Document:

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                                 EXHIBIT (4)(f)

                              FORM OF POLICY RIDER
                               (LIQUIDITY RIDER)

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[Logo]
Transamerica Life Insurance Company                     Home Office:
A Stock Company (Hereafter called the Company, we,      4333 Edgewood Road N.E.
our or us)                                              Cedar Rapids, Iowa 52499
                                                        (319)398-8511

                           ANNUITANT:      [John Doe]
                            OWNER(S):      [John Doe]

                       POLICY NUMBER:      [07 - 12345]
                         POLICY DATE:      [January 4, 2001]

                                    WE AGREE

..    To provide annuity payments as set forth in Section 10 of this policy,

..    Or to pay Withdrawal benefits in accordance with Section 5 of this policy,

..    Or to pay death proceeds in accordance with Section 9 of this policy.

Withdrawals may be subject to surrender charges and / or an Excess Interest
Adjustment reflecting changes in interest rates in accordance with Section 5 of
this policy. Transfers and amounts applied to a Payment Option may also be
subject to an Excess Interest Adjustment in accordance with Sections 5, 8 and
10, respectively, of this policy.

These agreements are subject to the provisions of this policy. This policy is
issued in consideration of the payment of the initial premium.

This policy may be applied for and issued to qualify as a tax-qualified annuity
under the applicable sections of the Internal Revenue Code.

                             20 DAY RIGHT TO CANCEL

You may cancel this policy by delivering or mailing a written notice or sending
a telegram to us. You must return the policy before midnight of the twentieth
day after the day You receive it. Notice given by mail and return of the policy
by mail are effective on being postmarked, properly addressed and postage
prepaid.

We will pay You an amount equal to the sum of:

..    the premiums paid; and

..    the accumulated gains or losses, if any, in the Separate Account on the
     date of cancellation;

unless otherwise required by law.

                        Signed for us at our home office.

/s/ Craig D. Vermie                                       /s/ Larry N. Norman
-------------------                                       -------------------
    SECRETARY                                                  PRESIDENT

     This policy is a legal contract between the policyowner and the Company

                           READ YOUR POLICY CAREFULLY

                       Flexible Premium Variable Annuity
                  Income Payable At Annuity Commencement Date
         Benefits Based On The Performance Of The Separate Account Are
  Variable And Are Not Guaranteed As To Dollar Amount (See Sections 6 and 10C)
                               Non-Participating

AV721 101 149 1001

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                             SECTION 1 - DEFINITIONS

ADJUSTED POLICY VALUE - The Policy Value increased or decreased by any Excess
Interest Adjustment.

ANNUITANT - The person whose life annuity payments will be based on.

ANNUITY COMMENCEMENT DATE - The Date the Annuitant begins receiving payments
from this policy. In no event can this date be later than the last day of the
month in which the Annuitant attains age 98.

CASH VALUE - Amount, defined in Section 5 that can be withdrawn if the annuity
is surrendered.

CUMULATIVE FREE PERCENTAGE (CFP) - The percentage (as applied to the Policy
Value) which is available to You free of any surrender charge. The CFP is 10% as
of the Policy Date and accumulates at 10% on each successive Policy Anniversary
up to a maximum of 100%. The unused portion of the CFP in any Policy Year will
be carried forward at each successive Policy Anniversary. Any portion of the CFP
previously taken will reduce the CFP currently available.

CUSTODIAL CARE - Care designed essentially to help a person with the activities
of daily living which does not require the continuous attention of trained
medical or paramedical personnel.

DISTRIBUTION - A Withdrawal or disbursement of funds from the Policy Value or
Cash Value. Policy Value and Cash Value will be reduced by any Distribution.

EARNINGS - The gains, if any, in the Policy Value.

HOSPITAL - An institution which 1) is operated pursuant to the laws of the
jurisdiction in which it is located, 2) operates primarily for the care and
treatment of sick and injured persons on an inpatient basis, 3) provides 24-hour
nursing service by or under the supervision of registered graduate professional
nurses, 4) is supervised by a staff of one or more licensed Physicians, and 5)
has medical, surgical and diagnostic facilities or access to such facilities.

INVESTMENT OPTIONS - Any of the Guaranteed Period Options of the Fixed Account,
the Dollar Cost Averaging Fixed Account Option, and any of the Subaccounts of
the Separate Account.

NURSING FACILITY - A facility which 1) is operated pursuant to the laws of the
jurisdiction in which it is located, 2) provides Nursing Care or Custodial Care,
3) primarily provides Nursing Care under the direction of a licensed Physician,
registered graduate professional nurse, or licensed vocational nurse, except
when receiving Custodial Care, and 4) is not other than incidentally a Hospital,
a home for the aged, a retirement home, a rest home, a community living center
or a place mainly for the treatment of alcoholism, mental illness or drug abuse.

NURSING CARE - Care prescribed by a Physician and performed or supervised by a
registered graduate nurse. Such care includes nursing and rehabilitation
services available 24 hours.

PAYEE - The person to whom annuity payments will be made.

PAYMENT OPTIONS - Options through which the distribution of the Adjusted Policy
Value can be directed.

PHYSICIAN - Doctor of Medicine or Doctor of Osteopathy who is licensed as such
and operating within the scope of the license.

POLICY ANNIVERSARY - The anniversary of the Policy Date for each year the policy
remains in force.

POLICY DATE - The date shown on the Policy Data page of this policy and the date
on which this policy becomes effective.

POLICY MONTHIVERSARY - The same date each month as the Policy Date. If there is
no day in the calendar month, which coincides with the Policy Date, the Policy
Monthiversary will be the next business day on which the New York Stock Exchange
is open for trading.

POLICY YEAR - The 12-month period following the Policy Date shown on the Policy
Data page. The first Policy Year starts on the Policy Date. Each subsequent year
starts on the anniversary of the Policy Date.

SEPARATE ACCOUNT - The separate investment account(s) established by us, as
described in Section 6.

SUBACCOUNT - A division of the Separate Account, as described in Section 6.

SURRENDER - A partial or full withdrawal of funds from the Policy Value or Cash
Value.

TERMINAL CONDITION - A condition resulting from an accident or illness which, as
determined by a Physician, has reduced life expectancy to not more than 12
months, despite appropriate medical care.

WITHDRAWAL - A distribution of funds from the Policy Value or Cash Value.

YOU, YOUR - The owner of this policy. Unless otherwise specified on the Policy
Data page, the Annuitant and the owner shall be one and the same person.

                                     Page 2

AVB721

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                             SECTION 2 - POLICY DATA

POLICY NUMBER:    [07 - 12345]               ANNUITANT:    [John Doe]

INITIAL PREMIUM
PAYMENT:          [$2,000.00]            ISSUE AGE/SEX:    [35  /  Male]

POLICY DATE:      [November 14, 2001]         OWNER(S):    [John Doe]

ANNUITY
COMMENCEMENT                                GUARANTEED
DATE:             [February 14, 2064]          MINIMUM
                                         DEATH BENEFIT
                                                OPTION:    [P]
BENEFICIARY:      [Jane Doe]

Fixed Account Guaranteed Minimum Effective Annual Interest Rate:  3%

Before the Annuity Commencement Date:

    Option P - Return of Premium Death Benefit Mortality and Expense Risk Fee
         and Administrative Charge:

                           Policy Years 1-3                    1.75%
                           Policy Years 4 or more              1.25%

    Option C - Annual Step-Up Death Benefit

         Mortality and Expense Risk Fee and Administrative Charge:

                           Policy Years 1-3                    1.90%
                           Policy Years 4 or more              1.40%

    Option N - Enhanced Death Benefit

         Mortality and Expense Risk Fee and Administrative Charge:

                           Policy Years 1-3                    2.00%
                           Policy Years 4 or more              1.50%

After the Annuity Commencement Date:

     Mortality and Expense Risk Fee and Administrative Charge: 1.25%

                                     Page 3

AV721 101 149 1001SP (RLS)

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                          SECTION 3 - PREMIUM PAYMENTS

PAYMENT OF PREMIUMS
Premium payments may be made any time while this policy is in force before the
Annuity Commencement Date. You may start or stop, increase or decrease, or skip
any Premium Payments.

MAXIMUM AND MINIMUM PREMIUM PAYMENT
The premium payments may not be more than the amount permitted by law if this is
a tax-qualified annuity. The minimum initial premium payment is $2,000. No
minimum initial premium payment will be required for 403(b) annuities. The
minimum subsequent premium payment we will accept is $50. The maximum total
premium payments which we will accept without prior Company approval is
$1,000,000.

PREMIUM PAYMENT DATE
The premium payment date is the date on which the premium payment is credited to
the policy. The initial premium payment less any applicable premium taxes will
be credited to the policy within two business days of receipt of the premium
payment and the information needed. Subsequent additional premium payments will
be credited to the policy as of the business day when the premium payment and
required information are received. A business day is any day that the New York
Stock Exchange is open for trading.

ALLOCATION OF PREMIUM PAYMENTS
Premium payments may be applied to various Investment Options, which we make
available. You must indicate what percent of each premium payment to allocate to
various Investment Options. Each percent may be either zero or any whole number;
however, the allocation among all accounts must total 100%.

CHANGE OF ALLOCATION
You may change the allocation of premium payments to various Investment Options,
by providing Us notice containing the facts that we need. Premium payments
received after the date on which we receive Your notice will be applied on the
basis of the new allocation.

PREMIUM TAXES
Your state may impose a premium tax. It may be imposed either when a premium
payment is made, on the Annuity Commencement Date, on the date of death or on
the date of full Surrender. When permitted by state law, we will not deduct the
premium tax until the Annuity Commencement Date, date of death, or date of full
Surrender.

                            SECTION 4 - POLICY VALUE

POLICY VALUE
On or before the Annuity Commencement Date, the Policy Value is equal to Your:

(a)  premium payments; minus
(b)  Gross Partial Withdrawals (as defined in Section 5); plus
(c)  interest credited to the Fixed Account (see Section 7); plus
(d)  accumulated gains in the Separate Account (see Section 6); minus
(e)  accumulated losses in the Separate Account (see Section 6); minus
(f)  service charges, premium taxes, rider fees and transfer fees, if any.

ADJUSTED POLICY VALUE
The Adjusted Policy Value is the Policy Value increased or decreased by any
Excess Interest Adjustment. You may use the Adjusted Policy Value on the Annuity
Commencement Date to provide lifetime income or income for a period certain
under the Payment Options in Section 10.

SERVICE CHARGE
On each Policy Anniversary and at the time of full Surrender during any Policy
Year before the Annuity Commencement Date, we reserve the right to assess a
service charge up to $30 for policy administration expenses. The Service Charge
will be deducted from each Investment Option in proportion to the portion of
Policy Value (prior to such charge) in each Investment Option. In no event will
the Service Charge exceed 2% of the Policy Value on the Policy Anniversary or at
the time of full Surrender.

The Service Charge will not be deducted on a Policy Anniversary or at the time
of full Surrender if, at either of these times, (1) the sum of all premium
payments less the sum of all Withdrawals taken equals or exceeds $50,000;
or (2) the Policy Value equals or exceeds $50,000.

                                     Page 4

M1256

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                 SECTION 5 - CASH VALUE AND PARTIAL WITHDRAWALS

CASH VALUE
On or before the Annuity Commencement Date, the Cash Value is equal to the
Adjusted Policy Value less any surrender charges. Information on the current
amount of Your policy's Cash Value is available upon request. The Cash Value may
be partially withdrawn or will be paid in the event of a full Surrender of the
policy. We must receive Your written partial Withdrawal or Surrender request
before the Annuity Commencement Date.

There is no Cash Value once an annuity Payment Option has been selected.

EXCESS INTEREST ADJUSTMENT
Full Surrenders, Partial Withdrawals, transfers, and amounts applied to a
Payment Option (prior to the end of any Guaranteed Payment Option) from
Guaranteed Period Options of the Fixed Account described in Section 7 will be
subject to an Excess Interest Adjustment except as provided for in the Partial
Withdrawals provision below.

An Excess Interest Adjustment applies in the following situations:

1)   When You withdraw all or any portion of Your Cash Value,
2)   When You exercise annuity Payment Options,
3)   When death proceeds are calculated. However, death proceeds will not be
     reduced if the Excess Interest Adjustment is negative.

The Excess Interest Adjustment is only applied to transactions affecting the
Guaranteed Period Options of the Fixed Account (see Section 7) and is based on
any change in interest rates from the time the affected Guaranteed Period(s)
started until the time the Excess Interest Adjustment occurs. The Excess
Interest Adjustment is applied as follows:

1)   The Excess Interest Adjustment is only applied when the transactions occur
     prior to the end of any Guaranteed Period Option;
2)   Transfers to the Guaranteed Period Options of the Fixed Account are
     considered Premium Payments for purposes of determining the Excess Interest
     Adjustment;
3)   The Excess Interest Adjustment is distinct from, and is applied prior to,
     the surrender charge;
4)   The Excess Interest Adjustment may affect the death proceeds defined in
     Section 9;
5)   If interest rates have decreased from the time the affected Guaranteed
     Period(s) started until the time the transaction occurs, the Excess
     Interest Adjustment will result in additional funds available to You;
6)   If interest rates have increased from the time the affected Guaranteed
     Period(s) started until the time the transaction occurs, the Excess
     Interest Adjustment will result in a decrease in the funds available to
     You;
7)   Certain amounts are not subject to the Excess Interest Adjustment as
     provided in Sections 5, 7 and 8.

The formula for determining the amount of the Excess Interest Adjustment is as
follows:

Excess Interest Adjustment = S x (G-C) x (M/12)
where:    S    is the gross (that is, before surrender charges and premium
               taxes, if any) amount being Surrendered, partially withdrawn,
               transferred, or applied to a Payment Option that is subject to
               the Excess Interest Adjustment.
          G    is the guaranteed interest rate for the Guaranteed Period
               applicable to "S".
          C    is the current guaranteed interest rate then being offered on new
               Premium Payments for the next longer Guaranteed Period than "M".
               If this policy form or such a Guaranteed Period Option is no
               longer offered, "C" will be the U.S. Treasury rate for the next
               longer maturity (in whole years) than "M" on the 25th day of the
               previous calendar month, plus up to 2%.
          M    is the number of months remaining in the Guaranteed Period for
               "S", rounded up to the next higher whole number of months.

Upon full Surrender, the Excess Interest Adjustment (EIA) for each Guaranteed
Period Option will not reduce the Adjusted Policy Value for that Guaranteed
Period Option below the amount paid into, less any prior Withdrawals and
transfers from, that Guaranteed Period Option, plus interest at the 3%
guaranteed effective annual interest rate. Upon full surrender, the cumulative
interest in the Guaranteed Period Options at the time of surrender will not be
subject to an EIA.

                                     Page 5

U1256

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                              SECTION 5 - CONTINUED

PARTIAL WITHDRAWALS
We will pay You a portion of the Cash Value as a Partial Withdrawal provided we
receive Your written request while the policy is in effect and before the
Annuity Commencement Date. When You request a Partial Withdrawal You must tell
us how it is to be allocated from among the Investment Options. If Your request
for a Partial Withdrawal from any Investment Option is less than or equal to the
Cash Value in that option, we will pay the amount of Your request. However, if
Your request for a Partial Withdrawal from any Investment Option is greater than
the Cash Value in that option, we will pay You the Cash Value of that Investment
Option.

The Gross Partial Withdrawal is the total amount which will be deducted from
Your Policy Value as a result of each Partial Withdrawal. The Gross Partial
Withdrawal may be more or less than Your requested Partial Withdrawal amount,
depending on whether surrender charges and/or Excess Interest Adjustments apply
at the time You request the Partial Withdrawal.

The Excess Partial Withdrawal amount is the portion of the requested Partial
Withdrawal that is subject to surrender charge (that is, the portion which is in
excess of the surrender charge-free portion). For example, if the requested
withdrawal amount is $1,000, and the surrender charge-free amount is $200, then
the Excess Partial Withdrawal would be $800. Excess Partial Withdrawals will
reduce the Policy Value by an amount equal to (X-Y+Z) where:

X =    Excess Partial Withdrawal
A =    Amount of Partial Withdrawal subject to Excess Interest Adjustment
Y =    Excess Interest Adjustment = (A) x (G-C) x (M/12) where G, C and M are
       defined in the Excess Interest Adjustment provision above, with "A"
       substituted for "S" in the definitions of G and M.
Z =    surrender charge on X minus Y.

The formula for determining the Gross Partial Withdrawal is as follows:

Gross Partial Withdrawal = R - EIA + SC, where:

R      is the requested Partial Withdrawal;
EIA    is the Excess Interest Adjustment; and
SC     is the surrender charge on (EPW - EIA); where
EPW    is the Excess Partial Withdrawal Amount
       (the portion of the requested Partial Withdrawal
       that is subject to surrender charge).

If any Partial Withdrawal reduces the Cash Value below $500, we reserve the
right to pay the full Cash Value and terminate the policy.

We may delay payment of the Cash Value from the Fixed Account for up to 6 months
after we receive the request. If the owner dies after we receive the request,
but before the request is processed, the request will be processed before the
death proceeds are determined.

Each Partial Withdrawal consists of a portion that is subject to a surrender
charge (that is, the Excess Partial Withdrawal) and a remaining portion that is
free from surrender charge (that is, the surrender charge-free amount). Either
portion may be zero (0) depending on the Partial Withdrawal requested and prior
amounts withdrawn.

Partial Withdrawals in the amount of the cumulative interest in the Guaranteed
Period Option(s) of the Fixed Account at the time of withdrawal may be withdrawn
from the GPO(s) of the Fixed Account free of any Excess Interest Adjustment.

Amounts withdrawn under one of the options below may reduce the amount available
free of surrender charges under another option. Surrender charges and/or EIA may
be waived as described below:

LUMP SUM
Beginning in the first Policy Year, You may withdraw, free from surrender
charges an amount ($500 minimum) up to the Cumulative Free Percentage (CFP)
times the Policy Value at the time of, but prior to, the withdrawal. On the
Policy Date the CFP is 10%. Thereafter, 10% will be added to the CFP on each
Policy Anniversary. Any partial Withdrawals will reduce the CFP by the ratio of
the amount withdrawn to the Policy Value at the time of, but prior to, the
partial Withdrawal. The CFP will not be in excess of 100% nor less than zero.

                                     Page 6

P1243

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                              SECTION 5 - CONTINUED

SYSTEMATIC PAYOUT OPTION
Beginning in the first Policy Year, a Systematic Payout Option (SPO) is
available on a monthly, quarterly, semi-annual or annual basis. At the time a
SPO payout is made, such payout must be at least $50 and may not exceed 10% of
the Policy Value at the time a SPO payout is made divided by the number of
payouts made per year (e.g. 12 for monthly).

No surrender charges will apply to the SPO payout. SPO payouts from the
Guaranteed Period Options of the Fixed Account which are in excess of the
cumulative interest in the applicable Guaranteed Period Options at the time of
the SPO payout will be subject to an EIA. Monthly and quarterly payouts must be
sent through electronic funds transfer directly to a checking or savings
account. You may start or stop SPO payouts at any time; however, 30 days'
written notice is required to stop SPO payouts.

Once You have elected a SPO, You must wait a minimum time before the first SPO
payment: 1 month for a monthly SPO, 3 months for quarterly, 6 months for
semi-annual, or 12 months for annual.

MINIMUM REQUIRED DISTRIBUTION
For tax-qualified plans, Partial Withdrawals taken to satisfy minimum
distribution requirements under Section 401(a)(9) of the Internal Revenue Code
(IRC) are available with no surrender charges and no Excess Interest
Adjustments. The amount available from this policy with respect to the minimum
distribution requirement is based solely on this policy.

The owner must be at least 70 1/2 years old in the calendar year of
distribution, must submit a written request to us and must take the distribution
before year-end. If the owner attains age 70 1/2 in the calendar year of
distribution, a written request, which is postmarked no later than the end of
the current calendar year, must be submitted to us.

Systematic minimum distributions must be at least $50 or a lump sum distribution
is available if minimum required distributions are less than $50.

Any amount requested in excess of the IRC minimum required distribution will
have the appropriate surrender charges and Excess Interest Adjustments applied,
unless the excess Distribution qualifies as surrender charge-free or Excess
Interest Adjustment-free under any additional options provided.

NURSING CARE AND TERMINAL CONDITION WITHDRAWAL OPTION
Beginning in the first Policy Year, if the owner or owner's spouse (Annuitant or
Annuitant's spouse if the owner is not a natural person) has been 1) confined in
a Hospital or Nursing Facility for 30 consecutive days or 2) diagnosed as having
a Terminal Condition, You may elect to withdraw all or a portion of the Policy
Value without surrender charges and without an Excess Interest Adjustment. The
minimum Withdrawal under this option is $1000. This option is available even
during the Policy Years in which other partial withdrawal options were exercised
prior to Nursing Care.

For Nursing Care, we must receive each Withdrawal request and proof of
eligibility with each request no later than 90 days following the date that
confinement has ceased, unless it can be shown that it was not reasonably
possible to provide the notice and proof within the above time period and that
the notice and proof were given as soon as reasonably possible. However, in no
event, except the absence of legal capacity, shall the notice and proof be
provided later than one year following the date that confinement has ceased.
Proof of confinement may be a Physician's statement or a statement from a
Hospital or Nursing Facility administrator. For a Terminal Condition, we must
receive each Withdrawal request and the applicable proof of eligibility no later
than one year following diagnosis of the Terminal Condition. Proof of a Terminal
Condition is required only with the initial Withdrawal request and must be
furnished by the owner's, owner's spouse's, Annuitant's, or Annuitant's spouse's
Physician.

UNEMPLOYMENT WAIVER
Beginning in the first Policy Year, You may withdraw all or a portion of the
Policy Value free of any surrender charges and free of any Excess Interest
Adjustment if the owner or owner's spouse (Annuitant or Annuitant's spouse, if
the owner is not a natural person) becomes unemployed. In order to qualify, the
owner or owner's spouse (Annuitant or Annuitant's spouse, if the owner is not a
natural person) 1) must have been employed full-time for at least two years
prior to their becoming unemployed, 2) must have been employed full-time on the
Policy Date, 3) must have been unemployed for at least 60 consecutive days at
the time of Withdrawal and 4) must have a minimum Cash Value at the time of
Withdrawal of $5000. Proof of unemployment will consist of providing us with a
determination letter from the applicable State's Department of Labor, which
verifies that the owner or owner's spouse (Annuitant or Annuitant's spouse, if
the owner is not a natural person) qualify for and are receiving unemployment
benefits at the time of Withdrawal. We must receive the determination letter no
later than 15 days following the date of the Withdrawal request.

                                     Page 7

PB1243

<PAGE>

                              SECTION 5 - CONTINUED

SURRENDER CHARGES
Amounts withdrawn in excess of the surrender charge-free amount specified in
the withdrawal provisions above are subject to a surrender charge. The amount of
this charge, if any, will be a percentage, as shown in the table below, of the
amount of premium withdrawn:

              Number of Years                   Percentage of
               Since Premium                  Premium Withdrawn
                Payment Date

                 0-1                                  6%
                 1-2                                  6%
                 2-3                                  6%
                 3-4                                  4%
                 4-5                                  2%
                 5 or more                            0%

In any event, surrender charges will be waived after the tenth Policy Year.

For surrender charge purposes, all earnings are considered to be withdrawn
first. After all earnings are withdrawn then the oldest premium payment is the
first premium payment considered to be withdrawn. If the amount withdrawn
exceeds this, the next oldest premium payment is considered to be withdrawn, and
so on until the most recent premium payments are deemed to be withdrawn (the
procedure being applied to Withdrawals of premium is a "First-In, First-Out" or
FIFO procedure).

GUARANTEED RETURN OF FIXED ACCOUNT PREMIUM PAYMENTS
Upon full Surrender of the policy, You will always receive at least the premium
payments made to, less prior Withdrawals and transfers from, the Fixed Account.

MINIMUM VALUES
Benefits available under this policy, including any paid up annuity or death
benefits that may be available, are not less than those required by any statute
of the state in which the policy is delivered.

                          SECTION 6 - SEPARATE ACCOUNT

SEPARATE ACCOUNT
We have established and will maintain one or more Separate Account(s), under the
laws of the state of Iowa. Any realized or unrealized income, net gains and
losses from the assets of the Separate Account are credited to or charged
against it without regard to our other income, gains or losses. Assets are put
in the Separate Account for this policy, as well as for other variable annuity
policies. Any Separate Account may invest assets in shares of one or more mutual
fund portfolio, or in the case of a managed Separate Account, direct investments
in stocks or other securities as permitted by law. Fund shares refer to shares
of underlying mutual funds or prorata ownership of the assets held in a
Subaccount of a managed Separate Account. Fund shares are purchased, redeemed
and valued on behalf of the Separate Account.

The Separate Account is divided into Subaccounts. Each Subaccount invests
exclusively in shares of one of the portfolios of an underlying fund. We reserve
the right to add or remove any Subaccount of the Separate Account.

The assets of the Separate Account are our property. These assets will equal or
exceed the reserves and other contract liabilities of the Separate Account.
These assets will not be chargeable with liabilities arising out of any other
business we conduct. We reserve the right, subject to regulations governing the
Separate Account, to transfer assets of a Subaccount, in excess of the reserves
and other contract liabilities with respect to that Subaccount, to another
Subaccount or to our General Account.

We will determine the fair market value of the assets of the Separate Account in
accordance with a method of valuation, which we establish in good faith.
Valuation Period means the period of time from one determination of the value of
each Subaccount to the next. Such determinations are made when the value of the
assets and liabilities of each Subaccount is calculated. This is generally the
close of business on each day on which the New York Stock Exchange is open.

We also reserve the right to transfer assets of the Separate Account, which we
determine to be associated with the class of policies to which this policy
belongs, to another Separate Account. If this type of transfer is made, the term
"Separate Account", as used in the policy, shall then mean the Separate Account
to which the assets were transferred.

We also reserve the right, when permitted by law to:

(a)  deregister the Separate Account under the Investment Company Act of 1940;
(b)  manage the Separate Account under the direction of a committee at any time;
(c)  restrict or eliminate any voting rights of policy owners or other persons
     who have voting rights as to the Separate Account;
(d)  combine the Separate Account with one or more other Separate Accounts;
(e)  create new Separate Accounts;
(f)  add new Subaccounts to or remove existing Subaccounts from the Separate
     Account, or combine Subaccounts; and
(g)  add new underlying mutual funds, remove existing mutual funds, or
     substitute a new fund for an existing fund.

                                     Page 8

V1263

<PAGE>

                              SECTION 6 - CONTINUED

The Net Asset Value of a fund share is the per-share value calculated by the
mutual fund or, in the case of a managed Separate Account, by the Company. The
Net Asset Value is computed by adding the value of the Subaccount's investments,
cash and other assets, subtracting its liabilities, and then dividing by the
number of shares outstanding. Net Asset Values of fund shares reflect investment
advisory fees and other expenses incurred in managing a mutual fund or a managed
Separate Account.

CHANGE IN INVESTMENT OBJECTIVE OR POLICY OF A MUTUAL FUND
If required by law or regulation, an investment policy of the Separate Account
will only be changed if approved by the appropriate insurance official of the
state of Iowa or deemed approved in accordance with such law or regulation. If
so required, the process for obtaining such approval is filed with the insurance
official of the state or district in which this policy is delivered.

CHARGES AND DEDUCTIONS
The Mortality and Expense Risk Fee and the Administrative Charge are each
deducted both before and after the Annuity Commencement Date to compensate for
changes in mortality and expenses not anticipated by the mortality and
administration charges guaranteed in the policy.

The Service Charge is deducted prior to the Annuity Commencement Date only.

If the Mortality and Expense Risk Fee is more than sufficient, the Company will
retain the balance as profit or may reduce this fee in the future.

ACCUMULATION UNITS
The Policy Value in the Separate Account before the Annuity Commencement Date is
represented by accumulation units. The dollar value of accumulation units for
each Subaccount will change from day to day reflecting the investment experience
of the Subaccount.

Premium Payments allocated to and any amounts transferred to the Subaccounts
will be applied to provide accumulation units in those Subaccounts. The number
of accumulation units purchased in a Subaccount will be determined by dividing
the amount allocated to or transferred to that Subaccount, by the value of an
accumulation unit for that Subaccount on the premium payment or transfer date.

The number of accumulation units withdrawn or transferred from the Subaccounts
will be determined by dividing the amount withdrawn or transferred by the value
of an accumulation unit for that Subaccount on the Withdrawal or transfer date.

The value of an accumulation unit on any business day is determined by
multiplying the value of that unit at the end of the immediately preceding
valuation period by the net investment factor for the valuation period.

The net investment factor used to calculate the value of an accumulation unit in
each Subaccount for the Valuation Period is determined by dividing (a) by (b)
and subtracting (c) from the result, where:

(a)  is the result of:
     (1)  the net asset value of a fund share held in that Subaccount determined
          as of the end of the current Valuation Period; plus
     (2)  the per share amount of any dividend or capital gain Distributions
          made by the fund for shares held in that Subaccount if the ex-dividend
          date occurs during the Valuation Period; plus or minus
     (3)  a per share credit or charge for any taxes reserved for, which we
          determine to have resulted from the investment operations of that
          Subaccount.
(b)  is the Net Asset Value of a fund share held in that Subaccount determined
     as of the end of the immediately preceding Valuation Period.
(c)  is a factor representing the Mortality and Expense Risk Fee and
     Administrative Charge before the Annuity Commencement Date. This factor is
     less than or equal to, on an annual basis, the percentage shown on the
     Policy Data Page of the daily net asset value of a fund share held in that
     Subaccount.

Since the net investment factor may be greater or less than one, the
accumulation unit value may increase or decrease.

                                     Page 9

VB1263

<PAGE>

                            SECTION 7 - FIXED ACCOUNT

FIXED ACCOUNT
Premium payments applied to and any amounts transferred to the Fixed Account
will reflect a fixed interest rate. The interest rates we set will be credited
for increments of at least one year measured from each premium payment or
transfer date. These rates will never be less than an effective annual interest
rate of 3%.

GUARANTEED PERIODS
We may offer optional Guaranteed Period Options, into which premium payments may
be paid or amounts transferred. The current interest rate we set for funds
entering each Guaranteed Period Option (GPO) is guaranteed until the end of that
option's Guaranteed Period. At that time, the premium payment made or amount
transferred into the GPO, less any Withdrawals or transfers from that GPO, plus
accrued interest, will be rolled into a new GPO or may be transferred to any
Subaccount(s) within the Separate Account(s).

You may choose the Investment Option(s) You want the funds rolled into by giving
us a written notice within 30 days before the end of the expiring option's
Guaranteed Period. However, any Guaranteed Period elected may not extend beyond
the maximum Annuity Commencement Date defined in Section 11. In the absence of
such election, the funds will be rolled into a new GPO which is the same as the
expiring GPO unless that GPO is no longer offered, in which case, the next
shorter GPO offered will be used. You will be mailed a notice of completion of
the rollover with the new interest rate applicable. The new GPO will be deemed
as accepted if we do not receive a written rejection within 30 days from the
postmark date of the completion notice.

We reserve the right for new premium payments, transfers, or rollovers to offer
or not to offer any GPO, except that we will always offer at least a one-year
GPO.

When funds are withdrawn or transferred from a GPO, the policy value associated
with the oldest premium payment or rollover is considered to be
withdrawn/transferred first. If the amount withdrawn/transferred exceeds the
policy value associated with the oldest premium, the policy value associated
with the next oldest premium payment or rollover is considered to be
withdrawn/transferred next, and so on until the policy value associated with the
most recent premium payment or rollover is considered to be
withdrawn/transferred (this is a "First-In, First-Out" or FIFO basis).

Partial Withdrawals, Surrenders, transfers, and amounts applied to a Payment
Option from the Guaranteed Period Option(s) are subject to an Excess Interest
Adjustment as described in Section 5.

DOLLAR COST AVERAGING FIXED ACCOUNT OPTION
We may offer one or more Dollar Cost Averaging (DCA) Fixed Account Options
separate from the Guaranteed Period Options. These options will have a one-year
interest rate guarantee. The current interest rate we set for the DCA Fixed
Account may differ from the rates credited on the one-year GPO in the Fixed
Account. In addition, the current interest rate we credit may vary on different
portions of the DCA Fixed Account. The credited interest rate will never be less
than the minimum effective annual interest rate of 3%. The DCA Fixed Account
Option will only be available under a Dollar Cost Averaging program as described
in Section 8.

                              SECTION 8 - TRANSFERS

A.   TRANSFERS BEFORE THE ANNUITY COMMENCEMENT DATE
Prior to the Annuity Commencement Date, You may transfer the value of the
accumulation units from one Investment Option to another by providing Us notice
containing the facts that we need.

Transfers of Policy Value from a GPO of the Fixed Account are only allowed at
the end of the applicable Guaranteed Period. However, prior to the end of the
applicable Guaranteed Period, we may at our discretion, offer You the option to
transfer an amount equal to the interest credited in the GPOs to other
Investment Options on a "First-In, First-Out" basis. Such transfers may be made
monthly, quarterly, semi-annually, or annually. Each such transfer must be at
least $50 and will not be subject to an Excess Interest Adjustment. The maximum
transfer permitted from any GPO before the end of the Guaranteed Period will be
the cumulative interest for that GPO at the time of, but prior to, the transfer.
No Excess Interest Adjustment will apply to Policy Value transfers at the end of
the applicable Guaranteed Period.

Transfers of Policy Value from the Separate Account are subject to a minimum of
$500 or the entire Subaccount Policy Value, if less. However, if the remaining
Subaccount Policy Value is less than $500, we reserve the right to include that
amount as part of the transfer.

You may choose which GPO to transfer to or from; however, any GPO elected may
not extend beyond the maximum Annuity Commencement Date defined in Section 11.

No transfers will be allowed out of the Dollar Cost Averaging Fixed Account
Option except through the Dollar Cost Averaging Option.

                                     Page 10

L997

<PAGE>

                              SECTION 8 - CONTINUED

We reserve the right to limit transfers to no more than 12 in any one Policy
Year. Any transfers in excess of 12 per Policy Year may be charged a $10 per
transfer fee. Transfers among multiple Investment Options will be treated as one
transfer in determining the number of transfers that have occurred. We also
reserve the right to prohibit transfers to the Fixed Account if we are crediting
an effective annual interest rate of 3%.

The policy was not designed for professional market timing organizations or
other persons that use programmed, large, or frequent transfers. The use of such
transfers may be disruptive to an underlying portfolio. We reserve the right to
reject any transfer request from any person in the interest of overall fund
management or, if, in our judgment, an underlying fund would be unable to invest
effectively in accordance with its investment objectives and policies or would
otherwise be potentially adversely affected or if an underlying fund would
reject our purchase order. We also reserve the right to revoke Your telephone,
fax, and electronic transfer privileges at any time without revoking all owner's
telephone, fax and electronic transfer privileges.

DOLLAR COST AVERAGING OPTION
Prior to the Annuity Commencement Date, You may instruct us to automatically
transfer a specified amount from the Money Market Subaccount or out of the
Dollar Cost Averaging (DCA) Fixed Account Option to any other Subaccount(s) of
the Separate Account. The automatic transfers can occur monthly or quarterly.

Prior to the Annuity Commencement Date, no transfers, (except through Dollar
Cost Averaging) will be allowed from a DCA Fixed Account. Transfers will
continue until the elected Subaccount or DCA Fixed Account value is depleted.
The amount transferred each time must be at least $500. All transfers from the
DCA account will be the same amount as the initial transfer. Changes to the
Subaccounts to which these transfers are allocated are not restricted. Transfers
must be scheduled for at least 6, but not more than 24 months or for at least 4,
but not more than 8 quarters each time the Dollar Cost Averaging program is
started or restarted following termination of the program for any reason.

Dollar Cost Averaging results in the purchase of more accumulation units when
the value of the accumulation unit is low, and fewer accumulation units when the
value of the accumulation unit is high. However, there is no guarantee that the
Dollar Cost Averaging program will result in higher Policy Values or will
otherwise be successful.

Dollar Cost Averaging may be discontinued after satisfying the minimum number of
required transfers by sending written notice to us. While Dollar Cost Averaging
is in effect, Asset Rebalancing is not available.

ASSET REBALANCING
Prior to the Annuity Commencement Date, You may instruct us to automatically
transfer amounts among the Subaccounts of the Separate Account on a regular
basis to maintain a desired allocation of the Policy Value among the various
Subaccounts offered. Rebalancing will occur on a monthly, quarterly, semi-annual
or annual basis, beginning on a date selected by You. You must select the
percentage of the Policy Value desired in each of the various Subaccounts
offered (totaling 100%). Any amounts in the Fixed Account are ignored for the
purposes of Asset Rebalancing. Rebalancing can be started, stopped or changed at
any time. Asset Rebalancing is not available while Dollar Cost Averaging is in
effect. Rebalancing will cease as soon as we receive a request for any other
transfer.

B.   TRANSFERS AFTER THE ANNUITY COMMENCEMENT DATE
After the Annuity Commencement Date, You may transfer the value of the variable
annuity units from one Subaccount to another within the Separate Account or to
the Fixed Account. If You want to transfer the value of the variable annuity
units, You must provide a notice containing the facts that we need. We reserve
the right to limit transfers between the Subaccounts or to the Fixed Accounts to
once per Policy Year.

The minimum amount which may be transferred is the lesser of $10 monthly income
or the entire monthly income of the variable annuity units in the Subaccount
from which the transfer is being made. If the monthly income of the remaining
units in a Subaccount is less than $10, we have the right to include the value
of those variable annuity units as part of the transfer.

After the Annuity Commencement Date, no transfers may be made from the Fixed
Account to any other Investment Options.

                                     Page 11

LB997

<PAGE>

                           SECTION 9 - DEATH PROCEEDS

A.   DEATH PROCEEDS PRIOR TO ANNUITY COMMENCEMENT DATE
The amount of death proceeds will be the greatest of (a), (b) or (c) where:

(a)  is the Policy Value on the date we receive due proof of death and an
     election of a method of settlement;
(b)  is the Cash Value on the date we receive due proof of death and an election
     of a method of settlement, and;
(c)  is the Guaranteed Minimum Death Benefit (GMDB), if any, plus any additional
     premium payments received, less any Gross Partial Withdrawals from the date
     of death to the date of payment of death proceeds.

If You have not selected a Payment Option by the date of death, the beneficiary
may make such election within one year of the date we receive due proof of the
Annuitant's death as described in C below. The beneficiary may elect to receive
the death proceeds as a lump sum payment or may use the death proceeds to
provide any of the annuity Payment Options described in Section 10. Interest on
death proceeds will be paid as required by law.

B.   GUARANTEED MINIMUM DEATH BENEFIT
The amount of the Guaranteed Minimum Death Benefit (GMDB) is based on the death
benefit option shown on the Policy Data Page. You may not change the GMDB option
after the policy is issued.

Option P: Return of Premium Death Benefit

     This GMDB is equal to the total premiums paid for this policy, less any
     Adjusted Partial Withdrawals (as described below), as of the date of death.

Option C:  Annual Step-Up Death Benefit

     This GMDB is equal to:

     (1)  the largest Policy Value on the Policy Date or on any Policy
          Anniversary prior to the earlier of the date of death or the
          Annuitant's 81st birthday; plus
     (2)  any premium payments subsequent to the date of the Policy Anniversary
          with the largest Policy Value; minus
     (3)  any Adjusted Partial Withdrawals (as described below), subsequent to
          the date of the Policy Anniversary with the largest Policy Value.

Option N: Enhanced Death Benefit

     This GMDB is equal to the greater of (1) and (2) where:

     (1)  is a 6% Annually Compounding through age 80 Death Benefit, equal to:

          a)   the total Premium Payments; minus Adjusted Partial Withdrawals,
               (as described below); plus
          b)   interest accumulated at 6% per annum from the payment or
               withdrawal date to the earlier of the date of death or the
               Annuitant's 81st birthday.

     (2)  is a Monthly Step-Up through age 80 Death Benefit, equal to:

          a)   the largest Policy Value on the Policy Date or on any Policy
               Monthiversary prior to the earlier of the date of death or the
               Annuitant's 81st birthday; plus
          b)   any Premium Payments subsequent to the date of any Policy
               Monthiversary with the largest Policy Value; minus
          c)   any Adjusted Partial Withdrawals (as described below), subsequent
               to the date of the Policy Monthiversary with the largest Policy
               Value.

A Partial Withdrawal taken as provided in Section 5 will reduce the Guaranteed
Minimum Death Benefit by an amount referred to as the "Adjusted Partial
Withdrawal". The Adjusted Partial Withdrawal may be a different amount than the
Gross Partial Withdrawal described in Section 5. The Adjusted Partial Withdrawal
is the total amount deducted from the GMDB as a result of a Partial Withdrawal
as used in the GMDB provision. It is equal to the Gross Partial Withdrawal
described in Section 5, multiplied by an Adjustment Factor. The Adjustment
Factor is equal to the amount of the death proceeds prior to the Partial
Withdrawal divided by the Policy Value prior to the Partial Withdrawal.

                                     Page 12

D420

<PAGE>

                              SECTION 9 - CONTINUED

C.   DEATH PRIOR TO ANNUITY COMMENCEMENT DATE

Death proceeds are payable contingent upon the relationships between the owner,
Annuitant, and beneficiary as outlined below. The policy must be Surrendered
upon settlement or on proof of death.

If there is a surviving owner(s), the surviving owner(s) automatically takes the
place of any beneficiary designation.

I.   Annuitant Death

     When we have due proof that the Annuitant died before the Annuity
     Commencement Date, we will provide the death proceeds to the beneficiary.

     a)   Beneficiary is the deceased Annuitant's surviving spouse. The
          beneficiary may elect to continue this policy as owner and Annuitant
          rather than receiving the death proceeds. If the policy is continued,
          an amount equal to the excess, if any, of the Guaranteed Minimum Death
          Benefit over the Policy Value will then be added to the Policy Value.
          This is a one-time only Policy Value adjustment applied at the time
          the policy is continued, and the Guaranteed Minimum Death Benefit will
          continue on as applicable. If the policy is continued, all current
          surrender charges will be waived.

          If this beneficiary elects to have the death proceeds paid, the death
          proceeds must be distributed:

          (1)  by the end of 5 years after the date of the deceased Annuitant's
               death, or

          (2)  payments must begin no later than one year after the deceased
               Annuitant's death and must be made for a period certain or for
               this beneficiary's lifetime, so long as any period certain does
               not exceed this beneficiary's life expectancy.

     b)   Beneficiary is not the deceased Annuitant's surviving spouse. The
          death proceeds must be distributed as provided in I.a)(1) or I.a)(2)
          above.

     c)   Death proceeds which are not paid to or for the benefit of a natural
          person must be distributed by the end of 5 years after the date of the
          deceased Annuitant's death.

II.  Owner Death

     If the deceased owner is also the Annuitant, section C.I. Annuitant Death
     applies.

     If the deceased owner is not the Annuitant, the deceased owner's estate
     will become the new owner (or the estate may name a new owner). The
     Executor or Administrator must be named in a form acceptable to us. All
     current surrender charges are waived. The Adjusted Policy Value must be
     distributed by the end of 5 years after the date of the deceased owner's
     death.

III. More than one Owner.

     If there is more than one owner, then the death of any owner will be
     treated as the death of the owner. If the deceased owner is not the
     Annuitant, the surviving owner(s) will continue as owner(s) of the
     contract. Only surviving spouses can continue the contract tax deferred.
     All current surrender charges will be waived. The deceased owner's estate
     does not become an owner.

     In cases where there are more than one owner and the Annuitant who is not
     an owner dies, the death proceeds will be paid to the surviving owners as
     beneficiaries in equal percentages.

                                     Page 13

DB420

<PAGE>

                              SECTION 9 - CONTINUED

D.   DEATH ON OR AFTER THE ANNUITY COMMENCEMENT DATE

The death proceeds on or after the Annuity Commencement Date depend on the
Payment Option selected. If any owner dies on or after the Annuity Commencement
Date, but before the entire interest in the policy is distributed, the remaining
portion of such interest in the policy will be distributed to the owner's
beneficiary at least as rapidly as under the method of distribution being used
as of the date of that owner's death.

E.   AN OWNER IS NOT AN INDIVIDUAL

In the case of a non tax-qualified annuity, if any owner or beneficial owner is
not an individual, then for purposes of the federal income tax mandatory
distribution provisions in subsection C or D above, (1) the primary Annuitant
will be treated as the owner of the policy, and (2) if there is any change in
the primary Annuitant, such a change will be treated as the death of the owner.

                          SECTION 10 - ANNUITY PAYMENTS

A.   GENERAL PAYMENT PROVISIONS

Payment
If this policy is in force on the Annuity Commencement Date, we will use the
Fixed Account portion and/or the Separate Account portion of the Adjusted Policy
Value to make annuity payments to the Payee under Option 3 and/or 3-V,
respectively, with 10 years certain, or if elected, under one or more of the
other options described in this section. However, the option(s) elected must
provide for lifetime income or income for a period of at least 60 months. You
will become the Annuitant at the Annuity Commencement Date. Payments will be
made at 1, 3, 6 or 12-month intervals. We reserve the right to change the
frequency of payments to avoid making payments of less than $50.00.

Before the Annuity Commencement Date, if the death proceeds become payable or if
You Surrender this policy, we will pay any proceeds in one sum, or if elected,
all or part of these proceeds may be placed under one or more of the options
described in this section. If we agree, the proceeds may be placed under some
other method of payment instead.

Adjusted Age
Payments under Options 3 and 5 and the first payment under Options 3-V and 5-V
are determined based on the adjusted age of the Annuitant. The adjusted age is
the Annuitant's actual age on the Annuitant's nearest birthday, at the Annuity
Commencement Date, adjusted as follows:

        Annuity
   Commencement Date               Adjusted Age
   -----------------               ------------
      Before 2010               Actual Age
      2010 - 2019               Actual Age minus 1
      2020 - 2026               Actual Age minus 2
      2027 - 2033               Actual Age minus 3
      2034 - 2040               Actual Age minus 4
      After 2040                Determined by us

Election of Optional Method of Payment
Before the Annuity Commencement Date You can elect or change a Payment Option.
You may elect, in a notice You sign which gives us the facts that we need,
annuity payments that may be either variable, fixed, or a combination of both.
If You elect a combination, You must also tell us what part of the policy
proceeds on the Annuity Commencement Date are to be applied to provide each type
of payment. (You must also specify which Subaccounts.) The amount of a combined
payment will be the sum of the variable and fixed payments. Payments under a
variable Payment Option will reflect the investment performance of the selected
Subaccount of the Separate Account.

                                     Page 14

S1093

<PAGE>

                             SECTION 10 - CONTINUED

Payee
Unless You specify otherwise, the Payee shall be the Annuitant, or the
beneficiary as defined in the Beneficiary provision in Section 11.

Proof of Age
We may require proof of the age of any person who has an annuity purchased under
Options 3, 3-V, 5 and 5 -V of this section before we make the first payment.

Minimum Proceeds
If the proceeds are less than $2,000, we reserve the right to pay them out as a
lump sum instead of applying them to a Payment Option.

Premium Tax
We may be required by law to pay premium tax on the amount applied to a Payment
Option. If so, we will deduct the premium tax before applying the proceeds.

Supplementary Contract
Once proceeds become payable and a Payment Option has been selected, we will
issue a supplementary contract to reflect the terms of the selected option. The
contract will name the Payee(s) and will describe the payment schedule.

B.   FIXED ACCOUNT PAYMENTS
Guaranteed Payment Options
The fixed account payment is determined by multiplying each $1,000 of policy
proceeds allocated to a fixed Payment Option by the amounts shown on page 18 for
the option You select. Options 1, 2 and 4 are based on a guaranteed interest
rate of 3%. Options 3 and 5 are based on a guaranteed interest rate of 3% and
the "Annuity 2000" (male, female, and unisex if required by law) mortality table
projected for improvement using projection scale G. The "Annuity 2000" mortality
rates are adjusted based on improvements in mortality since 2000 to more
appropriately reflect increased longevity. This is accomplished using a set of
improvement factors referred to as projection scale G.

Option 1 - Interest Payments
We will pay the interest on the amount we use to provide annuity payments in
equal payments or this amount may be left to accumulate for a period of time we
and You agree to. We and You will agree on Withdrawal rights when You elect this
option. The interest rate we declare for this option may be different than the
interest rate(s) credited prior to the Annuity Commencement Date.

Option 2 - Income for a Specified Period
We will make level payments only for the fixed period You choose. In the event
of the death of the person receiving payments prior to the end of the fixed
period elected, payments will be continued to that person's beneficiary or their
present value may be paid in a single sum. No funds will remain at the end.

Option 3 - Life Income - You may choose between:
1.   No Period Certain - We will make level payments only during the Annuitant's
     lifetime.
2.   10 Years Certain - We will make level payments for the longer of the
     Annuitant's lifetime or ten years.
3.   Guaranteed Return of Policy Proceeds - We will make level payments for the
     longer of the Annuitant's lifetime or until the total dollar amount of
     payments we made to You equals the amount applied to this option.
4.   Life with Emergency Cash - We will make level payments during the
     Annuitant's lifetime, but the annuity may be surrendered (in full or part).
     The cash value is equal to a multiple of the payment where that multiple
     reduces over time to zero at age 101. A surrender charge will be applied.
     Should the Annuitant die before age 101 (or IRS Age Limitation Date if
     earlier and the contract is qualified), the same cash value would be
     payable, but without the surrender charge.

Option 4 - Income of a Specified Amount
Payments are made for any specified amount until the amount applied to this
option, with interest, is exhausted. This will be a series of level payments
followed by a smaller final payment. In the event of the death of the person
receiving payments prior to the time proceeds with interest are exhausted,
payments will be continued to that person's beneficiary or their present value
may be paid in a single sum.

                                     Page 15

SB1093

<PAGE>

                             SECTION 10 - CONTINUED

Option 5 - Joint and Survivor Annuity - You may choose between:

1.   No Period Certain - Payments are made during the joint lifetime of the
     Payee and a joint Payee of Your selection. Payments will be made as long as
     either person is living.

2.   Life with Emergency Cash - Level payments will be made during the joint
     lifetime of the Payee and a joint Payee of Your selection. Payments will be
     made as long as either person is living, but the annuity may be surrendered
     (in full or part). The cash value is equal to a multiple of the payment,
     where that multiple reduces over time to zero at age 101 of the younger
     Annuitant. A surrender charge will be applied. Should the last surviving
     Annuitant die before age 101 (or IRS Age Limitation Date if earlier and the
     contract is qualified), the same cash value would be payable, but without
     the surrender charge.

Current Payment Options
The amounts shown in the tables on page 18 are the guaranteed amounts. Current
amounts offered to individuals of the same class may be obtained from us.

C.       VARIABLE ACCOUNT PAYMENT OPTIONS
Variable Annuity Units
The policy proceeds You tell us to apply to a variable Payment Option will be
used to purchase variable annuity units in Your chosen Subaccounts. The dollar
value of variable annuity units in Your chosen Subaccounts will increase or
decrease reflecting the investment experience of Your chosen Subaccounts. The
value of a variable annuity unit in a particular Subaccount on any business day
is equal to (a) multiplied by (b) multiplied by (c), where:

(a)  is the variable annuity unit value for that Subaccount on the immediately
     preceding business day;
(b)  is the net investment factor for that Subaccount for the Valuation Period;
     and
(c)  is the Assumed Investment Return adjustment factor for the Valuation
     Period.

The Assumed Investment Return adjustment factor for the valuation period is the
product of discount factors of .99986634 per day to recognize the 5.0% effective
annual Assumed Investment Return.

The net investment factor used to calculate the value of a variable annuity unit
in each Subaccount for the Valuation Period is determined by dividing (a) by (b)
and subtracting (c) from the result, where:

(a)  is the net result of:
     (1)  the net asset value of a fund share held in that Subaccount determined
          as of the end of the current valuation period; plus
     (2)  the per share amount of any dividend or capital gain Distributions
          made by the fund for shares held in that Subaccount if the ex-dividend
          date occurs during the Valuation Period; plus or minus
     (3)  a per share credit or charge for any taxes reserved for, which we
          determine to have resulted from the investment operations of the
          Subaccount.
(b)  is the net asset value of a fund share held in that Subaccount determined
     as of the end of the immediately preceding Valuation Period.
(c)  is a factor representing the Mortality and Expense Risk Fee and
     Administrative Charge applicable after the Annuity Commencement Date. This
     factor is less than or equal to, on an annual basis, the percentage shown
     on the Policy Data Page of the daily net asset value of a fund share held
     in the Separate Account for that Subaccount.

Determination of the First Variable Payment
The amount of the first variable payment is determined by multiplying each
$1,000 of policy proceeds allocated to a variable Payment Option by the amounts
shown on page 20 for the variable option You select. The tables are based on a
5% effective annual Assumed Investment Return and the "Annuity 2000" (male,
female, and unisex if required by law) mortality table projected for improvement
using projection scale G. The "Annuity 2000" mortality rates are adjusted based
on improvements in mortality since 2000 to more appropriately reflect increased
longevity. This is accomplished using a set of improvement factors referred to
as projection scale G.

                                     Page 16

C851

<PAGE>

                             SECTION 10 - CONTINUED

Option 3-V - Life Income - You may choose between:

1.   No Period Certain - Payments will be made during the lifetime of the
     Annuitant.
2.   10 Years Certain - Payments will be made for the longer of the Annuitant's
     lifetime or ten years. In the event of the death of the person receiving
     payments prior to the end of the guarantee period for which the election
     was made, payments will be continued to that person's beneficiary or their
     present value may be paid in a single sum.
3.   Life with Emergency Cash - We will make payments during the Annuitant's
     lifetime, but the annuity may be surrendered (in full or part). The cash
     value is equal to a multiple of the Supportable Payment (see definition
     below), where that multiple reduces over time to zero at age 101. A
     surrender charge will be applied. Should the Annuitant die before age 101
     (or IRS Age Limitation Date if earlier and the contract is qualified), the
     same cash value would be payable, but without the surrender charge.

Option 5-V - Joint and Survivor Annuity - You may choose between:

1.   No Period Certain - Payments are made as long as either the Annuitant or
     the joint Annuitant is living.

2.   Life with Emergency Cash - Payments will be made during the joint lifetime
     of the Payee and a joint Payee of Your selection. Payments will be made as
     long as either person is living, but the annuity may be surrendered (in
     full or part). The cash value is equal to a multiple of the Supportable
     Payment (see definition below), where that multiple reduces over time to
     zero at age 101 of the younger Annuitant. A surrender charge will be
     applied. Should the last surviving Annuitant die before age 101 (or IRS Age
     Limitation Date if earlier and the contract is qualified), the same cash
     value would be payable, but without the surrender charge.

Optional Initial Payment Guarantee
Upon annuitization, You may elect an option that guarantees Your variable
annuity payments will never be less than a percentage of the initial variable
annuity payment. You cannot terminate the payment guarantee after You have
selected the option. The percentage applicable to the initial payment and the
fee for the option will be those currently applicable at the time of
annuitization.

Supportable Payment
The Supportable Payment is the sum of each selected Subaccount's variable
annuity unit value times the number of variable annuity units. The variable
annuity units are adjusted to reflect the year-to-date difference between the
stabilized payment and the payment had they not been stabilized. Supportable
Payments are used to determine surrender values, death benefits and transfers.

Determination of Subsequent Variable Payments
The amount of each variable annuity payment after the first will increase or
decrease according to the value of the variable annuity units which reflect the
investment experience of the selected Subaccounts. Each variable annuity payment
after the first will be equal to the number of variable annuity units in the
selected Subaccounts multiplied by the variable annuity unit value on the date
the payment is made. The number of variable annuity units in each selected
Subaccount is determined by dividing the first variable annuity payment
allocated to the Subaccount by the variable annuity unit value of that
Subaccount on the Annuity Commencement Date. If "Life with Emergency Cash" is
chosen (Option 3-V(3) or 5-V(2)), or if the Optional Initial Payment Guarantee
Rider is chosen, payments would be "stabilized" (would change only once per
year) but "value adjustments" would be made to ensure full value would be
received.

                                     Page 17

CB851

<PAGE>

                    GUARANTEED FIXED ACCOUNT PAYMENT OPTIONS

   The amounts shown in these tables are the guaranteed amounts for each 1,000
            of the proceeds. Higher current amounts may be available
                           at the time of settlement.

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
     Option 2, Table I            Option 3, Table II         Option 3, Table III        Option 3, Table IV
----------------------------------------------------------------------------------------------------------------
Number of    Amount of
  Years       Monthly           Monthly Installment For     Monthly Installment For    Monthly Installment For
 Payable    Installment         Life No Period Certain              Life             Life Guaranteed Return Of
                                                              10 Years Certain                Proceeds
----------------------------------------------------------------------------------------------------------------
                        Age*   Male     Female   Unisex     Male    Female   Unisex   Male     Female   Unisex
----------------------------------------------------------------------------------------------------------------
<S>           <C>        <C>     <C>       <C>     <C>       <C>      <C>      <C>      <C>     <C>       <C>
                         50     $3.82     $3.70   $3.74     $3.80    $3.69    $3.72    $3.70   $3.62     $3.65
                         51      3.89      3.76    3.80      3.86     3.74     3.78     3.75    3.67      3.70
                         52      3.95      3.81    3.86      3.92     3.80     3.84     3.81    3.72      3.75

                         53      4.02      3.88    3.92      3.99     3.86     3.90     3.87    3.78      3.80
    5         17.91      54      4.10      3.94    3.99      4.06     3.92     3.96     3.93    3.83      3.86
    6         15.14      55      4.18      4.01    4.06      4.13     3.99     4.03     3.99    3.89      3.92
    7         13.16      56      4.26      4.08    4.14      4.21     4.06     4.10     4.06    3.95      3.98
    8         11.68      57      4.35      4.16    4.22      4.29     4.13     4.18     4.13    4.02      4.05
    9         10.53      58      4.44      4.24    4.30      4.38     4.21     4.26     4.20    4.08      4.12
    10         9.61      59      4.54      4.33    4.39      4.47     4.29     4.35     4.27    4.16      4.19
    11         8.86      60      4.64      4.42    4.49      4.57     4.38     4.44     4.36    4.23      4.27
    12         8.24      61      4.76      4.52    4.59      4.67     4.47     4.53     4.44    4.31      4.35
    13         7.71      62      4.88      4.63    4.70      4.78     4.57     4.63     4.53    4.39      4.43
    14         7.26      63      5.01      4.74    4.82      4.89     4.67     4.74     4.62    4.48      4.52
    15         6.87      64      5.15      4.86    4.94      5.01     4.78     4.85     4.72    4.57      4.62
    16         6.53      65      5.30      4.98    5.08      5.14     4.89     4.97     4.83    4.67      4.72
    17         6.23      66      5.46      5.12    5.22      5.27     5.02     5.09     4.94    4.78      4.82
    18         5.96      67      5.63      5.27    5.37      5.41     5.14     5.22     5.05    4.89      4.94
    19         5.73      68      5.81      5.42    5.54      5.55     5.28     5.36     5.17    5.00      5.05
    20         5.51      69      6.00      5.59    5.71      5.70     5.42     5.51     5.30    5.13      5.18
                         70      6.21      5.78    5.90      5.86     5.58     5.66     5.43    5.26      5.31
                         71      6.43      5.97    6.11      6.02     5.74     5.82     5.58    5.39      5.45
                         72      6.66      6.19    6.33      6.18     5.90     5.99     5.72    5.54      5.59
                         73      6.91      6.42    6.56      6.35     6.08     6.16     5.88    5.70      5.75
                         74      7.18      6.67    6.82      6.53     6.26     6.34     6.05    5.86      5.92
                         75      7.46      6.94    7.09      6.70     6.45     6.53     6.22    6.04      6.09
                         76      7.77      7.23    7.39      6.88     6.65     6.72     6.40    6.22      6.27
                         77      8.10      7.55    7.71      7.07     6.85     6.91     6.60    6.42      6.47
                         78      8.45      7.89    8.05      7.25     7.05     7.11     6.80    6.63      6.68
                         79      8.83      8.26    8.43      7.43     7.26     7.31     7.01    6.85      6.90
                         80      9.23      8.66    8.83      7.61     7.46     7.51     7.24    7.08      7.13
                         81      9.66      9.10    9.27      7.79     7.66     7.70     7.47    7.33      7.37
                         82     10.13      9.57    9.74      7.97     7.86     7.89     7.72    7.59      7.63
                         83     10.62     10.09   10.24      8.13     8.05     8.07     7.98    7.86      7.90
                         84     11.15     10.64   10.79      8.29     8.23     8.25     8.26    8.15      8.18
                         85     11.72     11.24   11.38      8.44     8.40     8.41     8.55    8.45      8.48
                         86     12.32     11.89   12.02      8.59     8.56     8.56     8.85    8.77      8.80
                         87     12.97     12.59   12.70      8.72     8.70     8.71     9.17    9.11      9.12
                         88     13.65     13.33   13.42      8.84     8.83     8.83     9.50    9.45      9.47
                         89     14.38     14.11   14.19      8.95     8.95     8.95     9.85    9.82      9.83
                         90     15.16     14.94   15.00      9.06     9.05     9.05    10.22   10.19     10.20
                         91     15.97     15.80   15.85      9.15     9.15     9.15    10.61   10.59     10.59
                         92     16.84     16.70   16.74      9.23     9.23     9.23    11.01   11.00     11.00
                         93     17.75     17.63   17.67      9.31     9.31     9.31    11.45   11.42     11.43
                         94     18.72     18.60   18.64      9.37     9.37     9.37    11.92   11.88     11.89
                         95     19.77     19.62   19.66      9.43     9.43     9.43    12.42   12.36     12.38
----------------------------------------------------------------------------------------------------------------

<CAPTION>
-----------------------------------
            Option 3, Table V
-----------------------------------

           Monthly Installment for
                   Life
            With Emergency Cash
-----------------------------------
 Age*      Male    Female  Unisex
-----------------------------------
<S>       <C>      <C>      <C>
  50      $3.57    $3.52    $3.54
  51       3.62     3.56     3.58
  52       3.67     3.61     3.63

  53       3.72     3.65     3.67
  54       3.77     3.70     3.73
  55       3.83     3.76     3.78
  56       3.89     3.81     3.83
  57       3.95     3.87     3.89
  58       4.01     3.93     3.96
  59       4.08     4.00     4.02
  60       4.15     4.06     4.09
  61       4.23     4.14     4.16
  62       4.31     4.21     4.24
  63       4.39     4.29     4.32
  64       4.48     4.38     4.41
  65       4.57     4.47     4.50
  66       4.67     4.56     4.59
  67       4.77     4.66     4.69
  68       4.88     4.77     4.80
  69       4.99     4.88     4.91
  70       5.12     5.00     5.03
  71       5.24     5.13     5.16
  72       5.37     5.26     5.29
  73       5.51     5.40     5.43
  74       5.65     5.55     5.58
  75       5.81     5.70     5.73
  76       5.97     5.87     5.90
  77       6.14     6.05     6.08
  78       6.33     6.24     6.25
  79       6.52     6.43     6.45
  80       6.71     6.62     6.65
  81       6.92     6.84     6.85
  82       7.13     7.07     7.08
  83       7.34     7.29     7.30
  84       7.57     7.55     7.56
  85       7.81     7.80     7.80
  86       8.10     8.06     8.06
  87       8.38     8.37     8.37
  88       8.67     8.67     8.67
  89       8.99     8.99     8.99
  90       9.33     9.33     9.33
  91       9.76     9.76     9.76
  92       10.18   10.18    10.18
  93       10.62   10.61    10.61
  94       11.07   11.06    11.07
  95       11.57   11.46    11.47
-----------------------------------
</TABLE>

*Adjusted Age as defined in Section 10.A.

Dollar amounts of monthly, quarterly, semi-annual, and annual installments not
shown in the above tables will be calculated on the same basis as those shown
and may be obtained from the Company.

                                     Page 18

T890

<PAGE>

                               Option 5, Table VI

<TABLE>
<CAPTION>
                                      Monthly Installment For Joint and Full Survivor

-------------------------------------------------------------------------------------------------------------------------------
                                                             Age of Female Annuitant*
      Age of       ------------------------------------------------------------------------------------------------------------
        Male           15 Years        12 Years       9 Years       6 Years           3 Years                       3 Years
     Annuitant*       Less Than       Less Than      Less Than     Less Than         Less Than       Same As       More Than
                         Male            Male           Male          Male              Male           Male          Male
------------------ --------------- --------------- -------------- ---------------- -------------- --------------- -------------
<S>                    <C>             <C>             <C>            <C>              <C>            <C>            <C>
       50              $3.06           $3.12           $3.19          $3.25            $3.31          $3.38          $3.44
       55               3.20            3.27            3.35           3.44             3.52           3.61           3.69
       60               3.37            3.47            3.57           3.68             3.79           3.91           4.02
       65               3.59            3.72            3.86           4.01             4.16           4.32           4.47
       70               3.88            4.06            4.25           4.45             4.67           4.89           5.11
-------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
                                    Monthly Installment For Unisex Joint and Full Survivor
-------------------------------------------------------------------------------------------------------------------------------
                                                             Age of Joint Annuitant*
    Age of         --------------- --------------- -------------- ---------------- -------------- --------------- -------------
     First            15 Years        12 Years        9 Years         6 Years         3 Years        Same As        3 Years
   Annuitant*        Less Than       Less Than       Less Than    Less Than First    Less Than        First        More Than
                       First           First           First                           First                         First
------------------ --------------- --------------- -------------- ---------------- -------------- --------------- -------------
<S>                    <C>             <C>             <C>            <C>              <C>            <C>            <C>
       50              $3.07           $3.13           $3.19          $3.25            $3.31          $3.37          $3.43
       55               3.20            3.28            3.36           3.44             3.52           3.60           3.67
       60               3.38            3.48            3.58           3.68             3.79           3.89           4.00
       65               3.61            3.73            3.87           4.01             4.16           4.30           4.44
       70               3.90            4.07            4.26           4.46             4.66           4.86           5.05
-------------------------------------------------------------------------------------------------------------------------------
*Adjusted Age as defined in Section 10.A.
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                               Option 5, Table VII
                               -------------------
<TABLE>
<CAPTION>
                           Monthly Installment for Joint & Full Survivor (Life with Emergency Cash)
-------------------------------------------------------------------------------------------------------------------------------
                                                             Age of Female Annuitant
   Age of Male     -------------------------------------------------------------------------------------------------------------
   Annuitant*        15 Years        12 Years        9 Years         6 Years         3 Years        Same as        3 Years
                    Less Than       Less Than       Less Than       Less Than       Less Than         Male        More Than
                       Male            Male            Male            Male            Male                          Male
-------------------------------------------------------------------------------------------------------------------------------
<S>                   <C>             <C>             <C>             <C>             <C>            <C>            <C>
       50             $3.02           $3.08           $3.13           $3.20           $3.26          $3.32          $3.37
       55              3.14            3.21            3.29            3.36            3.45           3.53           3.59
       60              3.29            3.38            3.48            3.58            3.69           3.80           3.88
       65              3.48            3.60            3.72            3.86            4.00           4.15           4.26
       70              3.72            3.88            4.05            4.23            4.42           4.62           4.77
-------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
                       Monthly Installment for Unisex Joint & Full Survivor (Life with Emergency Cash)
-------------------------------------------------------------------------------------------------------------------------------
                                                             Age of Joint Annuitant
  Age of First     -------------------------------------------------------------------------------------------------------------
   Annuitant*        15 Years        12 Years        9 Years         6 Years         3 Years        Same as        3 Years
                    Less Than       Less Than       Less Than       Less Than       Less Than        First        More Than
                      First           First           First           First           First                         First
-------------------------------------------------------------------------------------------------------------------------------
<S>                   <C>             <C>             <C>             <C>             <C>            <C>            <C>
       50             $3.02           $3.08           $3.14           $3.20           $3.26          $3.32          $3.36
       55              3.14            3.21            3.29            3.37            3.44           3.52           3.58
       60              3.30            3.39            3.48            3.58            3.68           3.79           3.86
       65              3.49            3.61            3.73            3.86            4.00           4.14           4.24
       70              3.74            3.89            4.06            4.24            4.42           4.60           4.74
-------------------------------------------------------------------------------------------------------------------------------
*Adjusted Age as defined in Section 10.A.
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Dollar amounts of monthly, quarterly, semi-annual, and annual installments not
shown in the above tables will be calculated on the same basis as those shown
and may be obtained from the Company.

                                     Page 19
TB890

<PAGE>

                            VARIABLE PAYMENT OPTIONS
                       BASED ON ASSUMED INVESTMENT RETURN

     The amounts shown in these tables are the initial payment amounts based
      on a 5.0% Assumed Investment Return for each $1,000 of the proceeds.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                      Option 3-V, Table II                     Option 3-V, Table III                  Option 3-V, Table IV
-----------------------------------------------------------------------------------------------------------------------------------
                  Monthly Installment for Life             Monthly Installment for Life           Monthly Installment for Life
                        No Period Certain                        10 Years Certain                      With Emergency Cash
-----------------------------------------------------------------------------------------------------------------------------------
   Age*         Male         Female        Unisex        Male         Female        Unisex        Male       Female       Unisex
<S>              <C>         <C>           <C>            <C>          <C>          <C>          <C>          <C>         <C>
    50           $5.07       $4.93         $4.98          $5.04        $4.92        $4.95        $4.83        $4.76       $4.78
    51            5.13        4.99          5.03           5.09         4.96         5.00         4.87         4.80        4.82
    52            5.19        5.04          5.08           5.15         5.01         5.05         4.92         4.84        4.86
    53            5.26        5.10          5.14           5.21         5.07         5.11         4.96         4.88        4.91
    54            5.33        5.16          5.21           5.27         5.12         5.17         5.01         4.93        4.95
    55            5.40        5.22          5.27           5.34         5.18         5.23         5.06         4.98        5.00
    56            5.48        5.29          5.35           5.41         5.25         5.30         5.12         5.03        5.05
    57            5.57        5.36          5.42           5.49         5.32         5.37         5.18         5.08        5.11
    58            5.66        5.44          5.50           5.57         5.39         5.44         5.24         5.14        5.17
    59            5.75        5.52          5.59           5.66         5.47         5.52         5.31         5.20        5.23
    60            5.85        5.61          5.68           5.75         5.55         5.61         5.37         5.26        5.29
    61            5.97        5.70          5.78           5.85         5.63         5.70         5.45         5.33        5.37
    62            6.09        5.81          5.89           5.95         5.72         5.79         5.53         5.40        5.44
    63            6.21        5.91          6.00           6.06         5.82         5.89         5.61         5.48        5.52
    64            6.35        6.03          6.13           6.17         5.92         6.00         5.70         5.56        5.60
    65            6.50        6.16          6.26           6.29         6.03         6.11         5.79         5.65        5.69
    66            6.66        6.29          6.40           6.42         6.15         6.23         5.89         5.75        5.79
    67            6.83        6.43          6.55           6.55         6.27         6.36         6.00         5.85        5.89
    68            7.01        6.59          6.71           6.69         6.40         6.49         6.11         5.96        6.00
    69            7.21        6.76          6.89           6.83         6.54         6.63         6.23         6.07        6.12
    70            7.41        6.94          7.08           6.98         6.69         6.77         6.36         6.20        6.25
    71            7.63        7.14          7.28           7.13         6.84         6.93         6.49         6.33        6.38
    72            7.87        7.35          7.50           7.28         7.00         7.09         6.63         6.46        6.52
    73            8.12        7.58          7.74           7.45         7.17         7.25         6.78         6.62        6.66
    74            8.39        7.83          8.00           7.61         7.34         7.42         6.94         6.78        6.83
    75            8.68        8.11          8.28           7.78         7.52         7.60         7.11         6.95        7.00
    76            8.99        8.40          8.58           7.95         7.71         7.78         7.29         7.13        7.18
    77            9.32        8.72          8.90           8.12         7.90         7.97         7.47         7.33        7.36
    78            9.68        9.07          9.25           8.29         8.09         8.16         7.68         7.52        7.57
    79           10.06        9.45          9.63           8.47         8.29         8.34         7.88         7.74        7.79
    80           10.47        9.85         10.04           8.64         8.48         8.53         8.11         7.98        8.01
    81           10.91       10.30         10.48           8.80         8.67         8.71         8.34         8.23        8.26
    82           11.38       10.78         10.96           8.97         8.86         8.89         8.60         8.48        8.53
    83           11.88       11.30         11.47           9.12         9.04         9.06         8.84         8.75        8.77
    84           12.42       11.87         12.03           9.27         9.21         9.23         9.09         9.01        9.05
    85           12.99       12.48         12.63           9.41         9.37         9.38         9.35         9.31        9.32
    86           13.60       13.13         13.27           9.54         9.51         9.52         9.67         9.60        9.61
    87           14.26       13.84         13.96           9.67         9.65         9.65         9.96         9.90        9.91
    88           14.95       14.59         14.70           9.78         9.77         9.77         10.28       10.27        10.27
    89           15.69       15.39         15.48           9.89         9.88         9.88         10.61       10.61        10.61
    90           16.47       16.23         16.30           9.98         9.98         9.98         10.97       10.97        10.97
    91           17.29       17.10         17.16          10.07        10.07        10.07         11.36       11.36        11.36
    92           18.16       18.01         18.05          10.15        10.15        10.15         11.86       11.85        11.85
    93           19.07       18.95         18.98          10.22        10.22        10.22         12.33       12.32        12.32
    94           20.05       19.92         19.96          10.28        10.28        10.28         12.94       12.93        12.93
    95           21.09       20.94         20.99          10.34        10.33        10.33         13.47       13.45        13.46
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

*Adjusted Age as defined in Section 10.A.

Dollar amounts of monthly, quarterly, semi-annual, and annual installments not
shown in the above tables will be calculated on the same basis as those shown
and may be obtained from the Company.

                                     Page 20

H994

<PAGE>

                               Option 5V, Table V

<TABLE>
<CAPTION>
                                            Monthly Installment For Joint and Full Survivor

---------------------------------------------------------------------------------------------------------------------------------
                                                              Age of Female Annuitant*
     Age of        --------------------------------------------------------------------------------------------------------------
      Male             15 Years        12 Years        9 Years        6 Years          3 Years       Same As        3 Years More
   Annuitant*         Less Than       Less Than       Less Than      Less Than        Less Than        Male             Than
                        Male            Male            Male           Male             Male                            Male
---------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>             <C>             <C>            <C>              <C>            <C>              <C>
       50              $4.37           $4.42           $4.46          $4.51            $4.56          $4.62            $4.67
       55               4.48            4.54            4.60           4.67             4.74           4.81             4.88
       60               4.62            4.70            4.79           4.88             4.98           5.08             5.18
       65               4.81            4.92            5.04           5.17             5.31           5.46             5.61
       70               5.07            5.23            5.40           5.59             5.79           6.00             6.22
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
                                           Monthly Installment For Unisex Joint and Full Survivor
---------------------------------------------------------------------------------------------------------------------------------
                                                              Age of Joint Annuitant*
     Age of        --------------------------------------------------------------------------------------------------------------
      First           15 Years        12 Years        9 Years         6 Years         3 Years         Same As      3 Years More
   Annuitant*        Less Than       Less Than       Less Than    Less Than First    Less Than         First        Than First
                       First           First           First                           First
---------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>             <C>             <C>            <C>              <C>            <C>              <C>
       50              $4.38           $4.42           $4.47          $4.51            $4.56          $4.61            $4.66
       55               4.48            4.54            4.60           4.67             4.73           4.80             4.87
       60               4.63            4.70            4.79           4.88             4.97           5.07             5.16
       65               4.82            4.93            5.05           5.17             5.30           5.44             5.57
       70               5.09            5.24            5.41           5.59             5.78           5.97             6.16
---------------------------------------------------------------------------------------------------------------------------------
*Adjusted Age as defined in Section 10.A
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                               Option 5V, Table VI

<TABLE>
<CAPTION>
                              Monthly Installment For Joint and Full Survivor (Life with Emergency Cash)

---------------------------------------------------------------------------------------------------------------------------------
                                                              Age of Female Annuitant*
     Age of        --------------------------------------------------------------------------------------------------------------
      Male             15 Years        12 Years        9 Years        6 Years          3 Years       Same As        3 Years More
   Annuitant*         Less Than       Less Than       Less Than      Less Than        Less Than        Male             Than
                        Male            Male            Male           Male             Male                            Male
---------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>             <C>             <C>            <C>              <C>            <C>              <C>
       50              $4.34           $4.38           $4.42          $4.47            $4.51          $4.57            $4.61
       55               4.43            4.48            4.54           4.60             4.67           4.74             4.79
       60               4.55            4.62            4.70           4.78             4.88           4.97             5.05
       65               4.71            4.80            4.91           5.03             5.16           5.30             5.41
       70               4.92            5.05            5.21           5.38             5.56           5.76             5.91
---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
                           Monthly Installment For Unisex Joint and Full Survivor (Life with emergency Cash)
---------------------------------------------------------------------------------------------------------------------------------
                                                              Age of Joint Annuitant*
     Age of        --------------------------------------------------------------------------------------------------------------
      First           15 Years        12 Years        9 Years         6 Years         3 Years         Same As      3 Years More
   Annuitant*        Less Than       Less Than       Less Than    Less Than First    Less Than         First        Than First
                       First           First           First                           First
---------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>             <C>             <C>            <C>              <C>            <C>              <C>
       50              $4.34           $4.38           $4.42          $4.47            $4.51          $4.56            $4.60
       55               4.43            4.48            4.54           4.60             4.67           4.73             4.78
       60               4.55            4.62            4.70           4.78             4.87           4.96             5.03
       65               4.71            4.81            4.92           5.03             5.16           5.29             5.38
       70               4.93            5.07            5.22           5.38             5.56           5.74             5.87
---------------------------------------------------------------------------------------------------------------------------------
*Adjusted Age as defined in Section 10.A
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Dollar amounts of monthly, quarterly, semi-annual, and annual installments not
shown in the above tables will be calculated on the same basis as those shown
and may be obtained from the Company.

                                     Page 21

J994

<PAGE>

                         SECTION 11 - GENERAL PROVISIONS

THE CONTRACT
The entire contract consists of this policy, and endorsements, if any.

MODIFICATION OF POLICY
No change in this policy is valid unless made in writing by us and approved by
one of our officers. No Registered Representative has authority to change or
waive any provision of Your policy.

TAX QUALIFICATION
This policy is intended to qualify as an annuity contract for federal income tax
purposes. The provisions of this policy are to be interpreted to maintain such
qualification, notwithstanding any other provisions to the contrary. To maintain
such tax qualification, we reserve the right to amend this policy to reflect any
clarifications that may be needed or are appropriate to maintain such tax
qualification or to conform this policy to any applicable changes in the tax
qualification requirements. We will send You a copy in the event of any such
amendment. If You refuse such an amendment it must be by giving us written
notice, and Your refusal may result in adverse tax consequences.

NON-PARTICIPATING
This policy will not share in our surplus earnings.

AGE OR SEX CORRECTIONS
If the age or sex of the Annuitant has been misstated, the benefits will be
those, which the premiums paid, would have purchased for the correct age and
sex. If required by law to ignore differences in the sex of the Annuitant, the
annuity payments will be determined using the unisex factors in Section 10.

Any underpayment made by us will be paid with the next payment. Any overpayment
made by us will be deducted from future payments. Any underpayment or
overpayment, will include interest at 5% per year, from the date of the wrong
payment to the date of the adjustment.

INCONTESTABILITY
This policy shall be incontestable from the Policy Date.

EVIDENCE OF SURVIVAL
We have the right to require satisfactory evidence that a person was alive if a
payment is based on that person being alive. No payment will be made until we
receive the evidence.

SETTLEMENT
Any payment by us under this policy is payable at our Home Office.

RIGHTS OF OWNER
The owner may, while the Annuitant is living:
1.   Assign this policy.
2.   Surrender the policy to us.
3.   Amend or modify the policy with our consent.
4.   Receive annuity payments or name a Payee to receive the payments.
5.   Exercise, receive and enjoy every other right and benefit contained in the
     policy.

The use of these rights may be subject to the consent of any assignee or
irrevocable beneficiary; and of the spouse in a community or marital property
state.

Unless we have been notified of a community or marital property interest in this
policy, we will rely on our good faith belief that no such interest exists and
will assume no responsibility for inquiry.

CHANGE OF OWNERSHIP
In the case of a non-tax-qualified annuity, You can change the owner of this
policy, from yourself to a new owner, in a notice You sign which gives us the
facts that we need. When this change takes effect, all rights of ownership in
this policy will pass to the new owner.

A change of owner will not be effective until it is recorded in our records.
After it has been so recorded, the change will take effect as of the date You
signed the notice. However, if the Annuitant dies before the notice has been so
recorded, it will not be effective as to those proceeds we have paid before the
change was recorded in our records.

We may require that the change be endorsed in the policy. Changing the owner
does not change the beneficiary or the Annuitant.

A change of ownership may result in adverse tax consequences.

ANNUITY COMMENCEMENT DATE
The Annuity Commencement Date is the date annuity payments begin. In no event
can this date be later than the last day of the policy month following the month
in which the Annuitant attains age 98. You may change the Annuity Commencement
Date at any time before the Annuity Commencement Date by giving us 30 days'
written notice.

                                     Page 22

R140

<PAGE>

                             SECTION 11 - CONTINUED

ASSIGNMENT
(a)  In the case of a non tax-qualified annuity, this Policy may be assigned.
     The assignment must be in writing and filed with us.

(b)  We assume no responsibility for the validity of any assignment. Any claim
     made under an assignment shall be subject to proof of interest and the
     extent of the assignment.

(c)  This policy may be applied for and issued to qualify as a tax-qualified
     annuity under certain sections of the Internal Revenue Code. Ownership of
     this policy is then restricted so that it will comply with provisions of
     the Internal Revenue Code.

Assignment of this policy may result in adverse tax consequences.

BENEFICIARY
Death proceeds, when payable in accordance with Section 9, are payable to the
designated beneficiary or beneficiaries. However, if there is a surviving
owner(s), the surviving owner(s) automatically takes the place of any
beneficiary designation. Such beneficiary(ies) must be named and may be changed
without consent (unless irrevocably designated or required by law) by notifying
us in writing on a form acceptable to us. The change will take effect upon the
date You sign it, whether or not You are living when we receive it. The notice
must have been postmarked (or show other evidence of delivery that is acceptable
to us) on or before the date of death. Your most recent change of beneficiary
notice will replace any prior beneficiary designations. No change will apply to
any payment we made before the written notice was received. If an irrevocable
beneficiary dies, You may designate a new beneficiary.

You may direct that the beneficiary shall not have the right to withdraw, assign
or commute any sum payable under an option. In the absence of such election or
direction, the beneficiary may change the manner of payment or make an election
of any option.

If any primary or contingent beneficiary dies before the Annuitant, that
beneficiary's interest in this policy ends with that beneficiary's death. Only
those beneficiaries living at the time of the Annuitant's death will be eligible
to receive their share of the Death Proceeds. In the event no contingent
beneficiaries have been named and all primary beneficiaries have died before the
death proceeds become payable, the owner(s) will become the beneficiary(ies)
unless elected otherwise in accordance with Section 9. If both primary and
contingent beneficiaries have been named, payment will be made to the named
primary beneficiaries living at the time the death proceeds become payable. If
there is more than one beneficiary and You failed to specify their interest,
they will share equally. Payment will be made to the named contingent
beneficiary(ies) only, if all primary beneficiaries have died before the death
proceeds become payable. If any primary beneficiary is alive at the time the
death proceeds become payable, but dies before receiving their payment, their
share will be paid to their estate.

PROTECTION OF PROCEEDS
Unless You so direct by filing written notice with us, no beneficiary may assign
any payments under this policy before the same are due. To the extent permitted
by law, no payments under this policy will be subject to the claims of creditors
of any beneficiary.

DEFERMENT
We will pay any Partial Withdrawals or Surrender proceeds from the Separate
Account within 7 days after we receive all requirements that we need. However,
it may happen that the New York Stock Exchange is closed for trading (other than
the usual weekend or holiday closings), or the Securities and Exchange
Commission restricts trading or determines that an emergency exists. If so, it
may not be practical for us to determine the investment experience of the
Separate Account. In that case, we may defer transfers among the Subaccounts and
to the Fixed Account, and determination or payment of Partial Withdrawals or
Surrender proceeds.

When permitted by law, we may defer paying any Partial Withdrawals or Surrender
proceeds from the Fixed Account for up to 6 months from the date we receive Your
request. If the owner dies after the request is received, but before the request
is processed, the request will be processed before the death proceeds are
determined. Interest will be paid on any amount deferred for 30 days or more.
This rate will be 3% per year unless otherwise required by law.

REPORTS TO OWNER
We will give You an annual report at least once each Policy Year. This report
will show the number and value of the accumulation units held in each of the
Subaccounts as well as the value of the Fixed Account. It will also give You the
Death Benefit, Cash Value, and any other facts required by law or regulation.

                                     Page 23

RB140

<PAGE>

[Logo]
Transamerica Life Insurance Company                 Home Office:
A Stock Company (Hereafter called the               4333 Edgewood Road N.E.
Company, we, our or us)                             Cedar Rapids, Iowa 52499
                                                    (319)398-8511

                       SURRENDER CHARGE MODIFICATION RIDER

We issued this rider as a part of the policy to which it is attached.

The following language replaces the Surrender Charge Provision in Section 5 of
Your policy:

SURRENDER CHARGES
Amounts withdrawn in excess of the surrender charge free amount specified in the
withdrawal provisions above are subject to a surrender charge. The amount of
this charge, if any, will be a percentage, as shown in the table below, of the
amount of premium withdrawn:

                   Number of Years           Percentage of
                    Since Premium          Premium Withdrawn
                    Payment Date

                      0-1                          6%
                      1-2                          6%
                      2-3                          6%
                      3 or more                    0%

In any event, surrender charges will be waived after the tenth Policy Year.

For surrender charge purposes, all earnings are considered to be withdrawn
first. After all earnings are withdrawn then the oldest premium payment is the
first premium payment considered to be withdrawn. If the amount withdrawn
exceeds this, the next oldest premium payment is considered to be withdrawn, and
so on until the most recent premium payments are deemed to be withdrawn (the
procedure being applied to Withdrawals of premium is a "First-In, First-Out" or
FIFO procedure).

                        Signed for us at our home office.

           /s/ Craig D.Vermie                         /s/ Larry N. Norman

             SECRETARY                                   PRESIDENT

RLS1 1101

<PAGE>

[Logo]
[Transamerica Life Insurance Company              Home Office:
A Stock Company (Hereafter called the             4333 Edgewood Road N.E.
Company, we, our or us)                           Cedar Rapids, Iowa 52499
                                                  (319)398-8511

<TABLE>
<CAPTION>
                                      INDEX
                                                           Page
<S>                                                        <C>
Accumulation Units .......................................    9
Age or Sex Corrections ...................................   22
Annuity Commencement Date ................................   22
Annuity Payments .........................................   14
Adjusted Policy Value ....................................    4
Assignment ...............................................   23
Beneficiary ..............................................   23
Cash Value ...............................................    5
Contract .................................................   22
Death Proceeds ...........................................   12
Definitions ..............................................    2
Dollar Cost Averaging Option .............................   11
Evidence of Survival .....................................   22
Excess Interest Adjustment ...............................    5
Fixed Account ............................................   10
Guaranteed Minimum Death Benefit .........................   12
Guaranteed Return of Fixed Account Premium Payments ......    8
Guaranteed Periods .......................................   10
Incontestability .........................................   22
Modification of Policy ...................................   22
Non-participating ........................................   22
Option to Change Annuity Commencement Date ...............   22
Partial Withdrawals ......................................    6
Payee ....................................................   15
Payment of Premiums ......................................    4
Payment Option Tables ........................   18, 19, 20, 21
Policy Data Page .........................................    3
Policy Value .............................................    4
Proof of Age .............................................   15
Protection of Proceeds ...................................   23
Right to Cancel ..........................................    1
Rights of Owner ..........................................   22
Separate Account .........................................    8
Service Charge ...........................................    4
Settlement ...............................................   22
Surrender Charges ........................................    8
Transfers ................................................   10
</TABLE>

                       Flexible Premium Variable Annuity
                  Income Payable At Annuity Commencement Date
           Benefits Based On The Performance Of The Separate Account
Are Variable And Are Not Guaranteed As To Dollar Amount (See Sections 6 and 10C)
                               Non-Participating

Y731Prepared by R.R. Donnelley Financial -- Purchase/Sale Agmt for the TRW Denver Building

 EXHIBIT 10.71 
  
 PURCHASE AND SALE AGREEMENT FOR THE TRW DENVER BUILDING 

  
 AGREEMENT OF SALE AND PURCHASE 
  
 THIS AGREEMENT OF SALE AND PURCHASE (“Agreement”) made this 13th day of May, 2002 by and between MACK-CALI
REALTY, L.P., a limited partnership organized under the laws of the State of Delaware having an address c/o Mack-Cali Realty Corporation, 11 Commerce Drive, Cranford, New Jersey 07016 (“Seller”) and WELLS CAPITAL,
INC., a corporation organized under the laws of the State of Georgia having an address at 6200 The Corners Parkway, Suite 250, Atlanta, Georgia 30092 (“Purchaser”). 
  

In consideration of the mutual promises, covenants, and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Seller and Purchaser agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 SECTION
1.1  Definitions.    For purposes of this Agreement, the following capitalized terms have the meanings set forth in this Section 1.1: 
  
 “Assignment” has the meaning ascribed to such term in Section 10.3(d) and shall be in the form attached hereto as Exhibit A.

  
 “Assignment of Leases” has the meaning ascribed to such term in Section 10.3(c)
and shall be in the form attached hereto as Exhibit B. 
  
 “Authorities”
means the various governmental and quasi-governmental bodies or agencies having jurisdiction over the Real Property and Improvements, or any portion thereof. 
  
 “Bill of Sale” has the meaning ascribed to such term in Section 10.3(b) and shall be in the form attached hereto as Exhibit C.

  
 “Broker” has the meaning ascribed to such term in Section 16.1. 

 
 “Business Day” means any day other than a Saturday, Sunday or a day on which national banking
associations are authorized or required to close. 
  
 “Certificate as to Foreign
Status” has the meaning ascribed to such term in Section 10.3(g) and shall be in the form attached as Exhibit I. 
  
 “Certifying Person” has the meaning ascribed to such term in Section 4.3(a). 
  
 “Closing” means the consummation of the purchase and sale of the Property contemplated by this Agreement, as provided for in Article X. 
  
 “Closing Date” means May 29, 2002. 
  
 “Closing Statement” has the meaning ascribed to such term in Section 10.4(a). 
 

 1 

  
 “Closing Surviving Obligations” means the
rights, liabilities and obligations set forth in Sections 3.2, 3.4, 4.3, 5.4, 8.2, 8.3, 10.4, 10.6, 11.1, 11.2, 12.1, Article XIV, 15.1, 16.1, and Article XVIII, and any other provisions which pursuant to their terms survives the Closing hereunder.

  
 “Code” has the meaning ascribed to such term in Section 4.3. 

 
 “Deed” has the meaning ascribed to such term in Section 10.3(a). 
  
 “Delinquent Rental” has the meaning ascribed to such term in Section 10.4(b). 
  
 “Documents” has the meaning ascribed to such term in Section 5.2(a). 
  
 “Earnest Money Deposit” has the meaning ascribed to such term in Section 4.1. 
  
 “Effective Date” means the latest date on which this Agreement has been executed by Seller or Purchaser,
which date shall be set forth opposite such party’s signature. 
  
 “Environmental
Laws” means each and every federal, state, county and municipal statute, ordinance, rule, regulation, code, order, requirement, directive, binding written interpretation and binding written policy pertaining to Hazardous Substances issued
by any Authorities and in effect as of the date of this Agreement with respect to or which otherwise pertains to or affects the Real Property or the Improvements, or any portion thereof, the use, ownership, occupancy or operation of the Real
Property or the Improvements, or any portion thereof, and as same have been amended, modified or supplemented from time to time prior to the Effective Date, including but not limited to the Comprehensive Environmental Response, Compensation and
Liability Act of 1980 (42 U.S.C. § 9601 et seq.) (the “Superfund Act”), the Hazardous Substances Transportation Act (49 U.S.C. § 1802 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), as
amended by the Hazardous and Solid Wastes Amendments of 1984, the Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Safe Drinking Water Act (42 U.S.C. § 300f et seq.), the Clean Water Act (33 U.S.C. § 1321 et seq.), the
Clean Air Act (42 U.S.C. § 7401 et seq.), the Solid Waste Disposal Act (42 U.S.C. § 6901 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Emergency Planning and Community Right-to-Know Act of 1986 (42 U.S.C.
§ 11001 et seq.), the Radon and Indoor Air Quality Research Act (42 U.S.C. § 7401 note, et seq.), the National Environmental Policy Act (42 U.S.C. § 4321 et seq.), the Superfund Amendment Reauthorization Act of 1986 (42 U.S.C. §
9601 et seq.), the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.) and any statutes regarding environmental issues in effect in the State of Colorado (collectively, the “Environmental Statutes”), and any and all
rules and regulations which have become effective prior to the date of this Agreement under any and all of the Environmental Statutes. 
  
 “Escrow Agent” means Commonwealth Title Insurance Company, having an address at 655 Third Avenue, New York, New York 10017. 
  
 “Evaluation Period” has the meaning ascribed to such term in Section 5.1. 
 

 2 

  
 “Governmental Regulations” means all statutes,
ordinances, rules and regulations of the Authorities applicable to Seller or the use or operation of the Real Property or the Improvements or any portion thereof. 
  
 “Hazardous Substances” means (a) asbestos, radon gas and urea formaldehyde foam insulation, (b) any solid, liquid, gaseous or thermal
contaminant, including smoke vapor, soot, fumes, acids, alkalis, chemicals, petroleum products or byproducts, PCBs, phosphates, lead or other heavy metals and chlorine, (c) any solid or liquid waste (including, without limitation, hazardous waste),
hazardous air pollutant, hazardous substance, hazardous chemical substance and mixture, toxic substance, pollutant, pollution, regulated substance and contaminant, as such terms are defined in any of the Environmental Statutes as such Environmental
Statutes have been amended and/or supplemented from time to time prior to the date of this Agreement, and any and all rules and regulations promulgated under any of the above, and (d) any other chemical, material or substance, the use or presence of
which, or exposure to the use or presence of which, is prohibited, limited or regulated by any Environmental Statutes. 
  
 “Improvements” means all buildings, structures, fixtures, parking areas and other improvements located on the Real Property. 
  
 “Lease” means the lease with Tenant, together with all renewals and modifications thereof, if any, all guaranties thereof, if any.

  
 “Licensee Parties” has the meaning ascribed to such term in Section 5.1.

  
 “Licenses and Permits” means, collectively, all of Seller’s right, title
and interest, to the extent assignable, in and to licenses, permits, certificates of occupancy, approvals, dedications, zoning approvals, warranties, lien waivers, utility arrangements, subdivision maps and entitlements now or hereafter issued,
approved or granted by the Authorities in connection with the Real Property and the Improvements, together with all renewals and modifications thereof. 
  
 “Operating Expenses” has the meaning ascribed to such term in Section 10.4(c). 
  
 “Permitted Exceptions” has the meaning ascribed to such term in Section 6.2(a). 
  
 “Permitted Outside Parties” has the meaning ascribed to such term in Section 5.2(b). 
  

“Personal Property” means all of Seller’s right, title and interest in and to all equipment, appliances, tools, supplies,
machinery, artwork, furnishings and other tangible personal property attached to, appurtenant to, located in and used exclusively in connection with the ownership or operation of the Improvements and situated at the Property at the time of Closing
including, without limitation, the personal property listed on Exhibit J. 
  
 “Property” has the meaning ascribed to such term in Section 2.1. 
  
 “Proration Items” has the meaning ascribed to such term in Section 10.4(a). 
  
 “Purchase Price” has the meaning ascribed to such term in Section 3.1. 
  
 “Purchaser’s Information” has the meaning ascribed to such term in Section 5.3(c). 
 

 3 

  
 “Real Property” means that certain parcel or
parcels of real property located at 750 South Richfield, Aurora, Colorado, as more particularly described on the legal description attached hereto and made a part hereof as Exhibit D, together with all of Seller’s right, title and
interest, if any, in and to the appurtenances pertaining thereto, including but not limited to Seller’s right, title and interest in and to the adjacent streets, alleys and right-of-ways, and any easement rights, air rights, subsurface rights,
development rights and water rights. 
  
 “Rental” has the meaning ascribed to such
term in Section 10.4(b), and same are “Delinquent” in accordance with the meaning ascribed to such term in Section 10.4(b). 
  
 “Security Deposits” means all security deposits paid to Seller, as landlord (together with any interest which has accrued thereon, but only to the extent such interest has accrued for
the account of the Tenant). 
  
 “Significant Portion” means, for purposes of the
casualty provisions set forth in Article XI hereof, damage by fire or other casualty to the Real Property and the Improvements or a portion thereof, the cost of which to repair would exceed Five Hundred Thousand Dollars ($500,000.00) in the
aggregate. 
  
 “Survey Objection” has the meaning ascribed to such term in Section
6.1. 
  
 “Tenant” means TRW, Inc. 
  
 “Tenant Notice Letters” has the meaning ascribed to such term in Section 10.2(e), and are to be delivered
by Purchaser to Tenant pursuant to Section 10.6. 
  
 “Termination Surviving
Obligations” means the rights, liabilities and obligations set forth in Sections 5.2, 5.3, 5.4, 12.1, Articles XIII, and XIV, Section 16.1, Article XVII, and Sections 18.2 and 18.8, and any other provisions which pursuant to their terms
survive any termination of this Agreement. 
  
 “Title Commitment” has the meaning
ascribed to such term in Section 6.2. 
  
 “Title Company” means Commonwealth Land
Title Insurance Company. 
  
 “Title and Survey Objections” has the meaning ascribed
to such term in Section 6.2. 
  
 “Title Policy” has the meaning ascribed to such
term in Section 6.2. 
  
 “To Seller’s Knowledge” means the present actual (as
opposed to constructive or imputed) knowledge solely of James Clabby, as Senior Vice-President, or Terry Claussen, as Senior Director of Development of Mack-Cali Realty Corporation, without any independent investigation or inquiry whatsoever, except
that the foregoing individual(s) have reviewed the terms of this Agreement and have undertaken a reasonable investigation of the facts or files in their possession necessary to support the terms and provisions of this Agreement and the definition of
“To Seller’s Knowledge” shall include the results of such review and investigations. 
  
 “Updated Survey” has the meaning ascribed to such term in Section 6.1. 
 

 4 

  
 SECTION 1.2  References: Exhibits and
Schedules.    Except as otherwise specifically indicated, all references in this Agreement to Articles or Sections refer to Articles or Sections of this Agreement, and all references to Exhibits or Schedules refer to Exhibits
or Schedules attached hereto, all of which Exhibits and Schedules are incorporated into, and made a part of, this Agreement by reference. The words “herein,” “hereof,” “hereinafter” and words and phrases of similar
import refer to this Agreement as a whole and not to any particular Section or Article. 
  
 ARTICLE II 

AGREEMENT OF PURCHASE AND SALE 
  
 SECTION 2.1  Agreement.    Seller hereby agrees to sell, convey and assign to Purchaser, and Purchaser hereby agrees to purchase and accept from Seller, on the Closing Date and
subject to the terms and conditions of this Agreement, all of the following (collectively, the “Property”): 
  
 (a)  the Real Property; 
  
 (b)  the Improvements; 
  
 (c)  the Personal Property;

  
 (d)  all of Seller’s right, title and interest as lessor in and to the Lease and,
subject to the terms of the Lease, the Security Deposits; 
  
 (e)  to the extent
assignable, all of Seller’s right, title and interest in, to and under the Licenses and Permits; and 
  
 (f)  all of Seller’s right, title and interest, to the extent assignable or transferable, in and to all other intangible rights, titles, interests, privileges and appurtenances owned by Seller and related to or used
exclusively in connection with the ownership, use or operation of the Real Property or the Improvements (the “Intangible Property”) 
  
 SECTION 2.2  Indivisible Economic Package.    Purchaser has no right to purchase, and Seller has no obligation to sell, less than all of the
Property, it being the express agreement and understanding of Purchaser and Seller that, as a material inducement to Seller and Purchaser to enter into this Agreement, Purchaser has agreed to purchase, and Seller has agreed to sell, all of the
Property, subject to and in accordance with the terms and conditions hereof. 
  
 ARTICLE III 
 CONSIDERATION 
  
 SECTION
3.1  Purchase Price.    The purchase price for the Property (the “Purchase Price”) shall be the sum of (a) Fifteen Million Eight Hundred Fifty Thousand Dollars ($15,850,000), plus (b) Five
Million Two Hundred Ten Thousand Dollars ($5,210,000), all in lawful currency of the United States of America, payable as provided in Section 3.3 and subject to adjustments and credits as contemplated hereby. No portion of the Purchase Price shall
be allocated to the Personal Property. 
 

 5 

  
 SECTION 3.2  Assumption of
Obligations.    As additional consideration for the purchase and sale of the Property, at Closing Purchaser will assume, to the extent assigned by Seller, all of the covenants and obligations of Seller pursuant to the Lease,
Licenses and Permits and Intangible Property, which are to be performed subsequent to the Closing Date. 
  
 SECTION 3.3  Method of Payment of Purchase Price.    No later than 10:00 a.m. Eastern time on the Closing Date, Purchaser shall pay to Seller the Purchase Price (less the Earnest
Money Deposit), subject to adjustments and credits contemplated hereby, together with all other costs and amounts to be paid by Purchaser at the Closing pursuant to the terms of this Agreement (“Purchaser’s Costs”), by Federal
Reserve wire transfer of immediately available funds to the account of Escrow Agent. Escrow Agent, following authorization by the parties at Closing, shall (i) pay to Seller by Federal Reserve wire transfer of immediately available funds to an
account designated by Seller, the Purchase Price, subject to adjustments and credits contemplated hereby and less any costs or other amounts to be paid by Seller at Closing pursuant to the terms of this Agreement, (ii) pay to the appropriate payees
out of the proceeds of Closing payable to Seller all costs and amounts to be paid by Seller at Closing pursuant to the terms of this Agreement, and (iii) pay Purchaser’s Costs to the appropriate payees at Closing pursuant to the terms of this
Agreement. 
  
 ARTICLE IV 
 EARNEST MONEY DEPOSIT 
 AND ESCROW INSTRUCTIONS 
  
 SECTION 4.1  The Earnest Money Deposit.    Simultaneously with the execution and delivery of this Agreement by
Purchaser, Purchaser shall deposit with the Escrow Agent, by Federal Reserve wire transfer of immediately available funds, the sum of Five Hundred Thousand Dollars ($500,000.00) as the earnest money deposit on account of the Purchase Price (the
“Earnest Money Deposit”). 
  
 SECTION 4.2  Escrow
Instructions.    The Earnest Money Deposit shall be held in escrow by the Escrow Agent in an interest-bearing account, in accordance with the provisions of Article XVII. In the event this Agreement is not terminated by
Purchaser pursuant to the terms hereof by the end of the Evaluation Period in accordance with the provisions of Section 5.3(c) herein, the Earnest Money Deposit and the interest earned thereon shall become non-refundable to Purchaser except as
otherwise set forth herein. In the event this Agreement is terminated by Purchaser prior to the expiration of the Evaluation Period, the Earnest Money Deposit, together with all interest earned thereon, shall be refunded to Purchaser. 

 
 SECTION 4.3  Designation of Certifying Person.    In order to assure
compliance with the requirements of Section 6045 of the Internal Revenue Code of 1986, as amended (the “Code”), and any related reporting requirements of the Code, the parties hereto agree as follows: 
  
 (a)  Provided the Escrow Agent shall execute a statement in writing (in form and substance reasonably acceptable
to the parties hereunder) pursuant to which it agrees to assume all responsibilities for information reporting required under Section 6045(e) of the Code, Seller and Purchaser shall designate the Escrow Agent as the person to be responsible for all
information reporting under Section 6045(e) of the Code (the “Certifying Person”). If the Escrow Agent refuses to execute a statement pursuant to which it agrees to be the Certifying Person, Seller and Purchaser shall agree to
appoint another third party as the Certifying Person. 
 

 6 

  
 (b)  Seller and Purchaser each hereby agree:

  
 (i)  to provide to the Certifying Person all information and certifications regarding
such party, as reasonably requested by the Certifying Person or otherwise required to be provided by a party to the transaction described herein under Section 6045 of the Code; and 
  
 (ii)  to provide to the Certifying Person such party’s taxpayer identification number and a statement (on Internal Revenue Service Form W-9
or an acceptable substitute form, or on any other form the applicable current or future Code sections and regulations might require and/or any form requested by the Certifying Person), signed under penalties of perjury, stating that the taxpayer
identification number supplied by such party to the Certifying Person is correct. 
  
 ARTICLE V 
 INSPECTION OF PROPERTY 
  
 SECTION 5.1  Evaluation Period.    For the period ending at 5:00 p.m. Eastern time on May 29, 2002 (the “Evaluation Period”), Purchaser and its authorized agents,
partners, lenders, officers, employees, advisors, attorneys, accountants, architects, engineers and other representatives (for purposes of this Article V, the “Licensee Parties”) shall have the right, subject to the interests of
Tenant arising pursuant to the Lease, to enter upon the Real Property at all reasonable times during normal business hours to perform an inspection and evaluation of the Property. Purchaser will provide to Seller notice (for purposes of this Section
5.1(a), an “Entry Notice”) of the intention of Purchaser or the other Licensee Parties to enter the Real Property at least 24 hours prior to such intended entry and specify the intended purpose therefor and the inspections and
examinations contemplated to be made and with whom any Licensee Party will communicate. At Seller’s option, Seller may be present for any such entry and inspection. Purchaser shall not communicate with or contact Tenant or any of the
Authorities without the prior written consent of Seller. Seller agrees to coordinate a meeting between Purchaser and Tenant’s representatives at a mutually convenient time during the Evaluation Period. Notwithstanding anything to the contrary
contained herein, no invasive physical testing or invasive sampling shall be conducted during any such entry by Purchaser or any Licensee Party upon the Real Property without Seller’s specific prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed. 
  
 SECTION 5.2  Document Review.

  
 (a)  During the Evaluation Period, Purchaser and the Licensee Parties shall have the right to review
and inspect, at Purchaser’s sole cost and expense, all of the following which are in Seller’s possession or control (collectively, the “Documents”): all existing environmental, engineering or consulting reports and studies
of the Real Property (which Purchaser shall have the right to have updated at Purchaser’s sole cost and expense), real estate tax bills, together with assessments (special or otherwise), ad valorem and personal property tax bills, covering the
period of Seller’s ownership of the Property; current operating statements; the Lease, lease files, Licenses and Permits, Intangible Property and such other documents, files and items as Purchaser shall reasonably request. Such inspections
shall occur at a location 
 

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 reasonably selected by Seller, which may be at the office of Seller, Seller’s counsel, Seller’s property manager, at the Real Property
or any of them. Purchaser shall not have the right to review or inspect materials not directly related to the leasing, maintenance, operation, ownership and/or management of the Property, including, without limitation, all of Seller’s internal
memoranda, financial projections, appraisals, proposals for work not actually undertaken, and similar proprietary and confidential information. 
  
 (b)  Purchaser acknowledges that any and all of the Documents may be proprietary and confidential in nature and have been provided to Purchaser solely to assist Purchaser in determining the
desirability of purchasing the Property. Subject only to the provisions of Article XII, Purchaser agrees not to disclose the contents of the Documents or any of the provisions, terms or conditions contained therein, to any party outside of
Purchaser’s organization other than its attorneys, partners, accountants, lenders, investors or any other Licensee Parties (collectively, for purposes of this Section 5.2(b), the “Permitted Outside Parties”). Purchaser further
agrees that within its organization, or as to the Permitted Outside Parties, the Documents will be disclosed and exhibited only to those persons within Purchaser’s organization or to those Permitted Outside Parties who are responsible for
determining the desirability of Purchaser’s acquisition of the Property or otherwise involved in performing Purchaser’s obligations under this Agreement. Purchaser further acknowledges that the Documents and other information relating to
the leasing arrangements between Seller and Tenant are proprietary and confidential in nature. Purchaser agrees not to divulge the contents of such Documents and other information except in strict accordance with the confidentiality standards set
forth in this Section 5.2 and Article XII. In permitting Purchaser and the Permitted Outside Parties to review the Documents and other information to assist Purchaser, Seller has not waived any privilege or claim of confidentiality with respect
thereto, and no third party benefits or relationships of any kind, either express or implied, have been offered, intended or created by Seller, and any such claims are expressly rejected by Seller and waived by Purchaser and the Permitted Outside
Parties, for whom, by its execution of this Agreement, Purchaser is acting as an agent with regard to such waiver. 
  
 (c)  Purchaser acknowledges that some of the Documents may have been prepared by third parties and may have been prepared prior to Seller’s ownership of the Property. PURCHASER HEREBY ACKNOWLEDGES THAT, EXCEPT AS
REPRESENTED IN SECTION 8.1(j), SELLER HAS NOT MADE AND DOES NOT MAKE ANY REPRESENTATION OR WARRANTY REGARDING THE TRUTH, ACCURACY OR COMPLETENESS OF THE DOCUMENTS OR THE SOURCES THEREOF. EXCEPT AS REPRESENTED IN SECTION 8.1(j), SELLER HAS NOT
UNDERTAKEN ANY INDEPENDENT INVESTIGATION AS TO THE TRUTH, ACCURACY OR COMPLETENESS OF THE DOCUMENTS AND IS PROVIDING THE DOCUMENTS SOLELY AS AN ACCOMMODATION TO PURCHASER.  
  
 SECTION 5.3  Entry and Inspection Obligations; Termination of Agreement. 
  
 (a)  Purchaser agrees that in entering upon and inspecting or examining the Property, Purchaser and the other Licensee Parties will not: materially disturb the
Tenant or materially interfere with the use of the Property pursuant to the Lease; interfere with the operation and maintenance of the Real Property or Improvements; damage any part of the Property or any personal property owned or held by Tenant or
any other person or entity; injure or otherwise cause bodily harm to Seller or Tenant, or to any of their respective agents, guests, 
 

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 invitees, contractors and employees, or to any other person or entity; permit any liens to attach to the Real Property by reason of the exercise
of Purchaser’s rights under this Article V; or reveal or disclose any information obtained concerning the Property and the Documents to anyone outside Purchaser’s organization, except in accordance with the confidentiality standards set
forth in Section 5.2(b) and Article XII. Purchaser will: (i) maintain (or cause the appropriate Licensee Parties to maintain) comprehensive general liability (occurrence) insurance in terms and amounts reasonably satisfactory to Seller and
Workers’ Compensation insurance in statutory limits, covering any accident or event arising in connection with the presence of Purchaser or the other Licensee Parties on the Real Property or Improvements, and deliver evidence of insurance
verifying such coverage to Seller prior to entry upon the Real Property or Improvements; (ii) promptly pay when due the costs of all entry and inspections and examinations done with regard to the Property; (iii) cause any inspection to be conducted
in accordance with standards customarily employed in the industry and in compliance with all Governmental Regulations; (iv) at Seller’s request, furnish to Seller copies of any studies, reports or test results received by Purchaser regarding
the Property, promptly after such receipt, in connection with such inspection; and (v) repair any damage to the Real Property and Improvements caused by any inspection or examination by Purchaser or its agents. Notwithstanding the foregoing or
subsection (b) below to the contrary, Purchaser shall not be required to restore nor to be liable for any damage to the Property resulting from the actions or inactions of Seller or Tenant. In addition, Purchaser shall not be liable to restore any
damage to the Real Property or the Improvements to the extent same is a result of any acts or omissions of the Seller or the Tenant to the extent of any losses incurred by Seller or otherwise relating to existing conditions at the Property which are
revealed by Purchaser’s investigations permitted hereunder. 
  
 (b)  Except as stated to the contrary
in the last sentence of (a) above, Purchaser hereby indemnifies, defends and holds Seller and its partners, agents, directors, officers, employees, successors and assigns harmless from and against any and all liens, claims, causes of action,
damages, liabilities, demands, suits, obligations to third parties, together with all losses, penalties, costs and expenses relating to any of the foregoing (including but not limited to court costs and reasonable attorneys’ fees, but
specifically excluding any punitive damages) arising out of any inspections, investigations, examinations, sampling or tests conducted by Purchaser or any of the Licensee Parties, whether prior to or after the date hereof, with respect to the
Property. 
  
 (c)  In the event that Purchaser determines, in its sole and absolute discretion, that, for
any reason, it is not satisfied with the results of its inspections and evaluations during the Evaluation Period, then Purchaser shall have the right to terminate this Agreement by providing written notice to Seller prior to the expiration of the
Evaluation Period. In the event Purchaser terminates this Agreement in accordance with this Section 5.3(c), or under any other right of termination as set forth herein, Purchaser shall have the right to receive a refund of the Earnest Money Deposit,
together with all interest which has accrued thereon, and except with respect to the Termination Surviving Obligations, this Agreement shall be null and void and the parties shall have no further obligation to each other. In the event this Agreement
is terminated, Purchaser shall return to Seller all copies Purchaser has made of the Documents and all copies of any studies, reports or test results regarding any part of the Property obtained by Purchaser, before or after the execution of this
Agreement, in connection with Purchaser’s inspection of the Property (collectively, “Purchaser’s Information”) promptly following the time this Agreement is terminated for any reason. 
 

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 SECTION 5.4  Sale “As Is” THE
TRANSACTION CONTEMPLATED BY THIS AGREEMENT HAS BEEN NEGOTIATED BETWEEN SELLER AND PURCHASER. THIS AGREEMENT REFLECTS THE MUTUAL AGREEMENT OF SELLER AND PURCHASER, AND PURCHASER HAS THE RIGHT TO CONDUCT ITS OWN INDEPENDENT EXAMINATION OF THE
PROPERTY. OTHER THAN THE MATTERS REPRESENTED IN SECTION 8.1 HEREOF, BY WHICH ALL OF THE FOLLOWING PROVISIONS OF THIS SECTION 5.4 ARE MODIFIED AND LIMITED AS IF SUCH EXCEPTION WERE FULLY SET FORTH THEREIN IN EACH INSTANCE, PURCHASER HAS NOT RELIED
UPON AND WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY REPRESENTATION OR WARRANTY OF SELLER OR ANY OF SELLER’S AGENTS OR REPRESENTATIVES, AND PURCHASER HEREBY ACKNOWLEDGES THAT NO SUCH REPRESENTATIONS HAVE BEEN MADE. 

 
 SELLER SPECIFICALLY DISCLAIMS, AND NEITHER IT NOR ANY OF ITS AFFILIATES NOR ANY OTHER PERSON IS MAKING, ANY REPRESENTATION,
WARRANTY OR ASSURANCE WHATSOEVER TO PURCHASER, AND NO WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EITHER EXPRESS OR IMPLIED, ARE MADE BY SELLER OR RELIED UPON BY PURCHASER WITH RESPECT TO THE STATUS OF TITLE TO OR THE MAINTENANCE,
REPAIR, CONDITION, DESIGN OR MARKETABILITY OF THE PROPERTY, OR ANY PORTION THEREOF, INCLUDING BUT NOT LIMITED TO (a) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY, (b) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, (c) ANY
IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS, (d) ANY RIGHTS OF PURCHASER UNDER APPROPRIATE STATUTES TO CLAIM DIMINUTION OF CONSIDERATION, (e) ANY CLAIM BY PURCHASER FOR DAMAGES BECAUSE OF DEFECTS, WHETHER KNOWN OR
UNKNOWN, WITH RESPECT TO THE IMPROVEMENTS OR THE PERSONAL PROPERTY, (f) THE FINANCIAL CONDITION OR PROSPECTS OF THE PROPERTY AND (g) THE COMPLIANCE OR LACK THEREOF OF THE REAL PROPERTY OR THE IMPROVEMENTS WITH GOVERNMENTAL REGULATIONS, IT BEING THE
EXPRESS INTENTION OF SELLER AND PURCHASER THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PROPERTY WILL BE CONVEYED AND TRANSFERRED TO PURCHASER IN ITS PRESENT CONDITION AND STATE OF REPAIR, “AS IS” AND “WHERE IS”,
WITH ALL FAULTS. PURCHASER REPRESENTS THAT IT IS A KNOWLEDGEABLE, EXPERIENCED AND SOPHISTICATED PURCHASER OF REAL ESTATE, AND THAT IT IS RELYING SOLELY ON ITS OWN EXPERTISE AND THAT OF PURCHASER’S CONSULTANTS IN PURCHASING THE PROPERTY.
PURCHASER HAS BEEN GIVEN A SUFFICIENT OPPORTUNITY HEREIN TO CONDUCT AND HAS CONDUCTED OR WILL CONDUCT SUCH INSPECTIONS, INVESTIGATIONS AND OTHER INDEPENDENT EXAMINATIONS OF THE PROPERTY AND RELATED MATTERS AS PURCHASER DEEMS NECESSARY, INCLUDING BUT
NOT LIMITED TO THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AND WILL RELY UPON SAME AND NOT UPON ANY STATEMENTS OF SELLER (EXCLUDING THE LIMITED MATTERS REPRESENTED BY SELLER IN SECTION 8.1 HEREOF) NOR OF ANY OFFICER, DIRECTOR, EMPLOYEE, AGENT
OR ATTORNEY OF SELLER. PURCHASER ACKNOWLEDGES THAT ALL INFORMATION OBTAINED BY PURCHASER WAS OBTAINED FROM A VARIETY OF SOURCES, AND SELLER 
 

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 WILL NOT BE DEEMED TO HAVE REPRESENTED OR WARRANTED THE COMPLETENESS, TRUTH OR ACCURACY OF ANY OF THE DOCUMENTS OR OTHER SUCH INFORMATION
HERETOFORE OR HEREAFTER FURNISHED TO PURCHASER. UPON CLOSING, PURCHASER WILL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING, BUT NOT LIMITED TO, ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY PURCHASER’S
INSPECTIONS AND INVESTIGATIONS. PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING, SELLER WILL SELL AND CONVEY TO PURCHASER, AND PURCHASER WILL ACCEPT THE PROPERTY, “AS IS, WHERE IS,” WITH ALL FAULTS. PURCHASER FURTHER ACKNOWLEDGES AND
AGREES THAT THERE ARE NO ORAL AGREEMENTS, WARRANTIES OR REPRESENTATIONS, COLLATERAL TO OR AFFECTING THE PROPERTY, BY SELLER, ANY AGENT OF SELLER OR ANY THIRD PARTY. SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY ORAL OR WRITTEN STATEMENTS,
REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY FURNISHED BY ANY REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON, UNLESS THE SAME ARE SPECIFICALLY SET FORTH OR REFERRED TO HEREIN. PURCHASER ACKNOWLEDGES THAT THE PURCHASE PRICE
REFLECTS THE “AS IS, WHERE IS” NATURE OF THIS SALE AND ANY FAULTS, LIABILITIES, DEFECTS OR OTHER ADVERSE MATTERS THAT MAY BE ASSOCIATED WITH THE PROPERTY. PURCHASER, WITH PURCHASER’S COUNSEL, HAS FULLY REVIEWED THE DISCLAIMERS AND
WAIVERS SET FORTH IN THIS AGREEMENT AND UNDERSTANDS THEIR SIGNIFICANCE AND AGREES THAT THE DISCLAIMERS AND OTHER AGREEMENTS SET FORTH HEREIN ARE AN INTEGRAL PART OF THIS AGREEMENT, AND THAT SELLER WOULD NOT HAVE AGREED TO SELL THE PROPERTY TO
PURCHASER FOR THE PURCHASE PRICE WITHOUT THE DISCLAIMERS AND OTHER AGREEMENTS SET FORTH IN THIS AGREEMENT. THE TERMS AND CONDITIONS OF THIS SECTION 5.4 WILL EXPRESSLY SURVIVE THE CLOSING, WILL NOT MERGE WITH THE PROVISIONS OF ANY CLOSING DOCUMENTS
AND ARE HEREBY DEEMED INCORPORATED INTO THE DEED AS FULLY AS IF SET FORTH AT LENGTH THEREIN. 
  
 PURCHASER
FURTHER COVENANTS AND AGREES NOT TO SUE SELLER, AND RELEASES SELLER OF AND FROM AND WAIVES ANY CLAIM OR CAUSE OF ACTION THAT PURCHASER MAY HAVE AGAINST SELLER UNDER ANY ENVIRONMENTAL LAW, NOW EXISTING OR HEREAFTER ENACTED OR PROMULGATED, RELATING TO
ENVIRONMENTAL MATTERS OR ENVIRONMENTAL CONDITIONS EXISTING AS OF THE CLOSING (WHETHER KNOWN OR UNKNOWN) IN, ON, UNDER, ABOUT OR MIGRATING FROM OR ONTO THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE COMPREHENSIVE ENVIRONMENTAL RESPONSE,
COMPENSATION AND LIABILITY ACT, OR BY VIRTUE OF ANY COMMON LAW RIGHT RELATED TO ENVIRONMENTAL CONDITIONS OR ENVIRONMENTAL MATTERS IN, ON, UNDER, ABOUT OR MIGRATING FROM OR ONTO THE PREMISES. THE PROVISIONS OF THIS PARAGRAPH SHALL SURVIVE THE CLOSING
OF TITLE TO THE PROPERTY OR THE TERMINATION OF THIS AGREEMENT, AS THE 
 

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 CASE MAY BE. THE FOREGOING SENTENCE SHALL NOT RELIEVE SELLER OF ITS REPRESENTATION MADE UNDER SECTION 8.1(j). 
  
 ARTICLE VI 
 TITLE AND SURVEY MATTERS

  
 SECTION 6.1  Survey.    Purchaser acknowledges receipt of
a current ALTA survey for the Property. Such current survey is herein referred to as the “Updated Survey”. Any matter revealed by the Updated Survey which Seller deems unacceptable shall constitute a “Survey
Objection” under this Agreement. 
  
 SECTION 6.2  Title Commitment.

  
 (a)  Purchaser acknowledges receipt from the Title Company of a current title insurance commitment for
the Property (the “Title Commitment”), together with copies of the title exceptions listed thereon and Seller’s vesting deed. By the date (the “Objection Date”) which is twenty (20) days after the Effective
Date, Purchaser shall provide Seller with written notice of any Survey Objections or objection to matters disclosed by the Title Commitment if Purchaser deems same unacceptable (collectively, the “Title and Survey Objections”). In
the event Seller does not receive the Title and Survey Objections by the Objection Date, Purchaser will be deemed to have accepted the exceptions to title set forth in the Title Commitment as Permitted Exceptions. Title and Survey Objections shall
be handled in accordance with Section 6.3. The Title Commitment shall provide that the Title Company agrees to issue to Purchaser at Closing an owner’s policy of title insurance (the “Title Policy”) in the amount of the
Purchase Price on the 1970 ALTA owner’s form insuring Purchaser’s fee simple title to the Real Property, with all requirements satisfied, subject to the terms of such policy and the exceptions described therein, specifically excluding the
standard or general exceptions, and specifically excluding any Monetary Obligations (as hereinafter defined). All matters shown on the Existing Survey which are not removed by Seller pursuant to the provisions of Section 6.3 and the exceptions shown
on Exhibit G which are not removed by Seller pursuant to the provisions of Section 6.3 will be referred to herein as the “Permitted Exceptions”. 
  
 (b)  All taxes, water rates or charges, sewer rents and assessments, plus interest and penalties thereon, which on the Closing Date are due and payable and/or are
liens against the Real Property and which Seller is obligated to pay and discharge will be credited against the Purchase Price (subject to the provision for apportionment of taxes, water rates and sewer rents herein contained) and without the need
for Purchaser to raise as a Title Objection. 
  
 (c)  If on the Closing Date the Real Property shall be
affected by any lien which, pursuant to the provisions of this Agreement, is required to be discharged or satisfied by Seller, Seller shall not be required to discharge or satisfy the same of record provided the money necessary to satisfy the lien
is retained by the Title Company at Closing (with authority to pay in the event of enforcement of such lien), and the Title Company either omits the lien as an exception from the title insurance commitment or insures against collection thereof from
or out of the Real Property and/or the Improvements, and a credit is given to Purchaser for the recording charges for a satisfaction or discharge of such lien. 
 

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 (d)  No franchise, transfer, inheritance, income, corporate or other
tax open, levied or imposed against Seller or any former owner of the Property, that may be a lien against the Property on the Closing Date, shall be an objection to title if the Title Company insures against collection thereof from or out of the
Real Property and/or the Improvements, and provided further that Seller deposits with the Title Company a sum reasonably sufficient to secure a release of the Real Property and/or Improvements from the lien thereof (with authority to pay in the
event of enforcement of such lien). If a search of title discloses judgments, bankruptcies, or other returns against other persons having names the same as or similar to that of Seller, Seller will deliver to Purchaser an affidavit stating that such
judgments, bankruptcies or other returns do not apply to Seller, and such search results shall not be deemed Title and Survey Objections. 
  
 (e)  Notwithstanding anything to the contrary contained herein, Seller shall be obligated to cure and/or satisfy or cause to be deleted as an exception to title: (x) any standard exceptions (to the extent that the
Title Company is willing to delete the same based upon receipt of the Updated Survey and an affidavit from Seller); (y) any of the following exceptions and encumbrances to the title to the Property as may be disclosed by the Title Commitment, all of
which shall be referred to herein as “Monetary Objections”: (i) any deed of trust, mortgage, or other security title, assignment of leases, negative pledge, financing statement or similar security instrument encumbering all or any portion
of the Property; (ii) mechanics, materialmen, brokers or other similar liens affecting the Property (unless Tenant is obligated to remove the same pursuant to the provisions of the Lease); (iii) the lien of ad valorem taxes, and other similar items
affecting the Property which are past due; (iv) any judgment or lis pendens of record against Seller in the county or other applicable jurisdiction in which the Property is located; and (z) any other encumbrance first appearing of record after the
effective date of the Title Commitment. To the extent any Monetary Objection has not been cured or satisfied at or prior to Closing, Purchaser shall be entitled to apply a portion of the purchase proceeds to such satisfaction or cure (or withhold
such portion as may be necessary to satisfy or cure such Monetary Objection) and Purchaser shall receive a credit against the Purchase Price for any such amounts so applied or withheld. Notwithstanding the foregoing to the contrary, if on the
Closing Date there shall be security interests filed against the Real Property, such items shall not be Monetary Obligations if (i) the personal property covered by such security interests are no longer in or on the Real Property and will not be
conveyed as part of the Personal Property hereunder, or (ii) such personal property is the property of Tenant, and Seller executes and delivers an affidavit to such effect, or the security interest was filed more than five (5) year prior to the
Closing Date and was not renewed. 
  
 SECTION 6.3  Title Defect. 

 
 (a)  In the event Seller receives any Survey Objection or Title Objection (collectively and individually, a
“Title Defect”) within the time periods required under Sections 6.1 and 6.2 above, Seller may elect (but shall not be obligated) to attempt remove, or cause to be removed at its expense, any such Title Defect, and shall provide
Purchaser with notice, within five (5) days of its receipt of any such objection, of its intention to cure or not to cure such any such Title Defect. If Seller elects to attempt to cure any Title Defect, the Closing Date shall be extended, for a
period not to exceed sixty (60) days, for the purpose of such removal. In the event that (i) Seller elects not to attempt to cure any such Title Defect, or (ii) Seller is unable to cure any such Title Defect within the period elected by Seller but
not to exceed sixty (60) days from the Closing Date, Seller shall so advise Purchaser and Purchaser shall have the right to 
 

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 terminate this Agreement and receive a refund of the Earnest Money Deposit, together with all interest which has accrued thereon, or to waive
such Title Defect and proceed to the Closing. Purchaser shall make such election within five (5) days of receipt of Seller’s notice. If Purchaser elects to proceed to the Closing, any Title Defects waived by Purchaser shall be deemed Permitted
Exceptions. In any such event of termination, Purchaser shall promptly return Purchaser’s Information to Seller, after which neither party shall have any further obligation to the other under this Agreement except for the Termination Surviving
Obligations. 
  
 (b)  Notwithstanding any provision of this Article VI to the contrary, Seller will be
obligated to cure exceptions to title to the Property, in the manner described above, relating to liens and security interests securing any financings to Seller, and any mechanic’s liens resulting from work at the Property commissioned by
Seller. 
  
 (c)  Notwithstanding the foregoing, in the event further updates are made to the Title
Commitment or Updated Survey which reveal new matters not shown on the previous version of the Title Commitment or Updated Survey, Purchaser may give Seller notice of any additional Title and Survey Objections based upon such new matters. Purchaser
must object in writing to any such new matters, if at all, before 5:00 p.m. (eastern standard time) on the second (2nd) business day after receipt of an such updated Title Commitment or Updated Survey first disclosing said new matters. In the event
Purchaser so notices Seller, such items shall be deemed to be Title and Survey Objections and subject to the process for Title Defects set forth above. 
  
 ARTICLE VII 
 INTERIM OPERATING COVENANTS, ESTOPPELS, BOARD 
 APPROVAL AND POST-CLOSING MANAGEMENT 
  
 SECTION 7.1  Interim Operating Covenants.    Seller covenants to Purchaser that Seller will: 
  
 (a)  Operations.    From the Effective Date until Closing, continue to operate, manage and maintain the
Improvements in the ordinary course of Seller’s business and substantially in accordance with Seller’s present practice, subject to ordinary wear and tear and further subject to Article XI of this Agreement. 
  
 (b)  Compliance with Governmental Regulations.    From the Effective
Date until Closing, not knowingly take any action that Seller would result in a failure to comply in all material respects with all Governmental Regulations applicable to the Property and with all covenants, conditions, restrictions, encumbrances
and other title exception documents affecting the Property, it being understood and agreed that prior to Closing, Seller will have the right to contest any such Governmental Regulations and any such title exception documents. 

 
 (c)  Service Contracts.    From the expiration of the
Evaluation Period until Closing, not enter into any service contract, unless such service contract is terminable on thirty (30) days notice without penalty or unless Purchaser consents thereto in writing, which approval will not be unreasonably
withheld, delayed or conditioned. 
  
 (d)  Notices.    To the extent received by Seller, from the Effective Date until Closing, promptly deliver to Purchaser copies of written default notices, notices of lawsuits and
notices of violations affecting the Property. 
 

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 (e)  Lease.    From the Effective Date until Closing, Seller shall not amend, modify, extend or terminate the Lease or enter into any other leases or occupancy agreements without the
Purchaser’s prior consent, which consent may be withheld in Purchaser’s reasonable discretion. Seller will give prompt written notice to Purchaser of any amendments to the Lease prior to expiration of the Evaluation Period. 

 
 (f)  Standstill.    From the Effective Date until Closing,
Seller shall not market the Property or any interest therein for sale or disposition to any other party, Seller shall not solicit, negotiate or accept offers or otherwise enter into any binding or non-binding agreement for a purchase, financing or
joint venture involving the Property or any interest therein with any other person or entity and Seller shall not dispose of, convey, assign or pledge any interest in the Property or any interest therein or otherwise enter into any agreement
affecting or encumbering or agreeing to dispose of, convey, assign or pledge any interest the Property or any interest therein, which agreement would be consummated prior to or otherwise the survive the Closing. 
  
 (f)  Further Encumbrances.    Seller shall not further alter or
encumber in any way Seller’s title to the Property after the date hereof without the prior written consent of Purchaser. 
  
 SECTION 7.2  Estoppels.    It will be a condition to Closing that Seller obtain from Tenant (the “Estoppel Certificate”) an executed estoppel certificate in the form
required to be given pursuant to the Lease. Seller agrees to request an estoppel certificate from Tenant in the form attached as Exhibit L, and also a copy of Tenant’s financial statements, but it shall only be condition to Closing that the
Estoppel Certificate be in the form prescribed by the Lease. No later than five (5) Business Days after the Effective Date, Seller will request Tenant to execute such Estoppel Certificate, and use good faith efforts to obtain same. Seller shall not
be in default of its obligations hereunder if Tenant fails to deliver the Estoppel Certificate, or delivers an Estoppel Certificate which is not in accordance with this Agreement. 
  
 SECTION 7.3  Board Approval.    It will be a condition to Closing that Seller obtain approval from its Board of
Directors to proceed to Closing. Seller shall solicit such approval from its Board of Directors within five (5) Business Days following the Effective Date. Failure by Seller to obtain said approval shall not be deemed a default hereunder. In the
event Seller’s Board of Directors denies approval to proceed to Closing, this Agreement shall be deemed terminated and of no further force and effect, except for the Termination Surviving Obligations, which shall survive any such termination,
and the Earnest Money Deposit and interest earned thereon shall be returned to Purchaser. If Seller’s Board of Directors denies approval, Seller agrees to reimburse Purchaser for its reasonable and actual out-of-pocket expenses, including
reasonable attorneys’ fees, incurred in connection with the negotiation of this Agreement and the performance of Purchaser’s diligence inspections, provided, however, that in no event shall Seller be obligated to reimburse in excess of
$50,000. 
  
 SECTION 7.4  Right of First Offer.    It will be a
condition to Closing that Seller obtain from Tenant a written waiver of its right of first offer contained in Section 9 of the Addendum to the Lease with respect the sale contemplated by this Agreement. No later than five (5) Business Days after the
Effective Date, Seller will request Tenant to execute such waiver, and use good faith efforts to obtain same. If Tenant exercises its right of first offer, Seller agrees to reimburse 
 

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 Purchaser for its reasonable and actual out-of-pocket expenses, including reasonable attorneys’ fees, incurred in connection with the
negotiation of this Agreement and the performance of Purchaser’s diligence inspections, provided, however, that in no event shall Seller be obligated to reimburse in excess of $50,000. 
  
 ARTICLE VIII 
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 8.1  Seller’s Representations and Warranties.    Subject to the
limitations set forth in Section 8.3 of this Agreement, Seller represents and warrants to Purchaser the following: 
  
 (a)  Status.    Seller is a limited partnership, duly organized and validly existing under the laws of the State of Delaware. 
  
 (b)  Authority.    Subject to Section 7.3 above, the execution and
delivery of this Agreement and the performance of Seller’s obligations hereunder have been duly authorized by all necessary action on the part of Seller, and this Agreement constitutes the legal, valid and binding obligation of Seller,
enforceable in accordance with its terms. The person signing this Agreement on behalf of Seller has been duly authorized to sign and deliver this Agreement on behalf of Seller. 
  
 (c)  Non-Contravention.    The execution and delivery of this Agreement by Seller and the consummation by
Seller of the transactions contemplated hereby will not violate any judgment, order, injunction, decree, regulation or ruling of any court or Authority or conflict with, result in a breach of, or constitute a default under the organizational
documents of Seller, any note or other evidence of indebtedness, any mortgage, deed of trust or indenture, or any lease or other material agreement or instrument to which Seller is a party or by which it is bound. 
  
 (d)  Consents.    Subject to Section 7.3 above, no consent, waiver,
approval or authorization is required from any person or entity (that has not already been obtained) in connection with the execution and delivery of this Agreement by Seller or the performance by Seller of the transactions contemplated hereby.

  
 (e)  Suits and Proceedings.    Except as
listed in Exhibit H, there are no legal actions, suits or similar proceedings pending and served, or, to Seller’s Knowledge, threatened in writing against Seller or the Property which (i) are not adequately covered by
existing insurance and (ii) if adversely determined, would materially and adversely affect the value of the Property, the continued operations thereof, or Seller’s ability to consummate the transactions contemplated hereby. 

 
 (f)  Non-Foreign Entity.    Seller is not a “foreign
person” or “foreign corporation” as those terms are defined in the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 
  
 (g)  Tenant and Lease.    To Seller’s Knowledge, as of the date of this Agreement, the only tenant
with respect to the Property is TRW, Inc. The Documents made available to Purchaser pursuant to Section 5.2 hereof include true and correct copies of all of the leases affecting the Property. The Lease has not been amended except by Addendum dated
December 10, 1996. 
 

 16 

  
 (h)  Service
Contracts.    To Seller’s Knowledge there are no service contracts, the terms of which will constitute an obligation upon Purchaser or the Property after the Closing. 
  
 (i)  Legal Compliance.    To Seller’s Knowledge, Seller has not
received any notices or citations of the violation of any zoning regulation or directive of any Authority having jurisdiction relating to the Property or any part thereof which would have a material adverse effect on a Property as currently owned
and occupied. To Seller’s knowledge, Seller has not received any written notification from any governmental or public authority that the Property is in violation of any applicable fire, health, building, use, occupancy or zoning laws where such
violation remains outstanding and, if unaddressed, would have a material adverse effect on the use of the Property as currently owned and operated. 
  
 (j)  Environmental.    Except as may be disclosed in any environmental report provided as a Document, to
Seller’s Knowledge, Seller has not received any written notice of any violation of any Environmental Law, nor, to Seller’s Knowledge, has Seller caused or asserted in writing that Tenant has caused any violation of any Environmental Law.

  
 (j)  Due Diligence Materials.    All copies of
the Documents and any other documents furnished or to be furnished to Purchaser by Seller or on its respective behalf in connection with the transaction contemplated hereby are true and complete copies of the originals, which, to Seller’s
Knowledge, have not been changed, modified or supplemented except as disclosed to Purchaser. 
  
 (k)  Condemnation.    To Seller’s Knowledge, there are no pending or threatened condemnation proceedings which would affect the Property, or any part thereof, nor any pending or
threatened planned public improvements, annexations, zoning or subdivision changes, or other adverse claims affecting the Property. 
  
 (l)  Bankruptcy.    Seller has not (A) commenced a voluntary case, or had entered against it a petition, for relief under any federal bankruptcy act
or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors, (B) caused, suffered or consented to the appointment of a receiver, trustee, administrator,
conservator, liquidator or similar official in any federal, state or foreign judicial or non-judicial proceeding, to hold, administer and/or liquidate all or substantially all of its assets, (C) made an assignment for the benefit of creditors.

  
 (m)  To Seller’s Knowledge.    Seller
represents to Purchaser that the individuals identified in the definition of “To Seller’s Knowledge” in Section 1.1 of this Agreement are the senior individuals employed by Mack Cali Realty most likely to have present actual knowledge
of the representations and warranties made in this Agreement. 
  
 (n)  Taxes.    Except with respect to previous protests which are not currently under consideration, Seller has not filed, and has not retained anyone to file, notices of protests
against, or to commence action to review, real property tax assessments against the Property. 
  
 (o)  Leasing Commissions; Personal Property.    The commission obligations, if any, listed in Section 15 of the Lease are the only commission agreements with 

 17 

 any brokers, agents or finders existing as of the Execution Date with respect to the Lease which will be binding upon
Purchaser and/or the Property following the Closing Date. Neither Seller, nor to Seller’s Knowledge, Pacifica Holding Company, LLC, entered into an agreement with Grubb & Ellis documenting the terms and conditions on which commissions would
or would not be payable following the Closing Date, except as may be set forth in Section 15 of the Lease. Further, to Seller’s Knowledge, Seller is not in possession of the “schedule of said Brokers in effect at the time of the execution
of this Lease” referenced in Section 15 of the Lease as it pertains to Grubb & Ellis. None of the personal property located on the Property is leased by Seller and none of such property is security for any financing of Seller. 

 
 SECTION 8.2  Purchaser’s Representations and Warranties.    Purchaser
represents and warrants to Seller the following: 
  
 (a)  Status.    Purchaser is a duly organized and validly existing under the laws of the State of Georgia. 
  
 (b)  Authority.    The execution and delivery of this Agreement and the performance of Purchaser’s
obligations hereunder have been duly authorized by all necessary action on the part of Purchaser and this Agreement constitutes the legal, valid and binding obligation of Purchaser, enforceable in accordance with its terms. The person signing this
Agreement on behalf of Purchaser has been duly authorized to sign and deliver this Agreement on behalf of Purchaser. 
  
 (c)  Non-Contravention.    The execution and delivery of this Agreement by Purchaser and the consummation by Purchaser of the transactions contemplated hereby will not
violate any judgment, order, injunction, decree, regulation or ruling of any court or Authority or conflict with, result in a breach of or constitute a default under the organizational documents of Purchaser, any note or other evidence of
indebtedness, any mortgage, deed of trust or indenture, or any lease or other material agreement or instrument to which Purchaser is a party or by which it is bound. 
  
 (d)  Consents.    No consent, waiver, approval or authorization is required from any person or entity
(that has not already been obtained) in connection with the execution and delivery of this Agreement by Purchaser or the performance by Purchaser of the transactions contemplated hereby. 
  
 SECTION 8.3  Survival of Representations and Warranties.    The representations and warranties of Seller set forth in
Sections 8.1(a)-8.1(d) and 8.1(o) shall survive the Closing indefinitely and shall not be subject to the floor or to the cap set forth below. The representations and warranties of Seller set forth in Section 8.1 (e)-8.1(n) and the covenants set
forth in Section 7.1 will survive the Closing for a period of twelve (12) months. Purchaser will not have any right to bring any action against Seller as a result of any untruth or inaccuracy of such representations and warranties or any such
breach, unless and until the aggregate amount of all liability and losses arising out of any such untruth or inaccuracy, or any such breach, exceeds Twenty-Five Thousand Dollars ($25,000); and then only to the extent of such excess. In addition, in
no event will Seller’s liability for all such breaches exceed, in the aggregate, the sum of Two Million Dollars ($2,000,000). Seller shall have no liability with respect to any of Seller’s representations, warranties and covenants herein
if, prior to the Closing, Purchaser has knowledge of any breach of a covenant of Seller herein, or Purchaser obtains knowledge (from 
 

 18 

 whatever source, including, without limitation, any tenant estoppel certificates, as a result of Purchaser’s due diligence tests,
investigations and inspections of the Property, or written disclosure by Seller or Seller’s agents and employees) that contradicts any of Seller’s representations and warranties set forth above, and Purchaser nevertheless consummates the
transaction contemplated by this Agreement. The Closing Surviving Obligations and the Termination Surviving Obligations will survive Closing without limitation unless a specified period is otherwise provided in this Agreement. All other
representations, warranties, covenants and agreements made or undertaken by Seller under this Agreement, unless otherwise specifically provided herein, will not survive the Closing Date but will be merged into the Deed and other Closing documents
delivered at the Closing. Notwithstanding the foregoing or any other contrary provision of this Agreement, from and after the Closing Seller agrees to indemnify Purchaser and to hold Purchaser harmless from and against any and all damages, claims
and expenses arising as a result of (a) any violation of the representation contained in Section 8.1(o) above, and (b) any claims made by Pacifica Holding Company for any brokerage fees due with respect to the extension of the term of the Lease or
other commissionable events as set forth in Section 15 of the Lease (other than claims arising pursuant to agreements entered into hereafter by Purchaser or its successors). The agreement in the immediately preceding sentence shall survive the
Closing indefinitely. 
  
 ARTICLE IX 
 CONDITIONS PRECEDENT TO CLOSING 
  
 SECTION 9.1  Conditions
Precedent to Obligation of Purchaser.    The obligation of Purchaser to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or all of
which may be waived by Purchaser in its sole discretion: 
  
 (a)  Seller shall have
delivered to Purchaser all of the items required to be delivered to Purchaser pursuant to the terms of this Agreement, including but not limited to, those provided for in Section 10.3. 
  
 (b)  All of the representations and warranties of Seller contained in this Agreement shall be true and correct in all respects as of the date of
Closing (with appropriate modifications permitted under this Agreement or not materially adverse to Purchaser). 
  
 (c)  Seller shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed and observed by Seller as of the Closing Date. 
  
 (d)  Receipt of the Title Policy (or an irrevocable commitment to issue the same) in the form prescribed by
Section 6.2 above, along with Seller’s delivery of such evidence (including, owner’s affidavits and gap indemnities) as the Title Company may reasonably require to issue the Title Policy in such required form. 
  
 (e)  Receipt of the Tenant Estoppel Certificate 
  
 If, by the date and time of Closing, any of the foregoing conditions are not performed or satisfied for any reason whatsoever or, alternatively, are not expressly waived by
Purchaser in writing, Purchaser shall, in addition to any other remedies it may be entitled to as set forth in 
 

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 Section 13.1 below, have the right to terminate this Agreement, whereupon the Earnest Money shall be returned to Purchaser. 

 
 SECTION 9.2  Conditions Precedent to Obligation to Seller.    The
obligation of Seller to consummate the transaction hereunder shall be subject to the fulfillment on or before the date of Closing of all of the following conditions, any or all of which may be waived by Seller in it sole discretion: 

 
 (a)  Seller shall have received the Purchase Price as adjusted pursuant to, and payable in the manner
provided for, in this Agreement. 
  
 (b)  Purchaser shall have delivered to Seller all of
the items required to be delivered to Seller pursuant to the terms of this Agreement, including but not limited to, those provided for in Section 10.2. 
  
 (c)  All of the representations and warranties of Purchaser contained in this Agreement shall be true and correct in all respects as of the date
of Closing (with appropriate modifications permitted under this Agreement or not materially adverse to Seller). 
  
 (d)  Purchaser shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed and observed by Purchaser as of the Closing Date. 
  
 If by the date and time of Closing, any of the foregoing requirements or conditions are not fully performed or satisfied or, alternatively, are not expressly
waived in writing, Seller shall, in addition to any other remedies it may be entitled to as set forth in Section 13.2 below, have the right to terminate this Agreement, whereupon the Earnest Money shall be returned to Purchaser. 

 
 ARTICLE X 
 CLOSING 

 
 SECTION 10.1  Closing.    The consummation of the transaction contemplated
by this Agreement by delivery of documents and payments of money shall take place at 10:00 a.m. Eastern Time on the Closing Date at the offices of the Escrow Agent. At Closing, the events set forth in this Article X will occur, it being understood
that the performance or tender of performance of all matters set forth in this Article X are mutually concurrent conditions which may be waived by the party for whose benefit they are intended. The acceptance of the Deed by Purchaser shall be deemed
to be full performance and discharge of each and every agreement and obligation on the part of the Seller to be performed hereunder unless otherwise specifically provided herein. The acceptance of the Purchase Price by Seller shall be deemed to be
full performance and discharge of each and every agreement and obligation on the part of the Purchaser to be performed hereunder unless otherwise specifically provided herein. The parties agree to provide all of the documents required under Sections
10.2 and 10.3 to the Escrow Agent, in escrow, at least one day prior to the Closing Date. 
  
 SECTION
10.2  Purchaser’s Closing Obligations.    On the Closing Date, Purchaser, at its sole cost and expense, will deliver the following items to Seller at Closing as provided herein: 
 

 20 

  
 (a)  The Purchase Price, after all adjustments are made
as herein provided, by Federal Reserve wire transfer of immediately available funds, in accordance with the timing and other requirements of Section 3.3; 
  
 (b)  A counterpart original of the Assignment of Leases, duly executed by Purchaser; 
  
 (c)  A counterpart original of the Assignment, duly executed by Purchaser; 
  
 (d)  Evidence reasonably satisfactory to Seller that the person executing the Assignment of Leases, the Assignment, and the Tenant Notice Letters
on behalf of Purchaser has full right, power and authority to do so; 
  
 (e)  Form of
written notice executed by Purchaser and to be addressed and delivered to the Tenant by Purchaser in accordance with Section 10.6 herein, (i) acknowledging the sale of the Property to Purchaser, (ii) acknowledging that Purchaser has received and
that Purchaser is responsible for the Security Deposit (specifying the exact amount of the Security Deposit) (iii) indicating that rent should thereafter be paid to Purchaser and giving instructions therefor, (iv) requesting Tenant to update its
insurance to reflect Purchaser as an additional insured or loss payee, as applicable, and (v) providing Purchaser’s address for notice purposes under the Lease (the “Tenant Notice Letters”); 
  
 (f)  A counterpart original of the Closing Statement, duly executed by Purchaser; 
  
 (g)  A certificate, dated as of the date of Closing, stating that the representations and warranties of
Purchaser contained in Section 8.2 are true and correct in all respects as of the Closing Date; and 
  
 (h)  Such other documents as may be reasonably necessary or appropriate to effect the consummation of the transaction with is the subject of this Agreement. 
  
 SECTION 10.3  Seller’s Closing Obligations.    At the Closing, Seller will deliver to Purchaser the following
documents: 
  
 (a)  A special warranty deed (the “Deed”), in the form
customarily delivered in commercial transactions involving the purchase and sale of real property located in the State of Colorado, duly executed and acknowledged by Seller, conveying to the Purchaser the Real Property and the Improvements subject
only to the Permitted Exceptions; 
  
 (b)  A blanket assignment and bill of sale in the
form attached hereto as Exhibit C (the “Bill of Sale”), duly executed by Seller, assigning and conveying to Purchaser, without representation or warranty, title to the Personal Property;

  
 (c)  A counterpart original of an assignment and assumption of the Seller’s
interest, as lessor, in the Leases and Security Deposits in the form attached hereto as Exhibit B (the “Assignment of Leases”), duly executed by Seller, conveying and assigning to Purchaser all of Seller’s right, title
and interest, as sublessor, in the Lease and Security Deposits; 
 

 21 

  
 (d)  A counterpart original of an assignment and
assumption of Seller’s interest in the Licenses and Permits and the Intangible Property in the form attached hereto as Exhibit A (the “Assignment”), duly executed by Seller, conveying and assigning to Purchaser all of
Seller’s right, title, and interest, if any, in the Licenses and Permits and the Intangible Property; 
  
 (e)  The Tenant Notice Letters, duly executed by Seller; 
  
 (f)  Evidence reasonably satisfactory to Purchaser and Title Company that the person executing the documents delivered by Seller pursuant to this Section 10.3 on behalf of Seller has full right, power, and authority to do
so; 
  
 (g)  A certificate in the form attached hereto as Exhibit I
(“Certificate as to Foreign Status”) certifying that Seller is not a “foreign person” as defined in Section 1445 of the Internal Revenue Code of 1986, as amended, as well as any form or other
document required under applicable laws to be executed by Seller in connection with any transfer tax applicable to the transaction contemplated by this Agreement; 
  
 (h)  To the extent in Seller’s possession (and, if not, copies of), the original Lease, and all original Licenses and Permits and Intangible
Property in Seller’s control bearing on the Property; 
  
 (i)  A counterpart original
of the Closing Statement, duly executed by Seller; 
  
 (j)  copies of any operating files
maintained by Seller or its property manager in connection with the leasing, maintenance, and/or management of the Property, including, without limitation, operating agreements, insurance policies, bills, invoices, receipts, real estate tax records
(including, without limitation copies of the tax statements on the Real Property, Improvements and Personal Property for the immediately preceding two (2) years) and information and other general records relating to the income and expenses of the
Property. 
  
 (k)  The Tenant Estoppel Certificate. 
  
 (l)  A certificate, dated as of the date of Closing, stating that the representations and warranties of Seller
contained in Section 8.1(a)-8.1(d), and 8.1(o) are true and correct in all respects as of the Closing Date. A certificate, dated as of the date of Closing, stating that the representations and warranties of Seller contained in Section 8.1 (f)-8.1(n)
are true and correct in all respects as of the Closing Date (with appropriate modifications to reflect any changes therein) or identifying any representation or warranty which is not, or no longer is, true and correct and explaining the state of
facts giving rise to the change. In no event shall Seller be liable to Purchaser for, or be deemed to be in default hereunder if any representation or warranty was true and correct as of the Effective Date but is not, as of the Closing Date and due
to factors beyond Seller’s control, true and correct in all respects; provided, however, that such event shall constitute the non-fulfillment of the condition set forth in Section 9.1(b). If such representations and warranties are
not true and correct due to factors within Seller’s control, Seller shall be deemed to be in default hereunder, entitling Purchaser to the remedies set forth in Section 13.1 hereof. If, despite changes or other matters described in such
certificate, the Closing occurs, Seller’s representations and warranties set forth in this Agreement shall be deemed to have been modified by all statements made in such certificate. 
 

 22 

  
 (m)  Such other documents as may be reasonably
necessary or appropriate to effect the consummation of the transaction which is the subject of this Agreement. 
  
 SECTION 10.4  Prorations. 
  
 (a)  Seller and Purchaser
agree to adjust, as of 11:59 p.m. on the day preceding the Closing Date (the “Proration Time”), the following (collectively, the “Proration Items”): 
  
 (i)  Rents, in accordance with Subsection 10.4(b) below. 
  
 (ii)  Cash Security Deposits and any prepaid rents, together with interest required to be paid thereon. 
  
 (iii)  Utility charges payable by Seller, including, without limitation, electricity, water charges and sewer
charges. If there are meters on the Real Property, Seller will cause readings of all said meters to be performed not more than five (5) days prior to the Closing Date, and a per diem adjustment shall be made for the days between the meter reading
date and the Closing Date based on the most recent meter reading. 
  
 (iv)  Real estate
taxes due and payable for the calendar year. If the Closing Date shall occur before the tax rate is fixed, the apportionment of real estate taxes shall be upon the basis of the tax rate for the preceding year applied to the latest assessed
valuation. If subsequent to the Closing Date, real estate taxes (by reason of change in either assessment or rate or for any other reason) for the Real Property should be determined to be higher or lower than those that are apportioned, a new
computation shall be made, and Seller agrees to pay Purchaser any increase shown by such recomputation and vice versa. 
  
 (v)  Such other items of income and expense as are typically prorated at closing similar to the transaction contemplated by this Agreement. 
  
 Seller will be charged and credited for the amounts of all of the Proration Items relating to the period up to and including the Proration Time, and Purchaser will be
charged and credited for all of the Proration Items relating to the period after the Proration Time. The estimated Closing prorations shall be set forth on a preliminary closing statement to be prepared by Seller and submitted to Purchaser two (2)
days prior to the Closing Date (the “Closing Statement”). The Closing Statement, once agreed upon, shall be signed by Purchaser and Seller. The proration shall be paid at Closing by Purchaser to Seller (if the prorations result in a
net credit to Seller) or by Seller to Purchaser (if the prorations result in a net credit to Purchaser) by increasing or reducing the cash to be delivered by Purchaser in payment of the Purchase Price at the Closing. If the actual amounts of the
Proration Items are not known as of the Closing Date, the prorations will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received, re-prorations will be made on the basis of the actual
figures, and a final cash settlement will be made between Seller and Purchaser. No prorations will be made in relation to insurance premiums, and Seller’s insurance policies will not be assigned to Purchaser. Final readings and final billings
for utilities will be made if possible as of the Closing Date, in which event no proration will be made at the Closing with respect to utility bills. Seller will be entitled to all deposits presently in effect with the utility providers, and
Purchaser will be 
 

 23 

 obligated to make its own arrangements for any deposits with the utility providers, but Seller will, if necessary, maintain such deposits until
such time as Purchaser can post its own deposits (but in no event longer than thirty (30) days after Closing) so that such utility service will not be discontinued to the Property. The provisions of this Section 10.4(a) will survive the Closing for
twelve (12) months. 
  
 (b)  Purchaser will receive a credit on the Closing Statement for the prorated
amount (as of the Proration Time) of all Rental previously paid to or collected by Seller and attributable to any period following the Proration Time. After the Closing, Seller will cause to be paid or turned over to Purchaser all Rental, if any,
received by Seller after Closing and attributable to any period following the Proration Time. “Rental” as used herein includes fixed monthly rentals, additional rentals, percentage rentals, escalation rentals (which include
Tenant’s share of building operation and maintenance costs and expenses as provided for under the Lease, to the extent the same exceeds any expense stop specified in such Lease), retroactive rentals, all administrative charges, utility charges,
tenant or real property association dues, storage rentals, special event proceeds, temporary rents, telephone receipts, locker rentals, vending machine receipts and other sums and charges payable by Tenant under the Lease or from other occupants or
users of the Property. Rental is “Delinquent” when it was due prior to the Closing Date, and payment thereof has not been made on or before the Proration Time. Delinquent Rental will not be prorated. Purchaser agrees to use good
faith collection procedures with respect to the collection of any Delinquent Rental, but Purchaser will have no liability for the failure to collect any such amounts and will not be required to pursue legal action to enforce collection of any such
amounts owed to Seller by Tenant. All sums collected by Purchaser from and after Closing from Tenant (excluding tenant specific billings for tenant work orders and other specific services as described in and governed by Section 10.4(d) below) will
be applied first to current amounts owed by such Tenant to Purchaser and then to delinquencies owed by such Tenant to Seller. Any sums due Seller will be promptly remitted to Seller. 
  
 (c)  At the Closing, Seller shall deliver to Purchaser a list of additional rent, however characterized, under the Lease, including without limitation, real
estate taxes, electrical charges, utility costs and operating expenses (collectively, “Operating Expenses”) billed to Tenant for the calendar year in which the Closing occurs (both on a monthly basis and in the aggregate), the basis
on which the monthly amounts are being billed and the amounts incurred by Seller on account of the components of Operating Expenses for such calendar year. Upon the reconciliation by Purchaser of the Operating Expenses billed to Tenant, and the
amounts actually incurred for such calendar year, Seller and Purchaser shall be liable for overpayments of Operating Expenses, and shall be entitled to payments from Tenant, as the case may be, on a pro-rata basis based upon each
party’s period of ownership during such calendar year. 
  
 (d)  With respect to specific tenant
billings for work orders, special items performed or provided at the request of a Tenant or other specific services, which are collected by Purchaser after the Closing Date but relate to the foregoing specific services rendered by Seller prior to
the Proration Time, then notwithstanding anything to the contrary contained herein, Purchaser shall cause the first amounts collected from Tenant specifically for such special services (as opposed to regular scheduled rental payments) to be paid to
Seller on account thereof, so long as Seller identifies same prior to Closing. 
  
 (e)  Notwithstanding any
provision of this Section 10.4 to the contrary, Purchaser will be solely responsible for any leasing commissions, tenant improvement costs or 
 

 24 

 other expenditures due with respect to any amendments, renewals and/or expansions of the Lease first arising, accruing and payable following the
Closing Date. 
  
 (f)  Purchaser shall receive a credit for any taxes paid from Tenant for any real estate
taxes paid in advance by Tenant to Seller pursuant to the operation of Section 10.1(b) of the Lease or otherwise. 
  
 SECTION 10.5  Costs of Title Company and Closing Costs.    Costs of the Title Company and other Closing costs incurred in connection with the Closing will be allocated as follows:

  
 (a)  Seller shall pay Seller’s attorney’s fees and one-half (1/2) of escrow
fees if any, will pay the base premium for the Title Policy, and the cost of the Updated Survey. In addition, Seller shall pay the commission to the Broker as set forth in Section 16.1 below. 
  

(b)  Purchaser shall pay (i) the costs of recording (including documentary fees) the Deed to the Property and all other documents; (ii) the
cost of any additional coverage under the Title Policy or endorsements to the Title Policy that are desired by Purchaser; (iii) all premiums and other costs for any mortgagee policy of title insurance, if any, including but not limited to any
endorsements or deletions; (iv) Purchaser’s attorney’s fees; and (v) one-half (1/2) of escrow fees, if any. 
  
 (c)  Any other costs and expenses of Closing not provided for in this Section 10.5 shall be allocated between Purchaser and Seller in accordance with the custom in the area in which the Property is located.

  
 SECTION 10.6  Post-Closing Delivery of Tenant Notice
Letters.    Immediately following Closing, Purchaser will deliver to Tenant a Tenant Notice Letter, as described in Section 10.2(e). 
  
 SECTION 10.7  Like-Kind Exchange.    In the event that Seller shall elect to effectuate the Closing as a “like-kind” exchange under Section
1031 of the Code, Purchaser agrees to cooperate and assist Seller in all reasonable respects (at no cost to Purchaser other than incidental attorneys’ fees and with no adjustment to the Evaluation Period or the Closing Date hereunder) in order
that the exchange so qualifies as a “like-kind” exchange under Section 1031 of the Code and the Treasury Regulations promulgated, or to be promulgated, thereunder. 
  
 ARTICLE XI 
 CONDEMNATION AND CASUALTY 
  
 SECTION 11.1  Casualty.    If, prior to the Closing Date, all or a Significant Portion
of the Real Property and Improvements is destroyed or damaged by fire or other casualty, Seller will notify Purchaser of such casualty. Purchaser will have the option to terminate this Agreement upon notice to Seller given not later than fifteen
(15) days after receipt of Seller’s notice. If this Agreement is terminated, the Earnest Money Deposit and all interest accrued thereon will be returned to Purchaser and thereafter neither Seller nor Purchaser will have any further rights or
obligations to the other hereunder except with respect to the Termination Surviving Obligations. If Purchaser does not elect to terminate this Agreement or less than a Significant Portion of the Real Property and Improvements is destroyed or damaged
as aforesaid, Seller will not be obligated to repair such damage or destruction but (a) Seller will assign and turn over to Purchaser the insurance proceeds net of reasonable collection costs (or if such have not been 
 

 25 

 awarded, all of its right, title and interest therein) payable with respect to such fire or other casualty and (b) the parties will proceed to
Closing pursuant to the terms hereof without abatement of the Purchase Price, except that Purchaser will receive credit for any insurance deductible amount. In the event Seller elects to perform any repairs as a result of a casualty which can be
completed prior to Closing, Seller will be entitled to deduct its reasonable costs and expenses from any amount to which Purchaser is entitled under this Section 11.1, which right shall survive the Closing. Seller will have no right to elect to
perform any repairs after the Closing. 
  
 SECTION 11.2  Condemnation of Property.

  
 (a)  In the event of (i) any condemnation or sale in lieu of condemnation of all of the Property; or
(ii) any condemnation or sale in lieu of condemnation of greater than $500,000.00, Purchaser will have the option, to be exercised within fifteen (15) days after receipt of notice of such condemnation or sale, of terminating Purchaser’s
obligations under this Agreement, or electing to have this Agreement remain in full force and effect. In the event that either (i) any condemnation or sale in lieu of condemnation of the Property is for less than $500,000.00, or (ii) Purchaser does
not terminate this Agreement pursuant to the preceding sentence, Seller will assign to Purchaser any and all claims for the proceeds of such condemnation or sale to the extent the same are applicable to the Property, and Purchaser will take title to
the Property with the assignment of such proceeds and subject to such condemnation and without reduction of the Purchase Price. Should Purchaser elect to terminate Purchaser’s obligations under this Agreement under the provisions of this
Section 11.3, the Earnest Money Deposit and any interest thereon will be returned to Purchaser and neither Seller nor Purchaser will have any further obligation under this Agreement, except for the Termination Surviving Obligations. Notwithstanding
anything to the contrary herein, if any eminent domain or condemnation proceeding is instituted (or notice of same is given) solely for the taking of any subsurface rights for utility easements or for any right-of-way easement, and the surface may,
after such taking, be used in substantially the same manner as though such rights have not been taken, Purchaser will not be entitled to terminate this Agreement as to any part of the Property, but any award resulting therefrom will be assigned to
Purchaser at Closing and will be the exclusive property of Purchaser upon Closing. 
  
 ARTICLE XII 
 CONFIDENTIALITY 
  
 SECTION 12.1  Confidentiality.    Seller and Purchaser each expressly acknowledge and agree that the transactions contemplated by this Agreement and the terms, conditions, and
negotiations concerning the same will be held in the strictest confidence by each of them and will not be disclosed by either of them except to their respective legal counsel, accountants, consultants, officers, partners, directors, and shareholders
or as otherwise permitted hereunder, and except and only to the extent that such disclosure may be necessary or advisable for their respective performances hereunder. Purchaser further acknowledges and agrees that, unless and until the Closing
occurs, all information obtained by Purchaser in connection with the Property will not be disclosed by Purchaser to any third persons (other than Licensee Parties) without the prior written consent of Seller, unless such disclosure is required by
law, rule or regulation. Nothing contained in this Article XII will preclude or limit either party to this Agreement from disclosing or accessing any information otherwise deemed confidential under this Article XII or this Agreement in response to
lawful process or subpoena or other valid or enforceable order of a 
 

 26 

 court of competent jurisdiction or any filings with governmental authorities required by reason of the transactions provided for herein pursuant
to an opinion of counsel. In addition, prior to or as a part of the Closing, any release to the public of information with respect to the sale contemplated herein or any matters set forth in this Agreement will be made only in the form approved by
Purchaser and Seller and their respective counsel, which approval shall not be unreasonably withheld or delayed. The provisions of this Article XII will survive the Closing or any termination of this Agreement. 
  
 ARTICLE XIII 
 REMEDIES 

 
 SECTION 13.1  Default by Seller.    In the event the Closing and the
transactions contemplated hereby do not occur as herein provided by reason of any default of Seller, Purchaser may, as Purchaser’s sole and exclusive remedy, elect by notice to Seller within ten (10) Business Days following the Closing Date,
either of the following: (a) terminate this Agreement, in which event Purchaser will receive from the Escrow Agent the Earnest Money Deposit, together with all interest accrued thereon, and Purchaser shall be entitled to obtain appropriate actual
damages; or (b) obtain specific performance of this Agreement against Seller and recover from Seller the costs incurred by Purchaser in so obtaining such specific performance. Purchaser shall be deemed to have elected to terminate this Agreement and
receive back the Earnest Money Deposit if Purchaser fails to file suit for specific performance against Seller in a court having jurisdiction in the county and state in which the Property is located, on or before ninety (90) days following the
Closing Date. Notwithstanding the foregoing, nothing contained in this Section 13.1 will limit Purchaser’s remedies at law, in equity or as herein provided in pursuing remedies of a breach by Seller of any of the Termination Surviving
Obligations. Purchaser specifically waives its rights to seek any punitive, speculative, or consequential damages. 
  
 SECTION 13.2  Default by Purchaser.    In the event the Closing and the consummation of the transactions contemplated herein do not occur as provided herein by reason of any default
of Purchaser, Purchaser and Seller agree it would be impractical and extremely difficult to fix the damages which Seller may suffer. Purchaser and Seller hereby agree that (a) an amount equal to the Earnest Money Deposit, together with all interest
accrued thereon, is a reasonable estimate of the total net detriment Seller would suffer in the event Purchaser defaults and fails to complete the purchase of the Property, and (b) such amount will be the full, agreed and liquidated damages for
Purchaser’s default and failure to complete the purchase of the Property, and will be Seller’s sole and exclusive remedy (whether at law or in equity) for any default of Purchaser resulting in the failure of consummation of the Closing,
whereupon this Agreement will terminate and Seller and Purchaser will have no further rights or obligations hereunder, except with respect to the Termination Surviving Obligations. The payment of such amount as liquidated damages is not intended as
a forfeiture or penalty but is intended to constitute liquidated damages to Seller. Notwithstanding the foregoing, nothing contained herein will limit Seller’s remedies at law, in equity or as herein provided in the event of a breach by
Purchaser of any of the Termination Surviving Obligations. 
 

 27 

  
 ARTICLE XIV 
 NOTICES 
  
 SECTION 14.1  Notices. 

 
 (a)  All notices or other communications required or permitted hereunder shall be in writing, and shall be given by
any nationally recognized overnight delivery service with proof of delivery, or by facsimile transmission (provided that such facsimile is confirmed by the sender by overnight delivery service in the manner previously described), sent to the
intended addressee at the address set forth below, or to such other address or to the attention of such other person as the addressee will have designated by written notice sent in accordance herewith. Unless changed in accordance with the preceding
sentence, the addresses for notices given pursuant to this Agreement will be as follows: 
  
 If to
Purchaser:            Wells Capital, Inc. 
                   6200 The Corners Parkway, Suite 250 
                   Atlanta, Georgia 30092 
                   Attn: Mr. L. Clay Adams, Jr. 
                   (800) 448-1010 (tele.) 
                   (770) 243-8199(fax) 
  
 with a copy to :            Alston & Bird LLP 
                   One Atlantic Center 
                   1201 West Peachtree Street 
                   Atlanta, Georgia 30309-3424 
                   Attn: William L. O’Callaghan, Esq.

                   (404) 881-7000 (tele.)

                   ((404) 881-7777(fax)

  
 If
Seller:                       c/o Mack-Cali Realty Corporation 
                   11 Commerce Drive 
                   Cranford, New Jersey 07016 
  
 with separate notices to the attention of: 
  
                   Mr. Mitchell E. Hersh 
                   (908) 272-8000 (tele.) 
                   (908) 272-6755 (fax) 
  
 and 
  
                   Roger W. Thomas, Esq. 
                   (908) 272-2612 (tele.) 
                   (908) 497-0485 (fax) 
  
 With a copy to:            Edward Barad, Esq. 
                   Brownstein Hyatt & Farber, PC 
                   410 17th Street, 22nd Floor 
                   Denver, Colorado 80202 
                   (303)223-1100 (tele.) 
                   (303)223-1111 (fax) 
 

 28 

  
 If to Escrow
Agent:         Commonwealth Land Title Insurance Company 
                       655 Third Avenue 
                       New York, New York 10017 
                       Attn: Asher Fried

                       (212) 949-0100 (tele.) 
                       (212) 983-8430 (fax) 
  
 (b)  Notices given by (i) overnight delivery service as aforesaid shall be deemed received and effective on the first business
day following such dispatch and (ii) facsimile transmission as aforesaid shall be deemed given at the time and on the date of machine transmittal provided same is sent and confirmation of receipt is received by the sender prior to 5:00 p.m. (EST) on
a Business Day (if sent later, then notice shall be deemed given on the next Business Day). Notices may be given by counsel for the parties described above, and such notices shall be deemed given by said party, for all purposes hereunder

  
 ARTICLE XV 
 ASSIGNMENT
AND BINDING EFFECT 
  
 SECTION 15.1  Assignment: Binding
Effect.    Except as set forth below, Purchaser will not have the right to assign this Agreement. Notwithstanding the foregoing to the contrary, Purchaser may assign all of its rights under this Agreement to an entity which
directly or indirectly controls, is controlled by, or is under common control with, Purchaser, including, without limitation, a single purpose entity created by Purchaser for the purpose of holding title to the Property In the event of any such
assignments, whether accomplished as a matter of right or upon the consent of the other party, the original parties to this Agreement shall not be released. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their
respective heirs, successors and assigns. 
  
 ARTICLE XVI 
 BROKERAGE 
  
 SECTION
16.1  Brokers.    Seller agrees to pay to Capital Development, LLC (the “Broker”) a brokerage commission pursuant to a separate agreement by and between Seller and Broker. Purchaser and Seller
represent that they have not dealt with any brokers, finders or salesmen, in connection with this transaction other than Broker, and agree to indemnify, defend and hold each other harmless from and against any and all loss, cost, damage, liability
or expense, including reasonable attorneys’ fees, which either party may sustain, incur or be exposed to by reason of any claim for fees or commissions made through the other party. The provisions of this Article XVI will survive any Closing or
termination of this Agreement. 
  
 ARTICLE XVII 
 ESCROW AGENT 
  
 SECTION 17.1.  Escrow. 

 
 (a)  Escrow Agent will hold the Earnest Money Deposit in escrow in an interest bearing account of the type generally
used by Escrow Agent for the holding of escrow funds until the earlier of (i) the Closing, or (ii) the termination of this Agreement in accordance with any right hereunder. In the event Purchaser has not terminated this Agreement by the end of

 

 29 

 the Evaluation Period, the Earnest Money Deposit shall be non-refundable to Purchaser, except as otherwise set forth herein,, and shall be
credited against the Purchase Price at the Closing. All interest earned on the Earnest Money Deposit shall be paid to the party entitled to the Earnest Money Deposit. In the event this Agreement is terminated prior to the expiration of the
Evaluation Period, the Earnest Money Deposit and all interest accrued thereon will be returned by the Escrow Agent to the Purchaser. In the event the Closing occurs, the Earnest Money Deposit and all interest accrued thereon will be released to
Seller, and Purchaser shall receive a credit against the Purchase Price in the amount of the Earnest Money Deposit, including the interest. In all other instances, Escrow Agent shall not release the Earnest Money Deposit to either party until Escrow
Agent has been requested by Seller or Purchaser to release the Earnest Money Deposit and has given the other party five (5) Business Days to dispute the release of the Earnest Money Deposit. If no dispute is so delivered, Escrow Agent shall disburse
the Earnest Money Deposit as directed. Purchaser represents that its tax identification number, for purposes of reporting the interest earnings, is 58-2368838. Seller represents that its tax identification number, for purposes of reporting the
interest earnings, is 22-3623386. 
  
 (b)  Escrow Agent shall not be liable to any party for any act or
omission, except for bad faith, gross negligence or willful misconduct, and the parties agree to indemnify Escrow Agent and hold Escrow Agent harmless from any and all claims, damages, losses or expenses arising in connection herewith. The parties
acknowledge that Escrow Agent is acting solely as stakeholder for their mutual convenience. In the event Escrow Agent receives written notice of a dispute between the parties with respect to the Earnest Money Deposit and the interest earned thereon
(the “Escrowed Funds”), Escrow Agent shall not be bound to release and deliver the Escrowed Funds to either party but may either (i) continue to hold the Escrowed Funds until otherwise directed in a writing signed by all parties
hereto or (ii) deposit the Escrowed Funds with the clerk of any court of competent jurisdiction. Upon such deposit, Escrow Agent will be released from all duties and responsibilities hereunder. Escrow Agent shall have the right to consult with
separate counsel of its own choosing (if it deems such consultation advisable) and shall not be liable for any action taken, suffered or omitted by it in accordance with the advice of such counsel. 
  
 (c)  Escrow Agent shall not be required to defend any legal proceeding which may be instituted against it with respect to the
Escrowed Funds, the Property or the subject matter of this Agreement unless requested to do so by Purchaser or Seller and is indemnified to its satisfaction against the cost and expense of such defense. Escrow Agent shall not be required to
institute legal proceedings of any kind and shall have no responsibility for the genuineness or validity of any document or other item deposited with it or the collectibility of any check delivered in connection with this Agreement. Escrow Agent
shall be fully protected in acting in accordance with any written instructions given to it hereunder and believed by it to have been signed by the proper parties. 
  
 ARTICLE XVIII 
 MISCELLANEOUS 
  
 SECTION 18.1  Waivers.    No waiver of any breach of any covenant or provisions contained herein will be deemed a waiver
of any preceding or succeeding breach thereof, or of any other covenant or provision contained herein. No extension of time for performance of any obligation or act will be deemed an extension of the time for performance of any other obligation or
act. 
 

 30 

  
 SECTION 18.2  Recovery of Certain
Fees.    In the event a party hereto files any action or suit against another party hereto by reason of any breach of any of the covenants, agreements or provisions contained in this Agreement, then in that event the
prevailing party will be entitled to have and recover certain fees from the other party including all reasonable attorneys’ fees and costs resulting therefrom. For purposes of this Agreement, the term “attorneys’ fees” or
“attorneys’ fees and costs” shall mean the fees and expenses of counsel to the parties hereto, which may include printing, photoscopying, duplicating and other expenses, air freight charges, and fees billed for law clerks, paralegals
and other persons not admitted to the bar but performing services under the supervision of an attorney, and the costs and fees incurred in connection with the enforcement or collection of any judgment obtained in any such proceeding. The provisions
of this Section 18.2 shall survive the entry of any judgment, and shall not merge, or be deemed to have merged, into any judgment. 
  
 SECTION 18.3  Construction.    Headings at the beginning of each article and section are solely for the convenience of the parties and are not a part of this Agreement.
Whenever required by the context of this Agreement, the singular will include the plural and the masculine will include the feminine and vice versa. This Agreement will not be construed as if it had been prepared by one of the parties, but rather as
if both parties had prepared the same. All exhibits and schedules referred to in this Agreement are attached and incorporated by this reference, and any capitalized term used in any exhibit or schedule which is not defined in such exhibit or
schedule will have the meaning attributable to such term in the body of this Agreement. In the event the date on which Purchaser or Seller is required to take any action under the terms of this Agreement is not a Business Day, the action will be
taken on the next succeeding Business Day. 
  
 SECTION
18.4  Counterparts.    This Agreement may be executed in multiple counterparts, each of which, when assembled to include an original signature for each party contemplated to sign this Agreement, will constitute a
complete and fully executed original. All such fully executed original counterparts will collectively constitute a single agreement. 
  
 SECTION 18.5  Severability.    If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any rule of law or public policy, all
of the other conditions and provisions of this Agreement will nevertheless remain in full force and effect, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any adverse manner to either party.
Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the parties hereto will negotiate in good faith to modify this Agreement so as to reflect the original intent of the parties as closely as
possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 
  
 SECTION 18.6  Entire Agreement.    This Agreement is the final expression of, and contains the entire agreement between, the parties with respect to the subject matter hereof, and
supersedes all prior understandings with respect thereto. This Agreement may not be modified, changed, supplemented or terminated, nor may any obligations hereunder be waived, except by written instrument, signed by the party to be charged or by its
agent duly authorized in writing, or as otherwise expressly permitted herein. 
  
 SECTION
18.7  Governing Law.    THIS AGREEMENT WILL BE CONSTRUED, PERFORMED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE IN 
 

 31 

 WHICH THE PROPERTY IS LOCATED. SELLER AND PURCHASER HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE
STATE IN WHICH THE PROPERTY IS LOCATED IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND HEREBY IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN A STATE OR FEDERAL
COURT SITTING IN THE STATE IN WHICH THE PROPERTY IS LOCATED. 
  
 SECTION 18.8  No
Recording.    The parties hereto agree that neither this Agreement nor any affidavit or memorandum concerning it will be recorded and any recording of this Agreement or any such affidavit or memorandum by Purchaser will be
deemed a default by Purchaser hereunder. 
  
 SECTION 18.9  Further
Actions.    The parties agree to execute such instructions to the Title Company and such other instruments and to do such further acts as may be reasonably necessary to carry out the provisions of this Agreement.

  
 SECTION 18.10  Exhibits.    The following sets forth a list
of Exhibits to the Agreement: 
  
 Exhibit A — Assignment 
  
 Exhibit B — Assignment of Leases 
  
 Exhibit C — Bill of Sale 
  
 Exhibit D — Legal Description of Real Property 
  
 Exhibit E —
Intentionally Deleted 
  
 Exhibit F — Intentionally Deleted 
  
 Exhibit G — Exceptions to Seller’s Title 
  
 Exhibit H — Suits and Proceedings 
  
 Exhibit I  — Certificate as to Foreign Status 
  
 Exhibit J  —  List of Personal Property 
  
 Exhibit K —
Intentionally Deleted 
  
 Exhibit L — Form of Tenant Estoppel Certificate 

 
 SECTION 18.11  No Partnership.    Notwithstanding anything to the contrary
contained herein, this Agreement shall not be deemed or construed to make the parties hereto partners or joint venturers, it being the intention of the parties to merely create the relationship of Seller and Purchaser with respect to the Property to
be conveyed as contemplated hereby. 
  
 SECTION 18.12  Limitations on
Benefits.    It is the explicit intention of Purchaser and Seller that no person or entity other than Purchaser and Seller and their permitted successors and assigns is or shall be entitled to bring any action to enforce any
provision of this Agreement against any of the parties hereto, and the covenants, undertakings and agreements set forth in this Agreement shall be solely for the benefit of, and shall be enforceable only by, Purchaser and Seller or their respective
successors and assigns as permitted hereunder. Nothing contained in this Agreement shall under any circumstances whatsoever be deemed or construed, or be interpreted, as making any third party (including, without limitation, Broker) a beneficiary of
any term or provision of this Agreement or any instrument or document delivered pursuant hereto, and Purchaser and Seller expressly reject any such intent, construction or interpretation of this Agreement. 
 

 32 

  
 SECTION 18.13 Remedies
Cumulative.    Except as provided in Section 13 above, all rights, powers and privileges conferred hereunder upon the parties in any specific Section shall be cumulative but not restrictive of those given in other Sections of
this Agreement and by law. 
  
 SECTION 18.14  Time of
Essence.    Time is of the essence in complying with the terms, conditions and agreements of this Agreement. 
  
 SECTION 18.15  Further Assurances.    At and after Closing, the parties shall deliver to each other any additional materials and documents which are necessary or
appropriate to further assure, complete and document the consummation of the purchase and sale contemplated herein on the terms described herein. From and after Closing, each party shall afford to the other reasonable access to any information in
its possession concerning the operations of the Property (including the right to copy the same at the expense of the party desiring the copy) for purposes of ascertaining post-Closing adjustments, tax examinations or audits, or other similar
purposes. 
  
 SECTION 18.16  Cooperation.    Seller acknowledges
that Purchaser may be required by the Securities and Exchange Commission to file audited financial statement for one to three years with regard to the Property. At no cost or liability to Seller, Seller shall cooperate with Purchaser, its counsel,
accountants, agents and representatives, provide them with access to Seller’s books and record with respect to the ownership, management, maintenance and operation of the Property for the applicable period, and permit them to copy same.
Purchaser agrees to deliver to Seller a commercially reasonable confidentiality agreement in connection with the foregoing. 
  
 IN WITNESS WHEREOF, Seller and Purchaser have respectively executed this Agreement as of the Effective Date. 
 

 33 

  
 
	 Date Executed:
 	 	  	 	 PURCHASER:
 
	 
	  	 	  	 	 WELLS CAPITAL, INC., a Georgia corporation
 
	 
	  	 	  	 	  	 	 By:
 	 	 /s/    DOUGLAS P.
WILLIAMS        
 

	  	 	  	 	  	 	  	 	 Douglas P. Williams
 Senior
Vice President
 

 
 May 13, 2002 
  
 
	  	 	  	 	 SELLER:
 
	 
	  	 	  	 	 MACK-CALI REALTY, L.P., a Delaware limited
partnership
 
	 
	  	 	  	 	  	 	 By:
 

 	 	 MACK-CALI REALTY CORPORATION, L.P., a
 Delaware corporation, general partner
  
 /s/    ROGER W. THOMAS        
 

	  	 	  	 	  	 	  	 	 Roger W. Thomas
 Executive Vice
President &
 General Counsel
 

 
 May 14, 2002 
  
 
	 
	  	 	  	 	  	 	 As to Article XVII only:
 ESCROW AGENT:
 
	 
	  	 	  	 	 COMMONWEALTH LAND TITLE INSURANCE COMPANY
 
	 
	  	 	  	 	  	 	 By:
 	 	 /s/    ASHER FRIED
 

	  	 	  	 	  	 	  	 	 Asher Fried
 

 
 May 14, 2002 
 

 34

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