Common use of ANNUITY TABLES Clause in Contracts

ANNUITY TABLES. The amounts set forth in the Annuity Tables for Annuity Options 1 through 4 and 8 depend on the sex (unless unisex rates apply) and age of the Annuitant or the Joint Annuitants on the Annuity Start Date. The Annuity Tables are modified to reflect: the Assumed Interest Rate for Variable Annuity Payments; or the rate of interest in effect on the Annuity Start Date for Fixed Annuity Payments. The rate of interest for Fixed Annuity Payments is guaranteed not to be less than the Guaranteed Rate set forth on page 3. The Annuity Tables contain the amount of monthly Annuity Payment per $1,000 of Annuity Start Amount. The Annuity Tables state values for the exact ages shown. The values will be interpolated based on the exact age(s) of the Annuitant or Joint Annuitants on the Annuity Start Date. The basis of the Annuity Tables for Options 1 through 4 and 8 and the Assumed Interest Rate are set forth on page 3. The Annuity Table for Option 7 is determined without reference to the age or sex of the Annuitant and is based upon the Assumed Interest Rate. Annuity Payments for Options 5 and 6 are computed without reference to the Annuity Tables. The Annuity Tables are used in accordance with generally accepted actuarial principles. ANNUITY PAYMENTS No Annuity Option can be selected that requires SBL to make Annuity Payments of less than $100.00. Each Annuity Option allows for making Annuity Payments annually, semiannually, quarterly or monthly. Annuity Payments due on a date other than a Valuation Date, are paid as of the end of the next following Valuation Date.

ANNUITY TABLES. The amounts set forth in the Annuity Tables for Annuity Options 1 through 4 and 8 depend on the sex (unless unisex rates apply) and age of the Annuitant or the Joint Annuitants on the Annuity Start Date. The Annuity Tables are modified to reflect: reflect (1) the Assumed Interest Rate for Variable Annuity Payments; or (2) the rate of interest in effect on the Annuity Start Date for Fixed Annuity Payments. The rate of interest for Fixed Annuity Payments is guaranteed not to be less than the Guaranteed Rate set forth on page 3. The Annuity Tables contain the amount of monthly Annuity Payment per $1,000 of Annuity Start Amount. The Annuity Tables state values for the exact ages shown. The values will be interpolated based on the exact age(s) of the Annuitant or Joint Annuitants on the Annuity Start Date. The basis of the Annuity Tables for Options 1 through 4 and 8 and the Assumed Interest Rate are set forth on page 3. The Annuity Table for Option 7 is determined without reference to the age or sex of the Annuitant and is based upon the Assumed Interest Rate. Annuity Payments for Options 5 and 6 are computed without reference to the Annuity Tables. The Annuity Tables are used in accordance with generally accepted actuarial principles. ANNUITY PAYMENTS No Annuity Option can be selected that requires SBL to make Annuity Payments of less than $100.00. Each Annuity Option allows for making Annuity Payments annually, semiannually, quarterly or monthly. Annuity Payments due on a date other than a Valuation Date, are paid as of the end of the next following Valuation Date.. ANNUITY UNITS On the Annuity Start Date, the amount of the first Variable Annuity Payment is divided by the Annuity Unit Value as of that date to determine the number of Annuity Units to be used in calculating subsequent Annuity Payments. If the Annuity Start Amount was allocated to more than one Subaccount, the first Variable Annuity Payment will be allocated to each Subaccount in the percentage corresponding to the allocation of Annuity Start Amount. The number of Annuity Units for each Subaccount is then found by dividing the amount of the first Variable Annuity Payment allocated to that Subaccount by the Annuity Unit Value for the Subaccount on the Annuity Start Date. The number of Annuity Units for the Subaccount then remains constant, unless a Transfer of Annuity Units is made. After the first Variable Annuity Payment, the dollar amount of each subsequent Annuity Payment is equal to the sum of the payment amount determined for each Subaccount. The payment amount for each Subaccount is equal to the number of Annuity Units allocated to that Subaccount multiplied by the Annuity Unit Value as of the date of the Annuity Payment. An example of an initial Variable Annuity Payment calculation for a male, age 60 is as follows: Annuity Start Amount = $100,000 $100,000 -------- = 100 $1,000 Amount determined by reference in 1999 to Annuity Table for a male, age 60 under Option 1 $4.00 First Variable Annuity Payment 100 x $4.00 = $400 NUMBER OF FIRST ANNUITY VARIABLE ANNUITY UNITS USED ANNUITY ANNUITY UNIT VALUE TO DETERMINE START AMOUNT PAYMENT ON ANNUITY SUBSEQUENT SUBACCOUNT ALLOCATION ALLOCATION START DATE PAYMENTS ---------- ------------ ---------- ---------- ------------ Growth 50% $200.00 / $1.51 = 132.4503 Growth-Income 50% $200.00 / $1.02 = 196.0784 An example of a subsequent Variable Annuity Payment calculation using the assumptions above is as follows: ANNUITY UNIT VALUE ON DATE OF NEW ANNUITY SUBACCOUNT ANNUITY UNITS SUBSEQUENT PAYMENT PAYMENT AMOUNT ---------- ------------- ------------------ -------------- Growth 132.4503 x $1.60 = $211.92 Growth-Income 196.0784 x $1.10 = $215.69 ------ $427.61 ANNUITY UNIT VALUE The Annuity Unit Value for each Subaccount was first set at $1.00. The Annuity Unit Value for any subsequent Valuation Date is equal to (a) times (b) times (c), where:

ANNUITY TABLES. The amounts set forth in the Annuity Tables for Annuity Options 1 through 4 and 8 6 depend on the sex (unless unisex rates apply) and age of the Annuitant or the Joint Annuitants on the Annuity Start Date. The Annuity Tables are modified to reflect: reflect the Assumed Interest Rate for Variable Annuity Payments; or the rate of interest in effect on the Annuity Start Date for Fixed Annuity Payments. The rate of interest for Fixed Annuity Payments is guaranteed not to be less than the Guaranteed Rate set forth on page 3. The Annuity Tables contain the amount of monthly Annuity Payment per $1,000 of Annuity Start Amount. The Annuity Tables state values for the exact ages shown. The values will be interpolated based on the exact age(s) of the Annuitant or Joint Annuitants on the Annuity Start Date. The basis of the Annuity Tables for Options 1 through 4 and 8 6 and the Assumed Interest Rate are set forth on page 3. The Annuity Table for Option 7 5 is determined without reference to the age or sex of the Annuitant and is based upon the Assumed Interest Rate. Annuity Payments for Options 5 and 6 are computed without reference to the Annuity Tables. The Annuity Tables are used in accordance with generally accepted actuarial principles. ANNUITY PAYMENTS No Annuity Option can be selected that requires SBL FSBL to make Annuity Payments of less than $100.00. If FSBL refuses to commence Annuity Payments of less than $100.00, FSBL will permit surrender of the contract, with no withdrawal charges. If no Annuity Option is chosen prior to the Annuity Start Date, FSBL will use Option 1 with a ten-year period certain. Each Annuity Option allows for making Annuity Payments annually, semiannually, quarterly or monthly. Annuity Payments due on a date other than a Valuation Date, are paid as of the end of the next following Valuation Date.. ANNUITY UNITS On the Annuity Start Date, the amount of the first Variable Annuity Payment is divided by the Annuity Unit Value as of that date to determine the number of Annuity Units to be used in calculating subsequent Annuity Payments. If the Annuity Start Amount was allocated to more than one Subaccount, the first Variable Annuity Payment will be allocated to each Subaccount in the percentage corresponding to the allocation of Annuity Start Amount. The number of Annuity Units for each Subaccount is then found by dividing the amount of the first Variable Annuity Payment allocated to that Subaccount by the Annuity Unit Value for the Subaccount on the Annuity Start Date. The number of Annuity Units for the Subaccount then remains constant, unless a Transfer of Annuity Units is made. After the first Variable Annuity Payment, the dollar amount of each subsequent Annuity Payment is equal to the sum of the payment amount determined for each Subaccount. The payment amount for each Subaccount is equal to the number of Annuity Units allocated to that Subaccount multiplied by the Annuity Unit Value as of the date of the Annuity Payment. An example of an initial Variable Annuity Payment calculation for a male, age 60 is as follows: Annuity Start Amount = $100,000 $100,000 ------- = 100 $1,000 Amount determined by reference in 1999 to Annuity Table for a male, age 60 under Option 1 $4.00 First Variable Annuity Payment 100 x $4.00 = $400 ANNUITY NUMBER OF ANNUITY FIRST VARIABLE UNIT VALUE ANNUITY UNITS START AMOUNT ANNUITY PAYMENT ON ANNUITY USED TO DETERMINE SUBACCOUNT ALLOCATION ALLOCATION START DATE SUBSEQUENT PAYMENTS ---------- ------------ --------------- ---------- ------------------- Growth 50% $200.00 / $1.51 = 132.4503 Growth-Income 50% $200.00 / $1.02 = 196.0784 An example of a subsequent Variable Annuity Payment calculation using the assumptions above is as follows: ANNUITY UNIT VALUE ON DATE OF NEW ANNUITY SUBACCOUNT ANNUITY UNITS SUBSEQUENT PAYMENT PAYMENT AMOUNT ---------- ------------- ------------------ -------------- Growth 132.4503 x $1.60 = $211.92 Growth-Income 196.0784 x $1.10 = $215.69 ------ $427.61 ANNUITY UNIT VALUE The Annuity Unit Value for each Subaccount was first set by FSBL. The Annuity Unit Value for any subsequent Valuation Date is equal to (a) times (b) times (c), where:

ANNUITY TABLES. The amounts set forth in the Annuity Tables for Annuity Options 1 through 4 and 8 6 depend on the sex (unless unisex rates apply) and age of the Annuitant or the Joint Annuitants on the Annuity Start Date. The Annuity Tables are modified to reflect: reflect the Assumed Interest Rate for Variable Annuity Payments; or the rate of interest in effect on the Annuity Start Date for Fixed Annuity Payments. The rate of interest for Fixed Annuity Payments is guaranteed not to be less than the Guaranteed Rate set forth on page 3. The Annuity Tables contain the amount of monthly Annuity Payment per $1,000 of Annuity Start Amount. The Annuity Tables state values for the exact ages shown. The values will be interpolated based on the exact age(s) of the Annuitant or Joint Annuitants on the Annuity Start Date. The basis of the Annuity Tables for Options 1 through 4 and 8 6 and the Assumed Interest Rate are set forth on page 3. The Annuity Table for Option 7 5 is determined without reference to the age or sex of the Annuitant and is based upon the Assumed Interest Rate. Annuity Payments for Options 5 and 6 are computed without reference to the Annuity Tables. The Annuity Tables are used in accordance with generally accepted actuarial principles. ANNUITY PAYMENTS No Annuity Option can be selected that requires SBL FSBL to make Annuity Payments of less than $100.00. If FSBL refuses to commence Annuity Payments of less than $100.00, FSBL will permit surrender of the contract, with no withdrawal charges. If no Annuity Option is chosen prior to the Annuity Start Date, FSBL will use Option 1 with a ten-year period certain. Each Annuity Option allows for making Annuity Payments annually, semiannually, quarterly or monthly. Annuity Payments due on a date other than a Valuation Date, are paid as of the end of the next following Valuation Date.. ANNUITY UNITS On the Annuity Start Date, the amount of the first Variable Annuity Payment is divided by the Annuity Unit Value as of that date to determine the number of Annuity Units to be used in calculating subsequent Annuity Payments. If the Annuity Start Amount was allocated to more than one Subaccount, the first Variable Annuity Payment will be allocated to each Subaccount in the percentage corresponding to the allocation of Annuity Start Amount. The number of Annuity Units for each Subaccount is then found by dividing the amount of the first Variable Annuity Payment allocated to that Subaccount by the Annuity Unit Value for the Subaccount on the Annuity Start Date. The number of Annuity Units for the Subaccount then remains constant, unless a Transfer of Annuity Units is made. After the first Variable Annuity Payment, the dollar amount of each subsequent Annuity Payment is equal to the sum of the payment amount determined for each Subaccount. The payment amount for each Subaccount is equal to the number of Annuity Units allocated to that Subaccount multiplied by the Annuity Unit Value as of the date of the Annuity Payment. An example of an initial Variable Annuity Payment calculation for a male, age 60 is as follows: Annuity Start Amount = $100,000 $100,000 -------- = 100 $1,000 Amount determined by reference in 1999 to Annuity Table for a male, age 60 under Option 1 $4.00 First Variable Annuity Payment 100 x $4.00 = $400 FIRST VARIABLE ANNUITY NUMBER OF ANNUITY ANNUITY UNIT VALUE ANNUITY UNITS START AMOUNT PAYMENT ON ANNUITY USED TO DETERMINE SUBACCOUNT ALLOCATION ALLOCATION START DATE SUBSEQUENT PAYMENTS ---------- ------------ ---------- ---------- ------------------- Growth 50% $200.00 / $1.51 = 132.4503 Growth-Income 50% $200.00 / $1.02 = 196.0784 An example of a subsequent Variable Annuity Payment calculation using the assumptions above is as follows: ANNUITY UNIT VALUE ON DATE OF NEW ANNUITY SUBACCOUNT ANNUITY UNITS SUBSEQUENT PAYMENT PAYMENT AMOUNT ---------- ------------- ------------------ -------------- Growth 132.4503 x $1.60 = $211.92 Growth-Income 196.0784 x $1.10 = $215.69 ------ $427.61 ANNUITY UNIT VALUE The Annuity Unit Value for each Subaccount was first set by FSBL. The Annuity Unit Value for any subsequent Valuation Date is equal to (a) times (b) times (c), where:

ANNUITY TABLES. The amounts set forth in the Annuity Tables for Annuity Options 1 through 4 and 8 6 depend on the sex (unless unisex rates apply) and age of the Annuitant or the Joint Annuitants on the Annuity Start Date. The Annuity Tables are modified to reflect: the Assumed Interest Rate for Variable Annuity Payments; or the rate of interest in effect on the Annuity Start Date for Fixed Annuity Payments. The rate of interest for Fixed Annuity Payments is guaranteed not to be less than 1.5%. The basis of the Guaranteed Rate set forth on page 3Annuity Tables for Options 1 through 4 and 6 is the 1983(a) Mortality Table projected for mortality improvement for 45 years using Projection Scale G and an interest rate factor equal to 1.5%. The Annuity Tables contain the amount of monthly Annuity Payment per $1,000 of Annuity Start Amount. The Annuity Tables state values for the exact ages shown. The values will be interpolated based on the exact age(s) of the Annuitant or Joint Annuitants on the Annuity Start Date. The basis of the Annuity Tables for Options 1 through 4 and 8 and the Assumed Interest Rate are is set forth on page 3. The Annuity Table for Option 7 5 is determined without reference to the age or sex of the Annuitant and is based upon the Assumed Interest Rate. Annuity Payments for Options 5 and 6 are computed without reference an interest rate factor equal to the Annuity Tables1.5%. The Annuity Tables are used in accordance with generally accepted actuarial principles. ANNUITY PAYMENTS No If no Purchase Payments have been received by FSBL during the three-years preceding the Annuity Start Date, you may not select an Annuity Option can be selected that requires SBL FSBL to make Annuity Payments of less than $100.0020.00. If FSBL refuses to commence Annuity Payments of less than $20.00, FSBL will permit surrender of the contract, with no withdrawal charges. If no Annuity Option is chosen prior to the Annuity Start Date, FSBL will use Option 1 with a ten-year period certain. Each Annuity Option allows for making Annuity Payments annually, semiannually, quarterly or monthly. Annuity Payments due on a date other than a Valuation Date, are paid as of the end of the next following Valuation Date.

ANNUITY TABLES. The amounts set forth in the Annuity Tables for Annuity Options 1 through 4 and 8 6 depend on the sex (unless unisex rates apply) and age of the Annuitant or the Joint Annuitants on the Annuity Start Date. The Annuity Tables are modified to reflect: reflect the Assumed Interest Rate for Variable Annuity Payments; or the rate of interest in effect on the Annuity Start Date for Fixed Annuity Payments. The rate of interest for Fixed Annuity Payments is guaranteed not to be less than the Guaranteed Rate set forth on page 3. The Annuity Tables contain the amount of monthly Annuity Payment per $1,000 of Annuity Start Amount. The Annuity Tables state values for the exact ages shown. The values will be interpolated based on the exact age(s) of the Annuitant or Joint Annuitants on the Annuity Start Date. The basis of the Annuity Tables for Options 1 through 4 and 8 6 and the Assumed Interest Rate are set forth on page 3. The Annuity Table for Option 7 5 is determined without reference to the age or sex of the Annuitant and is based upon the Assumed Interest Rate. Annuity Payments for Options 5 and 6 are computed without reference to the Annuity Tables. The Annuity Tables are used in accordance with generally accepted actuarial principles. ANNUITY PAYMENTS No Annuity Option can be selected that requires SBL FSBL to make Annuity Payments of less than $100.00. If FSBL refuses to commence Annuity Payments of less than $100.00, FSBL will permit surrender of the contract, with no withdrawal charges. If no Annuity Option is chosen prior to the Annuity Start Date, FSBL will use Option 1 with a ten-year period certain. Each Annuity Option allows for making Annuity Payments annually, semiannually, quarterly or monthly. Annuity Payments due on a date other than a Valuation Date, are paid as of the end of the next following Valuation Date.. ANNUITY UNITS On the Annuity Start Date, the amount of the first Variable Annuity Payment is divided by the Annuity Unit Value as of that date to determine the number of Annuity Units to be used in calculating subsequent Annuity Payments. If the Annuity Start Amount was allocated to more than one Subaccount, the first Variable Annuity Payment will be allocated to each Subaccount in the percentage corresponding to the allocation of Annuity Start Amount. The number of Annuity Units for each Subaccount is then found by dividing the amount of the first Variable Annuity Payment allocated to that Subaccount by the Annuity Unit Value for the Subaccount on the Annuity Start Date. The number of Annuity Units for the Subaccount then remains constant, unless a Transfer of Annuity Units is made. After the first Variable Annuity Payment, the dollar amount of each subsequent Annuity Payment is equal to the sum of the payment amount determined for each Subaccount. The payment amount for each Subaccount is equal to the number of Annuity Units allocated to that Subaccount multiplied by the Annuity Unit Value as of the date of the Annuity Payment. An example of an initial Variable Annuity Payment calculation for a male, age 60 is as follows: Annuity Start Amount = $100,000 $100,000 -------- = 100 $1,000 Amount determined by reference in 1999 to Annuity Table for a male, age 60 under Option 1 $4.00 First Variable Annuity Payment 100 x $4.00 = $400 FIRST VARIABLE ANNUITY NUMBER OF ANNUITY ANNUITY UNIT VALUE ANNUITY UNITS START AMOUNT PAYMENT ON ANNUITY USED TO DETERMINE SUBACCOUNT ALLOCATION ALLOCATION START DATE SUBSEQUENT PAYMENTS ---------- ------------ ---------- ---------- ------------------- Growth 50% $200.00 / $1.51 = 132.4503 Growth-Income 50% $200.00 / $1.02 = 196.0784 An example of a subsequent Variable Annuity Payment calculation using the assumptions above is as follows: ANNUITY UNIT VALUE ON DATE OF NEW ANNUITY SUBACCOUNT ANNUITY UNITS SUBSEQUENT PAYMENT PAYMENT AMOUNT ---------- ------------- ------------------ -------------- Growth 132.4503 x $1.60 = $211.92 Growth-Income 196.0784 x $1.10 = $215.69 ------ $427.61 ANNUITY UNIT VALUE The Annuity Unit Value for each Subaccount was first set by FSBL. The Annuity Unit Value for any subsequent Valuation Date is equal to (a) times (b) times (c), where:

ANNUITY TABLES. OWNER JOINT OWNER (if any) ANNUITANT BENEFICIARY CONTINGENT BENEFICIARY (if any) CONTRACT NUMBER AGE AND SEX OF ANNUITANT ISSUE DATE INITIAL PURCHASE PAYMENT ANNUITY COMMENCEMENT DATE Contract Owners may have Purchase Payments applied to the general Account of Financial Horizons Life Insurance Company or towards the purchase of shares at net asset value of the following funds: FIDELITY VARIABLE INSURANCE PRODUCTS FUND -Equity-Income Portfolio -Overseas Portfolio NATIONWIDE SEPARATE ACCOUNT TRUST -Money Market Fund -Total Return Fund THE ONE GROUP INVESTMENT TRUST Asset Allocation Fund Government Bond Fund Large Company Growth Fund Small Company Growth Fund Fidelity Equity Income Portfolio Fidelity Overseas Portfolio NSAT Money Market Fund NSAT Total Return Fund FOR USE WITH FINANCIAL HORIZONS VA SEPARATE ACCOUNT 3 A SEPARATE INVESTMENT ACCOUNT SPECIALLY ESTABLISHED FOR INVESTMENT IN THE ABOVE FUNDS 3 5 DEFINITIONS THE COMPANY The amounts set forth in Company is Financial Horizons Life Insurance Company. ACCUMULATION UNIT An accounting unit of measure used to calculate the Variable Account Contract Value prior to the Annuity Tables for Annuity Options 1 through 4 and 8 depend Commencement Date. ANNUITANT The person named on the sex (unless unisex rates apply) Data Page on whose life this Contract is issued and age who will receive annuity payments beginning within 10 working days of the Annuity commencement Date. The Annuitant, if someone other than the Owner, becomes the Owner of the Contract on the Annuity Commencement Date. The Company reserves the right to reject any change of the Annuitant or which has been made without the Joint Annuitants prior consent of the Company. ANNUITY COMMENCEMENT DATE The date on the Annuity Start Datewhich annuity payments are scheduled to commence. The Annuity Tables are modified to reflect: the Assumed Interest Rate for Variable Annuity Payments; or the rate of interest in effect Commencement Date is shown on the Annuity Start Date for Fixed Annuity PaymentsData Page. The rate of interest for Fixed This date may be changed by the Owner prior to the date annuity payments actually commence. Annuity Payments is guaranteed not to be less will begin no later than 10 working days after the Guaranteed Rate set forth on page 3Annuity Commencement Date. ANNUITY PAYMENT OPTION The method for making annuity payments. The Annuity Tables contain the amount of monthly Annuity Payment per $1,000 of Annuity Start Amount. The Annuity Tables state values for the exact ages shown. The values will be interpolated based Option selected on the exact age(s) of application may be changed by the Annuitant or Joint Annuitants on the Annuity Start Date. The basis of the Annuity Tables for Options 1 through 4 and 8 and the Assumed Interest Rate are set forth on page 3. The Annuity Table for Option 7 is determined without reference to the age or sex of the Annuitant and is based upon the Assumed Interest Rate. Annuity Payments for Options 5 and 6 are computed without reference Owner prior to the Annuity Tables. The Annuity Tables are used in accordance with generally accepted actuarial principlesCommencement Date. ANNUITY PAYMENTS No UNIT An accounting unit of measure used to calculate the value of Variable Annuity Option can be selected that requires SBL payments. BENEFICIARY The Beneficiary named in the application to make Annuity Payments of less than $100.00. Each Annuity Option allows for making Annuity Payments annually, semiannually, quarterly or monthly. Annuity Payments due on a date other than a Valuation Date, are paid as of receive certain benefits under this Contract when the end of the next following Valuation DateAnnuitant dies.

ANNUITY TABLES. The amounts set forth in the Annuity Tables for Annuity Options 1 through 4 and 8 6 depend on the sex (unless unisex rates apply) and age of the Annuitant or the Joint Annuitants on the Annuity Start Date. The Annuity Tables are modified to reflect: reflect the Assumed Interest Rate for Variable Annuity Payments; or the rate of interest in effect on the Annuity Start Date for Fixed Annuity Payments. The rate of interest for Fixed Annuity Payments is guaranteed not to be less than the Guaranteed Rate set forth on page 3. The Annuity Tables contain the amount of monthly Annuity Payment per $1,000 of Annuity Start Amount. The Annuity Tables state values for the exact ages shown. The values will be interpolated based on the exact age(s) of the Annuitant or Joint Annuitants on the Annuity Start Date. The basis of the Annuity Tables for Options 1 through 4 and 8 6 and the Assumed Interest Rate are set forth on page 3. The Annuity Table for Option 7 5 is determined without reference to the age or sex of the Annuitant and is based upon the Assumed Interest Rate. Annuity Payments for Options 5 and 6 are computed without reference to the Annuity Tables. The Annuity Tables are used in accordance with generally accepted actuarial principles. ANNUITY PAYMENTS No Annuity Option can be selected that requires SBL FSBL to make Annuity Payments of less than $100.00. If FSBL refuses to commence Annuity Payments of less than $100.00, FSBL will permit surrender of the contract, with no withdrawal charges. If no Annuity Option is chosen prior to the Annuity Start Date, FSBL will use Option 1 with a ten-year period certain. Each Annuity Option allows for making Annuity Payments annually, semiannually, quarterly or monthly. Annuity Payments due on a date other than a Valuation Date, are paid as of the end of the next following Valuation Date.. ANNUITY UNITS On the Annuity Start Date, the amount of the first Variable Annuity Payment is divided by the Annuity Unit Value as of that date to determine the number of Annuity Units to be used in calculating subsequent Annuity Payments. If the Annuity Start Amount was allocated to more than one Subaccount, the first Variable Annuity Payment will be allocated to each Subaccount in the percentage corresponding to the allocation of Annuity Start Amount. The number of Annuity Units for each Subaccount is then found by dividing the amount of the first Variable Annuity Payment allocated to that Subaccount by the Annuity Unit Value for the Subaccount on the Annuity Start Date. The number of Annuity Units for the Subaccount then remains constant, unless a Transfer of Annuity Units is made. After the first Variable Annuity Payment, the dollar amount of each subsequent Annuity Payment is equal to the sum of the payment amount determined for each Subaccount. The payment amount for each Subaccount is equal to the number of Annuity Units allocated to that Subaccount multiplied by the Annuity Unit Value as of the date of the Annuity Payment. An example of an initial Variable Annuity Payment calculation for a male, age 60 is as follows: Annuity Start Amount = $100,000 $100,000 ------- = 100 $1,000 Amount determined by reference in 1999 to Annuity Table for a male, age 60 under Option 1 $4.00 First Variable Annuity Payment 100 x $4.00 = $400 ANNUITY NUMBER OF ANNUITY FIRST VARIABLE UNIT VALUE ANNUITY UNITS START AMOUNT ANNUITY PAYMENT ON ANNUITY USED TO DETERMINE SUBACCOUNT ALLOCATION ALLOCATION START DATE SUBSEQUENT PAYMENTS ---------- ------------ --------------- ---------- ------------------- Growth 50% $200.00 / $1.51 = 132.4503 Growth-Income 50% $200.00 / $1.02 = 196.0784 An example of a subsequent Variable Annuity Payment calculation using the assumptions above is as follows: ANNUITY UNIT VALUE ON DATE OF NEW ANNUITY SUBACCOUNT ANNUITY UNITS SUBSEQUENT PAYMENT PAYMENT AMOUNT ---------- ------------- ------------------ -------------- Growth 132.4503 x $1.60 = $211.92 Growth-Income 196.0784 x $1.10 = $215.69 ------ $427.61 ANNUITY UNIT VALUE The Annuity Unit Value for each Subaccount was first set by FSBL. The Annuity Unit Value for any subsequent Valuation Date is equal to (a) times (b) times (c), where: