Common use of First Option Clause in Contracts

First Option. Life Annuity - An annuity payable during the lifetime of the Annuitant, ceasing with the last payment due prior to the death of the Annuitant. There is no Death Benefit payable to the Beneficiary under this Option. SECOND OPTION - Life Annuity With a Cash Refund - An annuity payable during the lifetime of the Annuitant. At the death of the Annuitant, any remaining value will be paid to the Beneficiary. The remaining value equals the Contract Value, less Premium Tax, minus the sum of all annuity payments made. This option is only available for fixed dollar annuity payments. VA03-14/15 Page 15 Printed in U.S.A. B660R0.FRM THIRD OPTION - Life Annuity with Payments for a Period Certain - An annuity payable for a specified number of years and for as long as the Annuitant is living. If at the death of the Annuitant, payments have been made for less than the period selected, the remaining payments will be made to the Beneficiary. The Beneficiary may elect to receive the present value of the remaining payments in one sum. To calculate the present value for fixed dollar annuity payments We will use an interest rate We determine at Our discretion. To calculate the present value of variable annuity payments, We will use the AIR elected by the Contract Owner when this annuity option was selected and the Annuity Unit value on the date of receipt of Due Proof of Death. FOURTH OPTION - Joint and Last Survivor Life Annuity - An annuity payable during the lifetimes of the Annuitant and the Joint Annuitant and thereafter during the remaining lifetime of the survivor. At the time of electing this annuity option, the Contract Owner may elect reduced payments over the remaining lifetime of the survivor. Payments will cease with the last payment prior to the death of the survivor. FIFTH OPTION - Joint and Last Survivor Life Annuity with Payments for a Period Certain - An annuity payable for a specified number of years and during the lifetimes of the Annuitant and the Joint Annuitant and thereafter during the remaining lifetime of the survivor. At the time of electing this annuity option, the Contract Owner may elect reduced payments over the remaining lifetime of the survivor. If at the death of the survivor, payments have been made for less than the period selected, the remaining payments will be made to the Beneficiary. The Beneficiary may elect to receive the present value of the remaining payments in one sum. To calculate the present value for fixed dollar annuity payments We will use an interest rate We determine at Our discretion. To calculate the present value of variable annuity payments, We will use the AIR elected by the Contract Owner when this annuity option was selected and the Annuity Unit value on the date of receipt of Due Proof of Death. SIXTH OPTION - Payment for a Period Certain - An annuity payable for a specified number of years. If at the death of the Annuitant, payments have been made for less than the period selected, the remaining payments will be made to the Beneficiary. The Beneficiary may elect to receive the present value of the remaining payments in one sum. To calculate the present value for fixed dollar annuity payments We will use an interest rate We determine at Our discretion. To calculate the present value of variable annuity payments, we will use the AIR elected by the Contract Owner when this annuity option was selected and the Annuity Unit value on the date of receipt of Due Proof of Death. SEVENTH OPTION - Annuity Proceeds Settlement Option - Proceeds from the Death Benefit can be left with Us for a period not to exceed five years from the date of the Contract Owner's or the Annuitant’s death prior to the Annuity Commencement Date. The proceeds will remain in the Sub-Account(s) to which they were allocated at the time of death unless the Beneficiary elects to reallocate them. Full or partial withdrawals may be made at any time. In the event of withdrawals, the remaining value will equal the Contract Value of the proceeds left with Us, minus any withdrawals.

First Option. Life Annuity - An annuity Annuity payable during the lifetime of the AnnuitantAnnuitant according to the Annuity Payment Frequency selected, ceasing with the last payment due prior to the death of the Annuitant. There is no Death Benefit payable to the Beneficiary under this Option. SECOND OPTION - Life Annuity With a Cash Refund - An annuity Annuity payable during the lifetime of the AnnuitantAnnuitant according to the Annuity Payment Frequency selected. At If at the death of the Annuitant, any payments made are less than the Contract Value less Premium Tax used to purchase Annuity Units, the remaining value will be paid to the Beneficiary. The remaining value equals the Contract Value, Value less Premium Tax, Tax used to purchase Annuity Units minus the sum of all annuity Annuity payments made. This option is only available for fixed dollar annuity paymentsvariable Annuity payments using the 5% Assumed Investment Return. VA03-14/15 Page 15 Printed in U.S.A. B660R0.FRM THIRD OPTION - Life Annuity with Payments for a Period Certain - An annuity Annuity payable for a specified fixed number of years according to Annuity Payment Frequency selected and for as long as the Annuitant is living. If at the death of the Annuitant, payments have been made for less than the period selected, the remaining payments will be made to the BeneficiaryBeneficiary for the remainder of the period. The Beneficiary may elect to receive the present value of the remaining payments in one sum. To calculate the present value for fixed dollar annuity payments We will use an interest rate We determine at Our discretion. To calculate the present value of variable annuity Annuity payments, We we will use the AIR Assumed Investment Return elected by the Contract Owner when this annuity option was selected and at the time of electing the Annuity option. The Annuity Unit value on the date of receipt of Due Proof of DeathDeath shall be used for the purpose of determining such present value. In the case of fixed dollar Annuities, the interest rate assumed will be the rate that We used to determine the amount of each certain payment. NCDSC98-14/15 Page 15 Printed in U.S.A. P555R1.FRM SETTLEMENT FOURTH OPTION - Joint and Last Survivor Life Annuity - An annuity Annuity payable PROVISIONS according to the Annuity Payment Frequency selected during the lifetimes joint lifetime of (Continued) the Annuitant and the Joint Annuitant Annuitant, and thereafter during the remaining lifetime of the survivor. At the time survivor at a level of electing this annuity option, the Contract Owner may elect reduced payments over the remaining lifetime 50% or 66-2/3% or 100% of the survivororiginal level, as selected. Payments will cease with the last payment prior to the death of the survivor. FIFTH OPTION - Joint and Last Survivor Life Annuity with Payments for a Period Certain - An annuity Annuity payable for a specified number of years and according to the Annuity Payment Frequency selected during the lifetimes joint lifetime of the Annuitant and the Joint Annuitant Annuitant, and thereafter during the remaining lifetime of the survivor. At the time survivor at a level of electing this annuity option, the Contract Owner may elect reduced payments over the remaining lifetime 50% or 66-2/3% or 100% of the survivororiginal level, as selected. If at the death of the survivorJoint Annuitant, payments have been made for less than the period selected, the remaining payments will be made to the BeneficiaryBeneficiary for the remainder of the period. The Beneficiary may elect to receive the present value of the remaining payments in one sum. To calculate the present value for fixed dollar annuity payments We will use an interest rate We determine at Our discretion. To calculate the present value of variable annuity Annuity payments, We we will use the AIR Assumed Investment Return elected by the Contract Owner when this annuity option was selected and at the time of electing the Annuity option. The Annuity Unit value on the date of receipt of Due Proof of DeathDeath shall be used for the purpose of determining such present value. In the case of fixed dollar Annuities, the interest rate assumed will be the rate that We used to determine the amount of each certain payment. SIXTH OPTION - Payment for a Period Certain - An annuity Annuity payable for a specified fixed number of yearsyears according to the Annuity Payment Frequency selected. If at the death of the Annuitant, payments have been made for less than the period selected, the remaining payments will be made to the BeneficiaryBeneficiary for the remainder of the period. The Beneficiary may elect to receive the present value of the remaining payments in one sum. To calculate the present value for fixed dollar annuity payments We will use an interest rate We determine at Our discretion. To calculate the present value of variable annuity Annuity payments, we will use the AIR Assumed Investment Return elected by the Contract Owner when this annuity option was selected and at the time of electing the Annuity option. The Annuity Unit value on the date of receipt of Due Proof of DeathDeath shall be used for the purpose of determining such present value. In the case of fixed dollar Annuities, the interest rate assumed will be the rate that We used to determine the amount of each certain payment. If You elect the Payment for a Period Certain option, You may surrender this contract after the Annuity Commencement Date by submitting a written request to Us. The amount available to You is based on the present value of the remaining payments due. SEVENTH OPTION - Annuity Proceeds Settlement Option - Proceeds from the Death Benefit can be left with Us the Company for a period not to exceed five years from the date of the Contract Owner's or the Annuitant’s death prior to the Annuity Commencement Date. The proceeds will remain in the Sub-Account(s) to which they were allocated at the time of death unless the Beneficiary elects to reallocate them. Full or partial withdrawals may be made at any time. In the event of withdrawals, the remaining value will equal the Contract Value of the proceeds left with Usthe Company, minus any withdrawals.. NCDSC98-16/17 Page 16 Printed in U.S.A. P556R1.FRM