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End of

Unchanged

Increased

Decreased

Unchanged

Increased

Decreased

Contract Year

at 3.00%

to 5.00%

to 1.00%

at 3.00%

to 5.00%

to 1.00%

Market-Value Adjustment

During the surrender-charge period, a market-value adjustment will be applied to withdrawals or surrenders that are subject to surrender charges. This adjustment would be based on changes in the yields on U.S. Treasuries and may increase or decrease the annuity’s surrender value. The contract details how the calculation is made. Generally, if interest rates have risen since the purchase, the adjustment will decrease the surrender value. If interest rates have fallen since the purchase, the adjustment will increase the surrender value. During the surrender-charge period, an owner or beneficiary will never receive less than 90% of the total premium payments (91% in some states), less any withdrawals.

Illustrated Effect Of Possible Market-Value Adjustment

Consider the combined charges for early surrender when Treasury rates increase or decrease. The sample calculation below assumes the Five-Year Treasury Index Rate is 3.00% at issue and then either rises to 5.00% or drops to 1.00%. The percentages represent a percent of total account value and are for illustrative purposes only; results may vary.

Combined Surrender Charge and Market-Value Adjustment

FGA 5

FGA 6

1

8.0%

11.6%

0.5%

8.0%

11.9%

-1.5%

2

7.0%

12.2%

1.4%

7.0%

13.7%

-0.6%

3

6.0%

9.5%

2.2%

6.0%

11.3%

0.3%

4

5.0%

6.8%

3.1%

5.0%

8.6%

1.2%

5

4.0%

4.0%

4.0%

4.0%

5.8%

2.1%

6

0.0%

0.0%

0.0%

3.0%

3.0%

3.0%

7

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

11937 (10/08)

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