Document:

<PAGE>

                                                              Exhibit 10.xxxviii

                             THE MEAD CORPORATION
                      DIRECTORS CAPITAL ACCUMULATION PLAN
                      -----------------------------------
              (As Amended and Restated Effective January 1, 2000)
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                         <C>
SECTION 1 - GENERAL.........................................................   1

         1.1   Purpose and Effective Date...................................   1
         1.2   Plan Funding and Administration..............................   1
         1.3   Applicable Law...............................................   1
         1.4   Gender and Number............................................   1
         1.5   Assignment...................................................   1
         1.6   Plan Year....................................................   2
         1.7   Supplements..................................................   2
         1.8   Plan Elections...............................................   2

SECTION 2 - PARTICIPATION...................................................   2

         2.1   Participation Requirement....................................   2
         2.2   Continued Participation......................................   2

SECTION 3 - DEFERRAL OF INCOME..............................................   3

         3.1   Deferred Income Amount.......................................   3
         3.2   Annual Election to Participate...............................   3

SECTION 4 - PARTICIPANT ACCOUNTS............................................   3

SECTION 5 - DCPD ROLLOVERS..................................................   4

SECTION 6 - CREDITING OPTIONS...............................................   4

         6.1   Establishment of Crediting Options...........................   4
         6.2   Participant Change of Crediting Options......................   5

SECTION 7 - ADJUSTMENT OF PARTICIPANT ACCOUNTS..............................   5

         7.1   Adjustment of Participants' Participant Accounts.............   5
         7.2   Quarterly Statement of Participant Accounts Balances.........   6

SECTION 8 - DISTRIBUTION OF PARTICIPANT ACCOUNTS TO PARTICIPANTS............   6

         8.1   Annual Distributions.........................................   6
         8.2   Emergency Distributions......................................   7

SECTION 9 - DISTRIBUTION OF PARTICIPANT ACCOUNTS TO BENEFICIARIES...........   7

         9.1   Distribution to Beneficiary..................................   7
         9.2   Beneficiary..................................................   8

SECTION 10 - DISTRIBUTIONS TO INCAPACITATED PERSONS.........................   8
</TABLE>
<PAGE>

<TABLE>
<S>                                                                         <C>
SECTION 11 - CHANGE IN CONTROL..............................................   9

         11.1  In General...................................................   9
         11.2  Certain Definitions..........................................  11

SECTION 12 - AMENDMENT AND TERMINATION......................................  11

EXHIBIT I - CREDITING OPTIONS

SUPPLEMENT A
</TABLE>
<PAGE>

                             THE MEAD CORPORATION
                      DIRECTORS CAPITAL ACCUMULATION PLAN
                      -----------------------------------

                              SECTION 1 - GENERAL
                              -------------------

         1.1 Purpose and Effective Date. Effective January 1, 1995, The Mead
             --------------------------
Corporation ("Mead"), an Ohio corporation, established The Mead Corporation
Directors Capital Accumulation Plan (the "Plan"). The Plan was subsequently
amended from time to time and the following provisions constitute a further
amendment, restatement and continuation of the Plan, effective January 1, 2000.
The purpose of the Plan continues to be to provide recurring annual
opportunities for the deferment of payment of certain amounts otherwise
currently payable to its "Eligible Directors" (as defined below) who meet the
requirements to become a "Participant" set forth in subsection 2.1. The term
"Eligible Director" means any member of the Board of Directors of Mead who is
not employed by it.

         1.2 Plan Funding and Administration. The benefits payable under the
             -------------------------------
Plan are unfunded and are payable, when due, from the general assets of Mead;
provided, however, that Mead, in its discretion, may establish or maintain a
trust to pay such amounts, which trust shall be subject to the claims of Mead's
unsecured general creditors in the event of Mead's bankruptcy or insolvency; and
provided, further, that Mead shall remain responsible for the payment of any
such amounts which are not so paid by any such trust. The Plan shall be
administered by a "Plan Administrator" who is appointed by, and serves at the
pleasure of, the Compensation Committee of the Board of Directors of Mead (the
"Committee") and who has the rights, powers and duties with respect to the Plan
that are hereinafter set forth and such other rights, powers and duties as are
reasonably necessary for the administration of the Plan. As of the effective
date, the Plan Administrator is the Vice President-Human Resources of Mead.

         1.3 Applicable Law. The Plan will be construed and administered in
             --------------
accordance with the laws of the State of Ohio to the extent that those laws are
not preempted by the laws of the United States of America.

         1.4 Gender and Number. Where the context admits, words in any gender
             -----------------
will include any other gender, words in the singular will include the plural and
the plural will include the singular.

         1.5 Assignment. No Plan right or interest of any Participant or
             ----------
Beneficiary shall be assignable or transferable, in whole or in part, either
directly or otherwise, including without limitation thereto, by execution, levy,
attachment, garnishment, pledge or in any other manner, but excluding
<PAGE>

transfers by death or mental incompetency; no attempted assignment or transfer
thereof shall be effective; and no such right or interest shall be liable for,
or subject to, any obligation or liability of any Participant or Beneficiary;
except that a Participant may direct that payments be made during his lifetime,
when due, to a trust established by him and evidenced to his Employer to be a
trust treated as a grantor trust within the meaning of section 671 of the Code.

         1.6 Plan Year.  The term "Plan Year" means the calendar year.
             ---------

         1.7 Supplements. The provisions of the Plan, as applied to all or any
             -----------
group of Participants, may be modified or supplemented by "Supplements" to the
Plan. Any such Supplement shall form a part of the Plan as of its effective date
and be attached thereto. Effective as of January 1, 2000 a Supplement A forms a
part of the Plan. Supplement A modifies certain investment, accounting and
distribution provisions of the Plan as it applies to "Supplement A Individuals"
(as defined in Supplement A).

         1.8 Plan Elections. Except as otherwise specifically provided, any
             --------------
election required or permitted to be made under the Plan will be deemed to have
been properly made and filed with the Plan Administrator if made by such method
as the Plan Administrator may require.

SECTION 2 - PARTICIPATION
-------------------------

         2.1 Participation Requirement. A Director of Mead who is a Participant
             -------------------------
in the Plan on December 31, 1999 will continue as such, subject to the terms and
conditions of the Plan. Each other Director of Mead will become a Participant in
the Plan as of January 1, 2000, or on any subsequent January 1, if on such
January 1 he:

                  (a)      is an Eligible Director;

                  (b)      has executed an Annual Participation Election form
                           (as described in subsection 3.3); and

                  (c)      has executed such forms as the Plan Administrator may
                           determine necessary to permit Mead (at its discretion
                           and expense) to maintain a policy of insurance on his
                           life under the terms of which Mead shall be the
                           policyholder, owner and beneficiary.

Each individual who becomes an Eligible Director on or after January 1, 2000
will become a Participant in the Plan (on a prospective basis) on the earlier of
the date on which the Plan Administrator has received his executed Annual
Participation
<PAGE>

Election form if that date is within 30 days of the date he becomes an Eligible
Director or on any subsequent January 1 if he then meets the requirements set
forth in paragraphs (a) through (c) above.

         2.2 Continued Participation. Until distribution of the entire balances
             -----------------------
of a Participant's "Participant Accounts" (as described in Section 4) has been
made, a Participant or, in the event of his death, any "Beneficiary" (as defined
in subsection 9.2) of any of the Participant's undistributed Participant
Accounts, as the case may be, will be considered and treated as a Participant
for all purposes of the Plan, except that any additional compensation (as
described in subsection 3.1) shall cease as of the first day of the month next
following the date on which he is no longer an Eligible Director.

SECTION 3 - DEFERRAL OF INCOME
------------------------------

         3.1 Deferred Income Amount. Subject to the provisions of subsection
             ----------------------
3.2, by entering into a written Annual Election to Participate as provided by
subsection 2.1, a Participant may elect to defer any portion or all of the
amount of the meeting fees and of the cash portion of the retainer fee that
would otherwise be payable to him for services performed during the period that
the Annual Election to Participate is effective.

         3.2 Annual Election to Participate. The term "Annual Election to
             ------------------------------
Participate" means a written agreement, in a form furnished by the Plan
Administrator, entered into by and between a Participant and Mead with respect
to a calendar year and setting forth:

                  (a)      the deferral percentages elected by the Participant
                           in accordance with subsection 3.1 for that calendar
                           year;

                  (b)      the percentage of his total deferral that is
                           allocated to each of the "Crediting Options" (as
                           described in subsection 6.1) selected by him;

                  (c)      the "Distribution Period" (as defined below) that he
                           elects to be applicable with respect to the amounts
                           deferred pursuant to that Annual Election to
                           Participate; and

                  (d)      subject to the provisions of paragraph 8.1(b), the
                           calendar year in which the Distribution Period is to
                           commence.

Each Annual Election to Participate shall be irrevocable by the Participant
after the last day of the calendar month preceding its effective date. The term
"Distribution Period" means, with
<PAGE>

respect to any Participant Account, a period of 5, 10, 15 or 20 calendar years
as elected by the Participant for whom the Account is maintained.

SECTION 4 - PARTICIPANT ACCOUNTS
--------------------------------

         For each calendar year, the Plan Administrator shall cause a
Participant Account to be established and maintained by Mead in the name of each
Participant to reflect the amount of any deferrals that are the subject of the
Participant's Annual Election to Participate for that calendar year. A
Participant's Participant Accounts shall be periodically adjusted as provided in
subsection 7.1 and shall be distributed to a Participant in accordance with the
provisions of Section 8 or, in the event of the Participant's death, to his
Beneficiary in accordance with the provisions of Section 9.

SECTION 5 - DCPD ROLLOVERS
--------------------------

         Notwithstanding any provision of the Plan to the contrary, a
Participant for whose benefit a balance is maintained under the Deferred
Compensation Plan for Directors (the "DCPD") may elect, during December, 1994,
to have that balance transferred to the Plan and credited to a separate
Participant Account (to be identified as his "DCPD Participant Account")
established hereunder as of January 1, 1995, subject to the following:

                  (a)      In no event may a Participant elect to transfer to
                           this Plan any amount credited under the Supplement to
                           the DCPD.

                  (b)      No DCPD rollover to the Plan shall be permitted after
                           January 1, 1995.

                  (c)      A Participant's Distribution Period with respect to
                           his DCPD Participant Account shall commence on the
                           date on which payment of his balance under the DCPD
                           would have commenced.

                  (d)      To the extent necessary for self-employment tax
                           purposes, the Committee shall maintain a
                           Participant's DCPD Participant Account in the form of
                           sub-accounts.

SECTION 6 - CREDITING OPTIONS
-----------------------------

         6.1 Establishment of Crediting Options. The Committee shall designate
             ----------------------------------
"Crediting Options" (in such number and of such asset character as it shall
decide), the investment experience of which shall be applied in adjusting
Participants' Participant Accounts, as provided in subsection 7.1. The Crediting
Options available as of January 1, 2000 are set forth on Exhibit I of the
<PAGE>

Plan. On advance written notice to the Participants, the Committee may cause any
Crediting Option to be prospectively deleted and may designate other Crediting
Options. In no event shall the assets of a Crediting Option be constituted of
securities of any Employer or Affiliate. Should Mead determine to invest any of
its funds in the asset or assets constituting a Crediting Option, amounts
representing such investment shall be the sole property of Mead and shall be
subject to the claims of its general creditors. No Participant or Beneficiary
shall have any claim or right with respect to any such amounts. Notwithstanding
the foregoing provisions of this subsection 6.1, upon and after the occurrence
of a "Change in Control" (as described in subsection 11.1), the Committee shall
have no power to eliminate any Crediting Option which was available immediately
prior to the Change in Control and, if any Crediting Option shall be eliminated
through circumstances beyond the control of the Committee, the Committee shall
immediately add a Crediting Option which will provide an investment return equal
to one-hundred-twenty percent (120%) of the long-term Federal interest rate
determined monthly under section 1274(d) of the Code, compounded semi-annually.

         6.2 Participant Change of Crediting Options.  A Participant may elect:
             ----------------------------------------
                  (a)      with respect to amounts to be credited to any
                           Participant Account on and after that day pursuant to
                           subsection 3.1, the portion (expressed as a multiple
                           of 1 percent) thereof that is to be adjusted pursuant
                           to subsection 7.1 to reflect the investment
                           experience of any Crediting Option (referred to below
                           as an "Adjustment Portion"); and

                  (b)      that all or a portion (expressed as a multiple of 1
                           percent) of the amount of the aggregate balances of
                           the Participant Accounts then maintained for his
                           benefit that constitutes an Adjustment Portion be
                           changed to another Adjustment Portion.

SECTION 7 - ADJUSTMENT OF PARTICIPANT ACCOUNTS
----------------------------------------------

         7.1 Adjustment of Participants' Participant Accounts. As of each
             ------------------------------------------------
"Accounting Date" (as defined below), the Plan Administrator shall cause each
Participant Accounts to be adjusted as follows:

                  (a)      FIRST, by charging to the proper Participant Accounts
                           of each Participant the amount of any distribution
                           made to, or on account of, the Participant from the
                           Account since the last preceding Accounting Date
                           which charge shall be
<PAGE>

                           made, pro rata, according to the Adjustment Portions
                           of that Participant Account;

                  (b)      next, by adjusting each Participant Account
                           ----
                           maintained on behalf of a Participant, upward or
                           downward, as the case may be, so that the balance of
                           the Participant Accounts equals the aggregate
                           investment experience for the accounting period ended
                           on that Accounting Date of the Adjustment Portions
                           elected by him and applicable to that Participant
                           Account as of that date;

                  (c)      next, if the Accounting Date is the last day of a
                           ----
                           calendar month, by crediting the last Participant
                           Account established on behalf of each Participant
                           with the amount of any deferrals made by him during
                           the month ending on that date, which amount shall be
                           credited, pro rata, according to Adjustment Portions
                           elected by the Participant;

                  (d)      finally, by executing the Adjustment Portion change
                           -------
                           elections made pursuant to the provisions of
                           subsection 6.2 that are to be effective as of the
                           opening of business as of the next business day.

The term "Accounting Date" means each business day.

         7.2 Quarterly Statement of Participant Accounts Balances. As soon as
             ----------------------------------------------------
practicable, but not more than 30 days after the last day of each calendar
quarter, the Plan Administrator shall provide each Participant with a statement
of the balances of his Participant Accounts as of that day.

SECTION 8 - DISTRIBUTION OF PARTICIPANT ACCOUNTS TO PARTICIPANTS
----------------------------------------------------------------

         8.1 Annual Distributions. Except as otherwise provided in this Section
             --------------------
8, if a Participant's service as a Director of Mead is terminated for any reason
other than his death, and on the June 30 preceding his initial "Distribution
Payment Date" (as defined below) the aggregate balances of his Participant
Accounts equal at least $50,000, each of the Participant's Participant Accounts
will be distributed to him in annual "Installment Distributions" (in the annual
amount determined as provided below), made on or about each Distribution Payment
Date, beginning:

                  (a)      in the case of a Participant whose service as a
                           Director terminates at any age on account of
                           "disability" (as determined by the Plan
                           Administrator) or for any reason at or after
<PAGE>

                           reaching age 55 years, on or about the Distribution
                           Payment Date of the calendar year elected by him; and

                  (b)      in all other cases, and notwithstanding any previous
                           election, on or about the Distribution Payment Date
                           of the calendar year next following the calendar year
                           during which his termination of service as a Director
                           occurs;

and continuing for the number of calendar years constituting the Distribution
Period he has irrevocably elected with respect to that Participant Account. If
on the June 30 preceding his initial Distribution Payment Date the aggregate
balances of a Participant's Participant Accounts is an amount that is less than
$50,000, those balances shall be distributed to him on or about his initial
Distribution Payment Date in a single lump sum. The amount of the annual
"Installment Distribution" from a Participant Account for a calendar year shall
be equal to the balance of that Participant Account as of June 30 of that year,
divided by the number of calendar years remaining in the Distribution Period
elected by the Participant with respect to that Account. Notwithstanding any of
the foregoing to the contrary, if a Participant with respect to whom a
Participant Account has been established for calendar year 1995 or 1996 has
elected a Distribution Period that is less than 10 calendar years, then, at any
time, but at least one year prior to his initial Distribution Payment Date, he
may elect to have his Distribution Period with respect to any such Participant
Account occur over a period of 10 or more years commencing on the previously
elected initial Distribution Payment Date. The term "Distribution Payment Date"
means July 20 of each year.

         8.2 Emergency Distributions. If, on written application of a
             -----------------------
Participant, it is determined (as provided below) that the Participant has
experienced an "Unforeseeable Emergency" (as defined below), then, as of the
first day of any calendar month, the Participant may elect to receive an
Emergency Distribution from one or more of his Participant Accounts, provided
that the aggregate amount of any such distribution shall not exceed the amount
reasonably needed to satisfy the Participant's emergency need. The term
"Unforeseeable Emergency" means severe financial hardship to the Participant
resulting from a sudden and unexpected illness or accident of the Participant or
of a "dependent" (as defined in section 152(a) of the Code) of the Participant,
loss of the Participant's property due to a casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant. In determining whether an Emergency
Distribution should be made to a Participant consideration may be given to the
extent to which his Unforeseeable Emergency can be relieved:
<PAGE>

                  (a)      through reimbursement or compensation by insurance or
                           otherwise;

                  (b)      by liquidation of the Participant's assets, to the
                           extent the liquidation of such assets would not
                           itself cause severe financial hardship;

                  (c)      by cessation of deferrals under the Plan; or

                  (d)      other distributions to be made to the Participant
                           from the Plan.

A determination with respect to whether a Participant has experienced an
Unforeseeable Emergency shall be made by the Committee.

SECTION 9 - DISTRIBUTION OF PARTICIPANT ACCOUNTS TO BENEFICIARIES
-----------------------------------------------------------------

         9.1 Distribution to Beneficiary. If a Participant dies (either prior to
             ---------------------------
or following his termination of employment with the Employers and Affiliates)
the undistributed balance of each of his Participant Accounts will:

                  (a)      if distribution has commenced prior to his death,
                           continue to be distributed in annual Installment
                           Distributions, to the deceased Participant's
                           Beneficiary with respect to the Participant Account
                           during the remainder of the Distribution Period
                           applicable to that Account as if the deceased
                           Participant had lived; and

                  (b)      if distribution has not commenced prior to his death,
                           be distributed in annual Installment Distributions
                           commencing on the Distribution Payment Date and over
                           the Distribution Period elected by the deceased
                           Participant with respect to that Participant Account.

         9.2 Beneficiary. The term "Beneficiary" means, with respect to any
             -----------
Participant (or a Participant's Beneficiary), such natural or legal person or
persons as may be designated by him (who may be designated contingently or
successively) to receive the remaining aggregate balance of his Participant
Accounts if he dies before a total distribution of the balance is made to him. A
Beneficiary designation will be effective only when a signed and dated
Beneficiary designation form is filed with the Plan Administrator while the
Participant is alive, which form will cancel any Beneficiary designation form
signed and filed earlier. The same also applies to a Beneficiary designation
filed by a Beneficiary. If a Beneficiary survives a Participant and such
Beneficiary dies before a total distribution of the aggregate balances of the
Participant's Accounts (without a contingent or
<PAGE>

successive Beneficiary designated by a Participant), the balance will be paid to
any person designated by such Beneficiary. If a Participant (or his Beneficiary)
is not survived by any Beneficiary, the Plan Administrator shall distribute the
aggregate amount of the balances of that Participant's Accounts to the legal
representative or representatives of the estate of the Participant (or his
Beneficiary). Notwithstanding any provision of the Plan to the contrary, if a
Participant or Beneficiary under the Plan as of December 31, 1999 elects to
change a Beneficiary designation to be effective on or after January 1, 2000, he
must designate a common Beneficiary or Beneficiaries to receive the remaining
aggregate balance of his Participant's Accounts if he dies before a total
distribution of the balance is made to him. Until such time as a change in
Beneficiary is made with respect to any of the Participant Accounts maintained
for a Participant or Beneficiary under the Plan on December 31, 1999, such
multiple designations shall continue.

SECTION 10 - DISTRIBUTIONS TO INCAPACITATED PERSONS
---------------------------------------------------

         Notwithstanding any other provision of the Plan, if a Participant or
other person entitled to a distribution under the Plan is determined by a court
of competent jurisdiction to be physically, mentally or legally incapacitated
and unable to manage his financial affairs and claim is made by a conservator or
other person legally charged by such court with the care of his person, the Plan
Administrator shall make distributions to such conservator or other person. Any
distribution made in accordance with this Section shall fully acquit and
discharge all persons from all further liability on account thereof.

SECTION 11 - CHANGE IN CONTROL
------------------------------

         11.1 In General. A "Change in Control" shall be deemed to have occurred
              ----------
if an event set forth in any one of the following paragraphs shall have
occurred:

                  (a)      date of expiration of a Tender Offer (other than an
                           offer by Mead), if the offeror acquires Shares
                           pursuant to such Tender Offer;

                  (b)      the date of approval by the shareholders of Mead of a
                           definitive agreement:

                           (i)      for the merger or consolidation of Mead or
                                    any direct or indirect subsidiary of Mead
                                    into or with another corporation, other
                                    than:

                                       (A)      a merger or consolidation which
                                                would result in the voting
                                                securities of
<PAGE>

                                                Mead outstanding immediately
                                                prior thereto continuing to
                                                represent,

                                                (I)      in the case of a merger
                                                         or consolidation of
                                                         Mead, either by
                                                         remaining outstanding
                                                         or by being converted
                                                         into voting securities
                                                         of the surviving entity
                                                         or any parent thereof,
                                                         or

                                                (II)     in the case of a merger
                                                         or consolidation of any
                                                         direct or indirect
                                                         subsidiary of Mead,
                                                         either by remaining
                                                         outstanding if Mead
                                                         continues as a parent
                                                         of the merged or
                                                         consolidated subsidiary
                                                         or by being converted
                                                         into voting securities
                                                         of the surviving entity
                                                         or any parent thereof;

                           at least 51 percent of the combined voting power of
                           the voting securities of Mead or such surviving or
                           parent entity outstanding immediately after such
                           merger or consolidation, or

                                    (B)      a merger or consolidation effected
                                             to implement a recapitalization of
                                             Mead (or similar transaction) in
                                             which no Person (as defined below)
                                             is or becomes the Beneficial Owner
                                             (as defined below) directly or
                                             indirectly, of securities of Mead
                                             (not including in the securities
                                             Beneficially Owned by such Person
                                             any securities acquired directly
                                             from Mead or its Affiliates)
                                             representing 25 percent or more of
                                             the combined voting power or Mead's
                                             then outstanding securities, or

                           (ii)     for the sale or disposition of all or
                                    substantially all of the assets of Mead,
                                    other than a sale or disposition by Mead of
                                    all or substantially all of Mead's assets to
                                    an entity, at least 51 percent of the
                                    combined voting power of the voting
                                    securities of which are owned (directly or
                                    indirectly) by shareholders of Mead in
                                    substantially the same proportions as their
                                    ownership of Mead immediately prior to such
                                    sale or disposition;
<PAGE>

                  (c)      any Person is or becomes the Beneficial Owner of 25
                           percent or more of the voting power of the then
                           outstanding securities of Mead (not including in the
                           securities beneficially owned by such Person any
                           securities acquired directly from Mead or its
                           affiliates), excluding any Person who becomes such a
                           Beneficial Owner in connection with a transaction
                           described in subparagraph (b)(i)(A) or the date of
                           authorization, by both a majority of the voting power
                           of Mead and a majority of the portion of such voting
                           power excluding the voting power of interested
                           Shares, of a control share acquisition (as such term
                           is defined in Chapter 1701 of the Ohio Revised Code);
                           and

                  (d)      a change in the composition of the Board of Directors
                           such that individuals who were members of the Board
                           of Directors on the date two years prior to such
                           change (and any new directors (other than a director
                           whose initial assumption of office is in connection
                           with an actual or threatened election contest,
                           including but not limited to a consent solicitation,
                           relating to the election of directors of Mead) who
                           were elected, or were nominated for election, by
                           Mead's shareholders with the affirmative vote of at
                           least two-thirds of the directors then still in
                           office who either were directors at the beginning of
                           such two year period or whose election or nomination
                           for election was previously so approved) no longer
                           constitute a majority of the Board of Directors.

Notwithstanding the foregoing, a Change in Control shall not be deemed to have
occurred by virtue of the consummation of any transaction or series of
integrated transactions immediately following which the record holders of the
common stock of Mead immediately prior to such transaction or series of
transactions continue to have substantially the same proportionate ownership in
an entity which owns all or substantially all of the assets of Mead immediately
following such transaction or series of transactions.

         11.2 Certain Definitions. The following definitions shall be applicable
              -------------------
with respect to subsection 11.1:

                           (a)      Affiliate shall have the meaning set forth
                                    ---------
                                    in Rule 12b-2 promulgated under Section 12
                                    of the Exchange Act.
<PAGE>

                           (b)      Beneficial Owner shall have the meaning
                                    ----------------
                                    defined in Rule 13d-3 under the Exchange
                                    Act.

                           (c)      Exchange Act shall mean the Securities
                                    ------------
                                    Exchange Act of 1934, as amended from time
                                    to time.

                           (d)      Person shall have the meaning given in
                                    ------
                                    Section 3(a)(9) of the Exchange Act, as
                                    modified and used in Sections 13(d) and
                                    14(d) thereof, except that such term shall
                                    not include:

                                    (i)     Mead or any of its subsidiaries,

                                    (ii)    a trustee or other fiduciary holding
                                            securities under an employee benefit
                                            plan of Mead or any of its
                                            Affiliates,

                                    (iii)   an underwriter temporarily holding
                                            securities pursuant to an offering
                                            of such securities, or

                                    (iv)    a corporation owned, directly or
                                            indirectly, by the shareholders of
                                            Mead in substantially the same
                                            proportions as their ownership of
                                            stock of Mead.

                           (e)      Shares shall mean shares of common stock,
                                    ------
                                    without par value, of The Mead Corporation.

                           (f)      Tender Offer shall mean a tender offer or a
                                    ------------
                                    request or invitation for tenders or an
                                    exchange offer subject to regulation under
                                    Section 14(d) of the Exchange Act and the
                                    rules and regulations thereunder, as the
                                    same may be amended, modified or superseded
                                    from time to time.

SECTION 12 - AMENDMENT AND TERMINATION
--------------------------------------

             The Committee reserves the right to amend the Plan at any time,
except that no amendment shall reduce a Participant's Participant Account
balances to less than the amounts that he would have been entitled to receive on
the later of the effective date of the amendment or the date on which the
amendment is adopted. The Plan will terminate on the date on which it is
terminated by the Committee, provided, however, that:

                           (a)      at least two Crediting Options shall be
                                    maintained until the aggregate balances of
                                    all Participant Accounts have been
                                    distributed; and
<PAGE>

                           (b)      distributions from the Plan shall continue
                                    to be made under Section 8 or Section 9, as
                                    the case may be, pursuant to elections
                                    previously made by Participants or as
                                    otherwise provided under Section 8 or 9.
<PAGE>

                                   EXHIBIT I
                                      TO
                             THE MEAD CORPORATION
                      DIRECTORS CAPITAL ACCUMULATION PLAN
                      -----------------------------------

             The Crediting Options available under the Plan as of January 1,
2000 are:

                              Type Fund         Managed By
                              ---------         ----------

                   (1)        Money Market      PacMutual
                   (2)        Managed Bond      PIMCO
                   (3)        Multi Strategy    J.P. Morgan
                   (4)        Equity Income     J.P. Morgan
                   (5)        Equity Index      Bankers Trust
                   (6)        Small Cap Stock   Cap Guardian Trust
                              Equity Fund
                   (7)        Growth L.T.       Janus Capital
                   (8)        International     Morgan Stanley
<PAGE>

                                 SUPPLEMENT A
                                      TO
           THE MEAD CORPORATION DIRECTORS CAPITAL ACCUMULATION PLAN
           --------------------------------------------------------

A-1      Purpose. The purpose of this Supplement A is to modify certain
         -------
         provisions of the Plan as they apply to:

         (1)      Participants in the Plan as of December 31, 1999; and

         (2)      Beneficiaries of deceased Participants who are eligible to
                  receive distributions from the Plan as of January 1, 2000.

         ("Supplement A Individuals").

A-2      Effective Date. This Supplement A shall be effective as of January 1,
         --------------
         2000.

A-3      Plan Modifications. Notwithstanding any other provision of the Plan,
         ------------------
         the Plan, as applied to a Supplement A Individual, is modified as
         follows:

         (1)      his Crediting Options shall continue to be changed by writing
                  filed with the Plan Administrator on or before the last
                  business day of February, May, August or November and will be
                  effective as of the first day of the following calendar
                  quarter;

         (2)      his Crediting Option election shall apply separately to each
                  of his Accounts;

         (3)      his Accounts shall be adjusted monthly; and

         (4)      the term "Accounting Date" means the last business day of each
                  calendar quarter.

         In all other respects the foregoing provisions of the Plan shall be
         applicable to Supplement A Individuals.

A-4      Change of Status. A Supplement A Individual's status as such shall be
         ----------------
         irrevocably revoked:

         (1)      automatically, effective as of the effective date of any
                  election to change an Adjustment Portion in accordance with
                  paragraph 6.2(b) of the Plan; or

         (2)      effective as of the date the Supplement A Individual elects to
                  revoke his status as such in accordance with rules, if any,
                  established by the Plan Administrator.
<PAGE>

                                 AMENDMENT TO
                             THE MEAD CORPORATION
                      DIRECTORS CAPITAL ACCUMULATION PLAN

     WHEREAS, The Mead Corporation ("Mead') heretofore established The Mead
Corporation Directors Capital Accumulation Plan (the "Plan") and subsequently
amended the Plan, and

     WHEREAS, Mead desires to further amend the Plan pursuant to the power
reserved to Mead's Compensation Committee by subsection 12 of the Plan;

     NOW THEREFORE, the Plan is hereby amended, effective as of October 26, 2001
as follows:

1.   Section 3.2 is revised to delete the last two sentences and add the
following in substitute thereof:

          Except as provided in the Plan, each Annual Election to Participate
          shall be irrevocable by the Participant after the last day of the
          calendar month preceding its effective date. The term "Distribution
          Period" means, with respect to any Participant Account, a period of 5,
          10, 15 or 20 calendar years (and includes a one-day period on which a
          lump sum amount is distributed on or after a Change in Control) as
          elected by the Participant for whom the Account is maintained.

          Subject to Section 8.1 (except as specifically otherwise provided in
          this Section 3.2), a Participant may revise an Annual Election to
          Participate with respect to the Distribution Period, the calendar year
          during which the Distribution Period commences and reduce or delay an
          Interim Distribution as follows:

                    (i)    prior to a Change in Control, a Participant may
               revise a previously elected Distribution Period and the calendar
               year during which distributions are made for a Participant
               Account (such revision being permitted to include receiving all
               or a portion of a Participant Account in a lump sum following a
               Change in Control and prior to employment termination), provided
               that any such revision is effective only for distributions on or
               following a Change in Control and with respect to the balance of
               a Participant Account on a Change in Control.

<PAGE>

                    (ii)   at least three months prior to termination of service
               as a Director (whether before or after a Change in Control), a
               Participant may (A) revise (1) the Distribution Period or (2) the
               calendar year during which distributions commence following such
               termination with respect to the balance of a Participant Account
               on termination of service and (B) reduce or delay an Interim
               Distribution payable following employment termination.

               A Participant can revise an Annual Election to Participate in
          accordance with this subsection on a form furnished by and filed with
          the Plan Administrator at any time prior to the date stated in (i) or
          (ii), as applicable, in this subsection 3.2.

2.   Section 8.1 is revised to delete the word "irrevocably" in the first
sentence and to restate the last sentence to read as follows:

          The term "Distribution Payment Date" means July 20 of each year,
          except that if an election is filed in accordance with subsection 3.2
          with respect to distributions following a Change in Control, the term
          includes July 20 of the year selected by a Participant to receive a
          lump sum distribution.

3.   Section 12 is revised to (i) delete the word "and" at the end of (a), (ii)
add a semi colon at the end of (b) and (iii) add the following:

          (c)  a Participant's right to revise Distribution Payment Date(s) in
     accordance with Subsection 3.2 shall continue.<PAGE>

                                                                Exhibit 10.xxxix

                             CERTIFICATE SCHEDULE

GROUP NUMBER: 960000945G
POLICYHOLDER: CT-0000000004
EMPLOYER: THE MEAD CORPORATION

CERTIFICATE NUMBER: 005722786A
INSURED: _____________________

CERTIFICATE DATE: JAN 01, 2000
ISSUE AGE OF THE INSURED: ____________
RATING CLASS: UNISMOKE

FACE AMOUNT:________________
MINIMUM FACE AMOUNT: $100,000
MINIMUM INCREASE IN FACE AMOUNT: 25,000
DEATH BENEFIT OPTION: OPTION B
ANNUAL PLANNED PERIODIC PREMIUM:____________

ELIGIBILITY PERIOD: 0 DAYS

LOAN INTEREST RATE PER YEAR, PAYABLE IN ARREARS: 8%
MINIMUM LOAN AMOUNT: $500

PREMIUM EXPENSE CHARGE: ACTUAL STATE PREMIUM TAX RATE, CURRENTLY

MAXIMUM ADMINISTRATION EXPENSE CHARGE PER CERTIFICATE: $4.00 PER MONTH

MORTALITY TABLE:
  100% OF THE 1980 COMMISSIONERS STANDARD ORDINARY MORTALITY TABLE B,
  AGE LAST BIRTHDAY

GUARANTEED INTEREST RATE: 4% PER YEAR, MONTHLY EQUIVALENT 00327

COVERAGE IS PROVIDED FROM THE EFFECTIVE DATE OF THE CERTIFICATE TO THE INSUREDS
AGE 95 OR THE INSUREDS PRIOR DEATH. WHEN ANY OF THE ADDITIONAL BENEFITS ABOVE
CEASE, THE MONTHLY DEDUCTION WILL BE REDUCED BY THE COST OF THAT ADDITIONAL
BENEFIT COVERAGE WILL EXPIRE PRIOR TO THE INSUREDS AGE 95 IF PREMIUMS PAID AND
INTEREST CREDITED ARE INSUFFICIENT TO CONTINUE COVERAGE TO SUCH TIME.
<PAGE>

                        CERTIFICATE SCHEDULE CONTINUED

EXCESS INTEREST RATE:

     FOR LOANED PORTIONS OF THE FUND VALUE:

     THE EXCESS INTEREST RATE FOR LOANED PORTIONS OF THE FUND VALUE WILL BE
     DECLARED BY OUR BOARD OF DIRECTORS AND WILL BE BASED ON OUR ESTIMATES OF
     FUTURE INVESTMENT EARNINGS. THE RATE WILL BE DECLARED IN ADVANCE AND
     GUARANTEED FOR A PERIOD OF AT LEAST ONE MONTH. HOWEVER, THE RATE APPLIED
     WILL NOT BE LESS THAN THE GUARANTEED INTEREST RATE.

     FOR UNLOANED PORTIONS OF THE FUND VALUE:

     THE FOLLOWING RULES APPLY DURING THE FIRST TEN YEARS THAT THE CERTIFICATE
     IS INFORCE.

          NEW MONEY: THE EXCESS INTEREST RATE PLUS THE GUARANTEED RATE WILL NOT
          BE LESS THAN THE YIELD ON FIVE-YEAR TREASURY BONDS FOR THE FIRST FULL
          WEEK OF THE MONTH PRECEDING THE CALENDAR QUARTER FOR WHICH THE NEW
          MONEY EXCESS INTEREST RATE IS DECLARED. THE RATE SO DECLARED WILL BE
          APPLICABLE FOR NEW MONEY RECEIVED DURING THIS CALENDAR QUARTER UNTIL
          THE BEGINNING OF THE CORRESPONDING CALENDAR QUARTER IN THE NEXT
          CALENDAR YEAR. AT THAT TIME, NEW MONEY BECOMES OLD MONEY. FOR PURPOSES
          OF THIS RULE, NEW MONEY IS ANY PREMIUM RECEIVED DURING THE CALENDAR
          QUARTER.

          OLD MONEY: THE EXCESS INTEREST RATE PLUS THE GUARANTEED RATE FOR THE
          UNLOANED PORTIONS OF THE FUND VALUE WILL NOT BE LESS THAN THE AVERAGE
          OF THE YIELD ON FIVE-YEAR TREASURY BONDS FOR THE FIRST FULL WEEK OF
          EACH CALENDAR QUARTER FOR THE TWENTY MOST RECENT CALENDAR QUARTERS,
          NOT INCLUDING THE QUARTER FOR WHICH THE CURRENT EXCESS INTEREST RATE
          IS DECLARED, LESS TWO TENTHS OF ONE PERCENT.

          NOT WITHSTANDING THE ABOVE, IF THE AVERAGE YIELD AS DEFINED ABOVE IS
          LESS THAN 5%, THEN OUR BOARD OF DIRECTORS MAY, AT ITS DISCRETION,
          CREDIT INTEREST AT THE GUARANTEED RATE ONLY, WITH NO EXCESS INTEREST.

THE YIELD FOR THE FIVE-YEAR TREASURY BONDS WILL BE THE YIELD AS PUBLISHED IN THE
"SALOMON BROTHERS BOND MARKET ROUND-UP". IN THE EVENT THAT THE "SALOMON BROTHERS
BOND MARKET ROUND-UP" DISCONTINUES PUBLICATION OF THE YIELD, THEN OUR BOARD OF
DIRECTORS MAY SUBSTITUTE ANOTHER REFERENCE SOURCE FOR THE RATE, AT THEIR
DISCRETION. IN THE EVENT THAT THE UNITED STATES GOVERNMENT NO LONGER ISSUES
FIVE-YEAR TREASURY BONDS, THEN OUR BOARD OF DIRECTORS MAY SUBSTITUTE ANOTHER
TYPE OF UNITED STATES GOVERNMENT OBLIGATION, AT THEIR SOLE DISCRETION.

<PAGE>

                        CERTIFICATE SCHEDULE CONTINUED

     AFTER THE FIRST TEN YEARS THAT THE CERTIFICATE IS INFORCE, THE EXCESS
     INTEREST RATE FOR UNLOANED PORTION OF THE FUND VALUE WILL BE DECLARED BY
     OUR BOARD OF DIRECTORS AND WILL BE BASED ON OUR ESTIMATES OF OUR FUTURE
     INVESTMENT EARNINGS. THE RATE WILL BE DECLARED IN ADVANCE AND GUARANTEED
     FOR A PERIOD OF AT LEAST ONE MONTH. HOWEVER, THE RATE APPLIED WILL NOT BE
     LESS THAN THE GUARANTEED INTEREST RATE.

REDUCED PAID-UP COVERAGE - MORTALITY TABLE AND GUARANTEED INTEREST RATE:
     100% OF THE 1980 COMMISSIONERS STANDARD ORDINARY MORTALITY TABLE B. AGE
     LAST BIRTHDAY
     GUARANTEED INTEREST RATE:  4.0%
     PER YEAR:  MONTHLY EQUIVALENT .00327

<PAGE>

                          TABLE OF SURRENDER CHARGES

               CERTIFICATE                            % INITIAL
                 YEAR                              SURRENDER CHARGE

                   1                                     100%
                   2                                      80%
                   3                                      60%
                   4                                      40%
                   5                                      20%
               THEREAFTER                                  0%

SURRENDER CHARGE: $ 3.08 PER $1,000 OF FACE AMOUNT

MINIMUM PARTIAL SURRENDER AMOUNT: $500
<PAGE>

                                  TITLE PAGE

INSURED:________________________

BENEFICIARY

TO________________________WIFE OF THE INSURED, AS PRIMARY, TO __________________
AND ___________________, CHILDREN OF THE INSURED AS SECONDARIES IN EQUAL SHARES.

OWNER

___________________________
<PAGE>

                               TABLE OF CONTENTS

                                                                            Page

Definitions................................................................... 4

General Provisions............................................................ 4

     Owner

     Beneficiary

Premium Provisions............................................................ 6

Grace Period.................................................................. 7

     Reinstatement

Proceeds...................................................................... 8

Death Benefit Provisions...................................................... 8

Optional Changes In An Insured's Coverage..................................... 9

Certificate Values............................................................10

Continuation Of Insurance.....................................................12

Surrender Provisions..........................................................12

Certificate Loans.............................................................14

Termination Or Discontinuance.................................................15

Income Settlement Options.....................................................15

Endorsements, If Any

Riders, If Any

<PAGE>

                        CERTIFICATE SCHEDULE CONTINUED

                        TABLE OF DEATH BENEFIT FACTORS
                      PER $1,000 OF INSURED'S FACE AMOUNT

          ATTAINED                                ATTAINED
             AGE              FACTORS                AGE              FACTORS
             18                 7.04                 57                 2.10
             19                 6.83                 58                 2.04
             20                 6.63                 59                 1.99
             21                 6.44                 60                 1.94
             22                 6.25                 61                 1.89
             23                 6.06                 62                 1.84
             24                 5.88                 63                 1.80
             25                 5.69                 64                 1.75
             26                 5.52                 65                 1.71
             27                 5.34                 66                 1.67
             28                 5.17                 67                 1.64
             29                 5.00                 68                 1.60
             30                 4.84                 69                 1.57
             31                 4.68                 70                 1.53
             32                 4.53                 71                 1.50
             33                 4.38                 72                 1.47
             34                 4.24                 73                 1.44
             35                 4.10                 74                 1.42
             36                 3.97                 75                 1.39
             37                 3.84                 76                 1.37
             38                 3.72                 77                 1.35
             39                 3.60                 78                 1.32
             40                 3.48                 79                 1.30
             41                 3.37                 80                 1.29
             42                 3.27                 81                 1.27
             43                 3.17                 82                 1.25
             44                 3.07                 83                 1.23
             45                 2.97                 84                 1.22
             46                 2.88                 85                 1.20
             47                 2.80                 86                 1.19
             48                 2.71                 87                 1.17
             49                 2.63                 88                 1.16
             50                 2.56                 89                 1.14
             51                 2.48                 90                 1.13
             52                 2.41                 91                 1.11
             53                 2.34                 92                 1.09
             54                 2.28                 93                 1.07
             55                 2.21                 94                 1.04
             56                 2.15                 95                 1.00

                                                                          Page 1

<PAGE>

                        CERTIFICATE SCHEDULE CONTINUED

          TABLE OF MONTHLY GUARANTEED MAXIMUM COST OF INSURANCE RATES
                      PER $1,000 AMOUNT OF TERM INSURANCE

<TABLE>
<CAPTION>
     ATTAINED                            ATTAINED
       AGE              RATE               AGE               RATE
<S>                     <C>                <C>              <C>
        18              0.138               57               1.005
        19              0.143               58               1.088
        20              0.145               59               1.178
        21              0.145               60               1.280
        22              0.143               61               1.394
        23              0.142               62               1.526
        24              0.139               63               1.675
        25              0.137               64               1.839
        26              0.135               65               2.016
        27              0.134               66               2.203
        28              0.135               67               2.400
        29              0.137               68               2.610
        30              0.139               69               2.842
        31              0.143               70               3.103
        32              0.149               71               3.405
        33              0.156               72               3.753
        34              0.163               73               4.149
        35              0.173               74               4.586
        36              0.185               75               5.055
        37              0.198               76               5.548
        38              0.214               77               6.059
        39              0.233               78               6.594
        40              0.253               79               7.170
        41              0.274               80               7.808
        42              0.298               81               8.527
        43              0.322               82               9.343
        44              0.348               83              10.252
        45              0.377               84              11.235
        46              0.407               85              12.274
        47              0.438               86              13.356
        48              0.473               87              14.478
        49              0.510               88              15.640
        50              0.553               89              16.852
        51              0.600               90              18.132
        52              0.653               91              19.516
        53              0.714               92              21.058
        54              0.781               93              22.898
        55              0.852               94              25.343
        56              0.927
</TABLE>

                                                                          Page 2
<PAGE>

                        CERTIFICATE SCHEDULE CONTINUED

For amounts which were fully underwritten, the risk factors below apply to the
attained age rate table.

<TABLE>
<CAPTION>
Class of Risk  Risk Factor    Class of Risk  Risk Factor    Class of Risk  Risk Factor
-------------  -----------    -------------  -----------    -------------  ----------
<S>            <C>            <C>            <C>            <C>            <C>
Standard          1.00        Class F           2.50        Class L           4.00
Class A           1.25        Class G           2.75        Class M           4.25
Class B           1.50        Class H           3.00        Class N           4.50
Class C           1.75        Class I           3.25        Class O           4.75
Class D           2.00        Class J           3.50        Class P           5.00
Class E           2.25        Class K           3.75
</TABLE>

For guaranteed Issue, the guaranteed monthly cost of insurance rate is 100% of
the above attained age rate table. For simplified acceptance, the guaranteed
monthly cost of insurance rate is 100% of the above attained age rate table
unless a greater class of risk factor is applicable.

                                                                          Page 3
<PAGE>

DEFINITIONS

WE, OUR, US, COMPANY - Connecticut Mutual Life Insurance Company.

YOU OR YOUR - the Owner shown in the Certificate Schedule.

HOME OFFICE - Our office at 140 Garden Street, Hartford, Connecticut 06154.

AGE - age last birthday.

ATTAINED AGE - the Issue Age of an Insured shown on the Certificate Schedule
increased by the number Certificate Years lapsed.

CERTIFICATE YEAR, CERTIFICATE ANNIVERSARY, CERTIFICATE MONTH - The Certificate
Date is the date coverage begins for an Insured. Certificate months, years and
anniversaries are computed from the Certificate Date.

MONTHLY ANNIVERSARY DAY - the same day of each calendar month as the Certificate
Date.

INSURED means the insured shown in the Certificate Schedule.

AGE 95 means the Certificate Anniversary on or next following the Insured's 95th
birthday.

DEBT means any outstanding Loan, plus any Loan Interest due or accrued.

WRITTEN REQUEST - a request in writing in a form satisfactory to us and received
at our Home Office, 140 Garden Street, Hartford, Connecticut 06154.

GENERAL PROVISIONS

Certificate
This Certificate contains a summary of the terms of the Policy. Any changes or
amendments to the Policy which affect the coverage under this Certificate will
be described in an endorsement to this Certificate or a revised Certificate
furnished to you. This Certificate supersedes and replaces any previously issued
Certificate.

..  All statements made by the Policyholder or by an Owner or an Insured will be
   deemed representations and not warranties. No statement made by any Insured
   will be used in any contest of coverage under the Policy unless a copy of the
   instrument containing such statement has been furnished to the Insured, if
   living, otherwise to the Beneficiary of the coverage being contested.

..  No change in any Certificate will be valid unless it is submitted in writing
   and until it is approved by one of our officers.

..  No agent may change or waive any provision of the Policy or this Certificate
   issued under the Policy.

..  We may modify the terms and conditions of the Policy or this Certificate to
   conform to any new law or regulation affecting the Policy.

                                                                          Page 4
<PAGE>

Owner
The Owner has the exclusive right to exercise all rights and privileges and to
receive all benefits under the Certificate during the lifetime of the Insured.

If no Owner designated under this Certificate is living and the Policy does not
provide otherwise, the Owner will be the successor in interest to said Owner.

.. If the Owner is an entity (other than a natural person) which ceases to exist,
  the Owner will be the successor in interest to said Owner.

Beneficiary
The Beneficiary is the Beneficiary shown in the Certificate Schedule unless
later changed.

.. If no beneficiary survives an Insured, the Beneficiary will be the estate of
  the Insured, unless the Certificate states otherwise.
.. The interest of any Beneficiary will be subject to:
  (1) any assignment of this Certificate which is binding on us; and
  (2) any optional settlement agreement in effect at an Insured's death.

Change of Owner or Beneficiary
.. While the Insured is alive you can change the Owner or the Beneficiary. Any
  request for a change must be in writing to us.
.. The change will take effect on the date the request is signed whether or not
  the Insured is living when we receive the request at our Home Office. However,
  the change will be subject to any payment made or actions taken by us before
  receiving the request.

Misstatement of Age
If the age of the Insured has been misstated, we will adjust the amount of any
Death Benefit payable. The Death Benefit will be the benefit that would be
purchased by the most recent mortality charge at the Insured's correct age.

Incontestability
We cannot contest an Insured's coverage after it has been in force during the
lifetime of the Insured for a period of two years from the Certificate Date.

We cannot contest any optional increase in an Insured's coverage after the
increase has been in force during the Insured's lifetime for two years after the
Effective Date of the increase. After this Certificate has been in force for two
years, any contest of an increase will be based solely on the application for
such increase.

Suicide
If an Insured dies by suicide, whether sane or insane, within one year from the
Certificate Date, the proceeds we will pay will be limited to the premiums paid
less any Debt and less any Partial Surrenders.

If an Insured dies by suicide, whether sane or insane, within one year from the
Effective Date of any optional increase in Face Amount, the amount we will pay
with respect to such increase will be limited to its cost.

                                                                          Page 5

<PAGE>

Assignment
You may assign this Certificate. Written notice of the terms of transfer or a
copy of any assignment must be filed at our Home Office. Until we receive such
notice we will not be required to take notice of or be responsible for any
transfer of interest in this Certificate by an assignment, agreement or
otherwise.

..  We will not be responsible for the validity of any assignment.
..  Any assignment made after the Insured's death will be valid only with our
   consent.

Periodic Report
At least once a year we will furnish you a report which includes:

(1) the current status of this Certificate;
(2) all transactions in connection with this Certificate since the last report;
    and
(3) any other information required by the state in which this Certificate was
    delivered.

Illustration of Benefits and Values
Upon written request we will send you an illustration of future benefits and
values illustrated on both a guaranteed and current basis. The illustration may
also be based upon such assumptions as you may specify. We may limit the number
of such illustrations in any Certificate Year. We reserve the right to charge a
fee not to exceed $10.00 for each illustration.

Claims of Creditors
To the extent allowed by law, the amount held and the payments made by us shall
not be subject to the claims of any Insured's, Owner's or Beneficiary's
creditors.

PREMIUM PROVISIONS

Payment of Premiums
The initial premium for the Insured's coverage under the Group Policy must be
paid before the Certificate Date. Such premium is payable in advance at our Home
Office. The Policyholder may request a receipt signed by our President or
Secretary and countersigned by our authorized agent.

Certificate Planned Periodic Premiums
The Insured's planned periodic premium amount and frequency are shown on the
Certificate Schedule. Changes in frequency and increases or decreases in amount
of Planned Periodic Premium payments may be made by you. We reserve the right to
limit any increase in Planned Periodic Premiums as described in the Certificate
Premium Limits provision.

Certificate Unscheduled Premiums
Any premium we receive under this Certificate in an amount different from the
Planned Periodic Premium will be considered an unscheduled premium. Unscheduled
premium payments can be made at any time while this Certificate is in Force.
They will be credited to the Certificate Fund Value on the date we receive them,
subject to the limits described below.

Certificate Premium Limits
We may refuse to accept any Certificate Premium payment in any Certificate Year
which:
(1) would result in an increase in an Insured's Death Benefit by more than it
    would increase the Fund Value as a result of the application of the Death
    Benefit Factors, unless we receive evidence satisfactory to us of the
    Insured's insurability; or

                                                                          Page 6
<PAGE>

(2) would prevent the coverage under the Certificate from continuing to qualify
    as life insurance under the Internal Revenue Code of 1954, as amended.

If any premiums in excess of the limits described above are accepted, we may
return them to you as soon as we determine that they are in violation of any of
these limits.

GRACE PERIOD

Grace Period for Payment of Certificate Premiums
If on any Certificate Monthly Anniversary Day, the Fund Value less any Debt, is
not enough to cover the Monthly Deduction for the following month, a grace
period of 61 days will be allowed for payment of any balance needed for the
Monthly Deduction. If the balance needed is not paid within the grace period,
the coverage under this Certificate will end without value at the end of the
grace period. Notice of the required premium will be mailed to you and to any
Assignee of record at your last known address(es) at least 30 days before the
end of the grace period. If the Insured should die during the Grace Period, the
death proceeds will be reduced by the required premium.

Reinstatement
If this Certificate terminates other than by maturity, or death of the Insured,
you may reinstate it within 5 years after the date of termination. We require
the following:

(1) a written application for reinstatement;
(2) evidence of the Insured's insurability satisfactory to us;
(3) payment of the amount that remained unpaid at the end of the grace period;
(4) a premium large enough to pay Monthly Deductions for at least three months
    from the date of reinstatement.

The Certificate date of reinstatement will be the Certificate Monthly
Anniversary on or next following our approval. If the Insured's coverage before
the end of the grace period includes benefits provided by rider, such benefits
will be reinstated subject to the terms of the rider.

The Fund Value on the date of reinstatement will be the amount provided by the
Net Certificate Premium paid on reinstatement less the monthly deduction for the
first certificate month following reinstatement. The Surrender Charge for the
reinstated Policy will be based on the number of years the Insured's coverage
was in force before the reinstatement. The time the coverage was not in force
will not be counted.

DIVIDENDS
Each year, we will ascertain the surplus, if any, to be allotted on the Policy
as a dividend. It will be allotted as of the end of each Policy Year. If this
Policy ends, any surplus to be allotted as a final dividend may be reduced to
provide for a terminal claim reserve. The dividend and terminal claim reserve
will be in accordance with our rules then in effect.

The Certificate Owner may elect to have any surplus allotted on the Policy:
(1) to be paid in cash to the Certificate Owner; or
(2) to be used to pay any premium for coverage under the Policy; or
(3) to be converted into a participating paid-up addition to the face amount of
    the Certificate.
The Certificate Owner may, at any time, surrender to us for cash any such
dividends outstanding. The cash amount will be equal to the reserve of the
paid-up additions.

Any dividends paid under the Policy will be used for the sole benefit of the
Insureds.

                                                                          Page 7
<PAGE>

We do not expect to pay dividends on the Policy.

PROCEEDS

General
Proceeds means the amount payable on the Maturity Date, upon Surrender or at the
death of the Insured prior to the Maturity Date.

..  If the Insured is alive on the Certificate Maturity Date, the proceeds will
   be the Fund Value on that date, less any Debt.
..  If the Certificate is surrendered before the Certificate Maturity Date, the
   proceeds will be the Surrender Value.
..  The proceeds on the death of an Insured will be the Death Benefit, plus any
   insurance provided by an additional benefit rider on the life of the Insured,
   less any Debt. The Death Benefit is described in the Death Benefit provision.
..  Proceeds may be subject to adjustment as provided in the Misstatement of Age,
   Suicide and Grace Period provisions.

Settlement
..  All amounts payable by us are payable only at our Home Office.
..  Unless an optional settlement agreement is elected, proceeds will be paid in
   a single sum.
..  We may require the return of the Certificate before paying proceeds.

Interest on Death Proceeds
We will pay interest on death proceeds paid in a single sum from the Insured's
date of death to the date of payment. The rate of interest will not be less than
the current rate credited on death proceeds left on deposit with us under the
regular interest option or the rate required by law, but in no case less than 3%
a year.

DEATH BENEFIT PROVISIONS

Death Benefit
The Death Benefit will depend on the Death Benefit option in effect on the date
of the Insured's death.

Option A.
The Death Benefit is the Face Amount on the date of death, or, if greater, the
Fund Value on the date of death multiplied by the Death Benefit Factor for the
Insured's Attained Age at death.

Option B.
The Death Benefit is the Face Amount plus the Fund Value on the date of death,
or, if greater, the Fund Value on the date of death multiplied by Death
Benefit factor for the Insured's Attained Age at death.

..  The Death Benefit Factors are listed in the Certificate Schedule.
..  The Death Benefit Option in effect is shown in Insured's Certificate
   Schedule.

Face Amount
The Initial Face Amount and the Minimum Face Amount are shown in the Certificate
Schedule. You may request a change in the Face Amount as described in the
Optional Changes in Face Amount provision.

                                                                          Page 8
<PAGE>

OPTIONAL CHANGES IN COVERAGE

Optional Changes in Face Amount
The existing Face Amount may be increased or decreased by written request from
you. Any change will be effective on the Certificate Monthly Anniversary Day on
or next following the date we approve the request, unless you request a later
date. No change in the Face Amount is allowed in the first Certificate Year. We
will issue an endorsement to this Certificate to reflect any change.

.. Decreases
  Any decrease in Face Amount is subject to the following conditions.

  (1) no decrease is permitted until the first Certificate Anniversary;
  (2) the Face Amount in effect after a decrease may never be less than the
      Minimum Face Amount.
  (3) any decrease will reduce the Face Amount in the following order:
      (a) against any increases beginning with the most recent; and then
      (b) against the Initial Face Amount.

.. Increases
  Any increase in Face Amount is subject to the following conditions:

  (1) submission of an application for an increase and satisfactory evidence of
      insurability of the Insured.
  (2) if the Fund Value, less any Debt, is not sufficient to continue the
      coverage in force for three months at guaranteed rates of mortality and
      interest, a premium sufficient to increase the Fund Value to such amount
      is required.
  (3) the minimum amount of any increase in Face Amount is shown in the
      Certificate Schedule.

.. Increases are not available if the Certificate Monthly Deduction is being
  waived under the terms of a waive rider.

Changing to Reduced Paid-Up Coverage
Prior to the Certificate Maturity Date, you may elect that the Insured's
coverage under the Group Policy be changed to a reduced paid-up status. The
following conditions will apply:

.. The election must be made by a written request.

.. If Death Benefit Option B is in effect on the date of request, it will be
  changed to Death Benefit Option A immediately prior to the Effective Date of
  the paid-up coverage and the Face Amount after such change shall be equal to
  the Face Amount prior to such change plus the Fund Value on the date of
  change.

.. The Cash Value will be applied as a net single premium at the Insured's
  Attained Age to determine a paid-up Face Amount.

.. The maximum amount of Cash Value that may be applied without evidence of
  insurability is the amount needed to provide a paid-up Face Amount not greater
  than the Death Benefit immediately prior to the Effective Date of the paid-up
  coverage. If the entire Cash Value is not applied to purchase the paid-up Face
  Amount, any excess Surrender Value will be refunded to the Insured.

.. The Cash Value must be an amount that will provide a paid-up Face Amount of
  not less than the Minimum Face Amount shown on the Certificate Schedule.

                                                                          Page 9
<PAGE>

The election will go into effect on the Certificate Monthly Anniversary Date on
or next following the date we receive your election request.

..  Once the election for reduced paid-up coverage goes into effect:
   (1) we will not accept any further Certificate Premiums for the Insured's
       coverage;
   (2) no further optional changes in the Insured's coverage may be made;
   (3) any Debt which existed on the date the coverage was changed to a reduced
       paid-up status will be continued under the paid-up coverage and any loan
       interest will be due and payable as described in the Certificate Loans
       provision; and
   (4) any additional benefits provided by rider will terminate.
   (5) This Certificate may be reinstated as described in the Reinstatement
       provision.

..  We will issue an endorsement to the Certificate to reflect the election of
   the paid-up option.

..  The endorsement will show the new paid-up Face Amount and the guaranteed cash
   value at age 95.

..  If the entire Surrender Value is not applied to purchase the paid-up
   insurance, the excess Surrender Value will be refunded to you.

..  The guaranteed net single premium rates will be based on the attained age and
   rating class of the Insured and the mortality table and guaranteed interest
   rate for the Reduced Paid-Up Coverage as shown in the Certificate Schedule.
   We may use a lower net single premium rate at our discretion.

..  The paid-up coverage may be surrendered for its cash value less any debt at
   any time. The cash value of the paid-up coverage will equal the present value
   of future guaranteed benefits based on the mortality table and interest rate
   that are shown in the certificate schedule determined on the date of the
   change. If the paid-up coverage is surrendered within 30 days after a
   Certificate Anniversary, the cash value will not be less than the value on
   such anniversary.

..  The paid-up coverage will be eligible for dividends.

CERTIFICATE VALUES

Fund Value
The Fund Value on the Certificate Date is the Initial Certificate Net Premium
paid less the Monthly Deduction for the first Certificate Month.

On any Certificate Monthly Anniversary Day, the Fund Value of an Insured's
coverage will be equal to:

(1) the Fund Value on the prior Monthly Anniversary Day; plus
(2) one month's interest on item (1); plus
(3) the sum of net certificate premiums received at our Home Office since the
    prior Monthly Anniversary Day; plus
(4) interest on item (3) from the date of receipt to the Certificate Monthly
    Anniversary Day; less
(5) any Partial Surrenders plus Surrender Charge made on the Monthly Anniversary
    Day; less
(6) the Monthly Deduction due on the Certificate Monthly Anniversary Day.

On any other day the Fund Value will be calculated in a consistent manner.

                                                                         Page 10
<PAGE>

Net Certificate Premium
The net certificate premium is the premium paid less the Premium Expense Charge
shown in the Certificate Schedule.

Monthly Deduction
The Monthly Deduction due on any Monthly Anniversary Day is:

(1) the Cost of Insurance for the following month; plus
(2) the cost of any additional benefits provided by the rider for the following
    month; plus
(3) the Administration Expense Charge shown in the Certificate Schedule.

Fund Value Interest Rate Calculations
..   On each Certificate Monthly Anniversary Day we will credit interest
    separately to the portion of the Fund Value equal to any existing Debt and
    to the balance of the Fund Value.

..   The Guaranteed Interest Rate is shown on the Certificate Schedule.

Excess Interest Rate
..   An interest rate in excess of the Guaranteed Interest Rate may be applied in
    the calculation of the Fund Value. Descriptions of how the excess interest
    rate for the Loaned and Unloaned portions of the Fund Value are shown on the
    Certificate Schedule.

..   In no event will the interest rate credited to the Fund Value be less than
    the Guaranteed Interest Rate shown on the Certificate Schedule.

..   All interest rates stated are effective annual rates. They will be applied
    to properly reflect the date of receipt of any Certificate Planned Periodic
    Premiums and any changes in Debt during a Certificate Month.

Cost of Insurance
The Cost of Insurance for an Insured is determined on a monthly basis on each
Certificate Monthly Anniversary Day. The Cost of Insurance is determined
separately for each of the following, in the order shown:

(1) the Initial Face Amount as follows:
    (a) that part which is on a guaranteed issue basis; next
    (b) that part which is on a simplified issue basis; next
    (c) that part which is fully underwritten;

(2) each increase in Face Amount, successively, in the order in which it took
    effect; and

(3) any portion of the Insured's Death Benefit which is a result of the Death
    Benefit being equal to the Fund Value multiplied by the Death Benefit
    Factor.

The Cost of Insurance for each of (1), (2) and (3) above is calculated by
multiplying its Cost of Insurance Rate by its Amount at Risk.

The "Amount at Risk" at the beginning of the Certificate Month is the difference
between:
(a) the Insured's Death Benefit that would have been payable in the event of the
    Insured's death on that day divided by one plus the Guaranteed Monthly
    Equivalent Interest Rate; and

                                                                         Page 11
<PAGE>

(b)  the Fund Value at the beginning of the Certificate Month, decreased by the
     monthly deduction for any additional benefit riders.
The Fund Value for the Insured's coverage as described in (b) is applied in the
order shown above in (1), (2) and (3) to determine the Amount at Risk for each.
If the Fund Value when so applied equals or exceeds the Initial Face Amount
there is no Amount at Risk for that Initial Face Amount and no Cost of Insurance
for it. If the Fund Value when so applied equals or exceeds the Initial Face
Amount plus an increase in Face Amount, there is no Amount at Risk for that
increase and no cost of Insurance for it.

Cost of Insurance Rate
The monthly Cost of Insurance Rate is based on the Insured's attained age and
rating class. The rating class for the Insured's Initial Face Amount is the
Insured's rating class on the Certificate Date as shown in the Certificate
Schedule. The Insured's rating class for optional increases in Face Amount is
the Insured's rating class on the Effective Date of the Increase in Face Amount.
The rating class with the most recent Effective Date will apply to any portion
of the Death Benefit which is a result of the Death Benefit being equal to the
Fund Value on the date of death multiplied by the Death Benefit Factor.

Monthly Cost of Insurance Rates will be determined by us based on our
expectations as to future mortality, interest, expenses, and persistency. We can
change the rates from time to time, but they will never be more than the Monthly
Guaranteed Cost of Insurance Rates shown on the Certificate Schedule. Any change
in rates, and the way in which they are determined, will be made on a uniform
basis for Insureds of the same age and rating class. We will file any such
changes with the insurance supervisory official of the state in which the
Certificate is delivered.

Cash Value
The Cash Value is the Fund Value less any Surrender Charge.

CONTINUATION OF INSURANCE
If Certificate premium payments are not continued, the coverage under this
Certificate will be continued as long as the Fund Value less any Debt is
sufficient to cover any Monthly Deductions. The coverage will not be continued
beyond the Certificate Maturity Date. If the Insured is living on the
Certificate Maturity Date, the Fund Value, if any, less any Debt will be paid to
you.

The planned periodic premium may not provide coverage to the Certificate
Maturity Date even if the planned periodic premium is paid as scheduled. The
period for which coverage under the Certificate will continue will be effected
by the following:

(a)  the amount, timing and frequency of premium payments;
(b)  change in the Face Amount and Death Benefit Options;
(c)  change in interest credits and Monthly Deduction charges;
(d)  deductions for additional riders; and
(e)  any Partial Surrenders or loans.

SURRENDER PROVISIONS

Surrender Value
The Insured's coverage may be surrendered by you for its Surrender Value at any
time while the Insured is living and before the Maturity Date.

The Surrender Value is the Cash Value less any Debt.

                                                                         Page 12
<PAGE>

We may postpone payment for up to 6 months after we receive your request unless
the surrender is to pay premiums to us.  We will not defer a payment for more
than 6 months after we receive your written request. If we defer a payment for
10 working days or more, we will pay interest at a rate not less than 3% a year
for the period the payment is deferred.

Surrender Charge
The Surrender Charge is a charge made against the Fund Value in the event of
Total or Partial Surrender.  The amounts and durations of the Surrender Charges
are shown in the Table of Surrender Charges shown in the Certificate Schedule.

The Surrender Charges applicable to the Initial Face Amount are the charges
shown in the Table of Surrender Charges.

For any requested increase in the Face Amount that is approved, Surrender
Charges will apply to the amount of the increase.  Such charges will be the
charges shown in the Table of Surrender Charges effective on the date the
requested increase is approved and for the duration shown in the Table of
Surrender Charges.

For a Partial Surrender a Surrender Charge will be made against the amount of
the Fund Value that is surrendered.  This Surrender Charge will be applied if
the amount of the Partial Surrender is greater than 25% of the Fund Value in any
certificate year.  This charge will be in proportion to the charge for the total
Surrender Value.  The proportion will be computed as the amount of Surrender
Value that is surrendered divided by the total Surrender Value.  When a partial
Surrender is made, future Surrender Charges will be reduced in the same
proportion.

Any requested decrease in the Face Amount will not reduce the applicable
Surrender Charges.

Surrender
..  You may surrender this Certificate by:
   (1) filing a written request in a form acceptable to us; and
   (2) returning the Certificate to our Home Office.

..  The date of surrender will be the Certificate Monthly Anniversary on or next
   following our receipt of the request.

..  The surrender proceeds equal the Surrender Value on the date of surrender.
   However, the surrender proceeds within 30 days after a Certificate
   Anniversary will not be less than:
   (1) the surrender proceeds on that Certificate Anniversary; plus
   (2) any unscheduled premiums received since that Anniversary but not yet
       credited; less
   (3) any increase in Debt or any partial surrender since that Anniversary.

..  This Certificate of Insurance will terminate as of the date of surrender.

Partial Surrender
You may make a Partial Surrender of the Surrender Value by written request. The
date of the Partial Surrender will be the Monthly Anniversary Day on or next
following our receipt of the request.

..  Partial Surrenders are subject to the following conditions:
   (1) Partial Surrenders are not allowed before the first Certificate
       Anniversary.
   (2) The amount of any Partial Surrender must be at least the Minimum Partial
       Surrender amount shown in the Certificate Schedule.

                                                                        Page 13

<PAGE>

     (3) A Partial Surrender may not result in a remaining Cash Value equal to
         less than twelve Monthly Deductions.

..    The amount of a Partial Surrender, plus the Surrender Charge, will be
     deducted from the Fund Value. This will result in a reduction of the Cash
     Value and Death Benefit.

If Death Benefit Option A is in effect on the Monthly Anniversary Day on which a
Partial Surrender is made, the Face Amount will be reduced by the amount of the
Partial Surrender. The reduction will apply first against any increases
beginning with the most recent and then against the Initial Face Amount.

Partial withdrawals are not allowed if the resulting decrease in the specified
amount goes below the minimum shown in the following schedule.

Basis of Values
Minimum Cash Values are based on the mortality table and Guaranteed Interest
Rate shown in the Certificate Schedule.

The Cash Values are not less than the minimum values required by the law in the
state in which this Certificate is delivered. Where required, the method of
determining Cash Values has been filed with the insurance supervisory official
of the state in which this Certificate is delivered.

CERTIFICATE LOANS

General
On or after the first Certificate Anniversary, while the Certificate is in
force, you may, by written request, borrow against it. We will lend any sum up
to the Certificate's Maximum Loan Value, less existing Debt. This Certificate
will be the sole security for the loan.

Maximum Loan Value
The Maximum Loan Value on any date is the Cash Value on such date less three
Monthly Deductions.

Interest Rate
A loan bears interest at the Loan Interest Rate shown on the Certificate
Schedule.

Interest accrues daily from the date of the loan and is due at the end of each
Certificate Year. If the interest is not paid when it is due, it will be added
to the loan and will bear interest at the same loan rate.

Minimum Loan Amount
The Minimum Loan Amount as shown on the Certificate Schedule.

Repayment
You may repay all or part of a Certificate Loan at any time while the Insured is
alive and the insurance is in force. Every payment to us will be considered a
premium payment unless clearly marked for Debt repayment.

Termination
This Certificate will terminate if Debt equals or exceeds the Cash Value unless
an additional premium or loan repayment is made. The due date for such payment
will be the 61st day after the date when Debt first equals or exceeds the Cash
Value. We will mail 30 days notice of pending termination to your last known
address

                                                                         Page 14
<PAGE>

and the last known address(es) of any assignee of record. The notice will
indicate the loan repayment or premium required to keep this Certificate in
force. Unless we receive such amount by the 62nd day, the Certificate will
terminate without value on that date.

We may postpone payment for up to 6 months after we receive your request unless
the loan is to pay premiums to us. We will not defer a payment for more than 6
months after we receive your written request.

TERMINATION OR DISCONTINUANCE

Termination of the Policy
The Policy will terminate without the right of reinstatement on the date the
coverage ends for the last remaining Insured under the Policy.

Continuation of Insured's Coverage After Discontinuance
If the Group Policy is discontinued, any insurance then in effect will remain in
force under the Policy, provided it is not cancelled or surrendered by the
Owner. The continuance of the coverage is subject to the Continuation of
Insurance provision of this Certificate. All insurance that is continued will be
automatically changed from deduction from wages to a direct billing status.
Certificate Premiums will then be payable directly to us.

Individual Termination
The Insured's coverage under the Policy will terminate when one of the following
occur:

(1) the Insured dies;
(2) the Insured's coverage matures;
(3) the date the Insured's coverage ends without value;
(4) the date the Insured's coverage is surrendered for its Surrender Value; or
(5) the date the Group Policy terminates or is discontinued, except as provided
    in the Continuance of Insured's Coverage After Discontinuance provision.

If, for any reason, contributions for coverage are no longer being deducted from
wages, the status of the insurance under this Certificate will change from
deduction of contributions to direct billing.

INCOME SETTLEMENT OPTIONS

If elected, we will pay proceeds under the terms of an optional settlement
agreement, rather than in a single sum. You may elect such an agreement before
proceeds become payable. If proceeds are at least $10,000, the payee may elect
such an agreement if none is in effect. The following options are available.

Option 1. Installments for a Special Period. Equal payments for a stated number
of years, not more than 30. The amount is shown in the Option 1 Table.

Option 2. Life Income. Equal monthly payments while the payee is alive, as shown
in the Option 2 Table. Payments with or without installments certain may be
elected.

Option 3. Interest. Interest payments while the payee is alive or for a shorter
period. Interest will be paid at an effective rate of 3% per year. Payments are
increased by any additional interest earnings we may apportion. For each $1,000
of proceeds, interest payments equal $30 annually, $14.89 semi-annually, $7.42
quarterly and $2.47 monthly.

                                                                         Page 15

<PAGE>

Option 4. Installments of Specified Amount. Equal annual, semi-annual, quarterly
or monthly payments for a stated amount. Payments will be made until the
proceeds and interest are all paid out. The total yearly amount paid must be at
least 6% of the original proceeds. Any unpaid balance left with us will be
increased by interest at 3% a year. We will also add any additional interest
earnings we may apportion.

Option 5. Life Income With Installment Refund. Equal monthly payments as shown
in the Option 5 Table. Payments will be made until the total amount paid equals
the proceeds and as long thereafter as the payee lives.

Option 6. Joint Life Income for the Payee and One Other Person With Two-Thirds
to Survivor. (One Hundred and Twenty Months Certain). Based on the Option 6
Table, we will pay a joint income to the payee and one other person designated
at exercise of this option. We will pay the income for 120 months certain, and
as long afterwards as both payees are living. After the death of either payee,
and following payment of any remaining income certain, monthly payments equal to
two-thirds of monthly income will be continued to the surviving payee for life.
The Alternate Life Income and Payment Provisions paragraphs apply to this
option.

Alternate Life Income
If Option 2, 5 or 6 is elected, the payee may elect to receive an alternate life
income. This is instead of receiving income based upon the rates shown in the
following tables. The election must be made at the time the income is to begin.

..  The alternate life income will be more than the monthly income provided by a
   new single premium immediate annuity (first payment immediate), based upon
   our published rate then in use.

Payment Provisions
..  If an optional settlement agreement becomes effective, we will issue a
   supplementary contract in exchange for this Certificate and agreement. The
   contract will show the rights and benefits provided by the agreement.

..  We may change the payment basis to quarterly, semi-annual, or annual if any
   payment is less than $50.

..  Payments under Option 2, 5 and 6 will be subject to proof of the payees' age.

..  The first installment under Options 1, 2, 4, 5 and 6 is due as of the date
   the proceeds become payable.

..  Installments certain under Options 1, 2, 5 and 6 are computed at 3% interest
   compounded annually. This does not apply when alternate life income is
   selected.

Installments certain, after the first, will be increased by additional interest
earnings we may apportion. If the alternate life income is elected, we will not
increase payments certain by additional interest earnings.

                                                                         Page 16
<PAGE>

                  -----------------------------------------
                             INSTALLMENTS CERTAIN
                          FOR EACH $1000 OF PROCEEDS
                  -----------------------------------------
                                   OPTION 1
                  -----------------------------------------
                       Number     Annual        Monthly
                       of Years  Installment  Installment
                  -----------------------------------------
                         1       $1000.00       $84.47
                         2         507.39        42.86
                         3         343.23        28.99
                         4         261.19        22.06
                         5         212.00        17.91
                         6         179.22        15.14
                         7         155.83        13.16
                         8         138.31        11.68
                         9         124.69        10.53
                         10        113.82         9.61
                         11        104.93         8.86
                         12         97.54         8.24
                         13         91.29         7.71
                         14         85.95         7.26
                         15         81.33         6.87
                         16         77.29         6.53
                         17         73.74         6.23
                         18         70.59         5.96
                         19         67.78         5.73
                         20         65.25         5.51
                         21         62.98         5.32
                         22         60.92         5.15
                         23         59.04         4.99
                         24         57.33         4.84
                         25         55.76         4.71
                         26         54.31         4.59
                         27         52.97         4.47
                         28         51.74         4.37
                         29         50.60         4.27
                         30         49.53         4.18
                  -----------------------------------------
                    Semiannual installments are 50.37% of
                    the annual installments. Quarterly
                    installments are 25.28% of the annual
                    installments.
                  -----------------------------------------

                                                                         Page 17
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
                                       MONTHLY LIFE INCOME PER $1,000 OF PROCEEDS
------------------------------------------------------------------------------------------------------------------------
                           OPTION 2                OPTION 5                          OPTION 2                 OPTION 5
                ---------------------------------------------               --------------------------------------------
  PAYEE            Without          Number of        With         PAYEE       Without        Number of          With
   Age          Installments         Monthly      Installment      Age      Installments      Monthly        Installment
 Nearest          Certain          Installments     Refund       Nearest      Certain       Installments       Refund
Birthday                             Certain                    Birthday                      Certain
                                       120                                                      120
------------------------------------------------------------------------------------------------------------------------
<S>             <C>                <C>            <C>           <C>         <C>             <C>              <C>
   20              $3.00              $2.99          $2.98         55         $ 4.49           $4.44            $4.27
   21               3.01               3.01           2.99         56           4.58            4.52             4.34
   22               3.03               3.03           3.01         57           4.68            4.61             4.42
   23               3.05               3.05           3.03         58           4.79            4.71             4.50
   24               3.07               3.07           3.05         59           4.90            4.81             4.58

   25               3.09               3.09           3.07         60           5.01            4.91             4.67
   26               3.12               3.11           3.09         61           5.14            5.02             4.76
   27               3.14               3.14           3.11         62           5.27            5.14             4.86
   28               3.16               3.16           3.14         63           5.42            5.26             4.96
   29               3.19               3.18           3.16         64           5.57            5.39             5.07

   30               3.21               3.21           3.18         65           5.74            5.53             5.19
   31               3.24               3.24           3.21         66           5.91            5.67             5.31
   32               3.27               3.27           3.23         67           6.10            5.81             5.43
   33               3.30               3.30           3.26         68           6.30            5.96             5.56
   34               3.33               3.33           3.29         69           6.51            6.12             5.70

   35               3.37               3.36           3.32         70           6.74            6.28             5.85
   36               3.40               3.39           3.35         71           6.98            6.44             6.00
   37               3.44               3.43           3.38         72           7.24            6.61             6.16
   38               3.47               3.47           3.42         73           7.51            6.79             6.33
   39               3.51               3.51           3.45         74           7.81            6.96             6.51

   40               3.56               3.55           3.49         75           8.12            7.14             6.70
   41               3.60               3.59           3.53         76           8.46            7.31             6.90
   42               3.65               3.63           3.56         77           8.82            7.49             7.10
   43               3.69               3.68           3.61         78           9.21            7.67             7.32
   44               3.74               3.73           3.65         79           9.62            7.84             7.58

   45               3.80               3.78           3.69         80          10.07            8.01             7.80
   46               3.85               3.83           3.74         81          10.54            8.17             8.05
   47               3.91               3.89           3.79         82          11.05            8.33             8.32
   48               3.97               3.94           3.84         83          11.59            8.48             8.60
   49               4.03               4.01           3.89         84          12.16            8.62             8.90

   50               4.10               4.07           3.95         85          12.78            8.75             9.22
   51               4.17               4.14           4.01      and over
   52               4.25               4.21           4.07
   53               4.32               4.28           4.13
   54               4.41               4.36           4.20
------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                                                         Page 18
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
             MONTHLY INCOME FOR EACH $1,000 OF PROCEEDS - OPTION 6
--------------------------------------------------------------------------------------
 FIRST
 PAYEE                 SECOND PAYEE - Age Nearest Birthday
        ------------------------------------------------------------------------------
  Age
 Nearest
Birthday   50     51     52     53     54     55     56     57     58     59     60
--------------------------------------------------------------------------------------
<S>      <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>    <C>
   45    $3.63  $3.66  $3.68  $3.70  $3.72  $3.74  $3.77  $3.79  $3.82  $3.84  $3.86
   46     3.66   3.68   3.70   3.73   3.75   3.77   3.80   3.82   3.85   3.87   3.90
   47     3.69   3.71   3.73   3.75   3.78   3.80   3.83   3.85   3.88   3.90   3.93
   48     3.71   3.73   3.76   3.78   3.81   3.83   3.86   3.88   3.91   3.94   3.96
   49     3.74   3.76   3.79   3.81   3.84   3.86   3.89   3.92   3.94   3.97   4.00

   50     3.77   3.79   3.82   3.84   3.87   3.89   3.92   3.95   3.98   4.00   4.03
   51     3.79   3.82   3.85   3.87   3.90   3.93   3.96   3.98   4.01   4.04   4.07
   52     3.82   3.85   3.88   3.90   3.93   3.96   3.99   4.02   4.05   4.08   4.11
   53     3.85   3.88   3.91   3.94   3.97   3.99   4.02   4.05   4.08   4.12   4.15
   54     3.88   3.91   3.94   3.97   4.00   4.03   4.06   4.09   4.12   4.16   4.19

   55     3.91   3.94   3.97   4.00   4.03   4.07   4.10   4.13   4.16   4.20   4.23
   56     3.94   3.97   4.01   4.04   4.07   4.10   4.13   4.17   4.20   4.24   4.27
   57     3.97   4.01   4.04   4.07   4.11   4.14   4.17   4.21   4.24   4.28   4.32
   58     4.01   4.04   4.07   4.11   4.14   4.18   4.21   4.25   4.29   4.32   4.36
   59     4.04   4.07   4.11   4.14   4.18   4.22   4.25   4.29   4.33   4.37   4.41

   60     4.07   4.11   4.14   4.18   4.22   4.26   4.29   4.33   4.37   4.41   4.45
   61     4.11   4.14   4.18   4.22   4.26   4.30   4.34   4.38   4.42   4.46   4.50
   62     4.14   4.18   4.22   4.26   4.30   4.34   4.38   4.42   4.46   4.51   4.55
   63     4.18   4.21   4.25   4.29   4.34   4.38   4.42   4.47   4.51   4.56   4.60
   64     4.21   4.25   4.29   4.33   4.38   4.42   4.47   4.51   4.56   4.60   4.65

   65     4.25   4.29   4.33   4.37   4.42   4.46   4.51   4.56   4.61   4.65   4.70
   66     4.28   4.33   4.37   4.41   4.46   4.51   4.55   4.60   4.65   4.71   4.76
   67     4.32   4.36   4.41   4.45   4.50   4.55   4.60   4.65   4.70   4.76   4.81
   68     4.36   4.40   4.45   4.50   4.54   4.59   4.65   4.70   4.75   4.81   4.87
   69     4.39   4.44   4.49   4.54   4.59   4.64   4.69   4.75   4.80   4.86   4.92

   70     4.43   4.48   4.53   4.58   4.63   4.68   4.74   4.80   4.85   4.91   4.97
--------------------------------------------------------------------------------------
</TABLE>

            *Second Payee - Ages 61 to 70 appears on the next page.

The rate for any combination of ages not stated in the table will be furnished
                                  on request.

                                                                         Page 19
<PAGE>

------------------------------------------------------------------------
            MONTHLY INCOME FOR EACH $1,000 OF PROCEEDS - OPTION 6.
------------------------------------------------------------------------
  FIRST
  PAYEE                SECOND PAYEE - Age Nearest Birthday
           -------------------------------------------------------------
   Age
 Nearest
Birthday       61    62    63    64    65    66    67    68    69    70
------------------------------------------------------------------------
   45        $3.89 $3.91 $3.94 $3.97 $3.99 $4.02 $4.04 $4.07 $4.09 $4.12
   46         3.92  3.95  3.97  4.00  4.03  4.05  4.08  4.10  4.13  4.16
   47         3.95  3.98  4.01  4.03  4.06  4.09  4.12  4.14  4.17  4.19
   48         3.99  4.02  4.04  4.07  4.10  4.13  4.15  4.18  4.21  4.24
   49         4.02  4.05  4.08  4.11  4.14  4.17  4.19  4.22  4.25  4.28

   50         4.06  4.09  4.12  4.15  4.18  4.21  4.24  4.27  4.29  4.32
   51         4.10  4.13  4.16  4.19  4.22  4.25  4.28  4.31  4.34  4.37
   52         4.14  4.17  4.20  4.23  4.26  4.29  4.32  4.36  4.39  4.42
   53         4.18  4.21  4.24  4.27  4.31  4.34  4.37  4.40  4.43  4.47
   54         4.22  4.25  4.29  4.32  4.35  4.39  4.42  4.45  4.48  4.52

   55         4.26  4.30  4.33  4.37  4.40  4.44  4.47  4.50  4.54  5.57
   56         4.31  4.34  4.38  4.41  4.45  4.49  4.52  4.56  4.59  4.63
   57         4.35  4.39  4.43  4.46  4.50  4.54  4.57  4.61  4.65  4.68
   58         4.40  4.44  4.48  4.51  4.55  4.59  4.63  4.67  4.71  4.74
   59         4.45  4.49  4.53  4.57  4.61  4.65  4.69  4.73  4.77  4.80

   60         4.49  4.54  4.58  4.62  4.66  4.70  4.75  4.79  4.83  4.87
   61         4.54  4.59  4.63  4.68  4.72  4.76  4.81  4.85  4.89  4.94
   62         4.60  4.64  4.69  4.73  4.78  4.82  4.87  4.91  4.96  5.00
   63         4.65  4.70  4.74  4.79  4.84  4.89  4.93  4.98  5.03  5.07
   64         4.70  4.75  4.80  4.85  4.90  4.95  5.00  5.05  5.10  5.15

   65         4.76  4.81  4.86  4.91  4.96  5.02  5.07  5.12  5.17  5.22
   66         4.81  4.86  4.92  4.97  5.03  5.08  5.14  5.19  5.25  5.30
   67         4.87  4.92  4.98  5.04  5.09  5.15  5.21  5.27  5.32  5.38
   68         4.92  4.98  5.04  5.10  5.16  5.22  5.28  5.34  5.40  5.46
   69         4.98  5.04  5.10  5.16  5.23  5.29  5.35  5.42  5.48  5.54

   70         5.04  5.10  5.17  5.23  5.30  5.36  5.43  5.50  5.56  5.63
------------------------------------------------------------------------

         The rate for any combination of ages not stated in the table
                         will be furnished on request.

                                                                         Page 20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]