "Attorneys' Fees and Expenses" shall mean
such funds as may be agreed to by the Parties and/or awarded to Lead Counsel by
the Court to compensate them (and all other attorneys of record for Plaintiffs
in this Action as of the Execution Date) for their fees and expenses in
connection with the Action, as provided for in Section XV below.

                           m.       "Cash Payment Option" shall mean the option
of Eligible Holders of In-Force Policies to receive a cash payment from the
Company instead of the Enhanced Future Death/Maturity Benefit, the Enhanced
Future Termination/Non-Forfeiture Benefit and the Enhanced Additional Insurance
Benefit, as described in Section III.D below.

                           n.       "Cash Payment Option Election Letter" shall
mean the letter sent to the Holders of In-Force Policies, substantially in the
form attached hereto as Exhibit J, by which such Class Members may exercise
their right to receive a cash payment from the Company instead of the Enhanced
Future Death/Maturity Benefit, the Enhanced Future Termination/Non-Forfeiture
Benefit and the Enhanced Additional Insurance Benefit, as described in
Section III.D below.

                           o.       "Cash Value" shall mean the cash value
associated with a Policy's Face Amount. For each Policy other than any Policy
that went onto an extended term-insurance non-forfeiture status and then
expired prior to January 1, 1968, the cash value associated with the Policy's
Face Amount shall not be reduced by any policy loan.

                           p.       "Claim Form" shall mean the form included
with the Class Notice Package that Holders of certain Policies shall be required
to complete and submit

                                       8

<PAGE>

in order to become Eligible Holders, pursuant to Sections IX.B and IX.E below.
The Claim Form shall be in substantially the form appended hereto as Exhibit A,
and shall be contained in a wrapper that clearly indicates that (i) a Claim Form
is enclosed, (ii) the Claim Form must be submitted to obtain settlement benefits
unless a Statement of Benefits included in the Class Notice Package states that
submission of the Claim Form for the Policy is unnecessary, and (iii) Claim
Forms must be postmarked by the Claim-In Date.

                           q.       "Claim-In Date" shall mean the date 75 days
after the Fairness Hearing.

                           r.       "Claim-Resolution Date" shall mean the date
by which all disputes concerning the eligibility for settlement benefits of any
person or entity who submits a Claim Form shall be finally resolved pursuant to
Section IX.G below, which date shall be no later than 195 days after the
Claim-In Date.

                           s.       "Class" or "Class Members" shall mean all
Holders (including their estates) of Policies, but shall not include (unless and
to the extent such persons or entities are Class Members by virtue of their
status as Holder of another Policy) the following: (i) any Excluded Entity; (ii)
any persons or entities who are Holders (or their estates) of a Policy (a) for
which a timely request for exclusion from the proposed class has been received
from any Holder or Estate Holder; (b) that was issued by the Company, but not
accepted and paid for, or was returned to the Company as part of the exercise of
a free look provision in the Policy; or (c) that is the subject of a release
signed by any person or entity while represented by counsel settling a claim or
dispute and releasing

                                       9

<PAGE>

Metropolitan Life from any further liability concerning such Policy; and (iii)
any insurance company that owns or owned a Policy pursuant to an absolute
assignment effected as part of an exchange under section 1035 of the Internal
Revenue Code.

                           t.       "Class Counsel" shall mean Milberg Weiss
Bershad Hynes & Lerach LLP; Bonnett, Fairbourn, Friedman & Balint, P.C.; James,
Hoyer, Newcomer & Smiljanich, P.A.; Watson Jimmerson Givhan & Martin, P.C.;
Whatley Drake, LLC; Arnzen, Parry & Wentz, P.S.C.; Herman Herman Katz & Cotlar,
LLP; Carter & Cates; The Nygaard Law Firm; Barrett, Towmey, Broom, Hughes &
Wesley; Campbell, Waller & Loper, LLC; Foote, Meyers, Miekle, Flowers & Solano,
LLC; and Specter Specter Evans & Manogue, P.C.

                           u.       "Class Notice" shall mean the notice of the
terms of the proposed settlement included in the Class Notice Package.

                           v.       "Class Notice Package" shall mean the notice
package, as approved in form and content by counsel to Plaintiffs and Defendant
and the Court, and substantially in the form attached hereto as Exhibit A, to be
provided to Class Members pursuant to Section XI.A of this Settlement Agreement.
The Class Notice Package shall include (i) the Class Notice, (ii) a Claim Form,
and (iii) in the case of Database Policies, a Statement of Benefits.

                           w.       "Company" or "Metropolitan" or "Metropolitan
Life" shall mean Metropolitan Life Insurance Company.

                           x.       "Confirmatory Letter" shall mean the letter,
in the form attached hereto as Exhibit K, to be sent to the last-known address
on the Company's

                                       10

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electronic records of payees of certain Death/Maturity Policies as updated
hereunder, seeking to confirm the address of such payee or to obtain an updated
address for such payee postmarked within 30 days of the date of the letter, as
described in Section IX.C.3 below.

                           y.       "Court" shall mean the United States
District Court for the Southern District of New York, where the Action is
pending.

                           z.       "Covered Met Series Policy" shall mean
any life insurance policy described in Exhibit N hereto.

                           aa.      "Covered Person" shall mean the person upon
whose qualifying death the Settlement Death Benefit provided under this
Agreement will be paid, which person shall be the insured under the Policy
making the Class Member eligible for relief, unless the Class Member designates
an Alternate Covered Person pursuant to Section V.B.7 below.

                           bb.      "Database Policies" shall mean (a) any
Policy for which the insured is reflected on the Company's electronic records as
non-Caucasian; (b) any 1920-1929 Intermediate Policy and any Other Industrial
Monthly Substandard Policy on the Company's electronic records for which the
race of the insured is identified in the Application File as other than
Caucasian; and (c) any 1930-1935 Ordinary Substandard Policy, 1927-1929
Industrial Monthly Substandard Policy or Industrial Weekly Substandard Policy on
the Company's electronic records for which the race of the insured is not
identified in the Company's electronic records as Caucasian.

                                       11

<PAGE>

                           cc.      "Death/Maturity Policies" shall mean any
Policy on which, prior to the Eligibility Date, a death, maturity or endowment
benefit has been paid or has become payable pursuant to its terms.

                           dd.      "Defendant" shall mean Metropolitan Life
Insurance Company.

                           ee.      "Defendant's Counsel" shall mean the law
firm of Debevoise & Plimpton.

                           ff.      "Domestic Partner" shall mean an individual
who, prior to the death of a Holder:

                                    (i)      Lived with the Holder in an
intimate and committed relationship of mutual caring at a time where both
individuals were at least 18 years of age and neither individual was married or
in another domestic partnership;

                                    (ii)     Shared the same residence with the
Holder at the time of the Holder's death; and

                                    (iii)    Agreed with the Holder to be
jointly responsible for basic living expenses incurred during the domestic
partnership.

                           gg.      "Early Termination Adjustment" shall equal
X/Y, where:

                                    (i)      X equals the number of years that a
Policy was premium-paying; and

                                    (ii)     Y equals the lesser of (a) the
number of years that the Company required premiums to be paid for the Policy
absent the death of the insured and (b) 2002 minus the year in which the
Policy was issued.

                                       12

<PAGE>

                           hh.      "Eligibility Date" shall mean August 19,
2002.

                           ii.      "Eligible Holder" shall mean a Holder who
has satisfied the requirements, if any, set forth in Section IX below. Only
those Holders who are Eligible Holders shall be entitled to receive benefits
under this Agreement.

                           jj.      "Enhanced Additional Insurance Benefit"
shall mean the Additional Insurance to be provided to Eligible Holders of
certain In-Force Policies under this Settlement Agreement, as described in
Section III.C below.

                           kk.      "Enhanced Future Death/Maturity Benefit"
shall mean the terminal dividend (composed of a Standard Enhancement and, where
applicable, an Additional Enhancement) to be provided to Eligible Holders of
certain In-Force Policies under this Settlement Agreement, as described in
Section III.A below.

                           ll.      "Enhanced Future Termination/Non-Forfeiture
Benefit" shall mean the surrender dividend (composed of a Standard Enhancement
and, where applicable, an Additional Enhancement) to be provided to Eligible
Holders of certain In-Force Policies under this Settlement Agreement, as
described in Section III.B below.

                           mm.      "Enhanced Past Death/Maturity Benefit" shall
mean the cash payment to be provided to Eligible Holders of Death/Maturity
Policies under this Settlement Agreement, as described in Section IV below.

                           nn.      "Enhanced Past Termination Benefit" shall
mean the cash payment to be provided to Eligible Holders of certain Terminated
Policies under this Settlement Agreement, as described in Section V.A below.

                                       13

<PAGE>

                           oo.      "Estate Holder" shall mean, with respect to
any Policy for which all Eligible Holders are deceased, any estate of a Holder
of the Policy that satisfies the requirements of Section II.C below.

                           pp.      "Excluded Entity" shall mean any entity
that is not a natural person (such as a funeral home, creditor, institutional
assignee or state government, or any branch, department or entity thereof) and
that is an assignee of the benefits of, or is not an owner of, a Policy.
Excluded Entities shall not be Class Members and shall not be eligible to
receive any benefit provided under this Agreement, whether directly, indirectly,
or on behalf of, or on account of benefits made available to, a Class Member.

                           qq.      "Execution Date" shall mean the first date
on which the Settlement Agreement has been executed by all of the undersigned.

                           rr.      "Face Amount" shall mean the amount of
insurance specified on the face of the Policy, including any additions to such
amount of insurance by Company liberalizations, equalizations or other
enhancements.

                                    (i)      The Face Amount of a Policy shall
be exclusive of any Additional Insurance, ancillary benefit or rider coverage;
provided however, that if a Policy has paid or pays in the future an accidental
death benefit in addition to the amount of insurance specified on the face of
the Policy (including any additions thereto by Company liberalizations,
equalizations or other enhancement), then the accidental death benefit shall be
included as part of the Face Amount.

                                    (ii)     Except as provided in Section
I.D.1.rr(iii) below, the Face Amount of a Policy that is providing reduced
paid-up insurance coverage under

                                       14

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a contractual nonforfeiture option shall be the amount of reduced paid-up
insurance coverage provided under that option.

                                    (iii)    For purposes of the calculation of
any Settlement Death Benefit pursuant to Section V.B below, (a) the Face Amount
of any Policy on a reduced paid-up non-forfeiture status shall equal the face
amount of the Policy at the time that it was issued; and (b) for any Industrial
Weekly Policy that was issued in a substandard policy plan, and that was placed
on a reduced paid-up non-forfeiture status at any time, the Face Amount of the
Policy shall equal the face amount of the Policy at the time that it was issued,
multiplied by the appropriate ratio in Exhibit L hereto.

                           ss.      "Fairness Hearing" shall mean the hearing at
or after which the Court will make a final decision whether to approve this
Settlement Agreement.

                           tt.      "Final Judgment" shall mean the judgment
entered pursuant to the Order Approving Settlement, as contemplated in
Section XVII of this Settlement Agreement.

                           uu.      "Final Settlement Date" shall mean the date
on which the Final Judgment and Order Approving Settlement become final. For
purposes of this definition, the Final Judgment and Order Approving Settlement
shall become final:

                                    (i)      if no appeal is taken therefrom, on
the date on which the time to appeal has expired;

                                    (ii)     if any appeal is taken therefrom,
on the date on which all appeals therefrom, including petitions for rehearing or
reargument, petitions for rehearing en banc and petitions for certiorari or any
other form of review, have been

                                       15

<PAGE>

finally disposed of in a manner resulting in an affirmance of the Final Judgment
and Order Approving Settlement; or

                                    (iii)    on a date after entry of the Final
Judgment and Order Approving Settlement, which date counsel for the Parties
agree to in writing.

                           vv.      "Hearing Order" shall mean the order to be
entered by the Court concerning notice, administration and the Fairness Hearing,
as contemplated in Section XVI of this Settlement Agreement, and substantially
in the form attached hereto as Exhibit D.

                           ww.      "Holders" shall mean, with respect to any
Policy, the following persons and entities:

                                    (i)      All past and present owners of
                                             Ordinary Policies;

                                    (ii)     All past and present insureds under
                                             Industrial Policies

                                    (iii)    All individual assignees of
                                             Industrial Policies that have been
                                             assigned by the Policy's named
                                             Insured; and

                                    (iv)     All payees of the contractual death
                                             benefits of Policies, where such
                                             death benefits became payable prior
                                             to the Eligibility Date based upon
                                             the death of the insured under the
                                             Policy.

                           xx.      "Identifying Information" shall mean either
(i) the policy number for a Policy or (ii) the alternative identifying
information requested by Exhibit E hereto. Persons or entities who have
completed and submitted Claim Forms postmarked on or before the Claim-In Date
shall be given a reasonable opportunity to provide additional Identifying
Information if such information is required to locate a Policy;

                                       16

<PAGE>

provided however, that all such additional Identifying Information must be
postmarked within 60 days of the Claim-In Date.

                           yy.      "Implementation Period" shall mean a period
of time that (i) commences on a date selected by the Company, is communicated in
writing to Lead Counsel, and is on or before the later of (a) 30 days after the
Final Settlement Date and (b) 130 days after the Claim-Resolution Date; and
(ii) ends on a date 150 days after it commences.

                           zz.      "Industrial Monthly Policies" shall mean
(i) any 1927-1929 Industrial Monthly Substandard Policy, (ii) any Other
Industrial Monthly Substandard Policy and (iii) any Industrial Monthly Standard
Policy.

                           aaa.     "Industrial Monthly Standard Policy" shall
mean any life insurance policy issued by the Company from its Industrial
Department insuring the life of a non-Caucasian, issued in a standard policy
plan or with a standard risk classification, and on which the policy's terms
required payment of monthly premiums.

                           bbb.     "Industrial Policies" shall mean Industrial
Monthly Policies and Industrial Weekly Policies.

                           ccc.     "Industrial Weekly Policies" shall mean
(i) any Pre-1948 Industrial Weekly Substandard Death/Maturity Policy, (ii) any
Pre-1963 Industrial Weekly Substandard Non-Forfeiture Policy, (iii) any Pre-1963
Industrial Weekly Substandard Terminated Policy and (iv) any other life
insurance policy issued by the Company from its Industrial Department insuring
the life of a non-Caucasian, and on which the policy's terms required payment of
weekly premiums.

                                       17

<PAGE>

                           ddd.     "Industrial Weekly Substandard Policies"
shall mean any life insurance policy issued by the Company from its Industrial
Department in a substandard policy plan, on which the policy's terms required
payment of weekly premiums, and for which the Company's records do not indicate
the race of the insured as Caucasian.

                           eee.     "In-Force Policies" or "In Force" shall
mean, for purposes of this Settlement Agreement only, any Policy that is
providing insurance coverage as of the Eligibility Date, including Policies that
as of the Eligibility Date are (a) fully paid-up; (b) providing coverage as
reduced paid-up or extended term insurance under a contractual non-forfeiture
provision; or (c) in the process of escheatment to any state but for which a
returned Claim Form discloses information sufficient to identify the appropriate
payee of the Policy's benefits.

                           fff.     "Interest" shall mean simple interest at 4.0
percent per annum calculated to the first day of the Implementation Period, and
commencing on the later of (i) the date of the Policy's termination, maturity,
or payment of death benefit, as applicable, or (ii) January 1, 1975.

                           ggg.     "Issue Date" shall mean the "issue date" set
forth in the Policy contract.

                           hhh.     "Lead Counsel" shall mean the law firms of
Milberg Weiss Bershad Hynes & Lerach LLP; Bonnett, Fairbourn, Friedman & Balint,
P.C.; and Herman Herman Katz & Cotlar, LLP.

                           iii.     "Neutral" shall mean a third-party to whom
the Company and Lead Counsel shall agree, which third party shall resolve
disputes between the Parties as

                                       18

<PAGE>

to whether a person or entity who has submitted a Claim Form and, when
requested, other Identifying Information is entitled to benefits under this
Settlement Agreement, as described in Section IX.G below.

                           jjj.     "1930-1935 Ordinary Substandard Policies"
shall mean any life insurance policy issued by the Company from its Ordinary
Department in the Endowment at 80, 25-Year Endowment or 25-Pay Life policy plan,
from January 1, 1930 through December 31, 1935, for which the Company's records
do not indicate the race of the insured as Caucasian.

                           kkk.     "1920-1929 Intermediate Policies" shall mean
any life insurance policy insuring the life of a non-Caucasian issued by the
Company from January 1, 1920 through December 31, 1929 in an intermediate policy
plan.

                           lll.     "1927-1929 Industrial Monthly Substandard
Policies" shall mean any life insurance policy issued by the Company from its
Industrial Department in a substandard policy plan from January 1, 1927 through
December 31, 1929, for which the Company's records do not indicate the race of
the insured as Caucasian, where such policy's terms required payment of a stated
amount of premiums per month.

                           mmm.     "Notice Card" shall mean the card,
substantially in the form attached hereto as Exhibit F, that the Company shall
make available to its Producers, and that the Administrator shall make available
to certain others (by hand, mail, or via the Internet, including the
Administrator's Web site), to give to Class Members who inquire about this
Settlement Agreement, as further described in Section XI.F.3 below.

                                       19

<PAGE>

                           nnn.     "Order Approving Settlement" shall mean the
order entered by the Court approving the settlement and this Settlement
Agreement.

                           ooo.     "Ordinary Policies" shall mean all Ordinary
Substandard Policies and Covered Met Series Policies.

                           ppp.     "Ordinary Substandard Policies" shall mean
(i) any 1930-1935 Ordinary Substandard Policy and (ii) any other life insurance
policy, other than a 1920-1929 Intermediate Policy, issued by the Company from
its Ordinary Department with an intermediate, special-class or other substandard
risk classification, and insuring the life of a non-Caucasian.

                           qqq.     "Other Industrial Monthly Substandard
Policy" shall mean any life insurance policy, other than a 1927-1929 Industrial
Monthly Substandard Policy, issued by the Company from its Industrial Department
insuring the life of a non-Caucasian, in an other-than-standard policy plan or
with an other-than-standard risk classification, and on which the policy's terms
required payment of monthly premiums.

                           rrr.     "Other Ordinary Substandard Policies" shall
mean any Ordinary Substandard Policy other than a 1930-1935 Ordinary Substandard
Policy.

                           sss.     "Parties" or "Party" shall mean Plaintiffs
(in their individual and representative capacities) and/or Defendant
collectively and, where applicable, their respective counsel.

                           ttt.     "Plaintiffs" shall mean Karl M. Thompson,
Lucile Ellis, Charlene McCallop, Marguerite Guillmette Justin, Adrienne Delpit
Blazio, Myron Billups (as the administrator of the Estate of Nellie Gillespie)
and any other Class

                                       20

<PAGE>

Members added to the Amended Complaint or any subsequent pleading as named
plaintiffs, in their individual and representative capacities.

                           uuu.     "Policy" or "Policies" shall mean any and
all Industrial Policies, Ordinary Substandard Policies, 1920-1929 Intermediate
Policies and Covered Met Series Policies with an Issue Date during the period
from January 1, 1901 through December 31, 1972, inclusive; provided however,
that any Metropolitan Life insurance policy for which the claims asserted in the
Action have been previously litigated and resolved or dismissed with prejudice,
and are barred by the doctrine of res judicata, shall not be a Policy; and
provided however, that any Metropolitan Life insurance policy for which any
Holder or Estate Holder has timely requested exclusion from the proposed class
shall not be a Policy.

                           vvv.     "Postal Service" shall mean the United
States Postal Service.

                           www.     "Post-Settlement Mailing" shall mean the
mailing that the Company shall make starting at the commencement of the
Implementation Period, as described in Section XI.D below. The Post-Settlement
Mailing shall be completed within 60 days of the commencement of the
Implementation Period.

                           xxx.     "Preliminary Approval Hearing" shall mean
the hearing at or after which the Court will make a decision whether notice of
the Action and the proposed Settlement Agreement may be given.

                           yyy.     "Pre-1948 Industrial Weekly Substandard
Death/Maturity Policies" shall mean any life insurance policy issued by the
Company from its Industrial Department in a substandard policy plan, for which
the Company's records do not

                                       21

<PAGE>

indicate the race of the insured as Caucasian, on which the policy's terms
required payment of a stated amount of premiums per week, and where the policy
terminated prior to January 1, 1948 by reason of the death of the insured or the
maturity of the Policy.

                           zzz.     "Pre-1963 Industrial Weekly Substandard
Non-Forfeiture Policies" shall mean any life insurance policy issued by the
Company from its Industrial Department in a substandard policy plan, for which
the Company's records do not indicate the race of the insured as Caucasian, on
which the policy's terms required payment of a stated amount of premiums per
week, and where the policy went onto a reduced paid-up or extended term
non-forfeiture status prior to January 1, 1963.

                           aaaa.    "Pre-1963 Industrial Weekly Substandard
Terminated Policies" shall mean any life insurance policy issued by the Company
from its Industrial Department in a substandard policy plan, for which the
Company's records do not indicate the race of the insured as Caucasian, on which
the policy's terms required payment of a stated amount of premiums per week, and
where the policy lapsed, surrendered, or was terminated (other than by reason of
Policy maturity or the death of the insured) prior to January 1, 1963.

                           bbbb.    "Primary Eligible Holder" shall mean, with
respect to any Terminated Policy eligible for the SDB hereunder, the following
Eligible Holder of the Policy:

                                    (i)      For an Industrial Policy, the
insured under the Policy.

                                       22

<PAGE>

                                    (ii)     For an Ordinary Policy, the owner
of the Policy at the time it terminated, or if such person is not an Eligible
Holder, the first Eligible Holder of the Policy to become an Eligible Holder
under Section IX below.

                           cccc.    "Producer" shall mean any of the Company's
current account representatives, managers or managing directors.

                           dddd.    "Publication Notice" shall mean the
published notice and other media notice of the proposed settlement, as approved
in form and content by counsel for Plaintiffs and the Defendant and the Court,
as described in Section XI.B.

                           eeee.    "Recipient" shall mean the person or persons
to whom the Settlement Death Benefit under this Agreement shall be paid. Subject
to Section II.F below, the Eligible Holder(s) of the Policy under Section IX
below shall be entitled to payments under the SDB, unless the Class Member
designates an Alternate Recipient; provided however, that if the Recipient is
deceased at the time the payment is to be made, the Company may pay the
applicable death benefit to any person named as the beneficiary of the Policy
making the Class Member eligible for the SDB, or if that person is deceased or
cannot be paid for any reason, to any other person who appears to the Company to
be equitably entitled to such payment under Section II.D below.

                           ffff.    "Release" shall mean the release and waiver
set forth in Section XIV of this Settlement Agreement.

                           gggg.    "Releasees" shall mean the Company and each
of its past, present and future parents (including intermediate and ultimate
parents), subsidiaries, affiliates, predecessors, successors and assigns, and
each of its respective past, present

                                       23

<PAGE>

and future officers, directors, employees, district office clerks, general
agents, agents, managers, managing directors, producers, sales representatives,
account representatives, brokers, solicitors, attorneys, insurers, successors
and assigns, or any of them, including any person or entity acting on behalf or
at the direction of any of them.

                           hhhh.    "SDB Certificate" shall mean the
certificate, substantially in the form included at Exhibit H and including a
tear-off sheet for Class Members to designate an Alternate Covered Person and/or
Alternate Recipient, that shall be provided to Eligible Holders of certain
Terminated Policies starting at the commencement of the Implementation Period as
evidence of the benefits provided by the SDB.

                           iiii.    "Settlement Death Benefit" or "SDB" shall
mean a form of relief to be provided to Eligible Holders of certain Terminated
Policies, as described in Section V.B below.

                           jjjj.    "Standard Enhancement" shall mean the
enhancements or payments that shall be provided to Holders of certain In-Force
and Death/Maturity Policies pursuant to this Settlement Agreement. Wherever a
Holder is eligible for an Additional Enhancement (defined in Section I.D.1.b,
above), the Standard Enhancement calculation shall utilize the Policy's Face
Amount, Cash Value or death or maturity benefit as enhanced by the Additional
Enhancement, exclusive of Interest.

                           kkkk.    "Statement of Benefits" shall mean the
summary of benefits that is included in the Class Notice Package for Database
Policies, and provided upon request to Eligible Holders whose policies have been
confirmed to be Policies or whose

                                       24

<PAGE>

Claim Forms identify the number of a Policy for which information is available
on the Company's electronic records, as described in Section XI.A.4 below.

                           llll.    "Terminated Policies" shall mean any Policy
that, as of the Eligibility Date, has lapsed, surrendered or otherwise
terminated without insurance coverage, and has not been reinstated. For purposes
of this Settlement Agreement, the term "terminated" shall not include policies
that, as of the Eligibility Date, are fully paid-up or are providing coverage as
reduced paid-up or extended term insurance under a contractual non-forfeiture
provision.

                  2.       Defined terms used in combination in this Settlement
Agreement shall have the combined definitions ascribed to them in the Settlement
Agreement. For example, an In-Force Industrial Weekly Policy shall mean an
Industrial Policy that is both an Industrial Weekly Policy and In Force.

                  3.       Capitalized terms used in this Settlement Agreement
but not defined above shall have the meaning ascribed to them in this Settlement
Agreement and the attached exhibits.

II.      SETTLEMENT AGREEMENT TERMS

         A.       Pursuant to this Settlement Agreement, Class Members will,
 depending on their eligibility hereunder, receive one or more forms of the
benefits described in Sections III through VII below.

         B.       With respect to each Policy making a Class Member eligible for
benefits, the Policy's Eligible Holder(s) will receive the benefits for which
that Policy is eligible hereunder, subject to the terms of Sections II.C, II.D,
II.E and II.F below; provided

                                       25

<PAGE>

however, that for any settlement benefit payable under this Agreement based upon
a Policy for which a death claim is made following the commencement of the
Implementation Period, the settlement benefit shall be paid to the payee of the
Policy's contractual benefits (or, if there is more than one payee, to each
payee in proportion to the relative amounts of benefits to which each is
entitled under the Policy); and provided however, that in the event of any
conflict between this Section II and Section IX below, the provisions of Section
IX shall govern. No duplicate relief shall be provided to multiple Holders of
the same Policy, or to their estates or descendants.

         C.       If all Eligible Holders associated with a Policy are deceased,
then the Estate Holder(s) may exercise the rights of, and receive all settlement
benefits payable to, the Holders of such Policy, subject to the terms of
Sections II.D, II.E and II.F below. Settlement benefits shall be payable to the
Estate Holder only if, prior to the commencement of the Implementation Period,
either (a) the Holder's estate's administrator submits evidence of his or her
court-appointment as administrator of the estate or (b) an heir of the Holder
submits a declaration, in the form attached hereto as Exhibit I, establishing
the authority of the heir to act for the Holder's estate.

         D.       For all benefits under this Settlement Agreement other than
the SDB:

                  1.       Where more than one person or entity is an Eligible
Holder of a Policy, settlement benefits shall be distributed among such Eligible
Holders in the manner and using the procedures specified in Section II.E below.

                  2.       If all Eligible Holders of a Policy are deceased as
of the Eligibility Date, and more than one person or entity is an Estate Holder
of a Policy, settlement

                                       26

<PAGE>

benefits shall be distributed among such Estate Holders in the manner and using
the procedures specified in Section II.E below.

                  3.       If no person or entity is eligible for settlement
benefits under the provisions of Sections II.C through II.D.2 above, then any
spouse or Domestic Partner of any Holder may come forward to claim the benefits
for the Policy by submitting a Claim Form received by the Claim-In Date. Where
more than one such person timely claims to be entitled to receive benefits
associated with a Policy, the settlement benefits shall be distributed among
such persons in the manner and using the procedures specified in Section II.E
below.

                  4.       If no person or entity is eligible for settlement
benefits under the provisions of Sections II.C through II.D.3 above, then any
child (including stepchildren) of any Holder may come forward to claim the
benefits for the Policy by submitting a Claim Form received by the Claim-In
Date. Where more than one such person timely claims to be entitled to receive
benefits associated with a Policy, the settlement benefits shall be distributed
among such persons in the manner and using the procedures specified in Section
II.E below.

                  5.       If no person or entity is eligible for settlement
benefits under the provisions of Sections II.C through II.D.4 above, then any
parent of any Holder may come forward to claim the benefits for the Policy by
submitting a Claim Form received by the Claim-In Date. Where more than one such
person timely claims to be entitled to receive benefits associated with a
Policy, the settlement benefits shall be distributed

                                       27

<PAGE>

among such persons in the manner and using the procedures specified in Section
II.E below.

                  6.       If no person or entity is eligible for settlement
benefits under the provisions of Sections II.C through II.D.5 above, then any
sibling of any Holder may come forward to claim the benefits for the Policy by
submitting a Claim Form received by the Claim-In Date. Where more than one such
person timely claims to be entitled to receive benefits associated with a
Policy, the settlement benefits shall be distributed among such persons in the
manner and using the procedures specified in Section II.E below.

                  7.       If no person or entity is eligible for settlement
benefits under the provisions of Sections II.C through II.D.6 above, then any
grandchild of any Holder, or any offspring of such a grandchild, may come
forward to claim the benefits for the Policy by submitting a Claim Form received
by the Claim-In Date. Where more than one such person timely claims to be
entitled to receive benefits associated with a Policy, the settlement benefits
shall be distributed among such persons in the manner and using the procedures
specified in Section II.E below.

                  8.       If no person or entity is eligible for settlement
benefits under the provisions of Sections II.C through II.D.7 above, then any
other descendant or other relative of any Holder may come forward to claim the
benefits for the Policy by submitting a Claim Form received by the Claim-In
Date. Where more than one such person timely claims to be entitled to receive
benefits associated with a Policy, the

                                       28

<PAGE>

settlement benefits shall be distributed among such persons in the manner and
using the procedures specified in Section II.E below.

                  9.       If, by the Claim-In Date, no person or entity is
eligible for settlement benefits under the provisions of Sections II.C through
II.D.8 above, then the Company may provide the settlement benefits to any other
person appearing to the Company to be equitably entitled to receive the
benefits.

         E.       If more than one person or entity is eligible for benefits
under Section II.D above, then the settlement benefits for the Policy shall be
divided equally among all such persons and entities. In the event both an owner
and a payee of contractual death benefits are Eligible Holders of a
Death/Maturity Ordinary Policy, each shall be eligible at least to the benefits
described in Section X.D below.

         F.       For the SDB provided under this Settlement Agreement and
described in Section V.B below:

                  1.       If more than one person or entity is an Eligible
Holder, then:

                           a.       Unless an Alternate Recipient is designated,
all Eligible Holders shall be the Recipients under the SDB. Payments under the
SDB shall be made jointly to all Eligible Holders and mailed to the first person
or entity to become an Eligible Holder.

                           b.       The Primary Eligible Holder shall have the
authority to designate an Alternate Covered Person or Alternate Recipient for
the SDB.

                  2.       If all Eligible Holders under a Policy are deceased
as of the Eligibility Date, and more than one person or entity is an Estate
Holder, then:

                                       29

<PAGE>

                           a.       Unless an Alternate Recipient is designated,
all Estate Holders shall be the Recipients under the SDB. Payments under the SDB
shall be made jointly to all Estate Holders and mailed to the first person or
entity to become an Estate Holder.

                           b.       The first Estate Holder satisfying the
requirements of Section II.C above shall have the authority to designate an
Alternate Covered Person or Alternate Recipient for the SDB.

                  3.       If no person or entity is eligible for the SDB
pursuant to Sections II.C, II.F.1 or II.F.2 above, then the first relative of
any Holder to timely submit a Claim Form for the Policy shall be the Recipient
under the SDB and shall have the authority to designate an Alternate Covered
Person or Alternate Recipient for the SDB.

                  4.       If no person or entity is eligible for the SDB
pursuant to Sections II.C, II.F.1, II.F.2 or II.F.3 above, then the Company may
provide the settlement benefits to any other person appearing to the Company to
be equitably entitled to receive the benefits.

         G.       No person or entity who is not a Class Member shall receive
any benefit under this settlement, unless such person or entity first agrees to
be bound by the terms of the Release in Section XIV below with respect to the
Policy for which settlement benefits are received. This requirement shall appear
in the Class Notice. The Company reserves the right to include this requirement
in the endorsement section of each instrument used to provide settlement
payments.

         H.       Notwithstanding any other provision of this Agreement, where
no address is available for an Eligible Holder or other person eligible for
settlement benefits, or where

                                       30

<PAGE>

there is an available address but it is known by the Company to be invalid, no
settlement benefits shall be mailed to the Eligible Holder or other person.

         I.       If any Holder or Estate Holder excludes himself or herself
from the Class with respect to a Policy, all Holders (and their estates) of that
Policy will be deemed to be excluded with respect to that Policy.

         J.       In the event that provision of a particular form of relief
hereunder could cause adverse tax and/or other regulatory consequences to the
Class Member, or to his or her Policy, the Company shall not be obligated to
provide such relief but may, in its sole discretion and as an alternative, make
an economically comparable form of relief available to the Class Member. Lead
Counsel shall be notified in advance of any such substitution of relief.

         K.       In the event that the Parties determine that any provision of
this Settlement Agreement regarding its implementation has become
administratively impracticable, the Parties may agree to amend or eliminate such
provision as they mutually deem appropriate, without obtaining approval from the
Court.

         L.       If a death claim is made under an In-Force Policy, or if an
In-Force Policy matures, after the Eligibility Date but before the commencement
of the Implementation Period, then the Inforce Policy shall be treated as if it
were a Death/Maturity Policy on the Eligibility Date.

         M.       If an In-Force Policy is terminated after the Eligibility Date
but before the commencement of the Implementation Period, then the In-Force
Policy shall be treated as if it were a Terminated Policy on the Eligibility
Date.

                                       31

<PAGE>

         N.       The Company agrees and warrants that it will not utilize any
extraordinary or exceptional accounting or actuarial principles to recapture
from Class Members the costs of the settlement or otherwise to deprive Class
Members of the benefits provided for in this Settlement Agreement. Nothing in
this provision shall be construed to interfere with the Company's conduct of its
business in the normal course.

III.     BENEFITS FOR IN-FORCE POLICIES

         A.       THE ENHANCED FUTURE DEATH/MATURITY BENEFIT

                  1.       Starting at the commencement of the Implementation
Period, Eligible Holders of In-Force Industrial Weekly Policies, In-Force
Industrial Monthly Policies, and In-Force Other Ordinary Substandard Policies
that mature or pay a death benefit in the future shall receive, in addition to
the contractual death or maturity benefit, a terminal dividend in the amount of
the sum of the Standard Enhancement and the Additional Enhancement (if any) for
the Policy (calculated pursuant to Sections III.A.2 and III.A.3 below). Eligible
Holders of all such In-Force Policies shall receive the Standard Enhancement.
Eligible Holders of In-Force Pre-1963 Industrial Weekly Substandard
Non-Forfeiture Policies shall receive both the Standard Enhancement and the
Additional Enhancement.

                  2.       Standard Enhancements. The percentage of the Face
Amount at the time of the insured's death or the Policy's maturity (as enhanced
by any Additional Enhancement) constituting the Standard Enhancement shall be as
follows:

                                       32

<PAGE>

<TABLE>
<CAPTION>
Policy Type                                     Percentage Enhancement
-----------                                     ----------------------
<S>                                             <C>
Industrial Weekly                               12.5%
Other Industrial Monthly Substandard            12.5%
Industrial Monthly Standard                     5%
Other Ordinary Substandard                      15%
</TABLE>

                  3.       Additional Enhancements. For In-Force Pre-1963
Industrial Weekly Substandard Non-Forfeiture Policies, the Additional
Enhancement to the Policy's Face Amount at the time of the insured's death or
the Policy's maturity shall be calculated, on a Policy-by-Policy basis, based
upon the ratios in Exhibit L hereto. Such Additional Enhancement is designed to
provide In-Force Pre-1963 Industrial Weekly Substandard Non-Forfeiture Policies
with the benefit of the Company's 1963 equalization of Industrial Weekly
Substandard policy non-forfeiture values.

                  4.       In-Force 1920-1929 Intermediate Policies. Eligible
Holders of In-Force 1920-1929 Intermediate Policies shall be provided the
Enhanced Future Death/Maturity Benefit in the form of an increase, at the
commencement of the Implementation Date, of 9% to the Policy's Face Amount and
associated Cash Value.

                  5.       Death Certificate Review Obligation. Starting on the
Final Settlement Date, the Company shall review all future death certificates
submitted in connection with claims for benefits under life insurance policies
that may be Policies eligible for the Enhanced Future Death/Maturity Benefit
depending on the race of the insured.

                           a.       If, for any such policy, the Company's
review discloses that the insured's race was listed on the death certificate as
other than Caucasian, then the Holders of such Policy shall be deemed Eligible
Holders and the Enhanced Future

                                       33

<PAGE>

Death/Maturity Benefit for the Policy shall be provided, unless all documents in
the Application File that describe the insured's race indicate that the
insured's race is Caucasian.

                           b.       If the death certificate does not provide
the race of the insured, then the Company shall review the Application File (to
the extent it has not already reviewed the Application File in connection with
this Agreement) for the life insurance policy. If the Company's review discloses
that the insured's race was identified in any part of the Application File as
other than Caucasian, then the Holders of such Policy shall be deemed Eligible
Holders and the Enhanced Future Death/Maturity Benefit for the Policy shall be
provided.

                  6.       Policy Application File Review Obligation. Starting
on the Final Settlement Date, the Company shall review the Application File (to
the extent it has not already reviewed the Application File in connection with
this Agreement) of any life insurance policy that becomes eligible for payment
of maturity or endowment benefits and that may be a Policy eligible for the
Enhanced Future Death/Maturity Benefit depending on the race of the insured. If,
for any such policy, the Company's review discloses that the insured's race was
listed in any part of the Application File as other than Caucasian, then the
Holders of such Policy shall be deemed Eligible Holders and the Enhanced Future
Death/Maturity Benefit for the Policy shall be provided.

         B.       THE ENHANCED FUTURE TERMINATION/NON-FORFEITURE BENEFIT

                  1.       Starting at the commencement of the Implementation
Period, Eligible Holders of In-Force Industrial Weekly Policies, In-Force
Industrial Monthly Policies, and

                                       34

<PAGE>

In-Force Other Ordinary Substandard Policies that lapse, surrender, or otherwise
terminate (other than by death or maturity) in the future, or that are placed on
a reduced paid-up or extended term non-forfeiture status in the future, shall
receive a surrender dividend in the amount of the sum of the Standard
Enhancement and the Additional Enhancement (if any) for the Policy (calculated
pursuant to Sections III.B.2 and III.B.3 below).  Eligible Holders of all such
Policies shall receive the Standard Enhancement.  Eligible Holders of In-Force
Pre-1963 Industrial Weekly Substandard Non-Forfeiture Policies shall receive
both the Standard Enhancement and the Additional Enhancement.

                  2.       Standard Enhancements.  The percentage of the
Policy's Cash Value at the time of termination or placement on non-forfeiture
status (as enhanced by any Additional Enhancement) constituting the Standard
Enhancement shall be as follows:

<TABLE>
<CAPTION>
Policy Type                                          Percentage Enhancement
-----------                                          ----------------------
<S>                                                  <C>
Industrial Weekly                                    12.5%
Other Industrial Monthly Substandard                 12.5%
Industrial Monthly Standard                          5%
Other Ordinary Substandard                           15%
</TABLE>

                  3.       Additional Enhancements. For In-Force Pre-1963
Industrial Weekly Substandard Non-Forfeiture Policies, the Additional
Enhancement to the Policy's Cash Value at the time of termination or placement
on non-forfeiture status shall be calculated, on a Policy-by-Policy basis, based
upon the ratios in Exhibit L hereto. Such Additional Enhancement is designed to
provide In-Force Pre-1963 Industrial Weekly Substandard Non-Forfeiture Policies
with the benefit of the Company's 1963 equalization of Industrial Weekly
Substandard policy non-forfeiture values.

                                       35

<PAGE>

                  4.       Application of Surrender Dividends to Non-Forfeiture
Policies. For those Policies that are placed on non-forfeiture status after the
commencement of the Implementation Period, the surrender dividend (composed of
the Standard Enhancement plus, where applicable, the Additional Enhancement)
shall be provided in the following form:

                           a.       For Policies placed on an extended term
insurance non-forfeiture status, the surrender dividend shall be added to the
Policy's total cash value for the purpose of calculating the duration of
non-forfeiture benefits provided by the Policy and the amount of cash value
available in the event the Policy is later surrendered for its cash value.

                           b.       For Policies placed on a reduced paid-up
non-forfeiture status, the surrender dividend shall be provided for the Policy
at the time the Policy pays a death benefit or is surrendered for its cash
value.

                  5.       In-Force 1920-1929 Intermediate Policies. Eligible
Holders of In-Force 1920-1929 Intermediate Policies shall be provided the
Enhanced Future Termination/Non-Forfeiture Benefit in the form of an increase,
at the commencement of the Implementation Date, of 9% to the Policy's Face
Amount and associated Cash Value.

                  6.       Policy Application File Review Obligation. Starting
on the Final Settlement Date, the Company shall review the Application File (to
the extent it has not already reviewed the Application File in connection with
this Agreement) of any life insurance policy that terminates and is presented
for payment of cash surrender benefits, and that may be a Policy eligible for
the Enhanced Future Termination/Non-Forfeiture

                                       36

<PAGE>

Benefit depending on the race of the insured. If, for any such policy, the
Company's review discloses that the insured's race was listed in the Application
File as other than Caucasian, then the Holders of such Policy shall be deemed
Eligible Holders and the Enhanced Future Termination/Non-Forfeiture Benefit for
the Policy shall be provided.

         C.       THE ENHANCED ADDITIONAL INSURANCE BENEFIT

                  1.       Eligible Holders of In-Force 1920-1929 Intermediate
Policies and In-Force 1930-1935 Ordinary Substandard Policies shall receive at
the commencement of the Implementation Period an increase in the Policy's amount
of insurance coverage in the form of Additional Insurance.

                  2.       For Eligible Holders of In-Force 1920-1929
Intermediate Policies, the amount of Additional Insurance comprising the
Enhanced Additional Insurance Benefit shall equal 35 percent of the Face Amount
of the Policy as of the Eligibility Date; provided however, that for any such
Policy on a non-forfeiture status as of the Eligibility Date, the Face Amount of
the Policy shall be increased by 35 percent. The Enhanced Additional Insurance
Benefit shall be provided in addition to the Enhanced Future Death/Maturity
Benefit and the Enhanced Future Termination/Non-Forfeiture Benefit for which the
Policy is eligible.

                  3.       For Eligible Holders of In-Force 1930-1935 Ordinary
Substandard Policies, the amount of Additional Insurance comprising the Enhanced
Additional Insurance Benefit shall equal 15 percent of the Face Amount of the
Policy as of the Eligibility Date; provided however, that for any such Policy on
a non-forfeiture status as of the Eligibility Date, the Face Amount of the
Policy shall be increased by 15 percent.

                                       37

<PAGE>

         D.       THE CASH PAYMENT OPTION

                  1.       Eligible Holders of any In-Force Policy may, instead
of receiving the Enhanced Future Death/Maturity Benefit, the Enhanced Future
Termination/Non-Forfeiture Benefit or the Enhanced Additional Insurance Benefit,
elect to receive a cash payment from the Company in an amount equal to the cost
for the Policy's settlement benefits pursuant to column 4 of the table in
Section I of Exhibit M hereto.

                  2.       Starting at the commencement of the Implementation
Period and ending no later than 30 days thereafter, the Company shall mail the
Cash Payment Option Election Letter, substantially in the form attached hereto
as Exhibit J, to each Eligible Holder associated with an In-Force Policy at the
address indicated on a Claim Form for the Policy, or at the last-known address
for the Eligible Holder if no Claim Form is submitted for the Policy. The Cash
Payment Option Election Letter shall indicate both (i) the dollar amounts of the
Enhanced Future Death/Maturity Benefit, the Enhanced Future
Termination/Non-Forfeiture Benefit and the Enhanced Additional Insurance Benefit
(if any) for the Policy, together with a general description of those forms of
benefits and (ii) the dollar amount that is payable in the alternative under the
Cash Payment Option. The Cash Payment Option Election Letter shall contain a
tear-off form that allows the Eligible Holder to request the Cash Payment
Option.

                  3.       To exercise the Cash Payment Option described in this
Section III.D, the Eligible Holder(s) of the Policy must elect the cash payment
by either (i) contacting the Administrator at the Toll-Free Number within 30
days after the date of the Cash Payment Option Election Letter for the Policy or
(ii) completing and returning the form

                                       38

<PAGE>

included with the Cash Payment Option Election Letter (which form must be
postmarked no later than 30 days after the date of the Cash Payment Option
Election Letter).

                  4.       Eligible Holders who timely elect the Cash Payment
Option shall be provided their cash payments within 60 days of the date of the
Cash Payment Option Election Letter.

         E.       THE PROSPECTIVE COMMITMENT

                  1.       The Company commits under this Agreement that,
starting at the commencement of the Implementation Period, any future
non-guaranteed policy elements that may be provided to Holders of 1930-1935
Ordinary Substandard Policies shall utilize the mortality assumptions and
factors utilized for the corresponding standard policy plan or form issued in
the same year to insure persons of the same issue age in the same risk
classification, and with the same Face Amount as the Policy (as enhanced by the
Enhanced Additional Insurance Benefit).

                  2.       The Company commits under this Agreement that,
starting at the commencement of the Implementation Period, any future
non-guaranteed policy elements that may be provided to Holders of 1920-1929
Intermediate Policies shall utilize the mortality assumptions and factors
utilized for the standard risk classification in the corresponding policy plan
or form issued in the same year to insure persons of the same issue age, and
with the same Face Amount as the Policy (as enhanced by the Enhanced Future
Death/Maturity Benefit and the Enhanced Additional Insurance Benefit).

                                       39

<PAGE>

IV.      RELIEF FOR DEATH/MATURITY POLICIES:
         THE ENHANCED PAST DEATH/MATURITY BENEFIT

         Eligible Holders of Death/Maturity Industrial Weekly Policies,
Death/Maturity Industrial Monthly Policies, Death/Maturity Ordinary Substandard
Policies and Death/Maturity 1920-1929 Intermediate Policies shall receive a cash
payment equal to the amount that is the sum of the Standard Enhancement and the
Additional Enhancement (if any) for the Policy (calculated pursuant to Sections
IV.A and IV.B below). Eligible Holders of all such Policies shall receive the
Standard Enhancement. Eligible Holders of Pre-1948 Industrial Weekly Substandard
Death/Maturity Policies, Pre-1963 Industrial Weekly Substandard Non-Forfeiture
Policies and 1927-1929 Industrial Monthly Substandard Policies shall receive
both the Standard Enhancement and the Additional Enhancement. Such cash payment
shall be provided via the Post-Settlement Mailing, as further described in
Section XI.D below.

         A.       STANDARD ENHANCEMENTS

                  1.       For Death/Maturity Industrial Weekly Policies and
Death/Maturity Other Industrial Monthly Substandard Policies, the Standard
Enhancement (if any) shall equal 12.5 percent of the Policy's Face Amount at the
time of the insured's death or the Policy's maturity (as enhanced by any
Additional Enhancement).

                  2.       For Death/Maturity Industrial Monthly Standard
Policies and 1927-1929 Industrial Monthly Substandard Policies, the Standard
Enhancement shall equal 5 percent of the Policy's Face Amount at the time of the
insured's death or the Policy's maturity (as enhanced by any Additional
Enhancement).

                                       40

<PAGE>

                  3.       For Death/Maturity Other Ordinary Substandard
Policies, the Standard Enhancement shall equal 15 percent of the Policy's Face
Amount at the time of the insured's death or the Policy's maturity.

                  4.       For Death/Maturity 1930-1935 Ordinary Substandard
Policies, the Standard Enhancement shall equal 15 percent of the Policy's Face
Amount at the time of the insured's death or the Policy's maturity, multiplied
by the Early Termination Adjustment, accumulated with Interest; provided
however, that the Early Termination Adjustment shall not apply to any such
Policy that paid a death or maturity benefit while providing reduced paid-up
insurance coverage under a contractual non-forfeiture provision.

                  5.       For Death/Maturity 1920-1929 Intermediate Policies,
the Standard Enhancement shall equal the sum of (i) 35 percent of the Policy's
Face Amount at the time of the insured's death or the Policy's maturity,
multiplied by the Early Termination Adjustment, accumulated with Interest; and
(ii) 9 percent of the Policy's Face Amount at the time of the insured's death or
the Policy's maturity, accumulated with Interest; provided however, that the
Early Termination Adjustment shall not apply to any such Policy that paid a
death or maturity benefit while providing reduced paid-up insurance coverage
under a contractual non-forfeiture provision.

         B.       ADDITIONAL ENHANCEMENTS

                  1.       For Pre-1948 Industrial Weekly Substandard
Death/Maturity Policies and Death/Maturity Pre-1963 Industrial Weekly
Substandard Non-Forfeiture Policies, the Additional Enhancement shall equal the
enhancement calculated for the particular Policy

                                       41

<PAGE>

using the ratios set forth in Exhibit L hereto, accumulated with Interest. Such
Additional Enhancement shall be designed to provide these Policies with the
benefit of the Company's 1948 and 1963 equalizations of Industrial Weekly
Substandard policy amounts of insurance and non-forfeiture values.

                  2.       For Death/Maturity 1927-1929 Industrial Monthly
Substandard Policies, the Additional Enhancement shall equal 13 percent (for
25-Year Endowment Policies) or 36 percent (for Endowment at 75 Policies) of the
Policy's Face Amount at the time of the insured's death or the Policy's
maturity, accumulated with Interest.

V.       BENEFITS FOR TERMINATED POLICIES

         A.       THE ENHANCED PAST TERMINATION BENEFIT

                  1.       Eligible Holders of Terminated Pre-1963 Industrial
Weekly Substandard Terminated/Non-Forfeiture Policies, Terminated 1927-1929
Industrial Monthly Substandard Policies, Terminated 1930-1935 Ordinary
Substandard Policies and Terminated 1920-1929 Intermediate Policies shall
receive a cash payment equal to the amount calculated for the Policy pursuant to
Sections V.A.2 through V.A.5 below. Such cash payment shall be provided via the
Post-Settlement Mailing, as further described in Section XI.D below.

                  2.       For Terminated Pre-1963 Industrial Weekly Substandard
Terminated/Non-Forfeiture Policies, the cash payment shall equal the enhancement
calculated for the particular Policy calculated using the ratios in Exhibit L
hereto, accumulated with Interest. Such payment shall be designed to provide
Terminated Pre-1963 Industrial Weekly Substandard Terminated/Non-Forfeiture
Policies with the benefit

                                       42

<PAGE>

of the Company's 1963 equalization of Industrial Weekly Substandard policy
non-forfeiture values.

                  3.       For Terminated 1930-1935 Ordinary Substandard
Policies, the cash payment shall equal 15 percent of the Cash Value of the
Policy at the time of termination, accumulated with Interest.

                  4.       For Terminated 1920-1929 Intermediate Policies, the
cash payment shall equal the 44 percent of the Cash Value of the Policy at the
time of termination, accumulated with Interest.

                  5.       For Terminated 1927-1929 Industrial Monthly
Substandard Policies, the cash payment shall equal 13 percent (for 25-Year
Endowment Policies) or 36 percent (for Endowment at 75 Policies) of the Cash
Value of the Policy at the time of termination, accumulated with Interest.

         B.       THE SETTLEMENT DEATH BENEFIT

                  1.       Eligible Holders of Terminated Industrial Weekly
Policies, Terminated Industrial Monthly Policies and Terminated Other Ordinary
Substandard Policies shall be entitled to the Settlement Death Benefit ("SDB").
Subject to Section V.B.7 below, the SDB shall commence on the Final Settlement
Date.

                  2.       For each such Policy making the Class Member eligible
for relief, the SDB shall provide a payment to the Recipient, upon the Company's
receipt of due proof of death of the Covered Person within the 5 years following
the Final Settlement Date, of an amount that is a percentage of the Face Amount
of the Policy at the time of termination (as enhanced by any Additional
Enhancement).

                                       43

<PAGE>

                  3.       For Terminated Industrial Weekly Policies and
Terminated Other Industrial Monthly Substandard Policies, the percentage of the
Face Amount of the Policy at the time of termination that is payable under the
SDB shall be 15.5 percent; provided however, that for Terminated Industrial
Weekly Policies that are eligible for the Enhanced Past Termination Benefit, and
for the sole purpose of calculating the percentage of the Face Amount at
termination payable under the SDB, the Face Amount shall be increased by the
ratio for the Policy provided in Exhibit L.

                  4.       For Terminated Industrial Monthly Standard Policies
and Terminated 1927-1929 Industrial Monthly Substandard Policies, the percentage
of the Face Amount of the Policy at the time of termination that is payable
under the SDB shall be 8 percent; provided however, that for Terminated
1927-1929 Industrial Monthly Substandard Policies, and for the sole purpose of
calculating the percentage of the Face Amount at termination payable under the
SDB, the Face Amount shall be increased by 13 percent (for 25-Year Endowment
Policies) or 36 percent (for Endowment at 75 Policies) to reflect the Enhanced
Past Termination Benefit provided for the Policy.

                  5.       For Terminated Other Ordinary Substandard Policies,
the percentage of the Face Amount of the Policy at the time of termination that
is payable under the SDB shall be 18 percent.

                  6.       At any time prior to the expiration of the SDB or
the death of the Covered Person, the Class Member may designate an Alternate
Recipient by completing and returning the portion of the SDB Certificate that is
designated for that purpose, as

                                       44

<PAGE>

shown in Exhibit H hereto, or by submitting such designation to the
Administrator's Internet Web site while it is operational.

                  7.       If the insured under the Policy creating eligibility
for the SDB is deceased as of the Final Settlement Date, then the Class Member
or his or her estate must designate a member of the Class Member's Affinity
Group as an Alternate Covered Person for purposes of the SDB, either (a) by
completing and returning the portion of the SDB Certificate that is designated
for that purpose, as shown in Exhibit H hereto, postmarked within 30 days after
the commencement of the Implementation Period; or (b) by submitting such
designation to the Administrator's Internet Web site (while it is operational)
within 30 days after the commencement of the Implementation Period. SDB coverage
for the Alternate Covered Person shall commence five days after the date of the
postmark of, or submission to the Administrator's Internet Web site of, the
Class Member's designation of the Alternate Covered Person.

                  8.       Starting at the commencement of the Implementation
Period, the Company shall mail an SDB Certificate, substantially in the form
attached hereto as Exhibit H, to each Eligible Holder entitled to the SDB. The
SDB Certificate shall include a form for designation of an Alternate Covered
Person and an Alternate Recipient.

                  9.       Research Initiative Regarding Terminated Policies
Eligible for the SDB. One year following the end of the Implementation Period,
and annually thereafter until all SDBs provided by this Agreement are no longer
in force, Metropolitan Life shall retain the services of a national information
service bureau (such as TRW, Equifax, or COMSERV, Inc.), subject to the approval
of Lead Counsel, for the purpose of

                                       45

<PAGE>

determining, based on the social security numbers of the Covered Persons for all
remaining in-force SDBs that are available to the Company on its electronic
records or obtained through Claim Forms submitted by Class Members, whether any
Covered Person covered by an SDB has died within the coverage period. If (a) the
foregoing research reveals that any such Covered Person has died, and (b) the
Company, using its best efforts, is able to contact the Recipient, and (c) the
Recipient qualifies for payment of the SDB, then the Recipient shall be eligible
to receive the payment under the SDB.

VI.      MET SERIES ENHANCEMENT

         A.       Covered Met Series Policies that are eligible to receive other
benefits pursuant to this Settlement Agreement shall receive an enhancement of
an additional three percent to the percentages used to calculate the benefits to
be provided by Sections III through V above.

         B.       Covered Met Series Policies that are eligible for no other
benefits under this Settlement Agreement shall receive the following at the
commencement of the Implementation Period:

                  1.       For In-Force Policies, either (a) an Enhanced Future
Death/Maturity Benefit of three percent of the Face Amount of the Policy at the
time of death or maturity; or (b) an Enhanced Future Termination/Non-Forfeiture
Benefit of three percent of the Cash Value of the Policy at the time of
termination or placement on non-forfeiture status. Such Policies shall also be
eligible for the Cash Payment Option described in Section III.D above.

                                       46

<PAGE>

                  2.       For Death/Maturity Policies, a cash payment equal to
three percent of the Policy's Face Amount at the time of the insured's death or
the Policy's maturity.

                  3.       For Terminated Policies, an SDB (as described in
Section V.B. above) with an amount of coverage of three percent of the Policy's
Face Amount at the time of termination.

VII.     UNCLAIMED BENEFITS RELIEF

         A.       For all Database Policies and Policies for which a Claim Form
has been timely submitted, and for which a death claim was paid in the period
from August 19, 1995 through the Claim-In Date, the Company shall conduct a
search for other Metropolitan life insurance policies that also insured the
person insured under the Policy in an effort to provide any death or maturity
benefits due under any other such policies, as follows:

                  1.       Within 30 days of the Claim-In Date, the Company
shall perform a comprehensive search, using the Company's electronic policy
databases and the protocols attached hereto as Exhibit C, to determine whether
any other Metropolitan life insurance policy or policies on those databases
insured the life of the deceased insured under the Policy.

                   2.      If the Company's search reveals that the deceased
insured was covered by any other Metropolitan Life insurance policy that, at the
time of the death of the insured, was providing life insurance coverage
(including without limitation pursuant to a contractual non-forfeiture option),
and with respect to which a death benefit was not paid, the Company shall use
its best efforts to notify the beneficiary or beneficiaries of the life

                                       47

<PAGE>

insurance policy and pay any death benefits due, plus any statutorily required
interest, regardless of whether such benefits have already escheated to a state
governmental authority.

                  3.       If the Company's search reveals that the deceased
insured was covered by any other Metropolitan Life insurance policy that, at the
time it reached maturity, was premium-paying, fully paid-up or providing
insurance coverage pursuant to a contractual non-forfeiture provision, and with
respect to which maturity benefits became payable but have not been paid, the
Company shall use its best efforts to notify the person or entity to whom the
policy's maturity benefits were payable (or, if such a person is deceased, his
or her estate) and pay the maturity benefits due, plus any statutorily required
interest, regardless of whether such benefits have already escheated to a state
governmental authority.

                  4.       In addition, if the Company's search reveals that the
deceased insured was covered under any other Metropolitan Life insurance policy
that was also a Policy, then the Policy shall be eligible for the settlement
benefits provided for the Policy under this Settlement Agreement.

         B.       For all Policies for which a death claim is paid after the
Claim-In Date, the Company shall conduct a search for other Metropolitan Life
insurance policies that also insured the life of the person insured under the
Policy in an effort to provide any death or maturity benefits due under any
other such policies, as follows:

                  1.       At the time the death claim is made under the Policy,
the Company shall perform a comprehensive search, using its electronic policy
databases and the

                                       48

<PAGE>

protocols attached hereto as Exhibit C, to determine whether any other
Metropolitan Life insurance policy or policies on those databases insured the
life of the deceased insured under the Policy.

                  2.       If the Company's search reveals that the deceased
insured was covered by any other Metropolitan Life insurance policy that, at the
time of the death of the insured, was providing life insurance coverage
(including without limitation pursuant to a contractual non-forfeiture option),
the Company shall use its best efforts to pay the death benefits due under the
life insurance policy, regardless of whether such benefits have already
escheated to a state governmental authority.

                  3.       If the Company's search reveals that the deceased
insured was covered by any other Metropolitan Life insurance policy that, at the
time it reached maturity, was premium-paying, fully paid-up or providing
insurance coverage pursuant to a contractual non-forfeiture provision, and with
respect to which maturity benefits became payable but have not been paid, the
Company shall use its best efforts to notify the person or entity to whom the
policy's maturity benefits were payable (or, if such a person is deceased, his
or her estate) and pay the maturity benefits due, plus any statutorily required
interest, regardless of whether such benefits have already escheated to a state
governmental authority.

                  4.       In addition, if the Company's search reveals that the
deceased insured was covered under any other Metropolitan Life insurance policy
that was also a Policy, then the Policy shall be eligible for the settlement
benefits provided for the Policy under this Settlement Agreement.

                                       49

<PAGE>

         C.       Starting at the commencement of the Implementation Period, the
Company shall search its electronic records that reflect prior escheatments of
life insurance policy benefits to state governmental authorities, using the
protocols attached hereto as Exhibit C, in an effort to identify other life
insurance policies insuring the lives of the persons insured under the Policies.
If this search identifies any such other life insurance policies for which death
or maturity benefits have previously become payable, but which benefits have
been escheated to a state governmental authority, the Company shall use its best
efforts to notify the person or entity to whom the policy's death or maturity
benefits were payable (or, if such a person is deceased, his or her estate) and
pay the death or maturity benefits due, plus any statutorily required interest.

VIII.    COMPANY CERTIFICATION OF RELIEF

         A.       On a date that is not later than six months following the
first anniversary of the end of the Implementation Period, the Company, through
one of its officers who is a member in good standing of the American Academy of
Actuaries, shall provide to Lead Counsel a written certification specifying the
actual cost to the Company, determined in accordance with Exhibit M hereto, of
the benefits that have been provided to Class Members pursuant to this Agreement
in the first year following the commencement of the Implementation Period.

         B.       Such summary shall detail the costs of benefits provided to
Class Members by each type of benefit provided under this Agreement and shall
describe the relevant supporting information on which the summary is based. In
addition, the certification shall contain a signed statement of the actuary
affirming that the actuary has reviewed the

                                       50

<PAGE>

relevant supporting information for the summary, that the actuary has authority
to make the certification on behalf of the Company, and that the summary is
accurate to the best of the actuary's knowledge and belief. Upon request of
Lead Counsel, the Company shall provide with the supporting information on
which the cost summary is based.

IX.      RELIEF QUALIFICATIONS

         A.       Holders of In-Force Database Policies shall automatically be
Eligible Holders.

         B.       Holders of In-Force Policies that are not Database Policies
shall become Eligible Holders if:

                  1.       All documents in the Policy's Application File that
state the insured's race do not unanimously indicate the race of the insured as
Caucasian, and

                  2.       One of the following conditions applies:

                           a.       A Claim Form identifying the insured,
identifying the race of the insured under the Policy as non-Caucasian and
providing Identifying Information for the Policy has been submitted postmarked
by the Claim-In Date or

                           b.       The Company's review under Section III.A.5,
Section III.A.6 or Section III.B.6 above discloses that the race of the insured
under the Policy is identified as non-Caucasian in the certificate of death for
the insured or in any part of the Policy's Application File.

         C.       Holders of Death/Maturity and Terminated Database Policies for
which the Company paid a death benefit within the seven years preceding the
Eligibility Date, or for which the Company paid a maturity, endowment or cash
surrender benefit on or after

                                       51

<PAGE>

January 1, 1989, shall automatically be Eligible Holders, subject to the
following terms and conditions:

                  1.       The Company shall conduct research (using the
National Change of Address database and ChoicePoint) to update the address of
the payee of the Policy's contractual benefits listed in the Company's records
or in a Claim Form submitted for the Policy.

                  2.       For those Policies for which the payee's address is
updated or confirmed through the research in Section X.C.1 above, starting at
the commencement of the Implementation Period, the Company shall mail any
benefit payments due under this Agreement to the payee (or, if there are
multiple payees, to each payee in proportion to the relative amounts of benefits
to which each is entitled under the Policy); provided however, that if the
Company's records indicate that the payee of the Policy is an Excluded Entity,
then the provisions of Section IX.D below shall apply.

                  3.       For those Policies for which the payee's address
cannot be updated or confirmed through the research in Section IX.C.1 above, 30
days after the Claim-In Date, the Company shall mail the Confirmatory Letter,
substantially in the form attached hereto as Exhibit K, to the payee of the
Policy's contractual benefits at the payee's last-known address on the Company's
records.

                           a.       If the Company receives an updated address
or confirmation of the address from the payee, either in a writing postmarked
within 30 days of the mailing of such Confirmatory Letter, or by telephone or
e-mail within such period, then starting at

                                       52

<PAGE>

the commencement of the Implementation Period, the Company shall mail any
benefit payments due under this Agreement to the payee at the updated or
confirmed address.

                           b.       If the Company does not receive an updated
address or confirmation of the address from the payee in the manner and within
the times specified in Section IX.C.3.a above, then the settlement benefits
otherwise payable to the payee shall increase the benefits that otherwise would
be provided to Eligible Holders, on a proportionate basis based on the cost of
each Policy's benefits (calculated in accordance with Exhibit M hereto).

                  4.       If the Company's records indicate that the payee of
the Policy is an Excluded Entity, then this Section IX.C shall not apply and the
provisions of Section IX.D below shall apply.

         D.       If the Company's records indicate that the payee of the Policy
is an Excluded Entity, then the Company shall provide the Policy's benefits
under this Agreement to the Policy's contractual beneficiary at his or her
last-known address on the Company's records. If there is no available
contractual beneficiary for the Policy, then the Company shall provide the
Policy's benefits under this Agreement as specified in Sections II.B through
II.F above.

         E.       Holders of all Death/Maturity Policies and Terminated Policies
except those described in Sections X.C through X.D above shall become Eligible
Holders only by submitting a Claim Form postmarked no later than the Claim-In
Date that (i) identifies the insured under the Policy, (ii) identifies the race
of the insured under the Policy as non-Caucasian and (iii) provides Identifying
Information for the Policy; provided

                                       53

<PAGE>

however, that no Holder of a Policy shall be an Eligible Holder if all documents
in the Policy's Application File that state the race of the person insured under
the Policy indicate unanimously that the insured's race is Caucasian.

         F.       The Administrator shall assist with the completion of Claim
Forms as follows:

                  1.       The toll-free telephone number established by the
Administrator shall permit persons seeking to obtain a Class Notice Package to
provide their names, telephone numbers, addresses and policy numbers.

                  2.       The Administrator shall establish an Internet Web
site that, in addition to providing notice of the proposed settlement,
facilitates the electronic submission of Claim Form information. If any person
or entity supplies Claim Form information electronically over the
Administrator's Web site, then to the extent practicable, the Administrator
shall provide such person or entity with a Claim Form that includes the
information that has been electronically submitted, together with a
pre-addressed and postage pre-paid envelope for return of the Claim Form to the
Administrator; provided however, that no Claim Form shall be valid unless it is
completed, signed and returned postmarked by the Claim-In Date.

         G.       Wherever a Claim Form is required by this Settlement
Agreement, the Company shall not be obligated to provide settlement
benefits to any person or entity who does not submit a Claim Form and other
Identifying Information sufficient to permit the Company to confirm that the
person or entity is entitled to settlement benefits, subject to the following
conditions:

                                       54

<PAGE>

                  1.       The Company shall use each substantially completed
Claim Form that is submitted by any person or entity on or before the Claim-In
Date to search its electronic databases and paper records in an effort to
identify each life insurance policy referenced in the Claim Form and determine
whether (a) such policy is a Policy and (b) the person or entity who submitted
the Claim Form is an Eligible Holder or is otherwise eligible for settlement
benefits under this Agreement.

                  2.       If the Company's search locates any life insurance
policy referenced in the Claim Form but confirms that such policy is not a
Policy, then as soon as is practicable, but in no event later than 60 days after
the Claim-In Date, the Company shall notify in writing the person or entity who
submitted the Claim Form, via first-class mail to the person's or entity's
address on the Claim Form, (a) of each life insurance policy referenced in the
Claim Form that is not a Policy, (b) of the reasons why each such policy is not
a Policy, (c) that no settlement benefits will be provided for each such policy,
and (d) that the person or entity may raise any questions within 30 days of the
Company's notification. Absent such a written notification by the Company within
60 days of the Claim-In Date, any life insurance policy identified in the Claim
Form shall be deemed a Policy and shall receive the settlement benefits to which
it is entitled under this Agreement.

                  3.       If the Company's search does not locate a life
insurance policy referenced in the Claim Form, then:

                                       55

<PAGE>

                           a.       As soon as is practicable, but in no event
later than 30 days after the Claim-In Date, the Company shall request additional
Identifying Information from the person or entity who submitted the Claim Form.

                           b.       For any such person or entity who supplies
additional Identifying Information postmarked within 30 days of the Company's
request, the Company shall use the additional Identifying Information to search
its electronic databases and paper records in an effort to identify the life
insurance policy referenced in the Claim Form and determine whether such policy
is a Policy.

                           c.       As soon as is practicable, but in no event
later than 120 days after the Claim-In Date, the Company shall notify in
writing, via first-class mail to the person's or entity's address in the Claim
Form, each person or entity that has submitted a Claim Form and other
Identifying Information to whom the Company determines not to provide settlement
benefits, either (i) because the Company's searches have not located each life
insurance policy referenced in the Claim Form or (ii) because the Company has
located any life insurance policy referenced in the Claim Form but has confirmed
that such policy is not a Policy (in which case the Company's written
notification shall include the matters set forth in Section IX.G.2 above).

                  4.      If any notified person or entity objects in writing to
the Company's determination in a writing postmarked within 30 days of the date
of a Company notification under Section IX.G.2 or Section IX.G.3 above, then:

                                       56

<PAGE>

                           a.       The Company and Lead Counsel shall confer in
good faith to resolve any disagreement concerning the person's or entity's
eligibility for settlement benefits.

                           b.       If the Company and Lead Counsel are unable
to resolve any such disagreement within 15 days of receipt of the person or
entity's written objection, then the Company and Lead Counsel shall submit their
disagreement to the Neutral, who shall determine whether the person or entity is
entitled to settlement benefits.

                           c.       The Neutral's determinations under this
Section X.G.4 shall be made within 30 days of the submission of the dispute by
the Company and Lead Counsel, but in no event later than the Claim-Resolution
Date.

                           d.       The determinations of the Neutral shall be
final and binding on the Company, Lead Counsel and the person or entity in
question.

         H.       If, in the course of searching for any life insurance policy
identified in a Claim Form or by other Identifying Information, the Company
determines that the life insurance policy is a Policy and that the Company's
records for the Policy list the numbers of other life insurance policies
covering the life of the insured under the Policy, then the Company shall
attempt to determine whether the other policies referenced are also Policies and
provide any settlement benefits for which the Policies are eligible under this
Agreement.

X.       MINIMUM/MAXIMUM COST OF BENEFITS

         A.       After the deadline under this Agreement for submission of all
Claim Forms has expired, and no later than the commencement of the
Implementation Period, the Company shall compute the total anticipated cost to
the Company of all settlement

                                       57

<PAGE>

benefits to be provided to the Class, using the factors and assumptions set
forth in Exhibit M hereto.

                  1.       If the computation in this Section X.A results in a
total cost to the Company of all anticipated settlement benefits that is less
than $52 million, then all benefits that otherwise would be provided to Eligible
Holders and other eligible persons and entities shall be increased, on a
proportionate basis based on the cost of each Policy's benefits (calculated in
accordance with Exhibit M hereto), so that the total cost of all anticipated
settlement benefits pursuant to the factors and assumptions set forth in Exhibit
M hereto equals $52 million.

                  2.       If the computation in this Section X.A results in a
total cost to the Company of all anticipated settlement benefits in excess of
$90 million, then all benefits that otherwise would be provided to Eligible
Holders and other eligible persons and entities shall be reduced, on a
proportionate basis based on the cost of each Policy's benefits (calculated in
accordance with Exhibit M hereto), so that the total cost of all anticipated
settlement benefits pursuant to the factors and assumptions set forth in Exhibit
M hereto equals $90 million.

         B.       Within 30 days after the commencement of the Implementation
Period, the Company shall make a charitable contribution to the United Negro
College Fund, Inc. for scholarship purposes in the amount of $5 million;
provided however, that such amount shall be reduced by the excess, if any, of
the total cost to the Company of all anticipated settlement benefits (calculated
in accordance with Section X.A above) over $85 million.

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         C.       No later than 85 days prior to the commencement of the
Implementation Period, the Company may propose to Lead Counsel increases in one
or more of the percentages listed in column 3 of the table in Section II of
Exhibit M hereto that, for aggregate cost-calculation purposes, are to be
applied to certain types of In-Force life insurance policies for which no Claim
Form has been submitted and for which the insured's race is not reflected on the
Company's electronic records (referred to in Exhibit M as policies "Subject to
Race Adjustment"). Each such proposed increase by the Company shall be subject
to review by Lead Counsel, as follows:

                  1.       With its proposal, the Company shall provide Lead
Counsel with the statistical analysis and all data, assumptions and calculations
supporting its proposed increase.

                  2.       Lead Counsel shall have 30 days from their receipt of
any proposed percentage increase from the Company to request additional
information and express any objection thereto.

                  3.       The Parties shall attempt to resolve any objections
raised by Lead Counsel through good-faith negotiations.

                  4.       Any differences between the Parties that are not
resolved by good-faith negotiation within 10 days of Lead Counsel's objection
shall be submitted to a third-party actuary chosen jointly by the Parties, who
shall determine whether the Company's proposed increase is necessary to
accurately estimate the percentage of non-Caucasian insureds under life
insurance policies that are Subject to Race Adjustment, consistent with
generally accepted statistical principles. The third-party actuary shall render
his or

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her decision within 15 days of submission of the dispute. The third-party
actuary's decision shall be final and binding on the Parties.

         D.       Notwithstanding any other provision of this Settlement
Agreement, if any settlement payment or benefit that would otherwise be provided
in the aggregate for a Policy under this Settlement Agreement (other than any
Enhanced Future Termination Benefit that may be payable based upon the expiry of
a Policy's term insurance coverage) is less than $10, then such payment or
benefit shall be increased to $10; provided however, that in the event a Policy
is eligible for benefits under both Section V.A. and V.B above, then the payment
under Section V.A and the payment to the Recipient under V.B each shall equal at
least $10; and provided however, that the $10 amount shall be reduced as
necessary pursuant to Sections X.A.2 above; and provided however, that in making
the calculations set forth in Section X.A.1 above, the total cost of the payment
or benefit that otherwise would have been made shall be calculated as the cost
of providing a payment or benefit of $10.

XI.      NOTICE TO CLASS MEMBERS AND COMMUNICATIONS WITH CLASS MEMBERS AND
         POLICYOWNERS

         A.       Class Notice Package

                  1.       Subject to the requirements of the Hearing Order and
no later than 85 days before the Fairness Hearing, the Company shall send a
Class Notice Package by first-class mail, postage prepaid, to the last known
address available on the Company's electronic records of each Class Member who
is a Holder of a Database Policy (as updated pursuant to Section XI.A.5 below),
and in cases where the Company is aware of

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pending litigation by the Class Member against the Defendant relating to any
matter proposed to be released by this Agreement, also to all legal counsel
known to represent the Class Member. The Company will pay for the costs
associated with producing and mailing the Class Notice Package.

                  2.       The form and content of the Class Notice Package
shall be agreed to by the parties and shall be substantially in the form
attached hereto as Exhibit A. Each Class Notice Package shall contain a Class
Notice and, in the case of Database Policies, a Statement of Benefits. In
addition, the Class Notice Package shall contain a Claim Form and a
pre-addressed and postage pre-paid envelope for return of the Claim Form to the
Administrator.

                  3.       The Class Notice

                           a.       The Class Notice shall, at a minimum,

                                    (i)      describe who is in the Class;

                                    (ii)     contain a short, plain description
                                             of the background of the Action,
                                             the Class and the proposed
                                             settlement;

                                    (iii)    generally describe the proposed
                                             benefits outlined above in Sections
                                             III through VII above;

                                    (iv)     explain how to secure settlement
                                             benefits, including how to submit a
                                             Claim Form if one is required to
                                             become an Eligible Holder;

                                    (v)      explain that to be excluded from
                                             the Class, a written exclusion
                                             request must be submitted no later
                                             than 40 days before the date of the
                                             Fairness Hearing;

                                    (vi)     state that any one Policy Holder's
                                             request for exclusion will exclude
                                             all Holders of the Policy;

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<PAGE>

                                    (vii)    inform Class Members that, if they
                                             do not exclude themselves from the
                                             Class with respect to a particular
                                             Policy, they will be eligible to
                                             receive one or more forms of relief
                                             under the proposed settlement;

                                    (viii)   state that any Class Member who has
                                             not submitted a written request for
                                             exclusion may, if he or she
                                             desires, object to the proposed
                                             settlement by filing and serving a
                                             written statement of objection no
                                             later than 40 days before the
                                             Fairness Hearing;

                                    (ix)     state that any Class Member who has
                                             filed and served written objections
                                             to the proposed settlement may, if
                                             he or she so requests, enter an
                                             appearance at the Fairness Hearing
                                             either personally or through
                                             counsel by providing the Court and
                                             counsel for the Parties with a
                                             notice of intention to appear;

                                    (x)      explain the impact of accepting or
                                             rejecting the benefits available to
                                             them under the Settlement Agreement
                                             on any existing litigation, claim,
                                             arbitration or other proceeding;

                                    (xi)     state that any judgment entered
                                             with respect to the Settlement
                                             Agreement shall include, and be
                                             binding on, all Class Members who
                                             have not been excluded from the
                                             Class, even if they have objected
                                             to the proposed Settlement
                                             Agreement and even if they have any
                                             other claim, lawsuit or proceeding
                                             pending against the Defendant;

                                    (xii)    provide the terms of the Release;

                                    (xiii)   explain the disposition of unknown
                                             claims; and

                                    (xiv)    state that any relief to Class
                                             Members is contingent on the
                                             Court's final approval of the
                                             proposed settlement.

                           b.       The Class Notice shall conform to all
applicable requirements of the Federal Rules of Civil Procedure, the United
States Constitution (including the Due

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Process Clause), the Rules of the Court and any other applicable law, and shall
otherwise be in the manner and form agreed upon by the Parties and approved by
the Court.

                  4.       The Statement of Benefits

                           a.       The Statement of Benefits will be included
only in the Class Notice Packages of Holders of Database Policies. A Statement
of Benefits shall also be provided upon request to any Eligible Holder who
submits a Claim Form identifying the number of a Policy for which information is
available on the Company's electronic records, or whose policy has been
confirmed to be a Policy.

                           b.       The Statement of Benefits shall provide the
Holder of the Policy with a simplified summary of certain information in the
Class Notice and also shall inform him or her, to the extent feasible and
reflected in the Company's electronic records, of

                                    (i)      the Class Member's name;

                                    (ii)     the policy number of the Policy
                                             making the Class Member eligible
                                             for relief;

                                    (iii)    the status of the Policy as of the
                                             Eligibility Date;

                                    (iv)     the form(s) and, to the extent
                                             practicable, percentages of relief
                                             for which the Class Member may be
                                             eligible; and

                                    (v)      the need, if any, of the Class
                                             Member to submit a Claim Form to
                                             become an Eligible Holder.

                  5.       Address Updating for Holders of Database Policies

                           a.       Prior to the mailing of the Class Notice
Package to Holders of Database Policies described in Section XI.A.1 above, the
Company shall conduct

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research to confirm or update the addresses of Holders of Database Policies that
are currently available on the Company's electronic databases, as described in
this Section XI.A.5.

                           b.       Using its Trilium software, the Company
shall reformat as necessary its address information for Holders of Database
Policies that is currently available on the Company's electronic databases so
that it is in a form conducive to searching for updated addresses through the
National Change of Address Register.

                           c.       Once the Company has taken steps to reformat
its current address information, the Company shall utilize the National Change
of Address Register to confirm or update its current electronic addresses for
Holders of Database Policies.

                           d.       Once it has taken the above steps, the
Company shall provide its updated electronic address information for Holders of
Database Policies to the Administrator, which shall use ChoicePoint to further
update such address information to the extent practicable prior to the mailings
contemplated by Section XI.A.1 above.

         B.       PUBLICATION NOTICE AND OTHER MEDIA NOTICE

                  1.       As soon as is practicable after the Court's entry of
the Hearing Order, but no later than 55 days before the Fairness Hearing, the
Company will publish on at least one occasion the Publication Notice, in a form
substantially similar to that attached as Exhibit B and in the newspapers agreed
to by Lead Counsel and the Company. The Company shall pay all of the costs
associated with the Publication Notice.

                  2.       The Parties shall retain a media consultant to advise
the Parties concerning the methods for providing the best notice practicable to
the Class. Based on

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the media consultant's recommendations, the Company shall arrange to provide
notice to the Class through such media, and in such form and frequency, as to
which the Parties shall agree. Such media may include, without limitation, print
media, television, radio, community outreach, and use of the Internet. All such
media notification shall be completed as soon as is practicable following the
Court's entry of the Hearing Order, but no later than 55 days prior to the
Fairness Hearing. The Company shall pay all of the costs associated with the
media notification described in this Section XI.B.2.

         C.       REMAILING AND ADDITIONAL NOTICE

         The Company, through the Administrator, shall at its cost remail any
notice returned by the Postal Service with a forwarding address that is received
by the Administrator at least 50 days before the Fairness Hearing. With respect
to Class Notices that are returned without a forwarding address, the
Administrator shall immediately provide a copy of any returned notice to an
address research firm retained for the purpose of researching updated addresses
of Class Members, or conduct such research itself; provided however, that the
Company shall not be obligated to duplicate the efforts of an address research
firm that undertook a search for the Class Member's address prior to the initial
mailing. In addition, the Hearing Order shall provide that any retained address
research firm(s) shall provide to the Administrator in connection with each
returned notice, as soon as is possible, either an updated address or a
statement that, following due research (including, but not limited to, using the
National Change of Address Register and Social Security Numbers) it has been
unable to obtain an updated address. The Administrator shall remail the notice
to any Class Member for whom it obtains or the

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<PAGE>

address research firm provides an updated address, so long as the updated
address is obtained by or provided to the Administrator at least 50 days before
the Fairness Hearing.

         D.       POST-SETTLEMENT MAILING

         Starting at the commencement of the Implementation Period, the Company
shall send a mailing to each person or entity eligible under Sections II.B
through II.E above to receive a cash payment under this Settlement Agreement by
virtue of the Enhanced Past Death/Maturity Benefit (Section IV above) or the
Enhanced Past Termination Benefit (Section V.A above). The mailing shall include
a check in the amount of the cash payment for which the Policy is eligible.

         E.       RETENTION OF ADMINISTRATOR

                  1.       Upon consultation and approval of Lead Counsel, the
Company shall at its cost retain one or more Administrators (including
subcontractors) to help implement the terms of the proposed Settlement
Agreement.

                           a.       The Administrator(s) may assist with various
administrative tasks, including, without limitation, (i) mailing or arranging
for the mailing of the Class Notice to Class Members, (ii) arranging for
publication of the Publication Notice, (iii) arranging for or assisting in
dissemination of the Publication Notice; (iv) handling returned mail not
delivered to Class Members, (v) attempting to obtain updated address information
for any Class Notices returned without a forwarding address or an expired
forwarding address, (vi) making any additional mailings required under the terms
of this Settlement Agreement, (vii) arranging for and staffing a toll-free
telephone number to assist the Parties in responding to inquiries from Class
Members and others, (viii) assisting Class

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<PAGE>

Members with the completion of Claim Forms under the terms and conditions set
forth above in Section IX.F above; (ix) answering written inquiries from Class
Members and/or forwarding such inquiries to Lead Counsel or its designee and
(subject to Lead Counsel's prior opportunity to make a good-faith determination
that the communication is privileged and may not be so forwarded) to the Company
or its designee, (x) receiving and maintaining on behalf of the Court any Class
Member correspondence regarding requests for exclusion and objections to the
settlement, (xi) establishing and administering a Web site with information on
the settlement and the ability to submit Claim Form data; and (xii) otherwise
assisting the Company with administration of the Settlement Agreement. The
Company will pay the reasonable fees and expenses of the Administrator(s), as
well as any other fees and expenses incurred in performing all of the tasks
described in this Section XI.E.1.a.

                           b.       Lead Counsel and/or its designee, and the
Company and/or its designee, shall be entitled to observe and monitor the
performance of the Administrator to assure compliance with the Settlement
Agreement.

                           c.       The contract between the Company and the
Administrator shall obligate the Administrator to abide by the following
performance standards:

                                    (i)      The Administrator shall accurately
and neutrally describe, and shall train and instruct its employees and agents to
accurately and objectively describe, the provisions of this Settlement Agreement
in communications with Class Members;

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<PAGE>

                                    (ii)     The Administrator shall provide
prompt, accurate and neutral responses to inquiries from Lead Counsel or its
designee, Defendant and/or Defendant's Counsel.

                                    (iii)    If, in the course of any
communication with a Class Member, the Class Member requests that the
Administrator and/or its agent or employee refer the communication to
Plaintiffs' Counsel or the Company (for non-settlement and policy administration
questions only) or it appears that such a referral will assist the Class Member,
then the Administrator and/or its agent or employee shall promptly fulfill such
request.

                                    (iv)     If, in the course of any
communication with a Class Member, an agent or employee of the Administrator
reasonably concludes that the Class Member is not satisfied with the information
and/or assistance provided, then the agent or employee shall promptly refer the
Class Member's communication to a supervisor on duty, a representative of the
Company, and Lead Counsel or its designee.

                           d.       If the Administrator makes a material or
fraudulent misrepresentation to, or fraudulently conceals requested material
information from a Class Member, Lead Counsel, Defendant or Defendant's Counsel,
then the Party to whom the misrepresentation is made (or, in the case of a
concealment, the requestor of the information) shall have the right to demand
that the Administrator immediately be replaced; provided however, that in the
case of a misrepresentation or concealment involving a Class Member, Lead
Counsel shall have the right to make such demand. If the Administrator fails to
perform adequately on behalf of the Company and the Class,

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<PAGE>

the Parties can agree to remove the Administrator. All disputes regarding the
retention or dismissal of the Administrator shall be resolved by the Court.

                  2.       The Company and Lead Counsel will establish a
settlement administration center for the purpose of facilitating and providing
information to Class Members regarding the settlement and their rights under it.
The settlement administration center shall include, among other things, a
telephone bank with a toll-free telephone number for responding to inquiries
from Class Members and others about the proposed settlement and any issues
related to the Settlement Agreement or the Action. The Administrator shall
direct all callers with general product questions, product status requests, or
complaints unrelated to the settlement of the Action to call the Company's
toll-free customer service number.

                           a.       The settlement administration center shall
commence operations beginning no later than the day after the first Class Notice
Package is mailed and ending on a date to be agreed to by the Parties.

                           b.       The Administrator, with the participation of
Lead Counsel and the Company and its counsel, will be responsible for (i)
staffing the telephone bank with telephone representatives, (ii) educating the
telephone representatives about the general background of the Action, the
product concepts relevant to the proposed settlement, the notice, terms and
chronology of the proposed Settlement Agreement, (iii) training the telephone
representatives to explain to Class Members the benefits available to them under
the Settlement Agreement, including that the telephone representatives shall be
instructed to advise all eligible Class Members who call the telephone bank of
their need,

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<PAGE>

if any, to complete and return a Claim Form to become Eligible Holders, (iv)
training the telephone representatives to answer inquiries from Class Members
and others, (v) providing scripts and model questions and answers for the
telephone representatives to use in answering inquiries from Class Members and
other policyowners, (vi) training the telephone representatives to refer Class
Member inquiries to appropriate sources, including, but not limited to, Lead
Counsel or its designee if the Class Member so requests or where otherwise
appropriate, including under the circumstances described in Sections
XI.E.1.c(iii) and XI.E.1.c(iv) above, (vii) training telephone representatives
to refer callers with general product questions, product status requests, or
complaints unrelated to the settlement of this Action to call the Company's
toll-free customer service number, (viii) training telephone representatives to
advise policyowners how to inquire if they own Policies within the Class, (ix)
providing for a translation service for non-English speaking Class Members who
call the toll-free number, (x) providing callers access to a terminal for the
hearing-impaired, (xi) maintaining records reflecting communications with Class
Members; (xii) providing on site facilities for Plaintiffs' Counsel, Defendant's
Counsel and Company representatives; and (xiii) taking any other steps, in
consultation with the Company and Lead Counsel, to promote accurate and
efficient communications with Class Members and others.

                           c.       Lead Counsel or its designees, and the
Company and/or its counsel, will monitor and participate in the education and
training of telephone representatives.

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<PAGE>

                                    (i)      Lead Counsel or its designee and
the Company and/or its counsel may participate in all training sessions, speak
with telephone representatives and supervisors, and provide additional comment
and/or instruction to telephone representatives and/or supervisors as they deem
necessary. The Company, Lead Counsel or its designee may request and obtain a
pause or cessation in any training session or other communication with a
telephone representative or supervisor to confer regarding the content of the
communication or training. All training and other written communications between
the Parties and telephone representatives and/or supervisors must be agreed upon
by the Parties.

                                    (ii)     Lead Counsel or its designee may
observe any communications between the Company or its designee and the telephone
representatives and supervisors of telephone representatives regarding training
issues. The Company or its designee may observe any communications between Lead
Counsel or its designee and the telephone representatives and supervisors
regarding training issues.

                                    (iii)    The Company and Lead Counsel or its
designees shall consult in advance and agree on the form and content of all
telephone scripts to be used by the telephone representatives, and all training
materials and presentations, whether written or oral, provided to telephone
representatives. Lead Counsel shall be provided with complete drafts of all
telephone scripts, written materials or written presentations as soon as
possible but no later than 10 days prior to their use in training. Any proposed
changes, modifications or additions to the telephone scripts or written training
materials by either Party must be provided to the other Party with sufficient
time

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<PAGE>

to permit meaningful comment prior to use. The Parties shall negotiate in good
faith concerning any such changes, modifications or additions to facilitate
providing clear, understandable and accurate information to Class Members.

                                    (iv)     Lead Counsel and its designees may
be present on-site at the telephone bank to monitor telephone representatives'
handling of Class Members' telephone inquiries and also to speak directly with
any Class Member who requests to speak to Plaintiffs' Counsel. The Company and
its designees may also be present on-site at the telephone bank to monitor
telephone representatives' handling of Class Members' telephone inquiries.

                  3.      If during monitoring of a telephone call to the
toll-free number Lead Counsel or its designee believes that an inaccurate
statement has been made to a Class Member, or that the information provided to
the Class Member was confusing, misleading or incomplete, Lead Counsel or its
designee may contact the Class Member to address such statements or information.
The Company or its designees may also raise concerns with the Administrator
and/or Lead Counsel concerning the accuracy, clarity and completeness of
statements made to Class Members during telephone calls to the toll-free number.

         F.       COMMUNICATION WITH CLASS MEMBERS, POLICYOWNERS AND PRODUCERS

                  1.      The Company expressly reserves the right to
communicate with and respond to inquiries from policyowners and Class Members
orally and/or in writing, consistent with the provisions of the Settlement
Agreement. The Company shall make and maintain a note in its administrative
systems reflecting any telephone call between

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<PAGE>

representatives at the Company's toll-free customer service number and any
potential Class Member relating to the settlement.

                  2.       Any communications between the Company and Class
Members concerning the terms of the settlement shall be consistent with scripted
information that is provided to Lead Counsel for its comments prior to use. The
Parties shall confer in good faith to resolve any differences concerning such
scripts. In addition, Lead Counsel shall be provided with copies of all
correspondence from the Company to Class Members concerning the terms of the
settlement.

                  3.       The Company's Producers may respond to inquiries
from, and/or communicate with, present or former Company policyowners about the
proposed settlement. However, the Company shall (a) instruct its Producers to
encourage Class Members with inquiries regarding the proposed settlement to call
the toll-free number established to respond to such inquiries; (b) make
available to its Producers copies of the Notice Card attached as Exhibit F
hereto to give to such inquiring Class Members; and (c) provide its Producers
with copies of an Agent Script and instruct them that any answers to Class
Member questions regarding the settlement shall be consistent with such Agent
Script. Lead Counsel may review and comment on advance copies of any written
communications with Producers about the proposed settlement, including the Agent
Script. The Parties shall confer in good faith to resolve any differences
concerning the content of such written communications and the Agent Script. The
Company may also respond to Producer questions regarding the proposed
settlement.

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<PAGE>

                  4.       Mass and/or generalized communications with Class
Members regarding the proposed settlement, whether by Plaintiffs' Counsel, the
Company or its current Producers, and whether by mail, the establishment or
encouragement of Internet websites or other Internet communications, telephone
scripts, or any other means, shall be made jointly with, or with the approval
of, the other Party.

                  5.       Lead Counsel shall have the express right to
communicate directly with Class Members concerning any issue relating to the
settlement. Lead Counsel shall maintain a log of all telephone calls or other
communications with potential Class Members relating to the settlement.

         G.       MEDIA COMMUNICATIONS

                  1.       Concurrently with their first communication to the
media or the general public concerning this Settlement Agreement, and in no
event later than the date on which the Court enters the Hearing Order, the
Parties shall issue press releases that have been agreed to in form and content
by the Parties.

                  2.       The form and content of any other initial joint
written statement, press release or other media notice to be issued in
connection with the proposed settlement on or after the Execution Date shall be
mutually agreed upon by the Parties.

                  3.       Any subsequent formal written statements, written
press releases or other written media notices to be issued in connection with
the proposed settlement shall not be inconsistent with the press releases
described in Section XI.G.1 above and shall be exchanged by the Parties
sufficiently in advance of public release to provide the other Party with
adequate time to prepare its own statement.

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<PAGE>

                  4.       Lead Counsel and the Company shall ensure that any
comments about or descriptions of the proposed settlement or its value or cost
in the media or in any other public forum are balanced, fair, accurate, and
consistent with the terms and intent of the settlement.

XII.     REQUESTS FOR EXCLUSION

         A.       Any potential Class Member (or Estate Holder) who wishes to be
excluded from the Class must mail or deliver a written request for exclusion to
the Clerk of the Court, care of the address provided in the Class Notice, so
that it is received no later than 40 days before the Fairness Hearing, or as the
Court otherwise may direct.

                  1.       To the extent practicable, the written request for
exclusion should identify the Policy or Policies for which the Class Member (or
Estate Holder) is requesting exclusion, as well as the names of the persons
insured under such Policy or Policies; provided however, that if a potential
Class Member (or Estate Holder) requests exclusion but does not indicate the
Policy or Policies for which he or she is requesting exclusion, then:

                           a.       all Policies with respect to which the
potential Class Member (or Estate Holder) is a Holder (or Estate Holder) shall
be deemed excluded from the Class; and

                           b.       the Company shall have the authority to
cause the Administrator to contact the potential Class Member (or Estate Holder)
to ask for Identifying Information for the Policy.

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<PAGE>

                   2.      The written request for exclusion must also be signed
by the Class Member (or Estate Holder) or a representative who has legal
authority to sign on behalf of the Class Member. A list reflecting all requests
for exclusion shall be filed with the Court by the Company at or before the
Fairness Hearing.

         B.       Any potential Class Member (or his or her estate) who does not
file a timely written request for exclusion with respect to a Policy as provided
in the preceding Section XII.A shall be bound with respect to that Policy by all
subsequent proceedings, orders and judgments in this Action relating to the
Settlement Agreement, even if he or she has pending, or subsequently initiates,
litigation, arbitration or any other proceeding against the Company relating to
that Policy and the claims released in this Action.

XIII.    OBJECTIONS TO THE SETTLEMENT

         A.       Any Class Member (or Estate Holder) who has not filed a timely
written request for exclusion for all of his or her Policies and who wishes to
object to the fairness, reasonableness or adequacy of this Settlement Agreement
or the proposed settlement, or to the award of Attorneys' Fees and Expenses,
must deliver to Lead Counsel and Defendant's Counsel and file with the Court, no
later than 40 days before the Fairness Hearing or as the Court otherwise may
direct, a statement of his or her objection, as well as the specific reason(s),
if any, for each objection, including any legal support the Class Member (or
Estate Holder) wishes to bring to the Court's attention and any evidence the
Class Member (or Estate Holder) wishes to introduce in support of the objection.
Class Members (and Estate Holders) may so object either on their own or through
an attorney hired at their own expense.

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<PAGE>

         B.       Class Members (and Estate Holders) and their personal
attorneys may obtain access at their own expense to the documents produced
during discovery to Plaintiffs' counsel by Defendant in this Action, and also to
deposition transcripts and exhibits thereto generated in this Action, but must
first agree in writing to be bound by the Stipulation of Confidentiality entered
in this Action and attached as Exhibit G, as well as by all Protective Orders
entered and to be entered in the Action. These discovery documents shall be made
available by appointment during regular business hours at the offices of Lead
Counsel at Milberg Weiss Bershad Hynes & Lerach, LLP, 401 B. Street, Suite 1700,
San Diego, California 92101. Lead Counsel shall inform Defendant's Counsel
promptly of any requests by Class Members (or Estate Holders) or their attorneys
or other persons or entities for access to such documents.

         C.       If a Class Member (or Estate Holder) hires an attorney to
represent him or her, the attorney must (i) file a notice of appearance with the
Clerk of Court no later than 40 days before the Fairness Hearing, or as the
Court otherwise may direct, and (ii) deliver to Lead Counsel and Defendant's
Counsel no later than 40 days before the Fairness Hearing a copy of the same.
Fees for any such attorney will be paid by the Class Member (or Estate Holder)
and not by the Company, Lead Counsel or from the settlement.

         D.       Any Class Member (or Estate Holder) who files and serves a
written objection, as described in Section XIII.A, may appear at the Fairness
Hearing, either in person or through personal counsel hired at the Class
Member's (or Estate Holder's) expense, to object to the fairness, reasonableness
or adequacy of this Settlement Agreement or the proposed settlement. Class
Members (or Estate Holders) or their

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<PAGE>

attorneys intending to make an appearance at the Fairness Hearing must deliver
to Lead Counsel and Defendant's Counsel and file with the Court no later than 40
days before the Fairness Hearing, or as the Court otherwise may direct, a notice
of intention to appear.

         E.       Any Class Member (or his or her estate) who fails to comply
with the provisions of this Section XIII shall waive and forfeit any and all
rights he or she may have to appear separately, object and/or appeal, and shall
be bound by all the terms of this Settlement Agreement and by all proceedings,
orders and judgments in this Action.

XIV.     RELEASE AND WAIVER, AND ORDER OF DISMISSAL

         A.       RELEASE AND WAIVER

                  1.       Plaintiffs and the Class agree to the following
release and waiver, which shall take effect upon entry of the Final Judgment and
Order Approving Settlement:

         I.       Plaintiffs and all Class Members hereby expressly agree that
                  they shall release, acquit and forever discharge the Releasees
                  from, and shall not now or hereafter institute, receive any
                  individual benefits from, maintain, maintain a right to or
                  assert against the Releasees, either directly or indirectly,
                  on their own behalf, or on behalf of the Class or any other
                  person or entity, any and all causes of action, claims (known
                  or unknown), demands or rights, including, without limitation,
                  claims for damages, interest, or equitable or legal relief, or
                  individual administrative relief, including reformation,
                  rescission, restitution, declaratory or injunctive relief,
                  imposition of constructive trust, or damages of any kind,
                  including punitive damages or other damages in excess of
                  actual damages, claims for mental anguish, claims of civil
                  rights violations and discrimination based on race and
                  national origin, and claims for fraud, misrepresentation,
                  unfair competition and unfair or deceptive trade practices
                  related to race or national origin, whether based on federal,
                  state or local law, statute, ordinance, regulation, contract,
                  common law, or any other source, including, without
                  limitation, the provisions of federal and state civil rights
                  laws, respecting discrimination on the basis of race or
                  national origin including, without limitation, 42
                  U.S.C.(Section). 1981; 42 U.S.C.(Section).1982; 41
                  U.S.C.(Section).1983; 42 U.S.C.(Section).1985; 42
                  U.S.C.(Section).1985(3); 42 U.S.C.

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                  (Section). 1986; 42 U.S.C.(Section).1988; 42
                  U.S.C.(Section).2000a et seq.; and state constitutions,
                  statutes and municipal ordinances modeled after provisions of
                  the Civil Rights Act of 1964, that have been, could have been,
                  may be or could be alleged or asserted now or in the future by
                  Plaintiffs or any Class Member against the Releasees or any of
                  them in this Action or in any other court action or before any
                  administrative body (including any brought by or on behalf of
                  any state attorney general or Department of Insurance or other
                  regulatory entity or state prosecutorial or other
                  organization), tribunal, arbitration panel, or other
                  adjudicatory body on the basis of, connected with, arising out
                  of, or related to, in whole or in part, any or all of the
                  acts, omissions, nondisclosures, facts, matters, transactions,
                  occurrences, or oral or written statements or representations
                  that have been alleged or asserted in the Action, including
                  without limitation relating to:

                  A.       Any discrimination based on race or national origin
                           by any of the Releasees prior to the Execution Date
                           in connection with, or related directly or indirectly
                           to, the marketing, solicitation, application,
                           underwriting, risk classification, issuance,
                           change-issuance, re-issuance, reinstatement, design,
                           type, structure, terminology, pricing, premiums,
                           charges, rates, premium mode, acceptance, sale,
                           purchase, operation, retention, administration, debit
                           or home service collection, servicing, performance,
                           dividends, cash values, benefits (including
                           non-forfeiture benefits), or provision of
                           demutualization shares, on the basis of or with
                           respect to, any Policy;

                  B.       Any Company effort or failure to discontinue or
                           correct, or to remedy the effects of, discrimination
                           on the basis of race or national origin in connection
                           with the matters described in Paragraph I.A of this
                           Release above;

                  C.       Any consideration of an applicant's or insured's
                           socio-economic status, occupational status, moral
                           character or hazard, social status, economic level,
                           income, or place of residence in connection with the
                           pricing, purchase, sale, underwriting, issuance or
                           administration of any Policy;

                  D.       Any use of a mercantile report or medical examination
                           in connection with the pricing, purchase, sale,
                           underwriting or issuance of any Policy;

                  E.       Any request for any information from an applicant or
                           insured related to race or national origin in
                           connection with the pricing, purchase, sale,
                           underwriting, issuance or administration of any
                           Policy;

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                  F.       Any limitation or restriction on the amount of
                           insurance made available to Class Members,
                           individually or in the aggregate, related to race or
                           national origin, leading up to the purchase of, or in
                           connection with, any Policy;

                  G.       Any Class Member was charged premiums for any Policy,
                           based on race or national origin, that were
                           excessive, unconscionable or unreasonable;

                  H.       The frequency with which premiums for a Policy were
                           paid or collected, or the method or system by which
                           premiums were paid or collected, including without
                           limitation the Company's reflection of the costs of
                           premium collection or administration in the premiums
                           paid for, dividends provided to, or other benefits
                           provided by any Policy;

                  I.       The suitability or appropriateness of the purchase or
                           sale of a Policy or Policies to an applicant or
                           insured based on race or national origin, instead of
                           one or more other Policies or other life insurance
                           policies;

                  J.       Any training, instructions, or encouragement by the
                           Company to any of the Company's general agents,
                           agents, account representatives, sales
                           representatives, managers, district office clerks,
                           managing directors, producers, and representatives
                           relating directly or indirectly to race, concerning
                           (i) the frequency with which Policy premiums were to
                           be paid or collected, (ii) the type, size or number
                           of life insurance policies to offer or sell to Class
                           Members, or (iii) any disclosure or non-disclosure of
                           the alleged discriminatory practices described in
                           Paragraph I.A of this Release above;

                  K.       The sale or marketing of any Policy as "burial"
                           protection;

                  L.       The Company's agent commission payment practices,
                           methods or schedules with respect to any Policy,
                           including without limitation the commission paid in
                           connection with the sale of any Policy compared to
                           the commissions payable in connection with the sale
                           of any other life insurance policy;

                  M.       The application of the cash values of any Policy
                           toward the provision of insurance coverage under a
                           contractual non-forfeiture option, including any past
                           or future expiration of any Industrial Policy's
                           insurance coverage under the extended term
                           non-forfeiture option;

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                  N.       The Company's apportionment, provision or
                           distribution of shares of MetLife, Inc. stock as part
                           of its 2000 demutualization to any Class Member, or
                           amount of shares allocated to any Class Member,
                           including, without limitation, the shares received by
                           any Class Member in relation to the shares received
                           by any other person or entity, related to race or
                           national origin; provided however, that nothing in
                           this Paragraph I.N shall be construed to bar, limit
                           or restrict any putative or certified class action
                           pending as of the Execution Date and alleging that
                           the Company's 2000 demutualization was unlawful or to
                           otherwise limit the participation of any Class Member
                           in any such action;

                  O.       The Company's methods or actuarial principles for the
                           apportionment and payment of, determination of, or
                           amount of dividends on any Policy, including, without
                           limitation, the dividends of any Policy in relation
                           to the dividends of any other life insurance policy
                           or the form of payment of dividends, based on race or
                           national origin;

                  P.       With respect to any Policy on which a death, maturity
                           or endowment benefit has been paid by the Company,
                           any failure to pay, delay in paying, or failure to
                           inform any person of, such benefits under a Policy,
                           including without limitation any failure to disclose
                           that a Policy has lapsed, become paid-up or been
                           placed on non-forfeiture status;

                  Q.       The Company's methods or practices for notifying
                           persons or entities to whom Policy benefits have
                           become payable, including without limitation any
                           escheatment of a Policy's benefits to a governmental
                           authority or alleged non-compliance with any state
                           unclaimed property laws;

                  R.       Any refusal or failure to disclose actuarial
                           information or assumptions, mortality experience or
                           assumptions, underwriting practices or policies, or
                           rate information concerning any Policy, relating to
                           race or national origin;

                  S.       Disclosures in any local or state regulatory filing
                           by the Company relating to any matter described in
                           this Paragraph I;

                  T.       Any or all acts, omissions, nondisclosures, facts,
                           matters, transactions, occurrences or oral or written
                           statements or representations in connection with or
                           directly or indirectly relating to the Settlement
                           Agreement or the settlement of the Action, and/or

                  U.       Any and all claims for attorneys' fees, costs or
                           disbursements incurred by Lead Counsel or any other
                           counsel representing

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                           Plaintiffs or Class Members in this Action, or by
                           Plaintiffs or the Class Members in this Action, or
                           any of them, in connection with or related in any
                           manner to the Action, the settlement of the Action,
                           the administration of such settlement and/or the
                           matters described in Paragraph I.A of this Release
                           above, except to the extent otherwise specified in
                           the Settlement Agreement.

         II.      Nothing in this Release shall be deemed to alter, limit or
                  affect (i) a Class Member's contractual rights to make a claim
                  for benefits that will become payable in the future pursuant
                  to the express terms of the policy form issued by the Company
                  (except where such benefit has been or is paid, as described
                  in Paragraph I.P of this Release) or (ii) a Class Member's
                  right to assert any claim that independently arises from acts,
                  facts or circumstances arising after the Execution Date;
                  provided however, that this provision shall not entitle a
                  Class Member to assert claims that relate directly or
                  indirectly to any act, fact or circumstance arising prior to
                  the Execution Date that is alleged in the Action or described
                  in paragraphs I.A, I.B or I.C, above.

         III.     Plaintiffs and all Class Members expressly agree that this
                  Release will be, and may be raised as, a complete defense to
                  and will preclude any action or proceeding encompassed by this
                  Release.

         IV.      Plaintiffs and Class Members expressly understand that
                  principles of law such as Section 1542 of the Civil Code of
                  the State of California provide that a general release does
                  not extend to claims which a creditor does not know or suspect
                  to exist in his favor at the time of executing the release,
                  which if known by him must have materially affected his
                  settlement with the debtor. To the extent that, as a result of
                  or notwithstanding the choice of law provisions in the
                  Settlement Agreement, California or other law may be
                  applicable, Plaintiffs and the Class Members hereby agree that
                  the provisions of Section 1542 and all similar federal or
                  state laws, rights, rules, or legal principles of any other
                  jurisdiction which may be applicable herein, are hereby
                  knowingly and voluntarily waived and relinquished by
                  Plaintiffs and the Class Members, and Plaintiffs and the Class
                  Members hereby agree and acknowledge that this is an essential
                  term of both the Settlement Agreement and this Release.

         V.       In connection with this Release, Plaintiffs and the Class
                  Members acknowledge that they are aware that they may
                  hereafter discover claims presently unknown or unsuspected, or
                  facts in addition to or different from those that they now
                  know or believe to be true, with respect to the matters
                  released herein or with respect to their Policies for acts,
                  facts, circumstances or transactions occurring or arising
                  prior to the Execution Date. Nevertheless, it is the intention
                  of Plaintiffs and the Class Members in executing this Release
                  fully, finally and forever to settle and release all

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                  such matters, and all claims relating thereto, which exist,
                  hereafter may exist, or might have existed.

         VI.      Nothing in this Release shall preclude any action to enforce
                  the terms of the Settlement Agreement, provided that such
                  action shall be brought in the United States District Court
                  for the Southern District of New York.

         VII.     Nothing in this Release shall be deemed to release, extinguish
                  or otherwise compromise in any way a Class Member's claims for
                  (a) physical personal injury, theft, forgery or embezzlement;
                  or (b) misappropriation of an individual Policy's premiums or
                  benefits by an individual agent or employee of the Company
                  acting without the Company's knowledge, authorization or
                  consent. The Company expressly waives any argument that any
                  such claim is precluded by res judicata, collateral estoppel,
                  or any other doctrine proscribing the splitting of claims.

         VIII.    Upon the Final Settlement Date, each of the Releasees shall be
                  deemed to have, and by operation of the Final Judgment shall
                  have, fully, finally, and forever released, relinquished and
                  discharged each and all of the Plaintiffs, Lead Counsel and
                  Class Counsel from all claims (including unknown claims)
                  arising out of, relating to, or in connection with the
                  institution, prosecution, assertion, settlement or resolution
                  of the Action or the claims included in this Release.

         IX.      Plaintiffs, the Company and the Class Members hereby agree and
                  acknowledge that the provisions of this Release together
                  constitute an essential and material term of the Settlement
                  Agreement.

         X.       This Release is the result of a compromise of disputed claims
                  and shall never at any time be used as evidence of any
                  admission of liability by the Company.

         B.       ORDER OF DISMISSAL

                  1.       The Parties will seek and obtain from the Court a
Final Judgment and Order Approving Settlement (for which, as a condition of
settlement, the time for appeal has expired without any modifications in the
Final Judgment or Order Approving Settlement) as further described below in
Section XVII. The Final Judgment and Order Approving Settlement shall, among
other things, (i) approve this Settlement Agreement

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as fair, reasonable and adequate, (ii) dismiss the Action with prejudice and on
the merits, and (iii) incorporate the terms of the Release.

XV.      ATTORNEYS' FEES AND EXPENSES

         A.       The Company agrees to pay any Court award of Attorneys' Fees
and Expenses in addition to the settlement benefits provided to Plaintiffs and
Class Members by this Agreement. Lead Counsel will file an application with the
Court seeking an award of Attorneys' Fees and Expenses. The Company reserves the
right to oppose any aspect of the application. There is no other agreement
between the Parties as to Attorneys' Fees and Expenses. All remaining issues
relating to Attorneys' Fees and Expenses, including the methodology and amount,
will be determined by the Court, subject to reversal or modification of any
Court award of Attorneys' Fees and Expenses on appeal.

         B.       Lead Counsel may petition the Court for incentive awards of up
to $5,000 per person to be paid to some or all of the Plaintiffs. The Company
agrees not to oppose Lead Counsel's petition for any incentive award to a
Plaintiff up to that amount. The purpose of such awards, if any, shall be to
compensate Plaintiffs (or any of them) for efforts and risks taken by them on
behalf of the Class. Any incentive awards made by the Court shall be paid by the
Company as settlement benefits under this Agreement.

         C.       In addition to the Attorneys' Fees and Expenses, the Company
shall bear the following settlement administration expenses under this
Agreement: (1) publishing, printing and mailing the Class Notice Package to
Class Members and others who request such a Package from the Administrator; (2)
publishing the Publication Notice;

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(3) providing the media and other outreach described in Section XI.B above; (4)
post-office box rentals; (5) processing requests for exclusion, Claim Forms, and
designations under the SDB; (6) fees and disbursements to the Administrator and
any other third-party contractors or administrators retained by the Parties for
the purpose of assisting in settlement implementation (except to the extent the
Administrator is used by Lead Counsel by written agreement); (7) administrative
costs associated with providing settlement benefits under this Agreement; and
(8) the fees and expenses of the Neutral and any other arbitrators, including
assistants.

XVI.     ORDER OF NOTICE, FAIRNESS HEARING AND ADMINISTRATION

         A.       The Parties have negotiated, drafted and agreed to the form of
the following documents: the Class Notice Package (Exhibit A), the Publication
Notice (Exhibit B), the Unclaimed Benefits Protocols (Exhibit C), the Hearing
Order (Exhibit D), the Identifying Information (Exhibit E), the Notice Card
(Exhibit F), the Stipulation of Confidentiality (Exhibit G), the SDB Certificate
(Exhibit H), the Small Estate Declaration (Exhibit I), the Cash Payment Option
Election Letter (Exhibit J), the Confirmatory Letter (Exhibit K), the Industrial
Weekly Substandard Enhancement Factors (Exhibit L), the Cost Methodologies and
Assumptions (Exhibit M) and the Covered Met Series Policies (Exhibit N). These
documents are incorporated into, are an integral part of, and are material terms
of this Settlement Agreement.

         B.       The Parties will submit this Settlement Agreement, including
all attached exhibits, to the Court and seek and obtain preliminary approval
thereof. If the Court preliminarily approves the settlement, the Parties shall
move the Court to set a Fairness

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Hearing, and shall seek and obtain a proposed Hearing Order, unless otherwise
agreed to by the Parties:

                  1.      providing for the certification of the Class for
settlement purposes only;

                  2.       finding that the proposed settlement is sufficient to
warrant sending notice to the Class;

                  3.       scheduling the Fairness Hearing to be held on such
date as the Court may direct, to consider the fairness, reasonableness and
adequacy of the proposed settlement and whether it should be approved by the
Court;

                  4.       approving the proposed Class Notice Package,
Publication Notice and additional notice methodology described in this
Settlement Agreement;

                  5.       directing the Company or its designee(s) to cause the
Class Notice Package to be mailed to each Class Member who is a Holder of a
Database Policy (and, in cases of pending litigation against the Defendant, also
to all legal counsel known to represent the Class Member) by first-class mail,
postage prepaid, to his or her last known address (if available from the
Company's electronic databases) no later than 85 days before the Fairness
Hearing;

                  6.       directing the Company or its designee(s) to publish
the Publication Notice and conclude additional media as provided in this
Settlement Agreement no later than 55 days before the Fairness Hearing;

                  7.       determining that the Class Notice Package, together
with the Publication Notice and other media notice, (i) is the best practicable
notice, (ii) is

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reasonably calculated, under the circumstances, to apprise Class Members of the
pendency of the Action and of their right to object to or exclude themselves
from the proposed settlement, (iii) is reasonable and constitutes due, adequate
and sufficient notice to all persons entitled to receive notice, and (iv) meets
all applicable requirements of the Federal Rules of Civil Procedure, the United
States Constitution (including the Due Process Clause), the Rules of the Court
and any other applicable law;

                  8.       ordering that the Administrator(s) shall (i) remail
any notices returned by the Postal Service with forwarding addresses that are
received by the Administrator(s) at least 50 days before the Fairness Hearing
and (ii) immediately provide copies of any such returned notices that do not
include a forwarding address to any address research firm retained by the
Administrator. In addition, the Hearing Order shall provide that (a) in
connection with each returned notice provided to it, any address research
firm(s) will return to the Administrator, as soon as is possible, either an
updated address or a statement that, following due research (including, but not
limited to, using the National Change of Address Register and Social Security
Numbers) it has not been able to update that address, and (b) the Administrator
will remail notice to any Class Member for whom it obtains or the address
research firm provides an updated address, so long as the updated address is
obtained by or provided to the Administrator at least 50 days before the
Fairness Hearing;

                  9.       authorizing the Parties to distribute the Class
Notice Package and disseminate of the fact of the Settlement Agreement, and to
communicate the ability to obtain the Notice Package by calling the toll-free
telephone number;

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                  10.      requiring the Company to file proof of the mailing of
the Class Notice Package to Database Policies and publication of the Publication
Notice and other media notice at or before the Fairness Hearing;

                  11.      authorizing the Company, including its current
Producers or other representatives and any other retained personnel, to
communicate with potential Class Members, Class Members and other present or
former policyowners about the Action and the terms of the proposed settlement,
subject to the terms of Section XI.F, and to engage in any other communications
within the normal course of the Company's business;

                  12.      requiring each Class Member who wishes to exclude
himself or herself from the Class to submit an appropriate, timely written
request for exclusion, received no later than 40 days before the date of the
Fairness Hearing, to the Clerk of the Court, care of the address provided in the
Class Notice;

                  13.      preliminarily enjoining all Class Members who have
not timely excluded themselves from the Class as to a Policy from filing,
commencing, prosecuting, intervening in, participating in, whether individually,
as class members or otherwise, or receiving any benefits or other relief from
any other lawsuit or arbitration, or receiving any individual benefits from any
administrative, regulatory or other proceeding or order, in any jurisdiction,
based on or relating to the claims and causes of action, or the facts and
circumstances relating thereto, in this Action and/or the Release as to that
Policy;

                  14.      preliminarily enjoining all persons from filing,
commencing or prosecuting any other lawsuit as a class action (including by
seeking to amend a pending complaint to include class allegations or by seeking
class certification in a pending action

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in any jurisdiction) or any other form of action on behalf of Class Members who
have not timely excluded themselves from the Class, if such other lawsuit is
based on or relates to the claims and causes of action, or the facts and
circumstances relating thereto, in this Action and/or the Release;

                  15.      preliminarily enjoining all persons from asserting or
maintaining any claims, pursuing any discovery from Metropolitan Life or any
third party, presenting evidence, or claiming any damages, whether compensatory
or punitive, based on or encompassing, in whole or in part, the alleged Company
practices and patterns that are the subject of the Action and/or the Release;
provided however, that Class Members who have timely excluded themselves from
the Class shall not be enjoined from (a) proceeding with their individual
actions, insofar as they are amenable to proof by evidence relevant exclusively
to policies that were the subject of timely requests for exclusion; or (b)
seeking discovery in connection with their individual actions, insofar as it
relates directly to policies that were the subject of timely requests for
exclusion and does not seek broader evidence of the alleged Company practices or
patterns that are the subject of the Action and/or the Release;

                  16.      ruling that any Class Member who does not submit a
timely, written request for exclusion from the Class will be bound by all
proceedings, orders and judgments in this Action relating to this Settlement
Agreement, even if such Class Member has previously initiated or subsequently
initiates individual litigation against the Company or other proceedings
encompassed by the Release;

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                  17.      requiring each Class Member who wishes to object to
the fairness, reasonableness or adequacy of this Settlement Agreement or the
proposed settlement, or to the award of Attorneys' Fees and Expenses, to deliver
to Lead Counsel and Defendant's Counsel and to file with the Court, no later
than 40 days before the Fairness Hearing, or at such other time as the Court may
direct, a statement of his or her objection, as well as the specific reasons, if
any, for each objection, including any legal support the Class Member wishes to
bring to the Court's attention and any evidence the Class Member wishes to
introduce in support of his or her objection, or be forever barred from
separately objecting;

                  18.      requiring any attorney hired by a Class Member at the
Class Member's expense for the purpose of objecting to this Settlement
Agreement, the proposed settlement, or the award of Attorneys' Fees and
Expenses, to file with the Clerk of Court and deliver to Lead Counsel and
Defendant's Counsel a notice of appearance no later than 40 days before the
Fairness Hearing, or as the Court otherwise may direct;

                  19.      requiring any Class Member who files and serves a
written objection and who intends to make an appearance at the Fairness Hearing,
either in person or through personal counsel hired at the Class Member's
expense, to deliver to Lead Counsel and Defendant's Counsel and file with the
Court no later than 40 days before the Fairness Hearing, or as the Court
otherwise may direct, a notice of intention to appear;

                  20.      directing the Company or its designated agents to
rent one or more post-office boxes in the name of the Clerk of the Court, to be
used for receiving requests for exclusion, objections and any other
communications including Claim Forms, and

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providing that, other than the Court or the Clerk of Court, only the Company,
Lead Counsel and their designated agents shall have access to such post-office
boxes;

                  21.      directing Defendant's Counsel and Lead Counsel, and
any other counsel for Plaintiffs or the Class, promptly to furnish each other
with copies of any and all objections or written requests for exclusion that
might come into their possession;

                  22.      providing a means for those filing objections to
obtain access at their own expense, at Lead Counsel's office, to the documents
disclosed by Defendant through discovery to Plaintiffs' counsel in this Action,
and also to deposition transcripts and exhibits thereto in this Action, provided
that such individuals shall not be given access to these materials unless and
until they enter into the Stipulation of Confidentiality and all Protective
Orders entered and to be entered in the Action, as described above in Section
XIII.B; and

                  23.      containing any additional provisions that might be
necessary to implement and administer the terms of this Settlement Agreement and
the proposed settlement.

         C.       Neither Karl M. Thompson, Lucile Ellis, Charlene McCallop,
Marguerite Guillmette Justin, Adrienne Delpit Blazio, Myron Billups nor any
other named Plaintiff will request exclusion from the Class, object to the
proposed settlement, or file an appeal from or otherwise seek review of any
order approving the proposed settlement.

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XVII.    FINAL APPROVAL, AND FINAL JUDGMENT AND ORDER APPROVING SETTLEMENT

         A.       After the Fairness Hearing, and upon the Court's approval
of this Settlement Agreement, the Parties shall seek and obtain from the Court a
Final Judgment and Order Approving Settlement, which shall, among other things:

                  1.       find that the Court has personal jurisdiction over
all Class Members and that the Court has subject matter jurisdiction to approve
this Settlement Agreement and all exhibits thereto;

                  2.       approve this Settlement Agreement and the proposed
settlement as fair, reasonable and adequate, consistent and in compliance with
all applicable requirements of the Federal Rules of Civil Procedure, the United
States Constitution (including the Due Process Clause), the Rules of the Court
and any other applicable law, and in the best interests of each of the Parties
and the Class Members; direct the Parties and their counsel to implement and
consummate this Settlement Agreement according to its terms and provisions; and
declare this Settlement Agreement to be binding on - and, as to all claims and
issues that have or could have been raised in this Action, to have res judicata
and other preclusive effect in all pending and future lawsuits or other
proceedings encompassed by the Release maintained by or on behalf of -
Plaintiffs and all other Class Members, as well as their heirs, executors and
administrators, successors and assigns;

                  3.       finally certify the Class for settlement purposes;

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                  4.       find that the Class Notice Package, Publication
Notice and other media notice implemented pursuant to this Settlement Agreement
(i) constituted the best practicable notice, (ii) constituted notice that was
reasonably calculated, under the circumstances, to apprise Class Members of the
pendency of the Action, their right to object to or exclude themselves from the
proposed settlement and their right to appear at the Fairness Hearing, (iii)
were reasonable and constituted due, adequate and sufficient notice to all
persons entitled to receive notice, and (iv) met all applicable requirements of
the Federal Rules of Civil Procedure, the United States Constitution (including
the Due Process Clause), the Rules of the Court and any other applicable law;

                  5.       find that Lead Counsel and the Class
representatives adequately represented the Class for purposes of entering into
and implementing the settlement;

                  6.       dismiss the Action (including all individual
claims and Class claims presented thereby) on the merits and with prejudice,
without fees or costs to any Party except as provided in this Settlement
Agreement;

                  7.       incorporate the Release set forth above in Section
XIV, make the Release effective as of the date of the Final Judgment and Order
Approving Settlement, and forever discharge the Releasees from any claims or
liabilities arising from or related to the matters in the Release;

                  8.       permanently bar and enjoin all Class Members who
have not been timely excluded from the Class with respect to a Policy from (i)
filing, commencing, prosecuting, maintaining, intervening in, participating in
(whether individually, as class members or otherwise), or receiving any benefits
or other relief from any other lawsuit or

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arbitration, or receiving any individual benefits from any administrative,
regulatory or other proceeding or order, in any jurisdiction based on or
relating to the claims and causes of action, or the facts and circumstances
relating thereto, in this Action and/or the Release as to that Policy, and (ii)
organizing such nonexcluded Class Members into a separate class for purposes of
pursuing as a purported class action (including by seeking to amend a pending
complaint to include class allegations, or by seeking class certification in a
pending action) any lawsuit based on or relating to the claims and causes of
action, and/or the facts and circumstances relating thereto, in this Action
and/or the Release as to that Policy;

                  9.       permanently bar and enjoin all persons from
asserting or maintaining any claims, pursuing any discovery from Metropolitan
Life or any third party, presenting evidence, or claiming any damages, whether
compensatory or punitive, based on or encompassing, in whole or in part, the
alleged Company practices and patterns that are the subject of the Action and/or
the Release; provided however, that Class Members who have timely excluded
themselves from the Class shall not be enjoined from (a) proceeding with their
individual actions, insofar as they are amenable to proof by evidence relevant
exclusively to policies that were the subject of timely requests for exclusion;
or (b) seeking discovery in connection with their individual actions, insofar as
it relates directly to policies that were the subject of timely requests for
exclusion and does not seek broader evidence of the alleged Company practices or
patterns that are the subject of the Action and/or the Release;

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                  10.      authorize the Parties, without further approval
from the Court, to agree to and adopt such amendments, modifications and
expansions of this Settlement Agreement and all exhibits attached to the
Settlement Agreement as (i) are not materially inconsistent with the Final
Judgment and Order Approving Settlement and (ii) do not limit the rights of
Class Members under the Settlement Agreement;

                  11.      authorize the Company, in consultation with Lead
Counsel and without approval from the Court, to implement the settlement before
the Final Settlement Date, in which case all provisions in this Settlement
Agreement that specify actions to be taken on or after the Final Settlement Date
shall, to the extent necessary, be deemed to provide that those actions shall be
taken on or after the date on which the Company elects to implement the
Settlement Agreement;

                  12.      confirm that no person or entity who is not a
Class Member shall receive any benefit under this settlement, unless such person
or entity first agrees to be bound by the terms of the Release in Section XIV
hereto as to the Policy for which relief is received;

                  13.      require anyone seeking to appeal from the Court's
rulings to post an appropriate bond;

                  14.      require that, in the event that the Company
determines to implement the settlement before the Final Settlement Date, anyone
seeking to appeal from the Court's rulings must first (i) request to intervene
upon a representation of inadequacy of counsel and (ii) request a stay of
implementation of the settlement and, absent satisfaction of each of these
requirements and the posting of an appropriate bond, authorize the

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<PAGE>

Company to proceed with implementation of the settlement, even if such
implementation would moot the appeal;

                  15.      without affecting the finality of the Final
Judgment and Order Approving Settlement for purposes of appeal, retain
jurisdiction as to all matters relating to the administration, consummation,
enforcement and interpretation of this Settlement Agreement and the Final
Judgment and Order Approving Settlement, and for any other necessary purpose;
provided however, that nothing in this Section shall restrict the ability of the
Parties to exercise their rights under Sections XVII.A.10 and XVII.A.11 above;
and

                  16.      incorporate any other provisions that the Court
deems necessary and just.

XVIII.   MODIFICATION OR TERMINATION OF THIS AGREEMENT

         A.      The terms and provisions of this Settlement Agreement may
be amended, modified or expanded by agreement of the Parties and approval of the
Court; provided however, that after entry of the Final Judgment and Order
Approving Settlement the Parties may by agreement effect such amendments,
modifications or expansions of this Settlement Agreement and its implementing
documents (including all exhibits to the Settlement Agreement) without notice to
or approval by the Court if such changes are not materially inconsistent with
the Court's Final Judgment and Order Approving Settlement and do not limit the
rights of Class Members under the Settlement Agreement.

         B.      The Company, in consultation with Lead Counsel and without
approval of the Court, may implement the terms of the settlement after entry of
the Final Judgment and

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<PAGE>

Order Approving Settlement but before the Final Settlement Date, in which case
all provisions in this Settlement Agreement that specify actions to be taken on
or after the Final Settlement Date shall, to the extent necessary, be deemed to
provide that those actions shall be taken on or after the date on which the
Company elects to implement the Settlement Agreement.

         C.       This Settlement Agreement will terminate at the sole option
and discretion of Defendant or Plaintiffs if (i) the Court, or any appellate
court(s), rejects, modifies or denies approval of any portion of this Settlement
Agreement or the proposed settlement that the terminating Party in its (or
their) sole judgment and discretion reasonably determine(s) is material,
including, without limitation, the terms of relief, the findings of the Court,
the provisions relating to notice, the definition of the Class and/or the terms
of the Release, or (ii) the Court, or any appellate court(s), does not enter or
completely affirm, or alters or expands, any portion of the Final Judgment or
Order Approving Settlement, or any of the Court's findings of fact or
conclusions of law as proposed by Defendant's Counsel and Lead Counsel, that the
terminating Party in its (or their) sole judgment and discretion believe(s) is
material. The terminating Party must exercise the option to withdraw from and
terminate this Settlement Agreement, as provided in this Section no later than
20 days after receiving notice of the event prompting the termination.

         D.       Notwithstanding the preceding Section XVIII.C, Plaintiffs
may not terminate this Settlement Agreement solely because of the amount or
distribution of Attorneys' Fees and Expenses awarded by the Court or any
appellate court(s). Defendant, however,

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<PAGE>

may elect to terminate this Settlement Agreement if the amount of
Attorneys' Fees and Expenses awarded exceeds any amount that, before the
Fairness Hearing, it has agreed not to oppose.

         E.       Defendant may unilaterally withdraw from and terminate this
Settlement Agreement if those persons or entities who elect to exclude
themselves from the Class with respect to any Policy or Policies together are
Holders or Estate Holders of more than 20,000 Policies.

                  1.       The Company's option to withdraw from and
terminate this Settlement Agreement under this Section XVIII.E shall arise only
if, in combination, requests for exclusion have been submitted for 20,000
Policies that are, in combination, (i) Database Policies and (ii) other life
insurance policies for which the Application File confirms the policy's status
as a Policy.

                  2.       The Company's option to withdraw from and
terminate this Settlement Agreement under this Section XVIII.E shall be
exercised no later than 14 days preceding the Fairness Hearing.

                  3.       If the Company exercises its termination option
under this Section XVIII.E above, then Lead Counsel shall be given access to the
numbers for all Policies for which exclusion requests have been received, and
also to the Application Files for all excluded Policies (other than Database
Policies). Based on its review of this information, Lead Counsel may argue to
the Court that the Company is not entitled to exercise the termination rights
under this Section XVIII.E above. The Court's Fairness Hearing shall

                                       98

<PAGE>

be continued to permit Lead Counsel to conduct the review contemplated by this
Section XIII.E.3.

         F.       If an option to withdraw from and terminate this Settlement
Agreement arises under Sections XVIII.C through XVIII.E, (i) neither Defendant
nor Plaintiffs will be required for any reason or under any circumstance to
exercise that option, and (ii) any exercise of that option shall be made in good
faith.

         G.       If this Settlement Agreement is terminated pursuant to
Sections XVIII.C, XVIII.D, and/or XVIII.E, then:

                  1.       this Settlement Agreement shall be null and void
and shall have no force or effect, and no Party to this Settlement Agreement
shall be bound by any of its terms, except for the terms of this Section XVIII.G
and Section XIX.C, below;

                  2.       this Settlement Agreement, all of its provisions,
and all negotiations, statements and proceedings relating to it shall be without
prejudice to the rights of Defendant, Plaintiffs or any other Class Member, all
of whom shall be restored to their respective positions existing immediately
before the execution of this Settlement Agreement;

                  3.       Defendant and its current and former directors,
officers, Producers, employees, agents, attorneys and representatives expressly
and affirmatively reserve all defenses, arguments and motions as to all claims
that have been or might later be asserted in the Action, including (without
limitation) any applicable statutes of limitation, statutes of repose, or other
prescriptive periods and the argument that the Action may not be litigated as a
class action;

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<PAGE>

                  4.       Plaintiffs and their current and former
predecessors, successors, heirs, agents, attorney, representatives or assigns
expressly and affirmatively reserve all motions as to, and arguments in support
of, all claims that have been or might later be asserted in the Action,
including (without limitation) any argument concerning class certification
and/or punitive damages;

                  5.       neither this Settlement Agreement, nor the fact of
its having been made, shall be admissible or entered into evidence for any
purpose whatsoever; and

                  6.       any order or judgment entered after the date of
this Settlement Agreement will be deemed vacated and will be without any force
or effect.

XIX.     GENERAL MATTERS AND RESERVATIONS

         A.       The obligation, although not the ability, of the Parties to
conclude the proposed settlement is and will be contingent upon each of the
following:

                  1.       authorization by the Board of Directors of
Metropolitan Life Insurance Company of entry into this Settlement Agreement;

                  2.       the resolution, acceptable to Defendant, of any
regulatory investigation or inquiry by the New York State Insurance Department
arising out of, or relating to the relief to be provided under, the proposed
settlement (to this end, Defendant agrees to seek any necessary approval of the
New York State Insurance Department relating to the relief not later than 20
days before the Fairness Hearing);

                  3.       entry by the Court of the Final Judgment and Order
Approving Settlement, from which order the time to appeal has expired or which
has remained unmodified after any appeal(s); and

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<PAGE>

                  4.       any other conditions stated in this Settlement
Agreement.

         B.       The Parties and their counsel agree to keep the existence
and contents of this Settlement Agreement and all related negotiations
confidential until the date of the first public announcement by the Company;
provided however, that this Section shall not prevent earlier disclosure of such
information to regulators, rating agencies, insurers or reinsurers, financial
analysts, Producers, or any other person or entity (such as experts, courts,
and/or Administrators) to whom the Parties agree disclosure must be made to
effectuate the terms and conditions of this Settlement Agreement.

         C.       One year after the Final Settlement Date or promptly after
termination of this Settlement Agreement, whichever comes first (unless the time
is extended by agreement of the Parties), Plaintiffs and their counsel will
return to Defendant's Counsel all documents (and all copies of such documents in
whatever form made or maintained) produced by Defendant in this Action, as well
as all transcripts of and exhibits to any deposition testimony provided by
Defendant or their current or former officers, employees or Producers (and all
copies of such documents in whatever form made or maintained).

         D.       The Company's execution of this Settlement Agreement shall
not be construed to release - and the Company expressly does not intend to
release - any claim the Company may make against any insurer for any cost or
expense incurred in connection with this Settlement Agreement, including
attorneys' fees and costs.

         E.       Lead Counsel represents that (a) it is authorized to enter
into this Settlement Agreement on behalf of Plaintiffs and any other attorneys
who now represent Plaintiffs in

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<PAGE>

this Action with respect to the claims in this Action, and (b) it is seeking to
protect the interests of the entire Class.

         F.       Plaintiffs represent and certify that (i) they have agreed
to serve as a representative of the Class proposed to be certified herein; (ii)
they are willing, able and ready to perform all of the duties and obligations of
representatives of the Class, including, but not limited to, being available
for, and involved in, discovery and fact finding; (iii) they have read the
pleadings in this Action, including the Amended Complaint, or have had the
contents of such pleadings described to them; (iv) they are familiar with the
results of the fact-finding undertaken by Lead Counsel; (v) they have been kept
apprised of the progress of the Action and/or the settlement negotiations among
the Parties, and have either read this Settlement Agreement, including the
exhibits attached to the Settlement Agreement, or have received a detailed
description of it from Plaintiffs' Counsel, and they have agreed to its terms;
(vi) they have consulted with Lead Counsel - and/or other Plaintiffs' counsel of
record - about the Action, this Settlement Agreement and the obligations imposed
on a representative of the Class; (vii) they have authorized Lead Counsel to
execute this Settlement Agreement on their behalf; and (viii) they will remain
and serve as representatives of the Class until the terms of this Settlement
Agreement are effectuated, this Settlement Agreement is terminated in accordance
with its terms, or the Court at any time determines that said Plaintiffs cannot
represent the Class.

                                      102

<PAGE>

         G.       Lawrence A. Vranka represents that he is authorized to
enter into this Settlement Agreement on behalf of Defendant and any attorneys
who have represented or who now represent Defendant in the Action.

         H.       This Settlement Agreement sets forth the entire agreement
among the Parties with respect to its subject matter, and it may not be altered
or modified except by written instrument executed by Lead Counsel and
Defendant's Counsel. This Settlement Agreement supercedes any prior agreement,
understanding, or undertaking (written or oral) by and between the Parties
regarding the subject matter of this Settlement Agreement.

         I.       This Settlement Agreement and any ancillary agreements
shall be governed by and interpreted according to the law of the State of New
York, excluding its conflict-of-laws provisions.

         J.       Any action to enforce this Settlement Agreement shall be
commenced and maintained only in this Court. Without in any way compromising the
finality of its Final Judgment or Order Approving Settlement, the Court shall
retain jurisdiction over the implementation, administration, and conduct of this
settlement and the interpretation, construction, and enforcement of this
Settlement Agreement.

         K.       Whenever this Settlement Agreement requires or contemplates
that one Party shall or may give notice to the other, notice shall be provided
by facsimile and/or next-day (excluding Sunday) express delivery service as
follows:

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<PAGE>

                  1. If to Defendant, then to

                                Kaiper Wilson, Esq.
                                Metropolitan Life Insurance Company
                                Law Department
                                One Madison Avenue
                                New York, New York 10010
                                Telephone: (212) 578-8743
                                Facsimile: (212) 251-1514

                                        and

                                Bruce E. Yannett, Esq.
                                Debevoise & Plimpton
                                919 Third Avenue
                                New York, New York 10022
                                Telephone: (212) 909-6000
                                Facsimile: (212) 909-6836

                  2. If to Plaintiffs, then to

                                John J. Stoia, Jr., Esq.
                                Milberg Weiss Bershad Hynes & Lerach LLP
                                401 B Street, Suite 1700
                                San Diego, California 92101
                                Telephone: (619) 231-1058
                                Facsimile: (619) 231-7423

                                        and

                                Andrew S. Friedman, Esq.
                                Bonnett, Fairbourn, Friedman & Balint, P.C.
                                2901 North Central Avenue, Suite 1000
                                Phoenix, Arizona 85012-3311
                                Telephone: (602) 274-1100
                                Facsimile: (602) 274-1199

         L.       All time periods set forth herein shall be computed in
calendar days unless otherwise expressly provided. In computing any period of
time prescribed or allowed by this Settlement Agreement or by order of court,
the day of the act, event, or default from

                                      104

<PAGE>

which the designated period of time begins to run shall not be included. The
last day of the period so computed shall be included, unless it is a Saturday, a
Sunday or a legal holiday, or, when the act to be done is the filing of a paper
in court, a day on which weather or other conditions have made the office of the
clerk of the court inaccessible, in which event the period shall run until the
end of the next day that is not one of the aforementioned days. As used in this
Section, "legal holiday" includes New Year's Day, Birthday of Martin Luther
King, Jr., Presidents' Day, Memorial Day, Independence Day, Labor Day, Columbus
Day, Veterans Day, Thanksgiving Day, Christmas Day and any other day appointed
as a holiday by the President or the Congress of the United States, or by the
State of New York, where the Court is located.

         M.       The Parties reserve the right, subject to the Court's
approval, to make any reasonable extensions of time that might be necessary to
carry out any of the provisions of this Settlement Agreement.

         N.       All Parties agree that this Settlement Agreement was
drafted by counsel for the Parties during extensive arm's-length negotiations,
and that no parol or other evidence may be offered to explain, construe,
contradict or clarify its terms, the intent of the Parties or their counsel, or
the circumstances under which the Settlement Agreement was made or executed.

         O.       In no event shall the Settlement Agreement, any of its
provisions or any negotiations, statements or court proceedings relating to its
provisions in any way be construed as, offered as, received as, used as or
deemed to be evidence of any kind in this Action, any other action, or any
judicial, administrative, regulatory or other proceeding,

                                      105

<PAGE>

except a proceeding to enforce this Settlement Agreement. Without limiting the
foregoing, neither this Settlement Agreement nor any related negotiations,
statements or court proceedings shall be construed as, offered as, received as,
used as or deemed to be evidence or an admission or concession of any liability
or wrongdoing whatsoever on the part of any person or entity, including but not
limited to Defendant, or as a waiver by Defendant of any applicable defense,
including without limitation any applicable statute of limitations or statute of
frauds, or as a concession by Plaintiffs or the Class that any claims, causes of
action or remedies, including punitive damages, lack merit.

         P.       Defendant expressly denies any wrongdoing alleged in the
pleadings and does not admit or concede any actual or potential fault,
wrongdoing or liability in connection with any facts or claims that have been or
could have been alleged against it in the Action, but considers it desirable for
the Action to be settled and dismissed because this settlement will (i) provide
substantial benefits to the Company's present and former policyowners, insureds
and beneficiaries, (ii) avoid the substantial expense and the further disruption
of the management and operation of the Company's business due to the pendency
and defense of the Action and (iii) finally put Plaintiffs' claims and the
underlying matters to rest.

         Q.       Plaintiffs expressly affirm that the allegations contained
in the Amended Complaint were made in good faith and have a basis in fact, but
consider it desirable for the Action to be settled and dismissed because of the
substantial benefits that the proposed settlement will provide to the Company's
present and former policyowners.

                                      106

<PAGE>

         R.       Neither this Settlement Agreement nor any of the relief to
be offered under the proposed settlement shall be interpreted to alter in any
way the contractual terms of any Policy, or to constitute a novation of any
Policy.

         S.       No opinion concerning the tax consequences of the proposed
settlement to individual Class Members is being given or will be given by the
Company, Defendant's Counsel or Plaintiffs' Counsel; nor is any representation
or warranty in this regard made by virtue of this Settlement Agreement. The
Class Notice will direct Class Members to consult their own tax advisors
regarding the tax consequences of the proposed settlement, including any
payments, contributions or credits provided hereunder, and any tax reporting
obligations they may have with respect thereto. Each Class Member's tax
obligations, and the determination thereof, are the sole responsibility of the
Class Member, and it is understood that the tax consequences may vary depending
on the particular circumstances of each individual Class Member.

         T.       The Parties, their successors and assigns, and their
attorneys undertake to oversee and implement the terms of this Settlement
Agreement in good faith, and to use good faith in resolving any disputes that
may arise in the implementation of the terms of this Settlement Agreement.

         U.       The Parties, their successors and assigns, and their
attorneys agree to cooperate fully with one another in seeking court approval of
this Settlement Agreement and to use their best efforts to effect the prompt
consummation of this Settlement Agreement and the proposed settlement.

                                      107

<PAGE>

         V.       This Settlement Agreement may be signed in counterparts,
each of which shall constitute a duplicate original.

                  Agreed to this 29th day of August, 2002.

                           APPROVED AND AGREED TO BY AND ON BEHALF OF KARL M.
                           THOMPSON, LUCILE ELLIS, CHARLENE MCCALLOP, MARGUERITE
                           GUILLMETTE JUSTIN, ADRIENNE DELPIT BLAZIO, MYRON
                           BILLUPS (AS ADMINISTRATOR OF THE ESTATE OF NELLIE
                           GILLESPIE), IN THEIR INDIVIDUAL AND REPRESENTATIVE
                           CAPACITIES

                       By:         /s/ John J. Stoia, Jr.
                           ___________________________________________
                           JOHN J. STOIA, JR, ESQ.
                           MILBERG WEISS BERSHAD HYNES & LERACH LLP

                                   /s/ Andrew S. Friedman
                           ____________________________________________
                           ANDREW S. FRIEDMAN, ESQ.
                           BONNETT, FAIRBOURN, FRIEDMAN & BALINT, P.C.

                                   /s/ Steven J. Lane
                           ____________________________________________
                           STEVEN J. LANE, ESQ.
                           HERMAN HERMAN KATZ & COTLAR, LLP

                           LEAD COUNSEL FOR PLAINTIFFS

                           APPROVED AND AGREED TO BY AND ON BEHALF OF
                           METROPOLITAN LIFE INSURANCE COMPANY

                       By:         /s/ Lawrence A. Vranka
                           ____________________________________________
                           LAWRENCE A. VRANKA
                           VICE PRESIDENT
                           METROPOLITAN LIFE INSURANCE COMPANY

                                      108<PAGE>
                                                                    Exhibit 10.3

                SEPARATION AGREEMENT, WAIVER AND GENERAL RELEASE

         This Separation Agreement, Waiver and General Release ("Agreement") is
entered into this 16th day of July, 2002 by and between Metropolitan Life
Insurance Company ("MetLife"), and James M. Benson ("Benson").

         WHEREAS, Benson was employed by New England Life Insurance Company, a
subsidiary of MetLife, pursuant to an Executive Employment Agreement dated June
16, 1997 ("Employment Agreement"); and

         WHEREAS, Benson's Employment Agreement expired by its terms on June 15,
2000 and Benson has thereafter continued in an employment relationship with
MetLife on an employment-at-will basis; and

         WHEREAS, MetLife and Benson have determined to end the employment
relationship and exchange valuable consideration on the basis of the terms and
conditions set forth in this Agreement.

         NOW, THEREFORE, in consideration of the foregoing and of the mutual
promises, covenants and agreements set forth herein, it is hereby agreed as
follows:

         1. Benson's employment with MetLife will terminate effective July 31,
2002 ("Termination Date"). He agrees that he will act in a manner consistent
with the provisions set forth in this Agreement from the date of its execution
until the Termination Date. Effective July 31, 2002, Benson shall resign from
any and all positions that he may hold as an officer, trustee or member of the
Board of Directors of any Company entity, and shall execute whatever
documentation is necessary to accomplish such resignations. MetLife shall
document Benson's separation as a voluntary resignation from employment for
purposes of Benson's personnel file, external communications and communications
with any and all governmental and regulatory authorities, such as the Securities
and Exchange Commission, the National Association of Securities Dealers, Inc.
and the Association for Investment Management & Research.

         2. As of the Termination Date, those provisions of the Employment
Agreement that were to extend beyond the termination date of the Employment
Agreement will become null and void. This Agreement will establish all the terms
and conditions that shall continue to govern the relationship between Benson and
MetLife, and except as otherwise provided in this Agreement or as required by

<PAGE>

law, Benson's compensation and benefits from the Company shall end on the
Termination Date.

         3. In exchange for the consideration recited in this Agreement,
including the General Release set forth in Paragraph 11 of this Agreement, and
in full satisfaction of any and all obligations to Benson under the Employment
Agreement or any other obligations, MetLife will pay to Benson, subject to the
terms and conditions of this Agreement, the sum of $3,100,000 (net of any
withholding of taxes required by law) within five business days of July 31,
2002; and (ii) purchase an annuity that will provide Benson with the sum of
$400,000 per year starting at his age 62, which annuity will feature a 20 year
term certain and otherwise be payable for Benson's life.

         Benson acknowledges that the payments and other consideration provided
for under this Agreement are in exchange for the waiver of any rights he may
have under the Employment Agreement or any plan or program offered by MetLife
and provide good and adequate consideration for the waiver provided in this
Agreement. Benson further agrees that the payments provided to him in this
Paragraph 3 are conditioned upon his compliance with his undertakings set forth
herein, including those set forth in Paragraphs 4, 5, 6, 7, 8 and 9 below.

         4. No later than the Termination Date, Benson shall deliver to the
person designated by MetLife to receive same, all information, documents and
other materials (including but not limited to manuals, correspondence, reports,
records, memoranda, notes, videotapes, audio tapes, disks, cd-roms, and any
copies or transcripts of the foregoing) concerning or in any way relating to
Benson's employment with MetLife, or the Company's business or operations, that
Benson is aware of that are in Benson's custody, possession or control, except
that nothing in this Agreement shall preclude Benson from retaining documents
and other materials that are purely personal in nature. Benson shall not be in
violation of this Paragraph 4 unless his failure to return any such documents or
materials is willful and he fails to do so within 48 hours after discovery of
such documents or materials. Likewise, if MetLife is or becomes aware of any
documents or materials covered by this Paragraph 4 that are not returned, it
shall provide written notice to Benson and Benson shall return such documents or
materials within 48 hours of such request.

         5. No later than the Termination Date, Benson shall deliver to the
person designated by MetLife to receive same, all property of the Company,
including all keys, records and information belonging to the Company in tangible
form (including any documents, memoranda and/or files, stored in whatever media)
and/or equipment, identification cards, books, notes, recordings, and all copies
or

                                       2

<PAGE>

transcripts thereof. Benson shall not be in violation of this Paragraph 5 unless
his failure to return any such property is willful and he fails to do so within
48 hours after discovery of such property. Likewise, if MetLife is or becomes
aware of any property covered by this Paragraph 5 that is not returned, it shall
provide written notice to Benson and Benson shall return such property within 48
hours of such request.

         6. The existence, terms and conditions of this Agreement are and shall
be deemed to be fully confidential and shall not hereafter be disclosed by
Benson or the Company to any other person or entity, except as may be required
by law, as may be required by the Internal Revenue Service or any other
governmental authority, and except that Benson may disclose the existence, terms
and conditions of this Agreement to his attorneys, accountants, immediate family
members, lenders and/or financial advisors and, with respect to prospective
employers Paragraphs 7, 8, 9 and 10 of this Agreement, provided that he makes
each such person to whom disclosure is made aware of the confidentiality of this
Agreement and that person agrees to keep the terms of the Agreement
confidential, and except that the Company may disclose the existence, terms and
conditions of this Agreement within the Company and to its attorneys,
accountants and auditors, and as otherwise appropriate in the conduct of the
Company's business and affairs. Benson will give MetLife ten (10) days written
notice in the event he is subpoenaed or otherwise required by law to disclose
the existence or contents of this Agreement by mailing to MetLife's Law
Department located at One Madison Avenue New York, New York a copy of any such
legal demand for such information (or, if he is required to disclose this
Agreement in less than ten (10) days, by overnight delivery to be delivered to
the same address in advance of disclosing this Agreement). MetLife will give
Benson ten (10) days written notice in the event it is subpoenaed or otherwise
required by law to disclose the existence or contents of this Agreement by
mailing to him at the address set forth in Paragraph 18 a copy of any such legal
demand for such information (or, if it is required to disclose this Agreement in
less than ten (10) days, by overnight delivery to be delivered to the same
address in advance of disclosing this Agreement).

         7. Benson agrees that he will not now and for a period of eighteen
months after the Termination Date knowingly (i) directly or indirectly solicit
any employee of the Company ("Employee") to become employed, associated or
contracted by or with him or any entity in which he is an employee, owner,
investor or otherwise associated ("Other Company"); (ii) directly or indirectly
solicit any Employee to become employed, associated or contracted with an
organization providing services to Benson or any Other Company; and (iii)
interview an Employee for a job or engagement, or offer, authorize, approve or

                                       3

<PAGE>

agree to hire or engage an Employee for any job opportunity or similar
engagement with him or any Other Company.

         8. Benson agrees that he will not now and for a period of eighteen
months after the Termination Date, to the extent permitted by law, intentionally
interfere in the Company's business or try to disrupt the Company's business,
whether by his own efforts, or indirectly through the efforts of others, and he
will not use any MetLife information or property to assist him or others to do
so. This prohibition includes but is not limited to wrongfully diverting
business away from MetLife or seeking to have any MetLife customer reduce or
terminate any insurance, annuity contract or program or any other product
obtained from or through MetLife.

         9. Benson and the Company each agree that neither will knowingly make
statements that damage, disparage or otherwise diminish the reputation and
business practices of the other. This includes statements made verbally, in
writing or electronically. This provision shall not impair the ability of either
Benson or the Company to introduce information that he or it believes is
relevant to any lawsuit or other proceeding between or involving them both with
respect to the subjects covered by this Agreement. If either Benson or the
Company is required by process of law or otherwise required by regulatory or
administrative process to provide information to any third party that it
reasonably believes might be perceived by the other to represent a statement
otherwise prohibited by this Paragraph, the party so required will give notice
to the other on the same terms as provided in Paragraph 6.

         10. Benson agrees to make himself available, at reasonable times and on
reasonable notice from the Company and its counsel, for purposes of providing
factual information and/or truthful testimony in connection with any
investigation or any action, suit, complaint, claim, grievance, charge or
proceeding of any kind, in any court, or with any self-regulatory organization,
or before any administrative, governmental or investigative body or agency
(whether public, quasi-public or private), in which the Company is a party or
has an interest. The Company will reimburse Benson any reasonable expenses
incurred related to his compliance with Paragraph 10.

         11. Benson agrees, for himself and his relatives, heirs, executors,
administrators, successors, and assigns that he hereby fully and forever
releases and discharges MetLife, its parents, subsidiaries, affiliates, and
agents and their respective past, present, and future directors, officers,
employees, agents, representatives, employee benefits plans or funds (except as
set forth below in this Paragraph 11) and the fiduciaries thereof, successors,
and assigns (collectively, "the Company") from any and all claims, charges,
demands, actions, liability,

                                       4

<PAGE>

damages, sums of money, back pay, front pay, attorneys' fees, or rights of any
and every kind or nature, accrued or unaccrued, which Benson ever had, now has
or may have, whether known or unknown, against the Company arising out of any
act, omission, transaction, or occurrence up to and including the date Benson
executes this Agreement including, but not limited to, (i) any claim arising out
of or related to Benson's employment by the Company or the discontinuance
thereof; (ii) any claims arising under or for breach of any provisions of the
Employment Agreement, it being the intention of the parties to supersede all
rights and obligations created or arising under all prior agreements, whether
written or oral, including without limitation the Employment Agreement, with the
terms and conditions set forth herein, (iii) any alleged violations of any
federal, state, or local fair employment practice or benefits laws, or other
employee relations statute, executive order, law, or ordinance, (iv) any alleged
violations of any duty or other employment-related obligation or other
obligations arising out of contract, tort, tortious course of conduct, libel or
slander, defamation, public policy, law, or equity, (v) any claim on Benson's
behalf in any action brought by any administrative agency or other party
(including claims for back pay, front pay, damages, in whatever form, and for
reinstatement), and (vi) any expectation, anticipation, right, or claim under
the MetLife, Inc. 2000 Stock Incentive Plan or any other Company incentive
compensation plan (including the Annual Variable Incentive Plan and the Long
Term Performance Compensation Plan) or claim to any salary and bonuses. Benson
acknowledges that, prior to his execution of this Agreement, he has been fully
informed that his employment is being discontinued and that any and all claims
arising from this discontinuance are included in this release. This Paragraph 11
is not intended to and does not release any claims to rights to indemnity that
Benson may have for actions or inactions taken or not taken during his
employment with MetLife or its affiliates. This Agreement does not affect any
vested benefits or rights under employee benefit plans. Set forth in Attachment
A is a list of the various plans offered by MetLife in which Benson participated
or might have participated, including employee benefit plans under ERISA and
other plans, and in those in which he participated, the amount of Benson's
benefit or participation in such plan ("Benefit Amount.") This Agreement is not
intended to, and does not, release any Benefit Amount.

         12. Benson and MetLife acknowledge that each of them fully understands
the terms of this Agreement and their significance, that each has signed it
voluntarily and of his and its own free will, and that each intends to abide by
its provisions without exception.

         13. Benson acknowledges that this Agreement may not be changed except
in a writing that specifically references this Agreement and that is signed by
him and the Senior Executive Vice-President and Chief Administrative Officer of

                                       5

<PAGE>

MetLife. With the exception of the written stock option agreement into which
Benson entered during his employment with MetLife granting him the option to
purchase certain shares of MetLife, Inc. common stock, and the Agreement to
Protect Corporate Property which he may have signed during his employment with
MetLife, which remain in full force and effect, and the plans referenced in
Attachment A, this Agreement constitutes the full understanding between Benson
and MetLife regarding the subject matter hereof. Benson further acknowledges
that no other promises or agreements of any kind have been made to him by any
person or entity whatsoever to cause him to sign this Agreement, and that no
other promises or agreements or any kind between him and the Company exist or
survive the execution of this Agreement.

         14. The making of this Agreement is not intended and shall not be
construed as any admission that the Company has violated any federal, state or
local law (statutory or decisional), ordinance or regulation, or has committed
any wrong against Benson.

         15. This Agreement may not be used as evidence in any proceeding,
except in a proceeding in which one of the parties alleges a breach of the
Agreement.

         16. This Agreement may be executed simultaneously in several
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         17. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and may be
delivered to either party by facsimile, overnight carrier or United States mail,
as follows:

If to Benson:
                                    James M. Benson
                                    [redacted]
                                    [redacted]

If to MetLife:

                                       6

<PAGE>

                                    Metropolitan Life Insurance Company
                                    One Madison Avenue
                                    New York, NY  10010
                                    Attn:  Lisa M. Weber
                                            Senior Executive Vice-President and
                                            Chief Administrative Officer

                                    Facsimile: 212-726-9069

         18. This Agreement shall be governed by the laws of the state of New
York, and shall be construed and enforced in all respects by the laws of the
state of New York without regard to the conflict of laws principles thereof.

         19. If any provision of this Agreement is held by a court of competent
jurisdiction to be illegal, void or unenforceable, such provision shall be of no
force and effect. However, the illegality or unenforceability of such provision
shall have no effect upon, and shall not impair the enforceability of any other
provision of this Agreement.

         20. This Agreement is binding upon and shall inure to the benefit of
the parties and each of their respective heirs, distributees, executors,
administrators, personal representatives, successors and assigns.

         21. In the event that any action, suit or other proceeding is
instituted to enforce or interpret this Agreement, or to remedy, prevent or
obtain relief from a breach of this Agreement, the prevailing party shall
recover all of such party's costs and fees (including attorney's fees) incurred
in each and every such action, suit or other proceeding, including any and all
appeals or petitions therefrom.

James M. Benson

/s/ James M. Benson                             July 16, 2002
-------------------                             -------------
Signature                                       Date

                                       7

<PAGE>

Metropolitan Life Insurance Company

By: /s/ Lisa M. Weber                           July 16, 2002
    -----------------                           -------------
Name:   Lisa M. Weber                           Date
        -------------
Title:  Senior Executive Vice-President
        -------------------------------

                                       8

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