-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, B6fwK38pxcS5Ist+z+wudc0kAoGIiBI+QiBSI7GSHkrpKpxJjn2ApHFipVG5VGpC oPc4gRSGfrU+fvaJKAEKdA== 0000945094-01-500005.txt : 20010427 0000945094-01-500005.hdr.sgml : 20010427 ACCESSION NUMBER: 0000945094-01-500005 CONFORMED SUBMISSION TYPE: 485BPOS PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20010425 EFFECTIVENESS DATE: 20010501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHBROOK VARIABLE ANNUITY ACCOUNT II CENTRAL INDEX KEY: 0000864922 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: SEC FILE NUMBER: 033-35412 FILM NUMBER: 1610963 FILING VALUES: FORM TYPE: 485BPOS SEC ACT: SEC FILE NUMBER: 811-06116 FILM NUMBER: 1610964 BUSINESS ADDRESS: STREET 1: 3100 SANDERS RD STREET 2: C/O NORTHBROOK LIFE INSURANCE CO CITY: NORTHBROOK STATE: IL ZIP: 60062 BUSINESS PHONE: 8474022400 MAIL ADDRESS: STREET 1: 3100 SANDERS RD CITY: NORTHBROOK STATE: IL ZIP: 60062 485BPOS 1 nlicva2.txt NLIC VA2 AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 25, 2001 ------------------------------------------------------------------ FILE NOS. 033-35412 811-6116 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 POST-EFFECTIVE AMENDMENT NO. 33 AND/OR REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 AMENDMENT NO. 41 NORTHBROOK VARIABLE ANNUITY ACCOUNT II (Exact Name of Registrant) NORTHBROOK LIFE INSURANCE COMPANY (Name of Depositor) NORTHBROOK LIFE INSURANCE COMPANY 3100 SANDERS ROAD NORTHBROOK, ILLINOIS 60062 847/402-2400 (Address and Telephone Number of Depositor's Principal Offices) MICHAEL J. VELOTTA VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL NORTHBROOK LIFE INSURANCE COMPANY 3100 SANDERS ROAD NORTHBROOK, ILLINOIS 60062 847/402-2400 (Name, Complete Address and Telephone Number of Agent for Service) COPIES TO: CHARLES M. SMITH, JR., ESQUIRE DANIEL J. FITZPATRICK, ESQUIRE NORTHBROOK LIFE INSURANCE COMPANY MORGAN STANLEY DW INC. 3100 SANDERS ROAD, J5B TWO WORLD TRADE CENTER NORTHBROOK, ILLINOIS 60062 NEW YORK, NEW YORK 10048 Approximate date of proposed public offering: Continuous It is proposed that this filing will become effective (check appropriate box): / / immediately upon filing pursuant to paragraph (b) of Rule 485 /X/ on May 1, 2001 pursuant to paragraph (b) of Rule 485 / / 60 days after filing pursuant to paragraph (a)(1) of Rule 485 / / on (date) pursuant to paragraph (a)(1) of Rule 485 If appropriate, check the following box / / this post-effective amendment designates a new effective date for a previously filed post-effective amendment. Title of Securities Being Registered: Units of interest in the Northbrook Variable Annuity Account II under deferred variable annuity contracts. MORGAN STANLEY DEAN WITTER VARIABLE ANNUITY II NORTHBROOK LIFE INSURANCE COMPANY P.O. BOX 94040 PALATINE, IL 60094 TELEPHONE NUMBER: 1-800-654-2397 PROSPECTUS DATED MAY 1, 2001 - -------------------------------------------------------------------------------- Northbrook Life Insurance Company ("NORTHBROOK") is offering the Morgan Stanley Dean Witter Variable Annuity II, an individual and group flexible premium deferred variable annuity contract ("CONTRACT"). This prospectus contains information about the Contract that you should know before investing. Please keep it for future reference. Northbrook no longer offers this Contract in most states. Please contact your Morgan Stanley Dean Witter Financial Advisor for current availability. If you have already purchased the Contract you may continue to make purchase payments according to the Contract. The Contract currently offers 34 investment alternatives ("INVESTMENT ALTERNATIVES"). The investment alternatives include 2 fixed account options ("FIXED ACCOUNT OPTIONS") and 32 variable sub-accounts ("VARIABLE SUB-ACCOUNTS") of the Northbrook Variable Annuity Account II ("VARIABLE ACCOUNT"). Each Variable Sub-Account invests exclusively in shares of portfolios ("PORTFOLIOS") of the following mutual funds ("FUNDS"): o MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES o THE UNIVERSAL INSTITUTIONAL FUNDS, INC. o VAN KAMPEN LIFE INVESTMENT TRUST o AIM VARIABLE INSURANCE FUNDS o ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) o PUTNAM VARIABLE TRUST (CLASS IB SHARES) We (Northbrook) have filed a Statement of Additional Information, dated May 1, 2001, with the Securities and Exchange Commission ("SEC"). It contains more information about the Contract and is incorporated herein by reference, which means that it is legally a part of this prospectus. Its table of contents appears on page C-1 of this prospectus. For a free copy, please write or call us at the address or telephone number above, or go to the SEC's Web site (http://www.sec.gov). You can find other information and documents about us, including documents that are legally a part of this prospectus, at the SEC's Web site. - -------------------------------------------------------------------------------- THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR IMPORTANT DISAPPROVED THE SECURITIES DESCRIBED IN THIS PROSPECTUS, NOR NOTICES HAS IT PASSED ON THE ACCURACY OR THE ADEQUACY OF THIS PROSPECTUS. ANY ONE WHO TELLS YOU OTHERWISE IS COMMITTING A FEDERAL CRIME. INVESTMENT IN THE CONTRACTS INVOLVES INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. TABLE OF CONTENTS - ------------------------------------------------------------------- PAGE - ---------------------------------------------------------------------------- OVERVIEW - ---------------------------------------------------------------------------- Important Terms - ---------------------------------------------------------------------------- The Contract At A Glance - ---------------------------------------------------------------------------- How the Contract Works - ---------------------------------------------------------------------------- Expense Table - ---------------------------------------------------------------------------- Financial Information - ---------------------------------------------------------------------------- CONTRACT FEATURES - ---------------------------------------------------------------------------- The Contract - ---------------------------------------------------------------------------- Purchases - ---------------------------------------------------------------------------- Contract Value - ---------------------------------------------------------------------------- Investment Alternatives - ---------------------------------------------------------------------------- The Variable Sub-Accounts - ---------------------------------------------------------------------------- The Fixed Account Options - ---------------------------------------------------------------------------- Transfers - ---------------------------------------------------------------------------- Expenses - ---------------------------------------------------------------------------- Access To Your Money - ---------------------------------------------------------------------------- Income Payments - ---------------------------------------------------------------------------- Death Benefits - ---------------------------------------------------------------------------- Longevity Reward Rider - ---------------------------------------------------------------------------- OTHER INFORMATION - ---------------------------------------------------------------------------- More Information: - ---------------------------------------------------------------------------- Northbrook - ---------------------------------------------------------------------------- The Variable Account - ---------------------------------------------------------------------------- The Portfolios - ---------------------------------------------------------------------------- The Contract - ---------------------------------------------------------------------------- Qualified Plans - ---------------------------------------------------------------------------- Legal Matters - ---------------------------------------------------------------------------- Taxes - ---------------------------------------------------------------------------- Performance Information - ---------------------------------------------------------------------------- APPENDIX A -- ACCUMULATION UNIT VALUES A-1 - ---------------------------------------------------------------------------- APPENDIX B - CALCULATION OF ENHANCED EARNINGS DEATH BENEFIT B-1 - ---------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS C-1 - ---------------------------------------------------------------------------- IMPORTANT TERMS - ------------------------------------------------------------------- This prospectus uses a number of important terms with which you may not be familiar. The index below identifies the page that describes each term. The first use of each term in this prospectus appears in highlighted text. - ---------------------------------------------------------------------------- Accumulation Phase - ---------------------------------------------------------------------------- Accumulation Unit - ---------------------------------------------------------------------------- Accumulation Unit Value - ---------------------------------------------------------------------------- Annuitant - ---------------------------------------------------------------------------- Automatic Portfolio Rebalancing Program - ---------------------------------------------------------------------------- Automatic Additions Program - ---------------------------------------------------------------------------- Beneficiary - ---------------------------------------------------------------------------- Cancellation Period - ---------------------------------------------------------------------------- Contract* - ---------------------------------------------------------------------------- Contract Anniversary - ---------------------------------------------------------------------------- Contract Owner ("You") - ---------------------------------------------------------------------------- Contract Value - ---------------------------------------------------------------------------- Contract Year - ---------------------------------------------------------------------------- Death Benefit Anniversary - ---------------------------------------------------------------------------- Death Benefit Combination Option - ---------------------------------------------------------------------------- Dollar Cost Averaging Program - ---------------------------------------------------------------------------- Dollar Cost Averaging Fixed Account Options - ---------------------------------------------------------------------------- Due Proof of Death - ---------------------------------------------------------------------------- Enhanced Death Benefit Option - ---------------------------------------------------------------------------- Enhanced Earnings Death Benefit Option - ---------------------------------------------------------------------------- Fixed Account Options - ---------------------------------------------------------------------------- Free Withdrawal Amount - ---------------------------------------------------------------------------- Funds - ---------------------------------------------------------------------------- Guarantee Periods - ---------------------------------------------------------------------------- Income Benefit Combination Option 2 - ---------------------------------------------------------------------------- Income and Death Benefit Combination Option 2 - ---------------------------------------------------------------------------- Income Plan - ---------------------------------------------------------------------------- Investment Alternatives - ---------------------------------------------------------------------------- Issue Date - ---------------------------------------------------------------------------- Longevity Reward Rider - ---------------------------------------------------------------------------- Northbrook ("We") - ---------------------------------------------------------------------------- Payout Phase - ---------------------------------------------------------------------------- Payout Start Date - ---------------------------------------------------------------------------- Performance Benefit Combination Option - ---------------------------------------------------------------------------- Performance Death Benefit Option - ---------------------------------------------------------------------------- Performance Income Benefit Option - ---------------------------------------------------------------------------- Portfolios - ---------------------------------------------------------------------------- Qualified Contracts - ---------------------------------------------------------------------------- Right to Cancel - ---------------------------------------------------------------------------- SEC - ---------------------------------------------------------------------------- Settlement Value - ---------------------------------------------------------------------------- Systematic Withdrawal Program - ---------------------------------------------------------------------------- Valuation Date - ---------------------------------------------------------------------------- Variable Account - ---------------------------------------------------------------------------- Variable Sub-Account - ---------------------------------------------------------------------------- *In certain states the Contract is available only as a group Contract. In these states, we will issue you a certificate that represents your ownership and that summarizes the provisions of the group Contract. References to "Contract" in this prospectus include certificates unless the context requires otherwise. In certain states the Contract is available only as a group Contract.
THE CONTRACT AT A GLANCE - ------------------------------------------------------------------- The following is a snapshot of the Contract. Please read the remainder of this prospectus for more information. FLEXIBLE PAYMENTS You can purchase a Contract with an initial purchase payment as little as $1,000 (we may increase this minimum to as much as to $4,000). You can add to your Contract as often and as much as you like. Each payment must be at least $25. You must maintain a minimum account size of $500. - ----------------------------------------------------------------------------------- RIGHT TO CANCEL You may cancel your Contract within 20 days of receipt or any longer period as your state may require ("CANCELLATION PERIOD"). Upon cancellation, we will return your purchase payments adjusted, to the extent applicable law permits, to reflect the investment experience of any amounts allocated to the Variable Account. - ------------------------------------------------------------------------------------ EXPENSES You will bear the following expenses: o Total Variable Account annual fees (mortality and expense risk charge and administration charge) equal the following (as a % of average daily net assets): Base Contract 1.35% w/Enhanced Death Benefit Option 1.48% w/Performance Death Benefit Option 1.48% w/Performance Income Benefit Option 1.48% w/Performance Benefit Combination Option 1.59% w/Death Benefit Combination Option 1.59% w/Income Benefit Combination Option 2 1.65% w/Income and Death Benefit Combination Option 2 1.85% o If you select the Enhanced Earnings Death Benefit Option, you would pay an additional mortality and expense risk charge of 0.20% o If you qualify for and elect the Longevity Reward Rider, your mortality and expense risk charge would be lower by 0.07%. See the description of each Option and the Longevity Reward Rider for the availability of each o Annual contract maintenance charge of $30 (waived in certain cases) o Withdrawal charges ranging from 0% to 6% of purchase payment(s) withdrawn (with certain exceptions) o Transfer fee of $25 after 12th transfer in any CONTRACT YEAR (fee currently waived) o State premium tax (if your state imposes one) In addition, each Portfolio pays expenses that you will bear indirectly if you invest in a Variable Sub-Account. - ------------------------------------------------------------------------------------ INVESTMENT ALTERNATIVES The Contract currently offers 34 investment alternatives including: - 2 Fixed Account Options (which credit interest at rates we guarantee) - 32 Variable Sub-Accounts investing in Portfolios offering professional money management by these investment advisers: - MORGAN STANLEY DEAN WITTER ADVISORS, INC. - MORGAN STANLEY ASSET MANAGEMENT - VAN KAMPEN ASSET MANAGEMENT, INC. - AIM ADVISORS, INC. - ALLIANCE CAPITAL MANAGEMENT, L.P. - PUTNAM INVESTMENT MANAGEMENT, INC. To find out current rates being paid on the Fixed Account Options, or to find out how the Variable Sub-Accounts have performed, call us at 1-800-654-2397. - ------------------------------------------------------------------------------------ SPECIAL SERVICES For your convenience, we offer these special services: - AUTOMATIC ADDITIONS PROGRAM - AUTOMATIC PORTFOLIO REBALANCING PROGRAM - DOLLAR COST AVERAGING PROGRAM - SYSTEMATIC WITHDRAWAL PROGRAM - ------------------------------------------------------------------------------------ INCOME PAYMENTS You can choose fixed income payments, variable income payments, or a combination of the two. You can receive your income payments in one of the following ways: - life income with payments guaranteed for 10 years - joint and survivor life income - guaranteed payments for a specified period - ------------------------------------------------------------------------------------ DEATH BENEFITS If you or the ANNUITANT dies before the PAYOUT START DATE, we will pay the death benefit described in the Contract. We also offer 4 Death Benefit Options. - ------------------------------------------------------------------------------------ TRANSFERS Before the Payout Start Date, you may transfer your Contract value ("CONTRACT VALUE") among the investment alternatives, with certain restrictions. Transfers must be at least $100 or the entire amount in the investment alternative, whichever is less. Transfers to the GUARANTEE PERIODS must be at least $500. We do not currently impose a fee upon transfers. However, we reserve the right to charge $25 per transfer after the 12th transfer in each Contract Year, which we measure from the date we issue your contract or a Contract anniversary ("CONTRACT ANNIVERSARY"). - ------------------------------------------------------------------------------------ WITHDRAWALS You may withdraw some or all of your Contract Value at anytime during the Accumulation Phase. In general, you must withdraw at least $100 at a time or the total amount in the investment alternative, if less. A 10% federal tax penalty may apply if you withdraw before you are 59 1/2 years old. A withdrawal charge also may apply.
HOW THE CONTRACT WORKS - ------------------------------------------------------------------- The Contract basically works in two ways. First, the Contract can help you (we assume you are the "CONTRACT OWNER") save for retirement because you can invest in up to 34 investment alternatives and pay no federal income taxes on any earnings until you withdraw them. You do this during what we call the "ACCUMULATION PHASE" of the Contract. The Accumulation Phase begins on the date we issue your Contract (we call that date the "ISSUE DATE") and continues until the Payout Start Date, which is the date we apply your money to provide income payments. During the Accumulation Phase, you may allocate your purchase payments to any combination of the Variable Sub-Accounts and/or the Fixed Account Options. If you invest in the Fixed Account Options, you will earn a fixed rate of interest that we declare periodically. If you invest in any of the Variable Sub-Accounts, your investment return will vary up or down depending on the performance of the corresponding Portfolios. Second, the Contract can help you plan for retirement because you can use it to receive retirement income for life and/or for a pre-set number of years, by selecting one of the income payment options (we call these "INCOME PLANS") described on page 24. You receive income payments during what we call the "PAYOUT PHASE" of the Contract, which begins on the Payout Start Date and continues until we make the last payment required by the Income Plan you select. During the Payout Phase, if you select a fixed income payment option, we guarantee the amount of your payments, which will remain fixed. If you select a variable income payment option, based on one or more of the Variable Sub-Accounts, the amount of your payments will vary up or down depending on the performance of the corresponding Portfolios. The amount of money you accumulate under your Contract during the Accumulation Phase and apply to an Income Plan will determine the amount of your income payments during the Payout Phase. The timeline below illustrates how you might use your Contract.
ISSUE PAYOUT START DATE ACCUMULATION PHASE DATE PAYOUT PHASE ---------------------------------------------------------------------------------- You buy You save for You elect to receive You can receive Or you can a Contract retirement income payments or income payments receive income receive a lump for a set period payments for sum payment life
As the Contract owner, you exercise all of the rights and privileges provided by the Contract. If you die, any surviving Contract owner or, if there is none, the BENEFICIARY will exercise the rights and privileges provided by the Contract. SEE "The Contract." In addition, if you die before the Payout Start Date, we will pay a death benefit to any surviving Contract owner, or if there is none, to your Beneficiary. SEE "Death Benefits." Please call us at 1-800-654-2397 if you have any question about how the Contract works. EXPENSE TABLE - ------------------------------------------------------------------- The table below lists the expenses that you will bear directly or indirectly when you buy a Contract. The table and the examples that follow do not reflect premium taxes that may be imposed by the state where you reside. For more information about Variable Account expenses, see "Expenses", below. For more information about Portfolio expenses, please refer to the accompanying prospectuses for the Funds. CONTRACT OWNER TRANSACTION EXPENSES Withdrawal Charge (as a percentage of purchase payments withdrawn)* (Without the Longevity Reward Rider) Number of Complete Years Since We Received the Purchase Payment Being Withdrawn**: 0 1 2 3 4 5 6+ - ----------------------------------------------------------------------------- Applicable Charge: 6% 5% 4% 3% 2% 1% 0% - ----------------------------------------------------------------------------- Annual Contract Maintenance Charge $30.00*** - ----------------------------------------------------------------------------- Transfer Fee $25.00**** - ----------------------------------------------------------------------------- *During each Contract Year, you may withdraw up to 15% of the aggregate amount of your purchase payments as of the beginning of the Contract Year without incurring a withdrawal charge. **If you qualify for and elect the Longevity Reward Rider, a withdrawal charge of up to 3% will apply to purchase payments received before or after the Rider date. See "Longevity Reward Rider" on page 28 for details. ***If you qualify for and elect the Longevity Reward Rider, we will waive the contract maintenance charge for the life of the Contract provided your total Contract Value is $40,000 or more on or after the date we issue the Rider (Rider Date). ****Applies solely to the thirteenth and subsequent transfers within a Contract Year excluding transfers due to dollar cost averaging and automatic portfolio rebalancing. We are currently waiving the transfer fee. VARIABLE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY NET ASSET VALUE DEDUCTED FROM EACH VARIABLE SUB-ACCOUNT)
For Contracts Issued Prior to January 31, 2001 with Old Options. - --------------------- -------------- --------------- -------------- ---------------- --------------- Basic With the With the With the With the Contract Enhanced Performance Income Benefit Income and Death Benefit Combination Death Benefit Benefit,* the Combination* Option 2** Combination Performance or the Option 2** Income Benefit,* or the Death Benefit Performance Combination Death Option Benefit Option - --------------------- -------------- --------------- -------------- ---------------- --------------- - --------------------- -------------- --------------- -------------- ---------------- --------------- Mortality and 1.25% 1.38% 1.49% 1.55% 1.75% Expense Risk Charge*** - --------------------- -------------- --------------- -------------- ---------------- --------------- - --------------------- -------------- --------------- -------------- ---------------- --------------- Administrative 0.10% 0.10% 0.10% 0.10% 0.10% Expense Charge - --------------------- -------------- --------------- -------------- ---------------- --------------- - --------------------- -------------- --------------- -------------- ---------------- --------------- Total Variable 1.35% 1.48% 1.59% 1.65% 1.85% Account Annual Expenses*** - --------------------- -------------- --------------- -------------- ---------------- --------------- - ------------------------------------------------------------------------------------ If the Enhanced Earnings Death Benefit Option is elected with the Base Contract or with the Options listed above - ------------------------------------------------------------------------------------ - --------------------- -------------- --------------- -------------- ---------------- --------------- Mortality and 1.45% 1.58% 1.69% 1.75% 1.95% Expense Risk Charge*** - --------------------- -------------- --------------- -------------- ---------------- --------------- - --------------------- -------------- --------------- -------------- ---------------- --------------- Administrative 0.10% 0.10% 0.10% 0.10% 0.10% Expense Charge - --------------------- -------------- --------------- -------------- ---------------- --------------- - --------------------- -------------- --------------- -------------- ---------------- --------------- Total Variable 1.55% 1.68% 1.79% 1.85% 2.05% Account Annual Expenses*** - --------------------- -------------- --------------- -------------- ---------------- ---------------
*The Enhanced Death Benefit Option, Performance Income Benefit Option, and the Performance Benefit Combination Option ("Old Options") were only available for Contracts issued on or before October 30, 2000 and only if added to such Contracts on or before January 31, 2001. ** The Income Benefit Combination Option 2 and the Income and Death Benefit Combination Option 2 ("New Options") are available with Contracts issued on or after October 30, 2000. The New Options are also available with Contracts issued before October 30, 2000 subject to certain limitations. See the description of these Options on pages __ and __ for details. ***If you qualify for and elect the Longevity Reward Rider, the mortality and expense risk charge is reduced by 0.07% under the basic policy or any Option described above. PORTFOLIO ANNUAL EXPENSES (After Voluntary Reductions and Reimbursements) (as a percentage of Portfolio average daily net assets)(1)
Management Total Portfolio Fees Rule Other Expenses Portfolio 12b-1 Annual Fees Expenses - ------------------------------------------------------------- --------------- -------- ---------------- -------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity Portfolio 0.75% N/A 0.07% 0.82% Capital Growth Portfolio 0.65% N/A 0.04% 0.69% Competitive Edge "Best Ideas" Portfolio 0.65% N/A 0.06% 0.71% Dividend Growth Portfolio 0.53% N/A 0.01% 0.54% Equity Portfolio 0.49% N/A 0.01% 0.50% European Growth Portfolio 0.94% N/A 0.06% 1.00% Global Dividend Growth Portfolio 0.75% N/A 0.05% 0.80% High Yield Portfolio 0.50% N/A 0.04% 0.54% Income Builder Portfolio 0.75% N/A 0.06% 0.81% Information Portfolio (2) 0.00% N/A 0.00% 0.00% Money Market Portfolio 0.50% N/A 0.02% 0.52% Pacific Growth Portfolio 0.95% N/A 0.26% 1.21% Quality Income Plus Portfolio 0.50% N/A 0.02% 0.52% Short-Term Bond Portfolio 0.45% N/A 0.53% 0.98% Strategist Portfolio 0.50% N/A 0.02% 0.52% S&P 500 Index Portfolio 0.40% N/A 0.05% 0.45% Utilities Portfolio 0.64% N/A 0.02% 0.66% THE UNIVERSAL INSTITUTIONAL FUNDS, INC.(3) Emerging Markets Equity Portfolio 1.09% N/A 0.71% 1.80% Equity Growth Portfolio 0.48% N/A 0.37% 0.85% International Magnum Portfolio 0.50% N/A 0.68% 1.18% Mid Cap Value Portfolio 0.53% N/A 0.52% 1.05% U.S. Real Estate Portfolio 0.74% N/A 0.36% 1.10% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation Fund 0.61% N/A 0.21% 0.82% AIM V.I. Growth Fund 0.61% N/A 0.22% 0.83% AIM V.I. Value Fund 0.61% N/A 0.23% 0.84% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) (4) Alliance Growth Portfolio 0.75% 0.25% 0.08% 1.08% Alliance Growth and Income Portfolio 0.63% 0.25% 0.07% 0.95% Alliance Premier Growth Portfolio 1.00% 0.25% 0.05% 1.30% PUTNAM VARIABLE TRUST (CLASS B SHARES) Putnam VT Growth and Income Fund 0.46% 0.15% 0.04% 0.65% Putnam VT International Growth Fund 0.80% 0.15% 0.17% 1.12% Putnam VT Voyager Fund 0.51% 0.15% 0.05% 0.71% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth Portfolio 0.70% N/A 0.05% 0.75% 1. Figures shown in the Table are for the year ended December 31, 2000 (except as otherwise noted). 2. The investment manager has agreed to assume all operating expenses and to waive the compensation provided for in its investment management agreement until such time as the Portfolio has $50 million of net assets or May 6, 2001, whichever occurs first. If the investment manager had not assumed and waived these expenses, the annualized ratio of expenses to average net assets would have been 0.75% for "Management Fees" and 1.07% for "Other Expenses" and 1.82% for "Total Portfolio Annual Expenses." 3. Absent voluntary reductions and reimbursements for certain Portfolios, "Management Fees," "Rule 12b-1 Fees," "Other Expenses," and "Total Portfolio Annual Expenses" as a percent of average net assets of the portfolios would have been as follows: Management Total Portfolio Fees Rule 12b-1 Other Portfolio Fees Expenses Annual Expenses - --------------------------------------------------------- -------------- --------------- ------------- --------------- Emerging Markets Equity Portfolio 1.25% N/A 0.71% 1.96% Equity Growth Portfolio 0.55% N/A 0.37% 0.92% International Magnum Portfolio 0.80% N/A 0.68% 1.48% Mid Cap Value Portfolio 0.75% N/A 0.52% 1.27% U.S. Real Estate Portfolio 0.80% N/A 0.36% 1.16% The Portfolio's Advisor may discontinue all or part of these reductions and reimbursements at any time. Additionally, in determining the actual amount of voluntary management fee waiver and/or expense reimbursement for a Portfolio, if any, the adviser excluded from the total annual operating expenses certain investment related expenses, such as foreign country tax expense and interest expense on borrowing. If included in "Other Expenses", respectively, Other Expenses would be increased as follows: Emerging Markets Equity Portfolio 0.05% and International Magnum Portfolio 0.03%. 4. Class B of the Alliance Variable Products Series Fund, Inc. has a distribution plan or "Rule 12b-1" plan as described in the Fund's prospectus.
EXAMPLE 1 The example below shows the dollar amount of expenses that you would bear directly or indirectly if you: - - invested $1,000 in a Variable Sub-Account, - - earned a 5% annual return on your investment, - - surrendered your Contract, or you began receiving income payments for a specified period of less than 120 months, at the end of each time period, - - elected the Income and Death Benefit Combination Option 2, and - - elected the Enhanced Earnings Death Benefit Option. THE EXAMPLE ASSUMES THAT ANY PORTFOLIO EXPENSE WAIVERS OR REIMBURSEMENT ARRANGEMENTS DESCRIBED IN THE FOOTNOTES ABOVE ARE IN EFFECT FOR THE TIME PERIODS PRESENTED BELOW. THE EXAMPLE DOES NOT INCLUDE ANY TAXES OR TAX PENALTIES YOU MAY BE REQUIRED TO PAY IF YOU SURRENDER YOUR CONTRACT.
Variable Sub-Account 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity $72 $117 $164 $328 Capital Growth $71 $113 $158 $315 Competitive Edge "Best Ideas" $71 $114 $159 $317 Dividend Growth $70 $109 $150 $300 Equity $69 $107 $148 $296 European Growth $74 $123 $173 $345 Global Dividend Growth $72 $117 $163 $326 High Yield $70 $109 $150 $300 Income Builder $72 $117 $164 $327 Information $64 $ 92 $122 $245 Money Market $69 $108 $149 $298 Pacific Growth $76 $129 $184 $365 Quality Income Plus $69 $108 $149 $298 Short-Term Bond $74 $122 $172 $343 S&P 500 Index $70 $106 $146 $291 Strategist $69 $108 $149 $298 Utilities $71 $112 $156 $312 AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation $72 $117 $164 $328 AIM V.I. Growth $73 $117 $165 $329 AIM V.I. Value $73 $118 $165 $330 ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income $74 $121 $171 $340 Alliance Growth $75 $125 $177 $353 Alliance Premier Growth $77 $132 $188 $373 THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity $83 $147 $212 $418 Equity Growth $73 $118 $166 $331 International Magnum $76 $128 $182 $362 Mid Cap Value $75 $124 $176 $350 U.S. Real Estate $75 $126 $178 $354 PUTNAM VARIABLE TRUST (CLASS B SHARES) Putnam VT Growth and Income $72 $115 $161 $321 Putnam VT International Growth $76 $129 $184 $366 Putnam VT Voyager $72 $117 $164 $327 VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth $72 $115 $161 $321 EXAMPLE 2 Same assumptions as Example 1 above, except that you decided not to surrender your Contract, or you began receiving income payments (for at least 120 months if under an Income Plan with a specified period), at the end of each period. Variable Sub-Account 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity $30 $92 $156 $328 Capital Growth $29 $88 $149 $315 Competitive Edge "Best Ideas" $29 $88 $150 $317 Dividend Growth $27 $83 $142 $300 Equity $27 $82 $140 $296 European Growth $32 $97 $165 $345 Global Dividend Growth $30 $91 $155 $326 High Yield $27 $83 $142 $300 Income Builder $30 $91 $155 $327 Information $22 $66 $114 $245 Money Market $27 $82 $141 $298 Pacific Growth $34 $103 $175 $365 Quality Income Plus $27 $82 $141 $298 Short-Term Bond $32 $97 $164 $343 S&P 500 Index $26 $80 $137 $291 Strategist $27 $82 $141 $298 Utilities $28 $87 $148 $312 AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation $30 $92 $156 $328 AIM V.I. Growth $30 $92 $156 $329 AIM V.I. Value $30 $92 $157 $330 ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income $31 $96 $162 $340 Alliance Growth $31 $100 $169 $353 Alliance Premier Growth $35 $106 $180 $373 THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity $40 $121 $204 $418 Equity Growth $30 $93 $157 $331 International Magnum $34 $103 $174 $362 Mid Cap Value $32 $99 $167 $350 U.S. Real Estate $33 $100 $170 $354 PUTNAM VARIABLE TRUST (CLASS B SHARES) Putnam VT Growth and Income $29 $90 $152 $321 Putnam VT International Growth $34 $104 $176 $366 Putnam VT Voyager $30 $91 $155 $327 VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth Portfolio $29 $90 $152 $321
PLEASE REMEMBER THAT YOU ARE LOOKING AT EXAMPLES AND NOT A REPRESENTATION OF PAST OR FUTURE EXPENSES. YOUR ACTUAL EXPENSES MAY BE LOWER OR GREATER THAN THOSE SHOWN ABOVE. SIMILARLY, YOUR RATE OF RETURN MAY BE LOWER OR GREATER THAN 5%, WHICH IS NOT GUARANTEED. THE ABOVE EXAMPLES ASSUME THE ELECTION OF BOTH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2 WITH A MORTALITY AND EXPENSE RISK CHARGE OF 1.95%. IF THOSE OPTIONS WERE NOT ELECTED, THE EXPENSE FIGURES SHOWN ABOVE WOULD BE SLIGHTLY LOWER. TO REFLECT THE CONTRACT MAINTENANCE CHARGE IN THE EXAMPLES, WE ESTIMATED AN EQUIVALENT PERCENTAGE CHARGE, BASED ON AN ASSUMED AVERAGE CONTRACT SIZE OF $54,945. FINANCIAL INFORMATION - ------------------------------------------------------------------- To measure the value of your investment in the Variable Sub-Accounts during the Accumulation Phase, we use a unit of measure we call the "Accumulation Unit." Each Variable Sub-Account has a separate value for its Accumulation Units we call "Accumulation Unit Value." Accumulation Unit Value is similar to, but not the same as, the share price of a mutual fund. Attached as Appendix A to this prospectus are tables showing the Accumulation Unit Values of each Variable Sub-Account since its inception. To obtain additional detail on each Variable Sub-Account's finances, please refer to the Variable Account's financial statements contained in the Statement of Additional Information. The financial statements of Northbrook also appear in the Statement of Additional Information. THE CONTRACT - ------------------------------------------------------------------- CONTRACT OWNER The Variable Annuity II is a contract between you, the Contract owner, and Northbrook, a life insurance company. As the Contract owner, you may exercise all of the rights and privileges provided to you by the Contract. That means it is up to you to select or change (to the extent permitted): - - the investment alternatives during the Accumulation and Payout Phases, - - the amount and timing of your purchase payments and withdrawals, - - the programs you want to use to invest or withdraw money, - - the income payment plan you want to use to receive retirement income, - - the Annuitant (either yourself or someone else) on whose life the income payments will be based, - - the owner, while the Annuitant is alive, - - the Beneficiary or Beneficiaries who will receive the benefits that the Contract provides when the last surviving Contract owner dies, and - - any other rights that the Contract provides. If you die, any surviving Contract owner, or, if none, the Beneficiary will exercise the rights and privileges provided to them by the Contract. The Contract cannot be jointly owned by both a non-natural person and a natural person. The maximum age of the oldest Contract Owner cannot exceed age 90 as of the date we receive the completed application. You can use the Contract with or without a qualified plan. A "qualified plan" is a retirement savings plan, such as an IRA or tax-sheltered annuity, that meets the requirements of the Internal Revenue Code. Qualified plans may limit or modify your rights and privileges under the Contract. We use the term "Qualified Contract" to refer to a Contract used with a qualified plan. See "Qualified Plans" on page 33. ANNUITANT The Annuitant is the individual whose life span we use to determine income payments as well as the latest Payout Start Date. You initially designate an Annuitant in your application. The maximum age of the oldest Annuitant cannot exceed age 90 as of the date we receive the completed application. If the Contract owner is a natural person, you may change the Annuitant before the Payout Start Date. before the Payout Start Date, you may also designate a joint Annuitant, who is a second person on whose life income payments depend. BENEFICIARY The Beneficiary is the person who may elect to receive the death benefit or become the new Contract owner if the sole surviving Contract owner dies before the Payout Start Date. If the sole surviving Contract owner dies after the Payout Start Date, the Beneficiary will receive any guaranteed income payments scheduled to continue. You may name one or more Beneficiaries when you apply for a Contract. You may change or add Beneficiaries at any time while the Annuitant is living by writing to us, unless you have designated an irrevocable Beneficiary. We will provide a change of Beneficiary form to be signed and filed with us. Any change will be effective at the time you sign the written notice, whether or not the Annuitant is living when we receive the notice. Until we receive your written notice to change a Beneficiary, we are entitled to rely on the most recent Beneficiary information in our files. We will not be liable as to any payment or settlement made prior to receiving the written notice. Accordingly, if you wish to change your Beneficiary, you should deliver your written notice to us promptly. If you did not name a Beneficiary or, if the named Beneficiary is no longer living and there are no other surviving Beneficiaries, the new Beneficiary will be: - - your spouse, if he or she is still alive, otherwise - - your surviving children equally, or if you have no surviving children, - - your estate. If more than one Beneficiary survives you, (or the Annuitant, if the Contract owner is not a natural person) we will divide the death benefit among your Beneficiaries according to your most recent written instructions. If you have not given us written instructions, we will pay the death benefit in equal amounts to the surviving Beneficiaries. MODIFICATION OF THE CONTRACT Only a Northbrook officer may approve a change in or waive any provision of the Contract. Any change or waiver must be in writing. None of our agents has the authority to change or waive the provisions of the Contract. We may not change the terms of the Contract without your consent, except to conform the Contract to applicable law or changes in the law. If a provision of the Contract is inconsistent with state law, we will follow state law. ASSIGNMENT We will not honor an assignment of an interest in a Contract as collateral or security for a loan. However, you may assign periodic income payments under the Contract prior to the Payout Start Date. No Beneficiary may assign benefits under the Contract until they are payable to the Beneficiary. We will not be bound by any assignment until you sign it and file it with us. We are not responsible for the validity of any assignment. Federal law prohibits or restricts the assignment of benefits under many types of retirement plans and the terms of such plans may themselves contain restrictions on assignments. An assignment may also result in taxes or tax penalties. YOU SHOULD CONSULT WITH AN ATTORNEY BEFORE TRYING TO ASSIGN YOUR CONTRACT. PURCHASES - ------------------------------------------------------------------- MINIMUM PURCHASE PAYMENTS Your initial purchase payment must be at least $1,000. However, we reserve the right to raise that minimum to as much as $4,000. All subsequent purchase payments must be $25 or more. You may make purchase payments at any time prior to the Payout Start Date. We reserve the right to limit the maximum amount of purchase payments we will accept. We also reserve the right to reject any application. AUTOMATIC ADDITIONS PROGRAM You may make subsequent purchase payments of at least $25 by automatically transferring amounts from your bank account or your Morgan Stanley Dean Witter Active Assets-TM- Account. Please consult your Morgan Stanley Dean Witter Financial Advisor for details. ALLOCATION OF PURCHASE PAYMENTS At the time you apply for a Contract, you must decide how to allocate your purchase payments among the investment alternatives. The allocation you specify on your application will be effective immediately. All allocations must be in whole percentages that total 100% or in whole dollars. The minimum you may allocate to any investment alternative is $100. The minimum amount that you may allocate to the Guarantee Periods is $500. You can change your allocations by notifying us in writing. We will allocate your purchase payments to the investment alternatives according to your most recent instructions on file with us. Unless you notify us in writing otherwise, we will allocate subsequent purchase payments according to the allocation for the previous purchase payment. We will effect any change in allocation instructions at the time we receive written notice of the change in good order. We will credit the initial purchase payment that accompanies your completed application to your Contract within 2 business days after we receive the payment at our headquarters. If your application is incomplete, we will ask you to complete your application within 5 business days. If you do so, we will credit your initial purchase payment to your Contract within that 5 business day period. If you do not, we will return your purchase payment at the end of the 5 business day period unless you expressly allow us to hold it until you complete the application. We will credit subsequent purchase payments to the Contract on the business day that we receive the purchase payment at our headquarters. We use the term "business day" to refer to each day Monday through Friday that the New York Stock Exchange is open for business. We also refer to these days as VALUATION DATES. If we receive your purchase payment after 3 p.m. Central Time on any Valuation Date, we will credit your purchase payment using the Accumulation Unit Values computed on the next Valuation Date. RIGHT TO CANCEL You may cancel the Contract within the Cancellation Period, which is the 20-day period after you receive the Contract or such longer period as your state may require. If you exercise this RIGHT TO CANCEL, the Contract terminates and we will pay you the full amount of your purchase payments allocated to the Fixed Account Options. We also will return your purchase payments allocated to the Variable Account after an adjustment, to the extent applicable law permits, to reflect investment gain or loss that occurred from the date of allocation through the date of cancellation. Some states may require us to return a greater amount to you. CONTRACT VALUE - ------------------------------------------------------------------- Your Contract Value at any time during the Accumulation Phase is equal to the sum of the value of your Accumulation Units in the Variable Sub-Accounts you have selected, plus the value of your investment in the Fixed Account Options. ACCUMULATION UNITS To determine the number of Accumulation Units of each Variable Sub-Account to allocate to your Contract, we divide (i) the amount of the purchase payment or transfer you have allocated to a Variable Sub-Account by (ii) the Accumulation Unit Value of that Variable Sub-Account next computed after we receive your payment or transfer. For example, if we receive a $10,000 purchase payment allocated to a Variable Sub-Account when the Accumulation Unit Value for the Sub-Account is $10, we would credit 1,000 Accumulation Units of that Variable Sub-Account to your Contract. Withdrawals and transfers from a Variable Sub-Account would, of course, reduce the number of Accumulation Units of that Sub-Account allocated to your Contract. ACCUMULATION UNIT VALUE As a general matter, the Accumulation Unit Value for each Variable Sub-Account will rise or fall to reflect: - - changes in the share price of the Portfolio in which the Variable Sub-Account invests, and - - the deduction of amounts reflecting the mortality and expense risk charge, administrative expense charge, and any provision for taxes that have accrued since we last calculated the Accumulation Unit Value. We determine contract maintenance charges, withdrawal charges, and transfer fees (currently waived) separately for each Contract. They do not affect Accumulation Unit Value. Instead, we obtain payment of those charges and fees by redeeming Accumulation Units. For details on how we calculate Accumulation Unit Value, please refer to the Statement of Additional Information. We determine a separate Accumulation Unit Value for each Variable Sub-Account on each Valuation Date. We also determine a separate set of Accumulation Unit Values that reflect the cost of each optional benefit, or available combinations thereof, offered under the Contract. YOU SHOULD REFER TO THE PROSPECTUSES FOR THE FUNDS THAT ACCOMPANY THIS PROSPECTUS FOR A DESCRIPTION OF HOW THE ASSETS OF EACH PORTFOLIO ARE VALUED, SINCE THAT DETERMINATION DIRECTLY BEARS ON THE ACCUMULATION UNIT VALUE OF THE CORRESPONDING VARIABLE SUB-ACCOUNT AND, THEREFORE, YOUR CONTRACT VALUE. INVESTMENT ALTERNATIVES: THE VARIABLE SUB-ACCOUNTS - ------------------------------------------------------------------- You may allocate your purchase payments to up to 32 Variable Sub-Accounts. Each Variable Sub-Account invests in the shares of a corresponding Portfolio. Each Portfolio has its own investment objective(s) and policies. We briefly describe the Portfolios below. For more complete information about each Portfolio, including expenses and risks associated with the Portfolio, please refer to the accompanying prospectuses for the Funds. You should carefully review the Fund prospectuses before allocating amounts to the Variable Sub-Accounts.
PORTFOLIO: EACH PORTFOLIO SEEKS: INVESTMENT ADVISER: MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive EquityPortfolio Capital growth Capital Growth Portfolio Long-term capital growth Competitive Edge Best Ideas Portfolio Long-term capital growth Dividend Growth Portfolio Reasonable current income and long-term growth of income and capital Equity Portfolio Growth of capital and, as a secondary objective, income when consistent with its primary objective European Growth Portfolio To maximize the capital appreciation on its investments Global Dividend Growth Portfolio Reasonable current income and long-term growth of income and capital Income Builder Portfolio Reasonable income and, as a secondary objective, growth of capital Information Portfolio Long-term capital appreciation High Yield Portfolio High current income and, as a Morgan Stanley Dean Witter secondary objective, Advisors, Inc. capital appreciation when consistent with its primary objective Mid-Cap Value Above-average total return over a market cycle of three to five years Money Market Portfolio High current income, preservation of capital, and liquidity Pacific Growth Portfolio To maximize the capital appreciation on its investments Quality Income Plus Portfolio High current income and, as a secondary objective, capital appreciation when consistent with its primary objective Short-Term Bond Portfolio High current income consistent with preservation of capital Strategist Portfolio High total investment return S&P 500 Index Portfolio Investment results that, before expenses, correspond to the total return of the Standard and Poor's 500 Composite Stock Price Index Utilities Portfolio Current income and long term growth of income and capital THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity Portfolio Long-term capital appreciation Equity Growth Portfolio Long-term capital appreciation Morgan Stanley Asset International Magnum Portfolio Long-term capital appreciation Management U.S. Real Estate Portfolio Above-average current income and long-term capital appreciation VAN KAMPEN LIFE INVESTMENT TRUST Emerging Growth Portfolio Capital appreciation Van Kampen Asset Management Inc. AIM VARIABLE INSURANCE FUNDS* AIM V.I. Capital Appreciation Fund Growth of capital AIM Advisors, Inc. AIM V.I. Growth Fund Growth of capital. Income is a secondary objective. AIM V.I. Value Fund Long-term growth of capital ALLIANCE VARIABLE PRODUCTS SERIES FUND Growth Portfolio Long-term growth of capital. Alliance Capital Current income is incidental to Management, L.P. the Portfolio's objective Growth and Income Portfolio Reasonable current income and reasonable opportunity for appreciation Premier Growth Portfolio Growth of capital by pursuing aggressive investment policies PUTNAM VARIABLE TRUST Putnam VT Growth and Income Fund Capital growth and current Putnam Investment income Management, Inc. Putnam VT International Growth Fund Capital growth Putnam VT Voyager Fund Capital appreciation
* A portfolios' investment objective may be changed by the Funds' Board of Trustees without shareholder approval. AMOUNTS YOU ALLOCATE TO VARIABLE SUB-ACCOUNTS MAY GROW IN VALUE, DECLINE IN VALUE, OR GROW LESS THAN YOU EXPECT, DEPENDING ON THE INVESTMENT PERFORMANCE OF THE PORTFOLIOS IN WHICH THOSE VARIABLE SUB-ACCOUNTS INVEST. YOU BEAR THE INVESTMENT RISK THAT THE PORTFOLIOS MIGHT NOT MEET THEIR INVESTMENT OBJECTIVES. SHARES OF THE PORTFOLIOS ARE NOT DEPOSITS, OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY ANY BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. INVESTMENT ALTERNATIVES: THE FIXED ACCOUNT OPTIONS - ------------------------------------------------------------------- You may allocate all or a portion of your purchase payments to the Fixed Account Options. We currently offer the basic Dollar Cost Averaging Fixed Account Option, and we may offer the additional Dollar Cost Averaging Fixed Account Options described below. However, the 6 and 12 month Dollar Cost Averaging Options currently are not available. Please consult with your Morgan Stanley Dean Witter Financial Advisor for current information. The Fixed Account supports our insurance and annuity obligations. The Fixed Account consists of our general assets other than those in segregated asset accounts. We have sole discretion to invest the assets of the Fixed Account, subject to applicable law. Any money you allocate to a Fixed Account Option does not entitle you to share in the investment experience of the Fixed Account. DOLLAR COST AVERAGING FIXED ACCOUNT OPTIONS BASIC DOLLAR COST AVERAGING OPTION. You may establish a Dollar Cost Averaging Program, as described on page 20, by allocating purchase payments to the BASIC DOLLAR COST AVERAGING OPTION. Purchase payments that you allocate to the Basic Dollar Cost Averaging Option will earn interest for a 1 year period at the current rate in effect at the time of allocation. We will credit interest daily at a rate that will compound over the year to the annual interest rate we guaranteed at the time of allocation. Rates may be different than those available for the Guarantee Periods described below. After the one year period, we will declare a renewal rate which we guarantee for a full year. Subsequent renewal dates will be every twelve months for each purchase payment. Renewal rates will not be less than the minimum guaranteed rate found in the Contract. You may not transfer funds from other investment alternatives to the Basic Dollar Cost Averaging Option. 6 AND 12 MONTH DOLLAR COST AVERAGING OPTIONS. In the future, we may offer 6 and 12 month Dollar Cost Averaging Options. Under these options, you may establish a Dollar Cost Averaging Program by allocating purchase payments to the Fixed Account either for 6 months (the "6 MONTH DOLLAR COST AVERAGING OPTION") or for 12 months (the "12 MONTH DOLLAR COST AVERAGING OPTION"). Your purchase payments will earn interest for the period you select at the current rates in effect at the time of allocation. Rates may differ from those available for the Guarantee Periods described below. However, the crediting rates for the 6 and 12 Month Dollar Cost Averaging Options will never be less than 3% annually. You must transfer all of your money out of the 6 or 12 Month Dollar Cost Averaging Options to the Variable Sub-Accounts in equal monthly installments. If you discontinue a 6 or 12 Month Dollar Cost Averaging Option prior to last scheduled transfer, we will transfer any remaining money immediately to the Money Market Variable Sub-Account, unless you request a different Variable Sub- Account. You may not transfer funds from other investment alternatives to the 6 or 12 Month Dollar Cost Averaging Options. Transfers out of the Dollar Cost Averaging Fixed Account Options do not count towards the 12 transfers you can make without paying a transfer fee. We may declare more than one interest rate for different monies based upon the date of allocation to the Dollar Cost Averaging Fixed Account Options. For availability and current interest rate information, please contact your sales representative or our customer support unit at 1-800-654-2397. GUARANTEE PERIODS You may allocate purchase payments or transfers to one or more Guarantee Periods of the Fixed Account ("Guarantee Periods"). Each payment or transfer allocated to a Guarantee Period earns interest at a specified rate that we guarantee for a period of years. We will offer a 1 year Guarantee Period. We offer additional Guarantee Periods at our sole discretion. We currently offer a 1 year and a 6 year Guarantee Period. INTEREST RATES. We will tell you what interest rates and Guarantee Periods we are offering at a particular time. We will not change the interest rate that we credit to a particular allocation until the end of the relevant Guarantee Period. We may declare different interest rates for Guarantee Periods of the same length that begin at different times. We have no specific formula for determining the rate of interest that we will declare initially or in the future. We will set those interest rates based on investment returns available at the time of the determination. In addition, we may consider various other factors in determining interest rates including regulatory and tax requirements, our sales commission and administrative expenses, general economic trends, and competitive factors. WE DETERMINE THE INTEREST RATES TO BE DECLARED IN OUR SOLE DISCRETION. WE CAN NEITHER PREDICT NOR GUARANTEE WHAT THOSE RATES WILL BE IN THE FUTURE. The interest rate will never be less than the minimum guaranteed rate stated in the Contract. After the Guarantee Period, we will declare a renewal rate. Subsequent renewal dates will be on anniversaries of the first renewal date. On or about each renewal date, the Company will notify the owner of the interest rate(s) for the Contract Year then starting. INVESTMENT ALTERNATIVES: TRANSFERS - ------------------------------------------------------------------- TRANSFERS DURING THE ACCUMULATION PHASE During the Accumulation Phase, you may transfer Contract Value among the investment alternatives. Transfers to any Guarantee Period must be at least $500. You may not, however, transfer Contract Value into any of the Dollar Cost Averaging Fixed Account Options. You may request transfers in writing on a form that we provide or by telephone according to the procedure described below. The minimum amount that you may transfer is $100 or the total amount in the investment alternative, whichever is less. We currently do not assess, but reserve the right to assess, a $25 charge on each transfer in excess of 12 per Contract Year. We will notify you at least 30 days before we begin imposing the transfer charge. We treat transfers to or from more than one Portfolio on the same day as one transfer. We limit the amount you may transfer from the Guarantee Periods to the Variable Account in any Contract Year to the greater of: 1. 25% of the aggregate value in the Guarantee Periods as of the most recent Contract Anniversary (if this amount is less than $1,000, then up to $1,00 may be transferred); or 2. 25% of the sum of all purchase payments and transfers to the Guarantee Periods as of the most recent Contract Anniversary. These restrictions do not apply to transfers pursuant to dollar cost averaging. If the first renewal interest rate is less than the current rate that was in effect at the time money was allocated or transferred to a Guarantee Period, we will waive the transfer restriction for that money and the accumulated interest thereon during the 60-day period following the first renewal date. We will process transfer requests that we receive before 3:00 p.m. Central Time on any Valuation Date using the Accumulation Unit Values for that date. We will process written requests completed after 3:00 p.m. on any Valuation Date using the Accumulation Unit Values for the next Valuation Date. The Contract permits us to defer transfers from the Fixed Account Options for up to six months from the date we receive your request. If we decide to postpone transfers for 30 days or more, we will pay interest as required by applicable law. Any interest would be payable from the date we receive the transfer request to the date we make the transfer. EXCESSIVE TRADING LIMITS For Contracts issued after May 2, 1999, we reserve the right to limit transfers among the Variable Sub-Accounts if we determine, in our sole discretion, that transfers by one or more Contract owners would be to the disadvantage of other Contract owners. We may limit transfers by taking such steps as: - - imposing a minimum time period between each transfer, - - refusing to accept transfer requests of an agent acting under a power of attorney on behalf of more than one Contract owner, or - - limiting the dollar amount that a Contract owner may transfer between the Variable Sub-Accounts and the Fixed Account Options at any one time. We may apply the restrictions in any manner reasonably designed to prevent transfers that we consider disadvantageous to other Contract owners. We reserve the right to waive any transfer restrictions. TRANSFERS DURING THE PAYOUT PHASE During the Payout Phase, you may make transfers among the Variable Sub-Accounts so as to change the relative weighting of the Variable Sub-Accounts on which your variable income payments will be based. In addition, you will have a limited ability to make transfers from the Variable Sub-Accounts to increase the proportion of your income payments consisting of fixed income payments. You may not, however, convert any portion of your right to receive fixed income payments into variable income payments. You may not make any transfers for the first 6 months after the Payout Start Date. Thereafter, you may make transfers among the Variable Sub-Accounts or make transfers from the Variable Sub-Accounts to increase the proportion of your income payments consisting of fixed income payments. Your transfers must be at least 6 months apart. TELEPHONE TRANSFERS You may make transfers by telephone by calling 1-800-654-2397 if you have on file a completed authorization form. The cut off time for telephone transfer requests is 3:00 p.m. Central Time. In the event that the New York Stock Exchange closes early, i.e., before 3:00 p.m. Central Time, or in the event that the Exchange closes early for a period of time but then reopens for trading on the same day, we will process telephone transfer requests as of the close of the Exchange on that particular day. We will not accept telephone requests received at any telephone number other than the number that appears in this paragraph or received after the close of trading on the Exchange. We may suspend, modify or terminate the telephone transfer privilege at any time without notice. We use procedures that we believe provide reasonable assurance that the telephone transfers are genuine. For example, we tape telephone conversations with persons purporting to authorize transfers and request identifying information. Accordingly, we disclaim any liability for losses resulting from allegedly unauthorized telephone transfers. However, if we do not take reasonable steps to help ensure that a telephone authorization is valid, we may be liable for such losses. DOLLAR COST AVERAGING PROGRAM Through our Dollar Cost Averaging Program, you may automatically transfer a set amount every month (or other intervals we may offer) during the Accumulation Phase from any Variable Sub-Account or the Dollar Cost Averaging Fixed Account Option(s) to any Variable Sub-Account. Transfers made through dollar cost averaging must be $100 or more. The theory of dollar cost averaging is that if purchases of equal dollar amounts are made at fluctuating prices, the aggregate average cost per unit will be less than the average of the unit prices on the same purchase dates. However, participation in this Program does not assure you of a greater profit from your purchases under the Program nor will it prevent or necessarily reduce losses in a declining market. Call or write us for information on how to enroll. AUTOMATIC PORTFOLIO REBALANCING PROGRAM Once you have allocated your money among the Variable Sub-Accounts, the performance of each Sub-Account may cause a shift in the percentage you allocated to each Sub-Account. If you select our AUTOMATIC PORTFOLIO REBALANCING PROGRAM, we will automatically rebalance the Contract Value in each Variable Sub-Account and return it to the desired percentage allocations. We will not include money you allocate to the Fixed Account Options in the Automatic Portfolio Rebalancing Program. We will rebalance your account each quarter (or other intervals that we may offer) according to your instructions. We will transfer amounts among the Variable Sub-Accounts to achieve the percentage allocations you specify. You can change your allocations at any time by contacting us in writing or by telephone. The new allocation will be effective with the first rebalancing that occurs after we receive your request. We are not responsible for rebalancing that occurs prior to receipt of your request. Example: Assume that you want your initial purchase payment split among 2 Variable Sub-Accounts. You want 40% to be in the High Yield Variable Sub-Account and 60% to be in the Equity Growth Variable Sub-Account. Over the next 2 months the bond market does very well while the stock market performs poorly. At the end of the first quarter, the High Yield Variable Sub-Account now represents 50% of your holdings because of its increase in value. If you choose to have your holdings rebalanced quarterly, on the first day of the next quarter, we would sell some of your units in the High Yield Variable Sub-Account and use the money to buy more units in the Equity Growth Variable Sub-Account so that the percentage allocations would again be 40% and 60% respectively. The Automatic Portfolio Rebalancing Program is available only during the Accumulation Phase. The transfers made under the Program do not count towards the 12 transfers you can make without paying a transfer fee, and are not subject to a transfer fee. Portfolio rebalancing is consistent with maintaining your allocation of investments among market segments, although it is accomplished by reducing your Contract Value allocated to the better performing segments. EXPENSES - ------------------------------------------------------------------- As a Contract owner, you will bear, directly or indirectly, the charges and expenses described below. CONTRACT MAINTENANCE CHARGE During the Accumulation Phase, on each Contract Anniversary we will deduct a $30 contract maintenance charge from your Contract Value. This charge will be deducted on a pro rata basis from each investment alternative in the proportion that your investment in each bears to your Contract Value. We also will deduct a full contract maintenance charge if you withdraw your entire Contract Value. During the Payout Phase, we will deduct the charge proportionately from each income payment. The charge is to compensate us for the cost of administering the Contracts and the Variable Account. Maintenance costs include expenses we incur in billing and collecting purchase payments; keeping records; processing death claims, cash withdrawals, and policy changes; proxy statements; calculating Accumulation Unit Values and income payments; and issuing reports to Contract owners and regulatory agencies. We cannot increase the charge. The contract maintenance charge is waived under certain circumstances if you qualify for and elect the Longevity Reward Rider. See "Longevity Reward Rider" on page 28 for details. MORTALITY AND EXPENSE RISK CHARGE We deduct a mortality and expense risk charge daily at the following annual rates (as a percentage of average daily net assets): Base Contract 1.25% w/Enhanced Death Benefit Option 1.38% w/Performance Death Benefit Option 1.38% w/Performance Income Benefit Option 1.38% w/Performance Benefit Combination Option 1.49% w/Death Benefit Combination Option 1.49% w/Income Benefit Combination Option 2 1.55% w/Income and Death Benefit Combination Option 2 1.75% We charge an additional mortality and expense risk charge of 0.20% for the Enhanced Earnings Death Benefit Option. If you qualify for and elect the Longevity Reward Rider, your mortality and expense risk charge would be lower by 0.07%. See the description of each Option and the Longevity Reward Rider for the availability of each. The mortality and expense risk charge is for all the insurance benefits available with your Contract (including our guarantee of annuity rates and the death benefits), for certain expenses of the Contract, and for assuming the risk (expense risk) that the current charges will not be sufficient in the future to cover the cost of administering the Contract. If the charges under the Contract are not sufficient, then we will bear the loss. We charge an additional amount for the Death Benefit Options and the Income Benefit Options to compensate us for the additional risk that we accept by providing these Options. We guarantee the mortality and expense risk charge and we cannot increase it. We assess the mortality and expense risk charge during both the Accumulation Phase and the Payout Phase. ADMINISTRATIVE EXPENSE CHARGE We deduct an administrative expense charge daily at an annual rate of 0.10% of the average daily net assets you have invested in the Variable Sub-Accounts. We intend this charge to cover actual administrative expenses that exceed the revenues from the contract maintenance charge. There is no necessary relationship between the amount of administrative charge imposed on a given Contract and the amount of expenses that may be attributed to that Contract. We assess this charge each day during the Accumulation Phase and the Payout Phase. TRANSFER FEE We do not currently impose a fee upon transfers among the investment alternatives. However, we reserve the right to charge $25 per transfer after the 12th transfer in each Contract Year. We will not charge a transfer fee on transfers that are part of a Dollar Cost Averaging or Automatic Portfolio Rebalancing Program. WITHDRAWAL CHARGE We may assess a withdrawal charge of up to 6% of the purchase payment(s) you withdraw. This charge declines to 0% after the expiration of 6 years from the day we receive the purchase payment being withdrawn. A schedule showing how the withdrawal charge declines over the 6-year period is shown on page 7. During each Contract Year, you can withdraw all remaining purchase payments beyond the withdrawal charge period or up to 15% of the aggregate amount of your purchase payments (as of the Issue Date or the most recent Contract Anniversary, whichever is later), whichever is greater, without paying a withdrawal charge. Unused portions of this FREE WITHDRAWAL AMOUNT are not carried forward to future Contract Years. If you qualify for and elect the Longevity Reward Rider, a withdrawal charge of up to 3% will apply to purchase payments received before or after the Rider Date. See "Longevity Reward Rider" on pages 28 and 29 for details. We will deduct withdrawal charges, if applicable, from the amount paid, unless you instruct otherwise. For purposes of the withdrawal charge, we will treat withdrawals as coming from purchase payments, starting with the oldest purchase payments first and then from earnings. Therefore, additional purchase payments may reduce your ability to withdraw earnings without incurring a withdrawal charge. However, for federal income tax purposes, please note that withdrawals are considered to have come first from earnings, which means you pay taxes on the earnings portion of your withdrawal. We do not apply a withdrawal charge in the following situations: - - on the Payout Start Date (a withdrawal charge may apply if you elect to receive income payments for a specified period of less than 120 months); - - the death of the Contract owner or Annuitant, unless the Settlement Value is used and - - withdrawals taken to satisfy IRS minimum distribution rules for the Contract. We use the amounts obtained from the withdrawal charge to pay sales commissions and other promotional or distribution expenses associated with marketing the Contracts. To the extent that the withdrawal charge does not cover all sales commissions and other promotional or distribution expenses, we may use any of our corporate assets, including potential profit which may arise from the mortality and expense risk charge or any other charges or fee described above, to make up any difference. Withdrawals also may be subject to tax penalties or income tax. You should consult your own tax counsel or other tax advisers regarding any withdrawals. PREMIUM TAXES Some states and other governmental entities (e.g., municipalities) charge premium taxes or similar taxes. We are responsible for paying these taxes and will deduct them from your Contract Value. Some of these taxes are due when the Contract is issued, others are due when income payments begin or upon surrender. Our current practice is not to charge anyone for these taxes until income payments begin or when a total withdrawal occurs including payment upon death. At our discretion, we may discontinue this practice and deduct premium taxes from the purchase payments. Premium taxes generally range from 0% to 4%, depending on the state. At the Payout Start Date, if applicable, we deduct the charge for premium taxes from each investment alternative in the proportion that the Contract owner's value in the investment alternative bears to the total Contract Value. DEDUCTION FOR VARIABLE ACCOUNT INCOME TAXES We are not currently making a provision for taxes. In the future, however, we may make a provision for taxes if we determine, in our sole discretion, that we will incur a tax as a result of the operation of the Variable Account. We will deduct for any taxes we incur as a result of the operation of the Variable Account, whether or not we previously made a provision for taxes and whether or not it was sufficient. Our status under the Internal Revenue Code is briefly described in the Statement of Additional Information. OTHER EXPENSES Each Portfolio deducts advisory fees and other expenses from its assets. You indirectly bear the charges and expenses of the Portfolios whose shares are held by the Variable Sub-Accounts. These fees and expenses are described in the accompanying prospectuses for the Funds. For a summary of current estimates of those charges and expenses, see pages 8 and 9. We may receive compensation from the investment advisers or administrators of the Portfolios for administrative services we provide to the Portfolios. ACCESS TO YOUR MONEY - ------------------------------------------------------------------- You can withdraw some or all of your Contract Value at any time during the Accumulation Phase. Withdrawals also are available under limited circumstances on or after the Payout Start Date. See "Income Plans" on page 24. You can withdraw money from the Variable Account and/or the Fixed Account Options. The amount payable upon withdrawal is the Contract Value (or portion thereof) next computed after we receive the request for a withdrawal at our headquarters, less any withdrawal charges, contract maintenance charges, income tax withholding, penalty tax, and any premium taxes. To complete a partial withdrawal from the Variable Account, we will cancel Accumulation Units in an amount equal to the withdrawal and any applicable charges and taxes. We will pay withdrawals from the Variable Account within 7 days of receipt of the request, subject to postponement in certain circumstances. You have the opportunity to name the investment alternative(s) from which you are taking the withdrawal. If none are named, then we will withdraw the amount proportionately from the investment alternatives in which you are invested according to THE VALUE OF YOUR INVESTMENTS THEREIN. In general, you must withdraw at least $100 at a time. You also may withdraw a lesser amount if you are withdrawing your entire interest in a Variable Sub-Account. Withdrawals also may be subject to income tax and a 10% penalty tax, as described below. The total amount paid at surrender may be more or less than the total purchase payments due to prior withdrawals, any deductions, and investment performance. POSTPONEMENT OF PAYMENTS We may postpone the payment of any amounts due from the Variable Account under the Contract if: 1. The New York Stock Exchange is closed for other than usual weekends or holidays, or trading on the Exchange is otherwise restricted; 2. An emergency exists as defined by the SEC; or 3. The SEC permits delay for your protection. In addition, we may delay payments or transfers from the Fixed Account Options for up to 6 months or shorter period if required by law. If we delay payment or transfer for 30 days or more, we will pay interest as required by law. Any interest would be payable from the date we receive the withdrawal request to the date we make the payment or transfer. SYSTEMATIC WITHDRAWAL PROGRAM You may choose to receive systematic withdrawal payments on a monthly basis at any time prior to the Payout Start Date. The minimum amount of each systematic withdrawal is $100. We will deposit systematic withdrawal payments into the Contract owner's bank account or Morgan Stanley Dean Witter Active Assets-TM- Account. Please consult with your Morgan Stanley Dean Witter Financial Advisor for details. Depending on fluctuations in the value of the Variable Sub-Accounts and the value of the Fixed Account Options, systematic withdrawals may reduce or even exhaust the Contract Value. Income taxes may apply to systematic withdrawals. Please consult your tax advisor before taking any withdrawal. We may modify or suspend the Systematic Withdrawal Program and charge a processing fee for the service. If we modify or suspend the Systematic Withdrawal Program, existing systematic withdrawal payments will not be affected. MINIMUM CONTRACT VALUE If your request for a partial withdrawal would reduce your Contract Value to less than $500, we may treat it as a request to withdraw your entire Contract Value. Your Contract will terminate if you withdraw all of your Contract Value. We will, however, ask you to confirm your withdrawal request before terminating your Contract. If we terminate your Contract, we will distribute to you its Contract Value, less withdrawal and other applicable charges, and applicable taxes. INCOME PAYMENTS - ------------------------------------------------------------------- PAYOUT START DATE The Payout Start Date is the day that money is applied to an Income Plan. The Payout Start Date must be: - - at least 30 days after the Issue Date; - - the first day of a calendar month; and - - no later than the first day of the calendar month after the Annuitant's 90th birthday, or the 10th Contract Anniversary, if later. You may change the Payout Start Date at any time by notifying us in writing of the change at least 30 days before the scheduled Payout Start Date. Absent a change, we will use the Payout Start Date stated in your Contract. INCOME PLANS An "Income Plan" is a series of payments on a scheduled basis to you or to another person designated by you. You may choose and change your choice of Income Plan until 30 days before the Payout Start Date. If you do not select an Income Plan, we will make income payments in accordance with Income Plan 1. After the Payout Start Date, you may not make withdrawals (except as described below) or change your choice of Income Plan. Three Income Plans are available under the Contract. Each is available to provide: - - fixed income payments; - - variable income payments; or - - a combination of the two. The three Income Plans are: INCOME PLAN 1 -- LIFE INCOME WITH PAYMENTS GUARANTEED FOR 10 YEARS. Under this plan, we make periodic income payments for at least as long as the Annuitant lives. If the Annuitant dies before we have made all of the guaranteed income payments, we will continue to pay the remainder of the guaranteed income payments as required by the Contract. INCOME PLAN 2 -- JOINT AND SURVIVOR LIFE INCOME. Under this plan, we make periodic income payments for as long as either the Annuitant or the joint Annuitant is alive. INCOME PLAN 3 -- GUARANTEED PAYMENTS FOR A SPECIFIED PERIOD. Under this plan, we make periodic income payments for the period you have chosen. These payments do not depend on the Annuitant's life. A withdrawal charge may apply if the specified period is less than 10 years. We will deduct the mortality and expense risk charge from the assets of the Variable Account supporting this Income Plan even though we may not bear any mortality risk. The length of any guaranteed payment period under your selected Income Plan generally will affect the dollar amounts of each income payment. As a general rule, longer guarantee periods result in lower income payments, all other things being equal. For example, if you choose an Income Plan with payments that depend on the life of the Annuitant but with no minimum specified period for guaranteed payments, the income payments generally will be greater than the income payments made under the same Income Plan with a minimum specified period for guaranteed payments. We may make other Income Plans available including ones that you and we agree upon. You may obtain information about them by writing or calling us. If you choose Income Plan 1 or 2, or, if available, another Income Plan with payments that continue for the life of the Annuitant or joint Annuitant, we may require proof of age and sex of the Annuitant or joint Annuitant before starting income payments, and proof that the Annuitant or joint Annuitant is still alive before we make each payment. Please note that under such Income Plans, if you elect to take no minimum guaranteed payments, it is possible that the payee could receive only 1 income payment if the Annuitant and any joint Annuitant both die before the second income payment, or only 2 income payments if they die before the third income payment, and so on. Generally, you may not make withdrawals after the Payout Start Date. One exception to this rule applies if you are receiving variable income payments that do not depend on the life of the Annuitant (such as under Income Plan 3). In that case you may terminate all or part of the Variable Account portion of the income payments at any time and receive a lump sum equal to the present value of the remaining variable payments associated with the amount withdrawn. To determine the present value of any remaining variable income payments being withdrawn, we use a discount note equal to the assumed annual investment note that we use to compute such variable income payments. The minimum amount you may withdraw under this feature is $1,000. A withdrawal charge may apply. You may apply your Contract Value to an Income Plan. If you elected the Performance Income Benefit Option, you may be able to apply an amount greater than your Contract Value to an Income Plan. You must apply at least the Contract Value in the Fixed Account Options on the Payout Start Date to fixed income payments. If you wish to apply any portion of your Fixed Account Option balance to provide variable income payments, you should plan ahead and transfer that amount to the Variable Sub-Accounts prior to the Payout Start Date. If you do not tell us how to allocate your Contract Value among fixed and variable income payments, we will apply your Contract Value in the Variable Account to variable income payments and your Contract Value in the Fixed Account Options to fixed income payments. We deduct applicable premium taxes from the Contract Value at the Payout Start Date. We will apply your Contract Value, less applicable taxes, to your Income Plan on the Payout Start Date. If the amount available to apply under an Income Plan is less than $2,000, or not enough to provide an initial payment of at least $20, and state law permits, we may: - - pay you the Contract Value, less any applicable taxes, in a lump sum instead of the periodic payments you have chosen, or - - we may reduce the frequency of your payments so that each payment will be at least $20. VARIABLE INCOME PAYMENTS The amount of your variable income payments depends upon the investment results of the Variable Sub-Accounts you select, the premium taxes you pay, the age and sex of the Annuitant, and the Income Plan you choose. We guarantee that the payments will not be affected by (a) actual mortality experience and (b) the amount of our administration expenses. We cannot predict the total amount of your variable income payments. Your variable income payments may be more or less than your total purchase payments because (a) variable income payments vary with the investment results of the underlying Portfolios, and (b) the Annuitant could live longer or shorter than we expect based on the tables we use. In calculating the amount of the periodic payments in the annuity tables in the Contract, we assumed an annual investment rate of 3%. If the actual net investment return of the Variable Sub-Accounts you choose is less than this assumed investment rate, then the dollar amount of your variable income payments will decrease. The dollar amount of your variable income payments will increase, however, if the actual net investment return exceeds the assumed investment rate. The dollar amount of the variable income payments stays level if the net investment return equals the assumed investment rate. Please refer to the Statement of Additional Information for more detailed information as to how we determine variable income payments. FIXED INCOME PAYMENTS We guarantee income payment amounts derived from any Fixed Account Option for the duration of the Income Plan. We calculate the fixed income payments by: 1. deducting any applicable premium tax; and 2. applying the resulting amount to the greater of (a) the appropriate value from the income payment table in your Contract or (b) such other value as we are offering at that time. We may defer making fixed income payments for a period of up to 6 months or such shorter time state law may require. If we defer payments for 30 days or more, we will pay interest as required by law from the date we receive the withdrawal request to the date we make payment. INCOME BENEFIT OPTIONS PLEASE KEEP IN MIND, ONCE YOU HAVE SELECTED AN OPTIONAL INCOME OR DEATH BENEFIT (EACH AN "OPTION"), YOUR ABILITY TO SELECT A DIFFERENT OPTION MAY BE LIMITED. PLEASE CONSULT WITH YOUR FINANCIAL ADVISOR CONCERNING ANY SUCH LIMITATIONS BEFORE SELECTING ANY OPTION. FURTHER, IF YOU SELECT ANOTHER OPTION, THE BENEFIT(S) UNDER THE NEW OPTION ON THE DATE WE ISSUE THE NEW OPTION WILL EQUAL THE CONTRACT VALUE. YOU WILL NOT RETAIN OR TRANSFER THE BENEFITS FROM THE EARLIER OPTION. PLEASE CONSULT WITH YOUR FINANCIAL ADVISOR CONCERNING THE EFFECT OF SELECTING A DIFFERENT OPTION BEFORE DOING SO. WE MAY DISCONTINUE OFFERING THESE OPTIONS AT ANYTIME. PERFORMANCE INCOME BENEFIT In most states, the Performance Income Benefit cannot be added to new or existing Contracts after January 31, 2001. The following describes the Option for Contract owners who have previously elected this Option, and for Contract owners who may purchase the Option in certain states. On the date we issue the rider for this benefit ("RIDER DATE"), the Performance Income Benefit is equal to the Contract Value. On each Contract Anniversary, we will recalculate your Performance Income Benefit to equal the greater of your Contract Value on that date or the most recently calculated Performance Income Benefit. We will also recalculate your Performance Income Benefit whenever you make an additional purchase payment or a partial withdrawal. Additional purchase payments will increase the Performance Income Benefit dollar-for-dollar. Withdrawals will reduce the Performance Income Benefit by an amount equal to: (i) the Performance Income Benefit just before the withdrawal, multiplied by (ii) the ratio of the withdrawal amount to the Contract Value just before the withdrawal. In the absence of any withdrawals or purchase payments, the Performance Income Benefit will be the greatest of the Contract Value on the Rider Date and all Contract Anniversary Contract Values on or prior to the Payout Start Date. We will recalculate the Performance Income Benefit as described above until the oldest Contract owner or Annuitant (if the Contract owner is not a natural person) attains age 85. After age 85, we will only recalculate the Performance Income Benefit to reflect additional purchase payments and withdrawals. If you select the Performance Income Benefit Option, the maximum age of any owner and annuitant as of the date we receive the completed application, cannot exceed age 75. To exercise your Performance Income Benefit, you must apply it to an Income Plan. The Payout Start Date you select must begin on or after your tenth Contract Anniversary, after electing the benefit, and within 30 days after a Contract Anniversary. In addition, you must apply your Performance Income Benefit to an Income Plan that provides guaranteed payments for either a single or joint life for at least: 1. 10 years, if the youngest Annuitant's age is 80 or less on the date you apply the Benefit, or 2. 5 years, if the youngest Annuitant's age is greater than 80 on the date you apply the Benefit. If your current Contract Value is higher than the Performance Income Benefit, you can apply the Contract Value to any Income Plan. INCOME BENEFIT COMBINATION OPTION 2. The Income Benefit Combination Option 2 is available with Contracts issued on or after October 30, 2000 ("new Contracts"). The Income Benefit Combination Option 2 is also available with Contracts issued before October 30, 200 ("existing Contracts") unless you elect or have elected an optional income or death benefit. The Income Benefit Combination Option 2 may not be available in all states. If you select the Income Benefit Combination Option 2, this Option guarantees that the amount you apply to an Income Plan will not be less than the income base ("Income Base") (which is the greater of Income Base A or Income Base B), described below. Eligibility: If you select the Income Benefit Combination Option 2, the maximum age of any Contract Owner and Annuitant on the date we receive the completed application or the written request to add the Rider, whichever is later, is age 75. To qualify for this benefit, you must meet the following conditions as of the Payout Start Date: o You must elect a Payout Start Date that is on or after the 10th anniversary of the date we issued the rider for this Option (the "Rider Date"); o The Payout Start Date must occur during the 30-day period following a Contract Anniversary; o You must apply the Income Base to fixed income payments or variable income payments as we may permit from time to time. Currently, you may apply the Income Base only to provide fixed income payments, which will be calculated using the appropriate Guaranteed Income Payment Table provided in your Contract; and o The Income Plan you have selected must provide for payments guaranteed for either a single life or joint lives with a specified period of at least: 1. 10 years, if the youngest Annuitant's age is 80 or less on the date the amount is applied; or 2. 5 years, if the youngest Annuitant's age is greater than 80 on the date the amount is applied. If your current Contract Value is higher than the value calculated under Income Benefit Combination Option 2, you can apply the Contract Value to any Income Plan. INCOME BASE The Income Base is the greater of Income Base A or Income Base B. The Income Base is used solely for the purpose of calculating the guaranteed income benefit under this Option ("guaranteed income benefit") and does not provide a Contract Value or guarantee performance of any investment option. INCOME BASE A On the Rider Date, Income Base A is equal to the Contract Value. After the Rider Date, we recalculate Income Base A as follows on the Contract Anniversary and when a purchase payment or withdrawal is made. o For purchase payments, Income Base A is equal to the most recently calculated Income Base A plus the purchase payment. o For withdrawals, Income Base A is equal to the most recently calculated Income Base A reduced by a withdrawal adjustment (described below). o On each Contract Anniversary, Income Base A is equal to the greater of the Contract Value or the most recently calculated Income Base A. In the absence of any withdrawals or purchase payments, Income Base A will be the greatest of the Contract Value on the Rider Date and all Contract Anniversary Contract Values between the Rider Date and the Payout Start Date. We will recalculate Income Base A as described above until the first Contract Anniversary after the 85th birthday of the oldest Contract owner (or Annuitant if the Contract owner is not a natural person). After age 85, we will only recalculate Income Base A to reflect additional purchase payments and withdrawals. INCOME BASE B On the Rider Date, Income Base B is equal to the Contract Value After the Rider Date, Income Base B plus any subsequent purchase payments and less a withdrawal adjustment (described below) for any subsequent withdrawals will accumulate daily at a rate equivalent to 5% per year until the first Contract Anniversary after the 85th birthday of the oldest Contract owner (or Annuitant if the Contract owner is not a natural person). WITHDRAWAL ADJUSTMENT. The withdrawal adjustment is equal to (1) divided by (2), with the result multiplied by (3) where: (1) = the withdrawal amount, (2) = the Contract Value immediately prior to the withdrawal, and (3) = the most recently calculated Income Base. GUARANTEED INCOME BENEFIT. The guaranteed income benefit amount is determined by applying the Income Base less any applicable taxes to the guaranteed rates for the Income Plan you elect. The Income Plan you elect must satisfy the conditions described above. As described above, you may currently apply the Income Base only to receive period certain fixed income payments. If, however, you apply the Contract Value and not the Income Base to an Income Plan, then you may select fixed and/or variable income payments under any Income Plan we offer at that time. If you expect to apply your Contract Value to provide fixed and/or variable income payments, or you expect to apply your Contract Value to current annuity payment rates then in effect, electing the Income Benefit Combination Option 2 may not be appropriate. CERTAIN EMPLOYEE BENEFIT PLANS The Contracts offered by this prospectus contain income payment tables that provide for different payments to men and women of the same age, except in states that require unisex tables. We reserve the right to use income payment tables that do not distinguish on the basis of sex to the extent permitted by law. In certain employment-related situations, employers are required by law to use the same income payment tables for men and women. Accordingly, if the Contract is to be used in connection with an employment-related retirement or benefit plan and we do not offer unisex annuity tables in your state, you should consult with legal counsel as to whether the purchase of a Contract is appropriate. DEATH BENEFITS - ------------------------------------------------------------------- We will pay a death benefit if, prior to the Payout Start Date: 1. any Contract owner dies, or 2. the Annuitant dies. We will pay the death benefit to the new Contract owner who is determined immediately after the death. The new Contract owner would be a surviving Contract owner(s) or, if none, the Beneficiary(ies). In the case of the death of an Annuitant, we will pay the death benefit to the current Contract owner. A request for payment of the death benefit must include "DUE PROOF OF DEATH." We will accept the following documentation as Due Proof of Death: - a certified copy of a death certificate, - a certified copy of a decree of a court of competent jurisdiction as to the finding of death, or - any other proof acceptable to us. DEATH BENEFIT AMOUNT Prior to the Payout Start Date, the death benefit is equal to the greatest of: 1. the Contract Value as of the date we determine the death benefit, or 2. the sum of all purchase payments made less any amounts deducted in connection with partial withdrawals (including any applicable withdrawal charges or premium taxes), or 3. the Contract Value on the most recent DEATH BENEFIT ANNIVERSARY prior to the date we determine the death benefit, plus any purchase payments and less any amounts deducted in connection with any partial withdrawals since that Death Benefit Anniversary. A "Death Benefit Anniversary" is every 6th Contract Anniversary beginning with the 6th Contract Anniversary. For example, the 6th, 12th and 18th Contract Anniversaries are the first three Death Benefit Anniversaries. We will determine the value of the death benefit as of the end of the Valuation Date on which we receive a complete request for payment of the death benefit. If we receive a request after 3 p.m. Central Time on a Valuation Date, we will process the request as of the end of the following Valuation Date. DEATH BENEFIT OPTIONS PLEASE KEEP IN MIND, ONCE YOU HAVE SELECTED AN OPTIONAL INCOME OR DEATH BENEFIT (EACH AN "OPTION"), YOUR ABILITY TO SELECT A DIFFERENT OPTION MAY BE LIMITED. PLEASE CONSULT WITH YOUR FINANCIAL ADVISOR CONCERNING ANY SUCH LIMITATIONS BEFORE SELECTING ANY OPTION. FURTHER, IF YOU SELECT ANOTHER OPTION, THE BENEFIT(S) UNDER THE NEW OPTION ON THE DATE WE ISSUE THE NEW OPTION WILL EQUAL THE CONTRACT VALUE. YOU WILL NOT RETAIN OR TRANSFER THE BENEFITS FROM THE EARLIER OPTION. PLEASE CONSULT WITH YOUR FINANCIAL ADVISOR CONCERNING THE EFFECT OF SELECTING A DIFFERENT OPTION BEFORE DOING SO. WE MAY DISCONTINUE OFFERING THESE OPTIONS AT ANYTIME. The Enhanced Death Benefit and the Performance Benefit Combination Options are no longer offered as a rider to the Contract, but apply to Contract owners who have previously elected these Options. The Performance Death Benefit, the Death Benefit Combination, the Income and Death Benefit Combination Option 2 and the Enhanced Earnings Death Benefit are optional benefits that you may elect. If the Contract owner is a natural person, these Options apply only on the death of the Contract owner. If the Contract owner is not a natural person, these Options apply only on the death of the Annuitant. For Contracts with a death benefit option, the death benefit will be the greater of (1) through (3) above, or (4) the death benefit option you selected. For Contracts with the Enhanced Earnings Death Benefit Option, the death benefit will be increased as described on page _____ below. The death benefit options may not be available in all states. ENHANCED DEATH BENEFIT OPTION. We are no longer offering the Enhanced Death Benefit Option as a rider to the Contract in most states. The following describes the Option for Contract owners who have previously elected this Option or who may elect this Option in certain states. On the date we issue the rider for this option ("RIDER DATE") is equal to the Contract Value. On the first Contract anniversary after the Rider Date, the Enhanced Death Benefit is equal to the Contract Value on the Rider Date plus interest at an annual rate of 5% per year for the portion of a year since the Rider Date. On each subsequent Contract Anniversary, but not beyond the Contract Anniversary preceding the oldest Contract owners' 75th birthdays, we will recalculate the Enhanced Death Benefit as follows: First, we multiply the Enhanced Death Benefit as of the prior Contract Anniversary by 1.05. This results in an increase of 5% annually. Further, for all ages, we will adjust the Enhanced Death Benefit on each Contract Anniversary, or upon receipt of a death claim, as follows: - For cash withdrawals, we will reduce the Enhanced Death Benefit by the following withdrawal adjustment. The withdrawal adjustment is equal to (i) divided by (ii), with the result multiplied by(iii),where: (i) = the withdrawal amount (ii) = the Contract Value just before the withdrawal (iii) = the most recently calculated Enhanced Death Benefit - We will increase the Enhanced Death Benefit by any additional purchase payments since the prior Contract Anniversary. If you select the Enhanced Death Benefit Option, the highest age of any Contract owner and Annuitant as of the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 70. PERFORMANCE DEATH BENEFIT OPTION. The Performance Death Benefit on the date we issue the rider for this option ("RIDER DATE") is equal to the Contract Value. On each Contract Anniversary, we will recalculate your Performance Death Benefit to equal the greater of your Contract Value on that date, or the most recently calculated Performance Death Benefit. We also will recalculate your Performance Death Benefit whenever you make an additional purchase payment or a partial withdrawal. Additional purchase payments will increase the Performance Death Benefit dollar- for-dollar. Withdrawals will reduce the Performance Death Benefit by an amount equal to: (i) the Performance Death Benefit immediately before the withdrawal, multiplied by (ii) the ratio of the withdrawal amount to the Contract Value just before the withdrawal. In the absence of any withdrawals or purchase payments, the Performance Death Benefit will be the greatest of the Contract Value on the Rider Date and all Contract Anniversary Contract Values on or before the date we calculate the death benefit. We will recalculate the Performance Death Benefit as described above until the oldest Contract owner (the Annuitant, if the owner is not a natural person), attains age 85. After age 85, we will recalculate the Performance Death Benefit only to reflect additional purchase payments and withdrawals. If you select the Performance Death Benefit Option, the highest age of any owner and Annuitant as of the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 80. DEATH BENEFIT COMBINATION OPTION. If you select the Death Benefit Combination Option, the death benefit payable will be the greater of the death benefits provided by the Enhanced Death Benefit or the Performance Death Benefit (both calculated until the oldest Contract owner, or Annuitant if the Contract owner is a non-natural person, attains age 85). After age 85, the death benefit payable will be adjusted to reflect purchase payments and withdrawals to the extent described under "Enhanced Death Benefit Option" and "Performance Death Benefit Option" above. We sometimes refer to the Death Benefit Combination Option as the "Best of the Best" death benefit option. If you select the Death Benefit Combination Option, the highest age of any owner and Annuitant as of the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 80. PERFORMANCE BENEFIT COMBINATION OPTION. We are no longer offering the Performance Combination Option as a rider to the Contract in most states. The following describes the Option for Contract owners who have previously elected this Option or who may elect this Option in certain states. This Option combines the Performance Death Benefit with the Performance Income Benefit. If you select the Performance Benefit Combination Option, the maximum age of any owner and Annuitant as of the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 75. INCOME AND DEATH BENEFIT COMBINATION OPTION 2. The Income and Death Benefit Combination Option 2 is available with contracts issued on or after October 30, 2000 ("new Contracts"). The Income and Death Benefit Combination Option 2 is also available with Contracts issued before October 30, 2000 unless you elect or have elected the Performance Income Benefit Option or the Performance Benefit Combination Option. The Income and Death Benefit Combination Option 2 may not be available in all states. If you select the Income and Death Benefit Combination Option 2, which combines the features of the Income Benefit Combination (described on page _____) with the features of the Death Benefit Combination (described on page ____) with the following modifications. Under the Income and Death Benefit Combination Option 2, the death benefit payable will be the greater of the death benefits provided by the Enhanced Death Benefit or the Performance Death Benefit (both calculated until the first Contract Anniversary after the oldest Contract owner, (or Annuitant if the Contract owner is a non-natural person) attains age 85. In calculating the death benefit payable provided by the Enhanced Death Benefit, for all ages, withdrawals will reduce the Enhanced Death Benefit by an amount equal to: (i) the Enhanced Death Benefit immediately before the withdrawal, multiplied by (ii) the ratio of the withdrawal amount to the Contract Value just before the withdrawal. If you select the Income and Death Benefit Combination Option 2, the highest age of any owner and Annuitant as of the date we receive the completed application, or the date we receive the request to add the rider, whichever is later, cannot exceed age 75. ENHANCED EARNINGS DEATH BENEFIT OPTION. You may elect the Enhanced Earnings Death Benefit Option alone or together with any other death and/or income benefit option offered under the Contract. Under the Enhanced Earnings Death Benefit Option, if the oldest Contract owner (or the Annuitant if the Contract owner is a non-natural person) is age 69 or younger on the date we issue the rider for this option ("Rider Date"), the death benefit is increased by: o 40% of the lesser of the In-Force Premium or Death Benefit Earnings. If the oldest Contract owner (or the Annuitant if the Contract owner is a non-natural person) is between the ages of 70 and 79 on the Rider Date, the death benefit is increased by: o 25% of the lesser of the In-Force Premium or Death Benefit Earnings. For purpose of calculating the Enhanced Earnings Death Benefit, the following definitions apply: In-Force Premium equals the Contract Value on the Rider Date plus all purchase payments after the Rider Date less the sum of all Excess-of-Earnings Withdrawals after the Rider Date. If the Rider Date is the same as the Issue Date, then the Contract Value on the Rider Date is equal to your initial purchase payment. Death Benefit Earnings equal the Contract Value minus the In-Force Premium. The Death Benefit Earnings amount will never be less than zero. An Excess-of-Earnings Withdrawal is the amount of a withdrawal which is in excess of the Death Benefit Earnings in the Contract immediately prior to the withdrawal. We will calculate the Enhanced Earnings Death Benefit Option as of the date we receive Due Proof of Death. We will pay the Enhanced Earnings Death Benefit with the death benefit as described under "Death Benefit Payments" below. The value of the Enhanced Earnings Death Benefit depends largely on the amount of earnings that accumulate under your Contract. If you expect to withdraw the earnings from your Contract Value, electing the Enhanced Earnings Death Benefit Option may not be appropriate. For purposes of calculating the Enhanced Earnings Death Benefit, earnings are considered to be withdrawn first before purchase payments. Your Financial Advisor can help you decide if the Enhanced Earnings Death Benefit Option is right for you. For examples of how the death benefit is calculated under the Enhanced Earnings Death Benefit Option, see Appendix B. None of the death benefits under the Enhanced Death Benefit, the Performance Death Benefit, the Performance Benefit Combination, the Death Benefit Combination, the Income and Death Benefit Combination Option 2, and/or the Enhanced Earnings Death Benefit will ever be greater than the maximum death benefit allowed by any nonforfeiture laws which govern the Contract. DEATH BENEFIT PAYMENTS If the new Contract owner is a natural person, the new Contract owner may elect to: 1. receive the death benefit in a lump sum, or 2. apply the death benefit to an Income Plan. Payments from the Income Plan must begin within 1 year of the date of death and must be payable throughout: - the life of the new Contract owner; or - for a guaranteed number of payments from 5 to 30 years, but not to exceed the life expectancy of the Contract owner. Options 1 and 2 above are only available if the new Contract owner elects one of these options within 180 days of the date of death. Otherwise, the new Contract owner will receive the SETTLEMENT VALUE. The "Settlement Value" is the Contract Value, less any applicable withdrawal charge and premium tax. The Settlement Value paid will be the Settlement Value next computed on or after the requested distribution date for payment, or on the mandatory distribution date of 5 years after the date of your death, whichever is earlier. We reserve the right to extend or waive the 180 day limit on a non-discriminatory basis. In any event, the entire value of the Contract must be distributed within 5 years after the date of death unless an Income Plan is elected or a surviving spouse continues the Contract in accordance with the provisions described below. If the new Contract owner is your spouse, then he or she may elect one of the options listed above or may continue the Contract in the Accumulation Phase as if the death had not occurred. The Contract may only be continued once. If the surviving spouse continues the Contract in the Accumulation Phase, the surviving spouse may make a single withdrawal of any amount within 1 year of the date of death without incurring a withdrawal charge. If the surviving spouse is under age 59 1/2, a 10% penalty tax may apply to the withdrawal. If the Enhanced Earnings Death Benefit Option has been elected, on the date the Contract is continued, the Rider Date for this Option is reset to the date the Contract is continued. For purposes of calculating future death benefits, your spouse's age on this new Rider Date will be used to determine applicable death benefit amounts. If you qualify for and elect (before the date of death) the Longevity Reward Rider, on the date the Contract is continued, the Contract Value will equal the amount of the death benefit. See "Longevity Reward Rider" on page 28 for details. If the new Contract owner is a corporation, trust, or other non-natural person, then the new Contract owner may elect, within 180 days of your death, to receive the death benefit in lump sum or may elect to receive the Settlement Value in a lump sum within 5 years of death. We reserve the right to extend or waive the 180 day limit on a non-discriminatory basis. DEATH OF ANNUITANT. If any Annuitant who is not also the Contract owner dies prior to the Payout Start Date, the Contract owner must elect one of the applicable options described below. If the Contract owner is a natural person, the Contract owner may elect to continue the Contract as if the death had not occurred, or, if we receive Due Proof of Death within 180 days of the date of the Annuitant's death, the Contract owner may choose to: 1. receive the death benefit in a lump sum; or 2. apply the death benefit to an Income Plan that must begin within 1 year of the date of death and must be for a guaranteed number of payments for a period from 5 to 30 years but not to exceed the life expectancy of the Contract owner. If the Contract owner elects to continue the Contract or to apply the death benefit to an Income Plan, the new Annuitant will be the youngest Contract owner, unless the Contract owner names a different Annuitant. If the Contract owner is a non-natural person, the non-natural Contract owner may elect, within 180 days of the Annuitant's date of death, to receive the death benefit in a lump sum or may elect to receive the Settlement Value payable in a lump sum within 5 years of the Annuitant's date of death. If the non-natural Contract owner does not make one of the above described elections, the Settlement Value must be withdrawn by the non-natural Contract owner on or before the mandatory distribution date 5 years after the Annuitant's death. We reserve the right to extend or waive the 180 day limit on a non-discriminatory basis. LONGEVITY REWARD RIDER - ------------------------------------------------------------------- THIS RIDER MAY NOT BE APPROPRIATE FOR YOU IF YOU EXPECT TO MAKE A WITHDRAWAL WITHIN THE FIRST THREE YEARS OF THE RIDER DATE. ELIGIBILITY You may elect the Longevity Reward Rider (Long Term Retention Rider is some states) at any time during the Accumulation Phase if all purchase payments have a 0% early withdrawal charge. MORTALITY AND EXPENSE RISK CHARGE If you elect the Rider, then commencing on the Rider Date, we will reduce the maximum mortality and expense risk charge (M&E charge) by 0.07%. That means your M&E charge will never be greater than 1.18% (1.31% if you select the Enhanced Death Benefit Option, the Performance Death Benefit Option, or the Performance Income Benefit Option, 1.42% if you select the Performance Benefit Combination Option, or the Death Benefit Combination Option, 1.48% if you select the Income Benefit Combination Option 2, 1.68% if you select the Income and Death Benefit Combination Option 2). If you elect the Enhanced Earnings Death Benefit Option, an additional 0.20% mortality and expense charge will apply. The 0.10% administrative expense charge remains unchanged under the Rider. CONTRACT MAINTENANCE CHARGE If you elect the Rider, we will waive the contract maintenance charge for the life of the Contract, provided your total Contract Value is $40,000 or more on or after the Rider Date. CONTRACT CONTINUATION BY A SURVIVING SPOUSE If the surviving spouse continues the Contract as described under Death Benefit Payments on page ( ), the following provision applies: On the date the Contract is continued, the Contract Value will equal the amount of the death benefit as determined as of the Valuation Date on which we received Due Proof of Death (the next Valuation Date, if we receive Due Proof of Death after 3:00 p.m Central Time.) Unless otherwise instructed by the continuing spouse, the excess, if any, of the death benefit amount over the Contract Value will be allocated to the Variable Sub-Accounts. This excess will be allocated in proportion to your Contract Value in the investment alternatives on the Valuation Date that we receive Due Proof of Death, except that any portion of this excess attributable to the Fixed Account Options will be allocated to the Money Market Variable Sub-Account. Within 30 days of the date the Contract is continued, your surviving spouse may choose one of the following transfer alternatives without incurring a transfer fee: o Transfer all or a portion of the excess among the Variable Sub-Accounts; o Transfer all or a portion of the excess into the Standard Fixed Account; or o Transfer all or a portion of the excess into a combination of Variable Sub-Accounts and the Standard Fixed Account. Any such transfer does not count towards the 12 transfers you can make each Contract year without paying a transfer fee but is subject to any minimum allocation amount specified in your Contract. All ownership rights under the Contract will then be available to your spouse as the new Contract owner. NEW WITHDRAWAL CHARGE If you elect the Rider, we will apply the new withdrawal charge schedule set forth below. That means that we may assess a withdrawal charge of up to 3% of the amount of purchase payments you withdraw after the Rider Date. The withdrawal charge applies to purchase payments made both before the Rider Date ("existing payments"), as well as payments made on or after the Rider Date ("new purchase payments"). The withdrawal charge declines to 0% according to the following schedule: EXISTING PURCHASE PAYMENTS NEW PURCHASE PAYMENTS Withdrawal Charge Number of Complete Years Number of Complete (as a Percentage of Since the Rider Date Years Since We Received New or Existing the New Purchase Pay- Purchase Payments ment Being Withdrawn Withdrawn) - -------------------------------------------------------------------------- 0 0 3% - -------------------------------------------------------------------------- 1 1 2% - -------------------------------------------------------------------------- 2 2 1% - -------------------------------------------------------------------------- 3 + 3+ 0% - -------------------------------------------------------------------------- Once all purchase payments have been withdrawn, additional withdrawals will not be assessed a withdrawal charge. The maximum aggregate early withdrawal charge on existing and new purchase payments withdrawn after the Rider Date is 3% of your purchase payments. FREE WITHDRAWAL AMOUNT If you elect the Rider, you will continue to have the option to make withdrawals of up to 15% of your purchase payments without paying a withdrawal charge. However, under the Rider, the Free Withdrawal Amount is 15% of the amount of purchase payments as of the Rider Date or the most recent Contract Year, whichever is later. As with all withdrawals, we will treat withdrawals as coming from the oldest purchase payments first. Unused portions of the Free Withdrawal Amount do not carry forward to future Contract Years. MORE INFORMATION - ------------------------------------------------------------------- NORTHBROOK Northbrook is the issuer of the Contract. Northbrook is a stock life insurance company organized in under the laws of the State of Arizona in 1998. Previously, from 1978 to 1998, Northbrook was organized under the laws of the State of Illinois. Northbrook is currently licensed to operate in all states (except New York), the District of Columbia, and Puerto Rico. We are no longer offering this Contract in most states. Our headquarters are located at 3100 Sanders Road, Northbrook, Illinois, 60062. Northbrook is a wholly owned subsidiary of Allstate Life Insurance Company ("ALLSTATE LIFE"), an Illinois stock life insurance company. Allstate Life is a wholly owned subsidiary of Allstate Insurance Company, an Illinois stock property-liability insurance company. All of the outstanding capital stock of Allstate Insurance Company is owned by The Allstate Corporation. Northbrook and Allstate Life entered into a reinsurance agreement effective December 31, 1987. Under the reinsurance agreement, Allstate Life reinsures all of Northbrook's liabilities under the Contracts. The reinsurance agreement provides us with financial backing from Allstate Life. However, it does not create a direct contractual relationship between Allstate Life and you. In other words, the obligations of Allstate Life under the reinsurance agreement are to Northbrook; Northbrook remains the sole obligor under the Contract to you. Independent rating agencies regularly evaluate life insurers' claims-paying ability, quality of investments, and overall stability. A.M. Best Company assigns an A+ (Superior) financial strength rating to Allstate Life, which results in an A+r rating to Northbrook due to the reinsurance agreement with Allstate Life mentioned above. Standard & Poor's assigns an AA+ (Very Strong) financial strength rating and Moody's Investors Service assigns an Aa2 (Excellent) financial strength rating to Northbrook, sharing the same ratings of its parent, Allstate Life. These ratings do not reflect the investment performance of the Variable Account. We may from time to time advertise these ratings in our sales literature. THE VARIABLE ACCOUNT Northbrook established the Northbrook Variable Annuity Account II on May 8, 1990. We have registered the Variable Account with the SEC as a unit investment trust. The SEC does not supervise the management of the Variable Account or Northbrook. We own the assets of the Variable Account. The Variable Account is a segregated asset account under Arizona insurance law. That means we account for the Variable Account's income, gains, and losses separately from the results of our other operations. It also means that only the assets of the Variable Account that are in excess of the reserves and other Contract liabilities with respect to the Variable Account are subject to liabilities relating to our other operations. Our obligations arising under the Contracts are general corporate obligations of Northbrook. The Variable Account consists of multiple Variable Sub-Accounts, 32 of which are available under the Contract. We may add new Variable Sub-Accounts or eliminate one or more of them, if we believe marketing, tax, or investment conditions so warrant. We do not guarantee the investment performance of the Variable Account, its Sub-Accounts or the Portfolios. We may use the Variable Account to fund our other annuity contracts. We will account separately for each type of annuity contract funded by the Variable Account. THE PORTFOLIOS DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. We automatically reinvest all dividends and capital gains distributions from the Portfolios in shares of the distributing Portfolio at their net asset value. VOTING PRIVILEGES. As a general matter, you do not have a direct right to vote the shares of the Portfolios held by the Variable Sub-Accounts to which you have allocated your Contract Value. Under current law, however, you are entitled to give us instructions on how to vote those shares on certain matters. Based on our present view of the law, we will vote the shares of the Portfolios that we hold directly or indirectly through the Variable Account in accordance with instructions that we receive from Contract owners entitled to give such instructions. As a general rule, before the Payout Start Date, the Contract owner or anyone with a voting interest is the person entitled to give voting instructions. The number of shares that a person has a right to instruct will be determined by dividing the Contract Value allocated to the applicable Variable Sub-Account by the net asset value per share of the corresponding Portfolio as of the record date of the meeting. After the Payout Start Date the person receiving income payments has the voting interest. The payee's number of votes will be determined by dividing the reserves for such Contract allocated to the applicable Variable Sub-Account by the net asset value per share of the corresponding Portfolio as of the record date of the meeting. The votes decrease as income payments are made and as the reserves for the Contract decrease. We will vote shares attributable to Contracts for which we have not received instructions, as well as shares attributable to us, in the same proportion as we vote shares for which we have received instructions, unless we determine that we may vote such shares in our own discretion. We will apply voting instructions to abstain on any item to be voted upon on a pro rata basis to reduce the votes eligible to be cast. We reserve the right to vote Portfolio shares as we see fit without regard to voting instructions to the extent permitted by law. If we disregard voting instructions, we will include a summary of that action and our reasons for that action in the next semi-annual financial report we send to you. CHANGES IN PORTFOLIOS. We reserve the right, subject to any applicable law, to make additions to, deletions from or substitutions for the Portfolio shares held by any Variable Sub-Account. If the shares of any of the Portfolios are no longer available for investment by the Variable Account or if, in our judgment, further investment in such shares is no longer desirable in view of the purposes of the Contract, we may eliminate that Portfolio and substitute shares of another eligible investment fund. Any substitution of securities will comply with the requirements of the Investment Company Act of 1940. We also may add new Variable Sub-Accounts that invest in additional mutual funds. We will notify you in advance of any change. CONFLICTS OF INTEREST. Certain of the Portfolios sell their shares to separate accounts underlying both variable life insurance and variable annuity contracts. It is conceivable that in the future it may be unfavorable for variable life insurance separate accounts and variable annuity separate accounts to invest in the same Portfolio. The boards of directors or trustees of these Portfolios monitor for possible conflicts among separate accounts buying shares of the Portfolios. Conflicts could develop for a variety of reasons. For example, differences in treatment under tax and other laws or the failure by a separate account to comply with such laws could cause a conflict. To eliminate a conflict, a Portfolio's board of directors or trustees may require a separate account to withdraw its participation in a Portfolio. A Portfolio's net asset value could decrease if it had to sell investment securities to pay redemption proceeds to a separate account withdrawing because of a conflict. THE CONTRACT The Contracts are distributed exclusively by their principal underwriter, Morgan Stanley DW Inc.* Morgan Stanley DW, a wholly owned subsidiary of Morgan Stanley Dean Witter & Co., is located at Two World Trade Center, New York, New York 10048. Morgan Stanley DW is a member of the New York Stock Exchange and the National Association of Securities Dealers. In states where we are still offering the Contracts, we may pay up to a maximum sales commission of 6.0% of purchase payments and an annual sales administration expense of up to 0.125% of the average net assets of the Fixed Account to Morgan Stanley DW. In addition, Morgan Stanley DW may pay annually to its representatives, from its profits, a persistency bonus that will take into account, among other things, the length of time purchase payments have been held under the Contract and Contract Values. *Effective April 2, 2001, Dean Witter Reynolds, Inc. changed its name to Morgan Stanley DW Inc. ADMINISTRATION. We have primary responsibility for all administration of the Contracts and the Variable Account. We provide the following administrative services, among others: - issuance of the Contracts; - maintenance of Contract owner records; - Contract owner services; - calculation of unit values; - maintenance of the Variable Account; and - preparation of Contract owner reports. We will send you Contract statements at least annually prior to the Payout Start Date. Contract statements are currently mailed on a quarterly basis. You should notify us promptly in writing of any address change. You should read your statements and confirmations carefully and verify their accuracy. You should contact us promptly if you have a question about a periodic statement. We will investigate all complaints and make any necessary adjustments retroactively, but you must notify us of a potential error within a reasonable time after the date of the questioned statement. If you wait too long, we will make the adjustment as of the date that we receive notice of the potential error. We also will provide you with additional periodic and other reports, information and prospectuses as may be required by federal securities laws. QUALIFIED PLANS If you use the Contract with a qualified plan, the plan may impose different or additional conditions or limitations on withdrawals, waivers of withdrawal charges, death benefits, Payout Start Dates, income payments, and other Contract features. In addition, adverse tax consequences may result if qualified plan limits on distributions and other conditions are not met. Please consult your qualified plan administrator for more information. LEGAL MATTERS Foley and Lardner, Washington, D.C., has advised Northbrook on certain federal securities law matters. All matters of state law pertaining to the Contracts, including the validity of the Contracts and Northbrook's right to issue such Contracts under state insurance law, have been passed upon by Michael J. Velotta, General Counsel of Northbrook. TAXES - ------------------------------------------------------------------- THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. NORTHBROOK MAKES NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION INVOLVING A CONTRACT. Federal, state, local and other tax consequences of ownership or receipt of distributions under an annuity contract depend on your individual circumstances. If you are concerned about any tax consequences with regard to your individual circumstances, you should consult a competent tax adviser. TAXATION OF ANNUITIES IN GENERAL TAX DEFERRAL. Generally, you are not taxed on increases in the Contract Value until a distribution occurs. This rule applies only where: 1. the Contract owner is a natural person, 2. the investments of the Variable Account are adequately diversified according to Treasury Department regulations, and 3. Northbrook is considered the owner of the Variable Account assets for federal income tax purposes. NON-NATURAL OWNERS. As a general rule, annuity contracts owned by non-natural persons such as corporations, trusts, or other entities are not treated as annuity contracts for federal income tax purposes. The income on such contracts is taxed as ordinary income received or accrued by the owner during the taxable year. Please see the Statement of Additional Information for a discussion of several exceptions to the general rule for Contracts owned by non-natural persons. DIVERSIFICATION REQUIREMENTS. For a Contract to be treated as an annuity for federal income tax purposes, the investments in the Variable Account must be "adequately diversified" consistent with standards under Treasury Department regulations. If the investments in the Variable Account are not adequately diversified, the Contract will not be treated as an annuity contract for federal income tax purposes. As a result, the income on the Contract will be taxed as ordinary income received or accrued by the Contract owner during the taxable year. Although Northbrook does not have control over the Portfolios or their investments, we expect the Portfolios to meet the diversification requirements. OWNERSHIP TREATMENT. The IRS has stated that you will be considered the owner of Variable Account assets if you possess incidents of ownership in those assets, such as the ability to exercise investment control over the assets. At the time the diversification regulations were issued, the Treasury Department announced that the regulations do not provide guidance concerning circumstances in which investor control of separate account investments may cause an investor to be treated as the owner of the separate account. The Treasury Department also stated that future guidance would be issued regarding the extent that owners could direct sub-account investments without being treated as owners of the underlying assets of the separate account. Your rights under the Contract are different than those described by the IRS in rulings in which it found that contract owners were not owners of separate account assets. For example, you have the choice to allocate premiums and Contract Values among more investment alternatives. Also, you may be able to transfer among investment alternatives more frequently than in such rulings. These differences could result in you being treated as the owner of the Variable Account. If this occurs, income and gain from the Variable Account assets would be includible in your gross income. Northbrook does not know what standards will be set forth in any regulations or rulings which the Treasury Department may issue. It is possible that future standards announced by the Treasury Department could adversely affect the tax treatment of your Contract. We reserve the right to modify the Contract as necessary to attempt to prevent you from being considered the federal tax owner of the assets of the Variable Account. However, we make no guarantee that such modification to the Contract will be successful. TAXATION OF PARTIAL AND FULL WITHDRAWALS. If you make a partial withdrawal under a non-Qualified Contract, amounts received are taxable to the extent the Contract Value, without regard to surrender charges, exceeds the investment in the Contract. The investment in the Contract is the gross premium paid for the Contract minus any amounts previously received from the Contract if such amounts were properly excluded from your gross income. If you make a partial withdrawal under a Qualified Contract, the portion of the payment that bears the same ratio to the total payment that the investment in the Contract (i.e., nondeductible IRA contributions, after tax contributions to qualified plans) bears to the Contract Value, is excluded from your income. If you make a full withdrawal under a non-Qualified Contract or a Qualified Contract, the amount received will be taxable only to the extent it exceeds the investment in the Contract. "Nonqualified distributions" from Roth IRAs are treated as made from contributions first and are included in gross income only to the extent that distributions exceed contributions. Qualified distributions from Roth IRAs are not included in gross income. "Qualified distributions" are any distributions made more than 5 taxable years after the taxable year of the first contribution to any Roth IRA and which are: - made on or after the date the individual attains age 59 1/2, - made to a Beneficiary after the Contract owner's death, - attributable to the Contract owner being disabled, or - for a first time home purchase (first time home purchases are subject to a lifetime limit of $10,000). If you transfer a non-Qualified Contract without full and adequate consideration to a person other than your spouse (or to a former spouse incident to a divorce), you will be taxed on the difference between the Contract Value and the investment in the Contract at the time of transfer. Except for certain Qualified Contracts, any amount you receive as a loan under a Contract, and any assignment or pledge (or agreement to assign or pledge) of the Contract Value is treated as a withdrawal of such amount or portion. TAXATION OF ANNUITY PAYMENTS. Generally, the rule for income taxation of annuity payments received from a non-Qualified Contract provides for the return of your investment in the Contract in equal tax-free amounts over the payment period. The balance of each payment received is taxable. For fixed annuity payments, the amount excluded from income is determined by multiplying the payment by the ratio of the investment in the Contract (adjusted for any refund feature or period certain) to the total expected value of annuity payments for the term of the Contract. If you elect variable annuity payments, the amount excluded from taxable income is determined by dividing the investment in the Contract by the total number of expected payments. The annuity payments will be fully taxable after the total amount of the investment in the Contract is excluded using these ratios. If you die, and annuity payments cease before the total amount of the investment in the Contract is recovered, the unrecovered amount will be allowed as a deduction for your last taxable year. TAXATION OF ANNUITY DEATH BENEFITS. Death of a Contract owner, or death of the Annuitant if the Contract is owned by a non-natural person, will cause a distribution of death benefits from a Contract. Generally, such amounts are included in income as follows: 1. if distributed in a lump sum, the amounts are taxed in the same manner as a full withdrawal, or 2. if distributed under an annuity option, the amounts are taxed in the same manner as an annuity payment. Please see the Statement of Additional Information for more detail on distribution at death requirements. PENALTY TAX ON PREMATURE DISTRIBUTIONS. A 10% penalty tax applies to the taxable amount of any premature distribution from a non-Qualified Contract. The penalty tax generally applies to any distribution made prior to the date you attain age 59 1/2. However, no penalty tax is incurred on distributions: 1. made on or after the date the Contract owner attains age 59 1/2; 2. made as a result of the Contract owner's death or disability; 3. made in substantially equal periodic payments over the Contract owner's life or life expectancy, 4. made under an immediate annuity, or 5. attributable to investment in the Contract before August 14, 1982. You should consult a competent tax advisor to determine if any other exceptions to the penalty apply to your situation. Similar exceptions may apply to distributions from Qualified Contracts. AGGREGATION OF ANNUITY CONTRACTS. All non-qualified deferred annuity contracts issued by Northbrook (or its affiliates) to the same Contract owner during any calendar year will be aggregated and treated as one annuity contract for purposes of determining the taxable amount of a distribution. TAX QUALIFIED CONTRACTS The income on qualified plan and IRA investments is tax deferred and variable annuities held by such plans do not receive any additional tax deferral. You should review the annuity features, including all benefits and expenses, prior to purchasing a variable annuity in a qualified plan or IRA. Northbrook reserves the right to limit the availability of the Contract for use with any of the Qualified Plans listed below. Contracts may be used as investments with certain qualified plans such as: - Individual Retirement Annuities or Accounts (IRAs) under Section 408 of the Internal Revenue Code ("Code"); - Roth IRAs under Section 408A of the Code; - Simplified Employee Pension Plans under Section 408(k) of the Code; - Savings Incentive Match Plans for Employees (SIMPLE) Plans under Section 408(p) of the Code; - Tax Sheltered Annuities under Section 403(b) of the Code; - Corporate and Self Employed Pension and Profit Sharing Plans; and - State and Local Government and Tax-Exempt Organization Deferred Compensation Plans. In the case of certain qualified plans, the terms of the plans may govern the right to benefits, regardless of the terms of the Contract. RESTRICTIONS UNDER SECTION 403(b) PLANS. Section 403(b) of the Code provides tax-deferred retirement savings plans for employees of certain non-profit and educational organizations. Under Section 403(b), any Contract used for a 403(b) plan must provide that distributions attributable to salary reduction contributions made after 12/31/88, and all earnings on salary reduction contributions, may be made only: 1. on or after the date an employee - attains age 59 1/2, - separates from service, - dies, - becomes disabled, or 2. on account of hardship (earnings on salary reduction contributions may not be distributed on the account of hardship). These limitations do not apply to withdrawals where Northbrook is directed to transfer some or all of the Contract Value to another 403(b) plan. INCOME TAX WITHHOLDING Northbrook is required to withhold federal income tax at a rate of 20% on all "eligible rollover distributions" unless you elect to make a "direct rollover" of such amounts to an IRA or eligible retirement plan. Eligible rollover distributions generally include all distributions from Qualified Contracts, excluding IRAs, with the exception of: 1. required minimum distributions, or 2. a series of substantially equal periodic payments made over a period of at least 10 years, or, over the life (joint lives) of the participant (and beneficiary). Northbrook may be required to withhold federal and state income taxes on any distributions from non-Qualified Contracts or Qualified Contracts that are not eligible rollover distributions, unless you notify us of your election to not have taxes withheld. PERFORMANCE INFORMATION - ------------------------------------------------------------------- We may advertise the performance of the Variable Sub-Accounts, including yield and total return information. Yield refers to the income generated by an investment in a Variable Sub-Account over a specified period. Total return represents the change, over a specified period of time, in the value of an investment in a Variable Sub-Account after reinvesting all income distributions. All performance advertisements will include, as applicable, standardized yield and total return figures that reflect the deduction of insurance charges, the contract maintenance charge, and withdrawal charge. Performance advertisements also may include total return figures that reflect the deduction of insurance charges, but not the contract maintenance or withdrawal charges. The deduction of such charges would reduce the performance shown. In addition, performance advertisements may include aggregate, average, year-by-year, or other types of total return figures. Performance information for periods prior to the inception date of the Variable Sub-Accounts will be based on the historical performance of the corresponding Portfolios for the periods beginning with the inception dates of the Portfolios and adjusted to reflect current Contract expenses. You should not interpret these figures to reflect actual historical performance of the Variable Account. We may include in advertising and sales materials tax deferred compounding charts and other hypothetical illustrations that compare currently taxable and tax deferred investment programs based on selected tax brackets. Our advertisements also may compare the performance of our Variable Sub-Accounts with: (a) certain unmanaged market indices, including but not limited to the Dow Jones Industrial Average, the Standard & Poor's 500, and the Shearson Lehman Bond Index; and/or (b) other management investment companies with investment objectives similar to the underlying funds being compared. In addition, our advertisements may include the performance ranking assigned by various publications, including the Wall Street Journal, Forbes, Fortune, Money, Barron's, Business Week, USA Today, and statistical services, including Lipper Analytical Services Mutual Fund Survey, Lipper Annuity and Closed End Survey, the Variable Annuity Research Data Survey, and SEI. APPENDIX A THE FOLLOWING TABLES SHOW THE ACCUMULATION UNIT VALUES FOR EACH VARIABLE SUB-ACCOUNT FOR CONTRACTS WITHOUT ANY OPTIONAL BENEFIT, AND CONTRACTS WITH EACH OPTIONAL BENEFIT, OR AVAILABLE COMBINATION THEREOF. ACCUMULATION UNIT VALUES ARE SHOWN SINCE INCEPTION OF THE VARIABLE SUB-ACCOUNTS OR SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE APPLICABLE OPTION(S), IF LATER. THE INCEPTION DATES FOR THE VARIABLE SUB-ACCOUNTS ARE AS FOLLOWS: Variable Sub-Account Inception Dates: The Money Market, Quality Income Plus, High Yield, Utilities, Dividend Growth, Equity and Strategist Variable Sub-Accounts commenced operations on October 25, 1990. The Capital Growth and European Growth Variable Sub-Accounts commenced operations on March 1, 1991. The Global Dividend Growth and Pacific Growth Variable Sub-Accounts commenced operations on February 23, 1994. The Income Builder Variable Sub-Account commenced operation on January 21, 1997. The Equity Growth, International Magnum, Emerging Markets Equity, and Emerging Growth Variable Sub-Accounts commenced operation on March 16, 1998. The S&P 500 Index, Competitive Edge ("Best Ideas") and U.S. Real Estate Variable Sub-Accounts commenced operations of May 18, 1998. The Short-Term Bond and Aggressive Equity Variable Sub-Accounts commenced operations on May 3, 1999. The Mid-Cap Value Sub-Account, the AIM V.I. Capital Appreciation, Growth and Value Variable Sub-Accounts, the Alliance Growth, Growth and Income, and Premier Growth Variable Sub-Accounts, and the Putnam VT Growth and Income, International Growth and Voyager Variable Sub-Accounts, which are available under Variable Annuity II Contracts only, commenced operations on January 31, 2000. The Information Sub-Account commenced operations on November 6, 2001.
ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT FOR EACH OF THE LAST TEN FISCAL YEARS FOR CONTRACTS WITHOUT ANY OPTIONS - ----------------------------------------------------------------------------------- For the Years Beginning January 1* and Ending December 31, VARIABLE SUB-ACCOUNT 1991 1992 1993 1994 1995 Base Policy AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period - ------------------------------------------------------------------------------------------------------------------------------ AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period - ------------------------------------------------------------------------------------------------------------------------------ AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period - ------------------------------------------------------------------------------------------------------------------------------ ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period - ------------------------------------------------------------------------------------------------------------------------------ ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period - ------------------------------------------------------------------------------------------------------------------------------ ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $12.697 $12.731 $11.682 $11.379 Accumulation Unit Value, End of Period $12.697 $12.731 $11.682 $11.379 $14.923 Number of Units Outstanding, End of Period 901,617 2,655,336 3,556,779 3,411,788 3,917,752 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $11.037 $13.911 $14.844 $16.746 $15.981 Accumulation Unit Value, End of Period $13.911 $14.844 $16.746 $15.981 $21.505 Number of Units Outstanding, End of Period 2,004,718 7,123,073 21,941,369 28,980,558 33,515,201 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.706 $16.799 $16.599 $19.604 $18.392 Accumulation Unit Value, End of Period $16.799 $16.599 $19.604 $18.392 $25.864 Number of Units Outstanding, End of Period 369,133 1,417,732 5,917,819 8,914,107 10,835,413 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.020 $10.280 $14.290 $15.278 Accumulation Unit Value, End of Period $10.020 $10.280 $14.290 $15.278 $18.976 Number of Units Outstanding, End of Period 248,922 719,495 4,448,126 8,491,681 8,587,679 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period -- -- -- $10.000 $9.912 Accumulation Unit Value, End of Period -- -- -- $9.912 $11.935 Number of Units Outstanding, End of Period -- -- -- 12,306,690 15,325,898 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $8.932 $13.982 $16.336 $20.022 $19.264 Accumulation Unit Value, End of Period $13.982 $16.336 $20.022 $19.264 $21.859 Number of Units Outstanding, End of Period 64,097 377,434 2,451,231 4,082,485 5,536,230 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.111 $10.549 $10.765 $10.913 $11.178 Accumulation Unit Value, End of Period $10.549 $10.765 $10.913 $11.178 $11.653 Number of Units Outstanding, End of Period 1,864,548 3,481,984 7,643,579 19,047,342 17,483,665 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning January 1* and Ending December 31, VARIABLE SUB-ACCOUNT 1991 1992 1993 1994 1995 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period -- -- -- $10.000 $9.221 Accumulation Unit Value, End of Period -- -- -- $9.221 $9.619 Number of Units Outstanding, End of Period -- -- -- 7,080,863 8,865,898 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.403 $12.163 $12.993 $14.487 $13.344 Accumulation Unit Value, End of Period $12.163 $12.993 $14.487 $13.344 $16.373 Number of Units Outstanding, End of Period 1,221,348 6,701,534 26,314,453 25,348,646 26,735,500 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.483 $13.266 $14.035 $15.286 $15.675 Accumulation Unit Value, End of Period $13.266 $14.035 $15.286 $15.675 $16.919 Number of Units Outstanding, End of Period 778,440 3,385,842 11,837,077 18,218,900 17,717,645 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.471 $12.454 $13.840 $15.798 $14.180 Accumulation Unit Value, End of Period $12.454 $13.840 $15.798 $14.180 $17.999 Number of Units Outstanding, End of Period 1,615,460 6,626,508 25,354,331 22,552,568 22,626,178 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning January 1* and Ending December 31, Continued 1996 through 1999 VARIABLE SUB-ACCOUNT 1996 1997 1998 1999 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period -- -- N/A 924,675 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $14.923 $16.421 $20.177 $23.806 Accumulation Unit Value, End of Period $16.421 $20.177 $23.806 $31.319 Number of Units Outstanding, End of Period 4,277,823 4,469,790 3,662,958 3,251,167 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period -- -- $10.000 $9.728 Accumulation Unit Value, End of Period -- -- $9.728 $12.177 Number of Units Outstanding, End of Period -- -- 1,432,745 1,766,647 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $21.505 $26.298 $32.590 $36.725 Accumulation Unit Value, End of Period $26.298 $32.590 $36.725 $35.384 Number of Units Outstanding, End of Period 38,902,776 39,673,542 36,334,173 31,771,950 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period -- -- $10.000 $7.102 Accumulation Unit Value, End of Period -- -- $7.102 $13.643 Number of Units Outstanding, End of Period -- -- 82,002 609,573 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $25.864 $28.669 $38.873 $50.025 Accumulation Unit Value, End of Period $28.669 $38.873 $50.025 $78.284 Number of Units Outstanding, End of Period 13,438,192 13,511,972 12,608,741 13,033,466 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning January 1* and Ending December 31, Continued 1996 through 1999 VARIABLE SUB-ACCOUNT 1996 1997 1998 1999 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period -- -- $10.000 $10.104 Accumulation Unit Value, End of Period -- -- $10.104 $13.901 Number of Units Outstanding, End of Period -- -- 822,038 1,653,843 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $18.976 $24.335 $27.870 $34.083 Accumulation Unit Value, End of Period $24.335 $27.870 $34.083 $43.419 Number of Units Outstanding, End of Period 10,006,937 9,765,284 8,967,887 7,442,535 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $11.935 $13.845 $15.304 $16.991 Accumulation Unit Value, End of Period $13.845 $15.304 $16.991 $19.219 Number of Units Outstanding, End of Period 19,847,332 21,662,482 17,634,472 15,377,323 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $21.859 $24.148 $26.652 $24.658 Accumulation Unit Value, End of Period $24.148 $26.652 $24.658 $24.009 Number of Units Outstanding, End of Period 7,988,916 8,797,892 8,199,142 6,186,696 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period -- $10.000 $12.084 $12.297 Accumulation Unit Value, End of Period -- $12.084 $12.297 $12.997 Number of Units Outstanding, End of Period -- 2,364,583 2,979,980 2,557,977 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period -- -- $10.000 $9.790 Accumulation Unit Value, End of Period -- -- $9.790 $12.092 Number of Units Outstanding, End of Period -- -- 136,628 281,569 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $11.653 $12.084 $12.546 $12.979 Accumulation Unit Value, End of Period $12.084 $12.546 $12.979 $13.46 Number of Units Outstanding, End of Period 21,476,904 18,625,330 21,159,031 17,541,394 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $16.373 $16.404 $17.983 $19.265 Accumulation Unit Value, End of Period $16.404 $17.983 $19.265 $18.200 Number of Units Outstanding, End of Period 24,233,104 20,839,536 20,312,197 16,872,144 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $9.619 $9.858 $6.059 $5.356 Accumulation Unit Value, End of Period $9.858 $6.059 $5.356 $8.780 Number of Units Outstanding, End of Period 11,810,540 8,191,656 6,325,967 7,412,158 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $10.065 Number of Units Outstanding, End of Period -- -- -- 127,159 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $16.919 $19.199 $21.540 $26.875 Accumulation Unit Value, End of Period $19.199 $21.540 $26.875 $31.136 Number of Units Outstanding, End of Period 17,132,441 16,153,105 14,574,012 13,273,409 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period -- -- $10.000 $11.126 Accumulation Unit Value, End of Period -- (Y) $11.126 $13.198 Number of Units Outstanding, End of Period -- -- 1,722,709 4,729,418 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- -- $10.000 $9.062 Accumulation Unit Value, End of Period -- -- $9.062 $8.808 Number of Units Outstanding, End of Period -- -- 79,729 230,000 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $17.999 $19.298 $24.208 $29.461 Accumulation Unit Value, End of Period $19.298 $24.208 $29.461 $32.870 Number of Units Outstanding, End of Period 19,259,329 15,172,387 13,541,542 11,688,649 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period -- -- -- $10.000 $11.997 Accumulation Unit Value, End of Period -- -- -- $11.997 $24.191 Number of Units Outstanding, End of Period -- -- -- 254,704 1,761,875 - -------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning January 1* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $ 8.324 Number of Units Outstanding, End of Period 330,757 - -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $ 7.343 Number of Units Outstanding, End of Period 199,117 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $ 8.001 Number of Units Outstanding, End of Period 658,113 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $ 8.145 Number of Units Outstanding, End of Period 256,762 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $10.764 Number of Units Outstanding, End of Period 710,787 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $ 7.861 Number of Units Outstanding, End of Period 1,090,403 - ---------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $14.035 Number of Units Outstanding, End of Period 3,101,157 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $31.319 Accumulation Unit Value, End of Period $31.297 Number of Units Outstanding, End of Period 3,021,082 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $12.177 Accumulation Unit Value, End of Period $ 9.926 Number of Units Outstanding, End of Period 2,405,879 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $35.384 Accumulation Unit Value, End of Period $36.762 Number of Units Outstanding, End of Period 22,447,720 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $13.643 Accumulation Unit Value, End of Period $ 8.224 Number of Units Outstanding, End of Period 496,918 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $78.284 Accumulation Unit Value, End of Period $67.698 Number of Units Outstanding, End of Period 12,262,797 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $13.901 Accumulation Unit Value, End of Period $12.105 Number of Units Outstanding, End of Period 2,584,832 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $43.419 Accumulation Unit Value, End of Period $40.733 Number of Units Outstanding, End of Period 6,307,478 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $19.219 Accumulation Unit Value, End of Period $18.489 Number of Units Outstanding, End of Period 11,064,552 For the Years Beginning January 1* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $24.009 Accumulation Unit Value, End of Period $16.055 Number of Units Outstanding, End of Period 4,112,148 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $12.997 Accumulation Unit Value, End of Period $12.846 Number of Units Outstanding, End of Period 1,868,522 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.00 Accumulation Unit Value, End of Period $9.292 Number of Units Outstanding, End of Period 63,540 - --------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $12.092 Accumulation Unit Value, End of Period $10.448 Number of Units Outstanding, End of Period 521,562 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.00 Accumulation Unit Value, End of Period $10.243 Number of Units Outstanding, End of Period 130,014 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $13.46 Accumulation Unit Value, End of Period $14.083 Number of Units Outstanding, End of Period 13,100,511 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $8.780 Accumulation Unit Value, End of Period $5.762 Number of Units Outstanding, End of Period 5,717,245 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $18.200 Accumulation Unit Value, End of Period $19.949 Number of Units Outstanding, End of Period 12,923,991 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.065 Accumulation Unit Value, End of Period $10.511 Number of Units Outstanding, End of Period 247,190 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $31.136 Accumulation Unit Value, End of Period $31.226 Number of Units Outstanding, End of Period 11,520,579 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $13.198 Accumulation Unit Value, End of Period $11.800 Number of Units Outstanding, End of Period 5,685,459 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $ 8.808 Accumulation Unit Value, End of Period $11.235 Number of Units Outstanding, End of Period 509,161 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $32.870 Accumulation Unit Value, End of Period $33.417 Number of Units Outstanding, End of Period 9,889,545 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $32.870 Accumulation Unit Value, End of Period $10.800 Number of Units Outstanding, End of Period 294,258 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $32.870 Accumulation Unit Value, End of Period $9.083 Number of Units Outstanding, End of Period 577,155 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $32.870 Accumulation Unit Value, End of Period $ 8.125 Number of Units Outstanding, End of Period 594,706 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $24.191 Accumulation Unit Value, End of Period $21.445 Number of Units Outstanding, End of Period 3,397,290 THE INCEPTION DATES FOR THE VARIABLE SUB-ACCOUNTS ARE SHOWN ABOVE THIS TABLE ON PAGE C-1. THE ACCUMULATION UNIT VALUE FOR EACH OF THESE SUB-ACCOUNTS WAS INITIALLY SET AT $10.000. THE ACCUMULATION UNIT VALUES IN THIS TABLE RFLECT A MORTALITY AND EXPENSE RISK CHARGE OF 1.25% AND AN ADMINISTRATIVE EXPENSE CHARGE OF 0.10% ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE ENHANCED DEATH BENEFIT OPTION, THE PERFORMANCE DEATH BENEFIT OPTION OR THE PERFORMANCE INCOME BENEFIT OPTION - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning January 1* and Ending December 31, VARIABLE SUB-ACCOUNT 1995 1996 1997 1998 1999 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- $14.447 Number of Units Outstanding, End of Period - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period -- -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- -- $14.465 Number of Units Outstanding, End of Period -- -- -- -- 1,122,012 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $13.895 $14.920 $16.397 $20.121 $23.717 Accumulation Unit Value, End of Period $14.920 $16.397 $20.121 $23.717 $31.150 Number of Units Outstanding, End of Period 36,005 509,094 1,365,427 1,687,847 1,636,053 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period -- -- -- $10.000 $9.720 Accumulation Unit Value, End of Period -- -- -- $9.720 $12.152 Number of Units Outstanding, End of Period -- -- -- 1,965,368 2,481,411 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $20.068 $21.500 $26.259 $32.498 $36.593 Accumulation Unit Value, End of Period $21.500 $26.259 $32.498 $36.593 $35.192 Number of Units Outstanding, End of Period 366,928 4,586,699 13,973,141 19,936,437 20,053,835 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period -- -- -- $10.000 $7.095 Accumulation Unit Value, End of Period -- -- -- $7.095 $13.679 Number of Units Outstanding, End of Period -- -- -- 94,600 689,216 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $24.677 $25.858 $28.626 $38.764 $49.825 Accumulation Unit Value, End of Period $25.858 $28.626 $38.764 $49.825 $77.861 Number of Units Outstanding, End of Period 215,961 2,302,720 5,454,409 7,931,260 10,374,793 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period -- -- -- $10.000 $10.094 Accumulation Unit Value, End of Period -- -- -- $10.094 $13.869 Number of Units Outstanding, End of Period -- -- -- 1,530,819 2,952,648 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $18.486 $18.972 $24.298 $27.792 $33.944 Accumulation Unit Value, End of Period $18.972 $24.298 $27.792 $33.944 $43.185 Number of Units Outstanding, End of Period 62,011 1,143,635 3,091,981 4,668,539 4,444,148 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning January 1* and Ending December 31, VARIABLE SUB-ACCOUNT 1995 1996 1997 1998 1999 GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $11.250 $11.932 $13.824 $15.260 $16.291 Accumulation Unit Value, End of Period $11.932 $13.824 $15.260 $16.921 $19.115 Number of Units Outstanding, End of Period 155,023 2,364,163 7,789,952 8,929,904 8,775,455 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $21.462 $21.855 $24.112 $26.577 $24.563 Accumulation Unit Value, End of Period $21.855 $24.112 $26.577 $24.563 $23.879 Number of Units Outstanding, End of Period 66,987 1,462,866 8,797,892 5,304,510 4,203,079 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period -- -- $10.000 $12.069 $12.274 Accumulation Unit Value, End of Period -- -- $12.069 $12.274 $12.947 Number of Units Outstanding, End of Period -- -- 2,024,851 3,652,211 3,113,231 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period -- -- -- $10.000 $9.780 Accumulation Unit Value, End of Period -- -- -- $9.780 $12.063 Number of Units Outstanding, End of Period -- -- -- 170,897 416,818 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $11.579 $11.651 $12.065 $12.511 $12.963 Accumulation Unit Value, End of Period $11.651 $12.065 $12.511 $12.963 $13.390 Number of Units Outstanding, End of Period 511,096 3,424,292 5,406,175 8,938,860 10,276,270 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $9.352 $9.617 $9.843 $6.042 $5.334 Accumulation Unit Value, End of Period $9.617 $9.843 $6.042 $5.334 $8.730 Number of Units Outstanding, End of Period 97,952 1,411,508 2,105,514 2,456,851 4,058,485 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $15.746 $16.370 $16.379 $17.932 $19.200 Accumulation Unit Value, End of Period $16.370 $16.379 $17.932 $19.200 $18.101 Number of Units Outstanding, End of Period 142,004 1,095,796 3,843,253 5,109,593 5,167,349 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period -- -- -- -- $10.000 Accumulation Unit Value, End of Period -- -- -- -- $10.056 Number of Units Outstanding, End of Period -- -- -- -- 121,549 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $16.490 $16.915 $19.170 $21.479 $26.783 Accumulation Unit Value, End of Period $16.915 $19.170 $21.479 $26.783 $30.968 Number of Units Outstanding, End of Period 91,983 903,817 3,529,096 6,559,093 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period -- -- -- $10.000 $11.117 Accumulation Unit Value, End of Period -- -- -- $11.117 $13.170 Number of Units Outstanding, End of Period -- -- -- 2,003,301 6,209,831 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period -- -- -- $10.000 $9.054 Accumulation Unit Value, End of Period -- -- -- $9.054 $8.790 Number of Units Outstanding, End of Period -- -- -- 80,782 194,964 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $16.972 $17.995 $19.268 $24.140 $29.438 Accumulation Unit Value, End of Period $17.995 $19.268 $24.140 $29.438 $32.693 Number of Units Outstanding, End of Period 165,046 822,723 1,753,743 3,510,503 4,016,659 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period -- -- -- -- -- Accumulation Unit Value, End of Period -- -- -- -- -- Number of Units Outstanding, End of Period - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period -- -- -- $10.000 $11.985 Accumulation Unit Value, End of Period -- -- -- $11.985 $24.135 Number of Units Outstanding, End of Period 402,082 2,522,689 - ---------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning January 1* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $ 8.317 Number of Units Outstanding, End of Period 403,019 - --------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $ 7.337 Number of Units Outstanding, End of Period 222,089 - --------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $ 7.994 Number of Units Outstanding, End of Period 867,766 - --------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $ 8.138 Number of Units Outstanding, End of Period 253,019 - --------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $10.755 Number of Units Outstanding, End of Period 756,656 - --------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $14.447 Accumulation Unit Value, End of Period $ 7.854 Number of Units Outstanding, End of Period 1,370,194 - -------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $14.465 Accumulation Unit Value, End of Period $14.005 Number of Units Outstanding, End of Period 4,013,767 - --------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $31.150 Accumulation Unit Value, End of Period $31.087 Number of Units Outstanding, End of Period 1,882,380 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $12.152 Accumulation Unit Value, End of Period $ 9.893 Number of Units Outstanding, End of Period 2,978,593 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $35.192 Accumulation Unit Value, End of Period $36.516 Number of Units Outstanding, End of Period 14,630,929 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $13.679 Accumulation Unit Value, End of Period $ 8.194 Number of Units Outstanding, End of Period 884,729 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $77.861 Accumulation Unit Value, End of Period $67.245 Number of Units Outstanding, End of Period 10,575,220 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $13.869 Accumulation Unit Value, End of Period $12.061 Number of Units Outstanding, End of Period 4,201,929 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $43.185 Accumulation Unit Value, End of Period $40.461 Number of Units Outstanding, End of Period 4,301,593 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning January 1* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $19.115 Accumulation Unit Value, End of Period $18.366 Number of Units Outstanding, End of Period 6,909,685 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $23.879 Accumulation Unit Value, End of Period $15.948 Number of Units Outstanding, End of Period 2,849,935 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $12.947 Accumulation Unit Value, End of Period $12.780 Number of Units Outstanding, End of Period 2,229,410 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.290 Number of Units Outstanding, End of Period 112,286 - ------------------------------------------------------------------------------------ INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $12.063 Accumulation Unit Value, End of Period $10.410 Number of Units Outstanding, End of Period 713,739 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.234 Number of Units Outstanding, End of Period 119,091 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $13.390 Accumulation Unit Value, End of Period $13.989 Number of Units Outstanding, End of Period 8,280,928 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $ 8.730 Accumulation Unit Value, End of Period $ 5.724 Number of Units Outstanding, End of Period 3,391,224 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $18.101 Accumulation Unit Value, End of Period $19.815 Number of Units Outstanding, End of Period 4,441,671 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $30.968 Accumulation Unit Value, End of Period $31.017 Number of Units Outstanding, End of Period 6,719,790 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $13.170 Accumulation Unit Value, End of Period $11.760 Number of Units Outstanding, End of Period 7,535,806 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $ 8.790 Accumulation Unit Value, End of Period $11.197 Number of Units Outstanding, End of Period 526,895 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $32.693 Accumulation Unit Value, End of Period $33.193 Number of Units Outstanding, End of Period 4,175,987 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.791 Number of Units Outstanding, End of Period 220,718 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.076 Number of Units Outstanding, End of Period 562,467 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.118 Number of Units Outstanding, End of Period 786,759 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $21.368 Number of Units Outstanding, End of Period 5,404,064
*Contracts with the Enhanced Death Benefit Option, the Performance Death Benefit Option, or the Performance Income Benefit Option were first offered under the Contracts on October 30, 1995. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Variable Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.38% and an administrative expense charge of 0.10%. The additional 0.13% mortality and expense risk charge is applicable to Contract owners who selected the Enhanced Death Benefit Option, the Performance Death Benefit Option or the Performance Income Benefit Option. ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE PERFORMANCE BENEFIT COMBINATION OPTION OR THE DEATH BENEFIT COMBINATION OPTION
- ---------------------------------------------------------------------------------------------------------------------------------- For the Period Beginning January 1 and Ending December 31, VARIABLE SUB-ACCOUNT 1998 1999 2000 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period -- $10.000 $14.447 Accumulation Unit Value, End of Period -- $14.447 $ 8.311 Number of Units Outstanding, End of Period 252,723 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period -- $10.000 $14.447 Accumulation Unit Value, End of Period -- $14.447 $ 7.331 Number of Units Outstanding, End of Period 112,625 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period -- $10.000 $14.447 Accumulation Unit Value, End of Period -- $14.447 $ 7.988 Number of Units Outstanding, End of Period 510,446 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period -- $10.000 $14.447 Accumulation Unit Value, End of Period -- $14.447 $ 8.132 Number of Units Outstanding, End of Period 145,135 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period -- $10.000 $14.447 Accumulation Unit Value, End of Period -- $14.447 $10.747 Number of Units Outstanding, End of Period 282,835 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period -- $10.000 $14.447 Accumulation Unit Value, End of Period -- $14.447 $ 7.849 Number of Units Outstanding, End of Period 505,325 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period -- $10.000 $14.454 Accumulation Unit Value, End of Period -- $14.454 $13.980 Number of Units Outstanding, End of Period -- 458,487 1,751,421 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $19.356 $23.373 $30.663 Accumulation Unit Value, End of Period $23.373 $30.663 $30.565 Number of Units Outstanding, End of Period 41,885 128,657 312,892 - -------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 $9.714 $12.130 Accumulation Unit Value, End of Period $9.714 $12.130 $ 9.864 Number of Units Outstanding, End of Period 178,762 489,657 810,537 - -------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $32.096 $36.031 $34.614 Accumulation Unit Value, End of Period $36.031 $34.614 $35.877 Number of Units Outstanding, End of Period 528,141 1,434,477 1,488,899 - -------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 $7.089 $13.584 Accumulation Unit Value, End of Period $7.089 $13.584 $ 8.169 Number of Units Outstanding, End of Period 19,500 210,592 449,505 - -------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $38.177 $49.060 $76.581 Accumulation Unit Value, End of Period $49.060 $76.581 $66.067 Number of Units Outstanding, End of Period 221,631 950,293 1,396,798 - -------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.370 $13.842 Accumulation Unit Value, End of Period $10.370 $13.842 $12.024 Number of Units Outstanding, End of Period 154,201 495,861 915,909 - -------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $27.627 $33.452 $42.510 Accumulation Unit Value, End of Period $33.452 $42.510 $39.785 Number of Units Outstanding, End of Period 175,357 392,050 635,143 - -------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $15.193 $16.794 $18.951 Accumulation Unit Value, End of Period $16.794 $18.951 $18.188 Number of Units Outstanding, End of Period 156,429 488,336 611,375 - -------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $26.463 $24.176 $23.477 Accumulation Unit Value, End of Period $24.176 $23.477 $15.662 Number of Units Outstanding, End of Period 137,884 290,136 271,440 For the Period Beginning January 1 and Ending December 31, VARIABLE SUB-ACCOUNT 1998 1999 2000 - -------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period -- -- $10.000 Accumulation Unit Value, End of Period -- -- $9.289 Number of Units Outstanding, End of Period -- -- 36,971 - -------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $12.036 $12.248 $12.906 Accumulation Unit Value, End of Period $12.248 $12.906 $12.725 Number of Units Outstanding, End of Period 164,457 270,771 228,558 - --------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 $9.771 $12.040 Accumulation Unit Value, End of Period $9.771 $12.040 $10.378 Number of Units Outstanding, End of Period 31,933 172,588 359,209 - --------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period -- -- $10.000 Accumulation Unit Value, End of Period -- -- $10.226 Number of Units Outstanding, End of Period 67,804 - ---------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $12.355 $12.766 $13.166 Accumulation Unit Value, End of Period $12.766 $13.166 $13.743 Number of Units Outstanding, End of Period 673,034 1,263,421 1,085,418 - --------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $5.587 $5.294 $8.655 Accumulation Unit Value, End of Period $5.294 $8.655 $5.669 Number of Units Outstanding, End of Period 52,484 390,608 573,966 - ---------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $17.841 $18.906 $17.804 Accumulation Unit Value, End of Period $18.906 $17.804 $19.468 Number of Units Outstanding, End of Period 169,761 328,139 388,445 - --------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period -- $10.000 $10.049 Accumulation Unit Value, End of Period -- $10.049 $10.470 Number of Units Outstanding, End of Period -- 34,942 68,599 - --------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $21.497 $26.371 $30.459 Accumulation Unit Value, End of Period $26.371 $30.459 $30.474 Number of Units Outstanding, End of Period 472,816 1,004,838 1,334,894 - ---------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 $11.110 $13.146 Accumulation Unit Value, End of Period $11.110 $13.146 $11.727 Number of Units Outstanding, End of Period 283,511 1,877,442 2,621,084 - ----------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 $9.048 $ 8.774 Accumulation Unit Value, End of Period $9.048 $8.774 $11.165 Number of Units Outstanding, End of Period 37,193 93,827 165,007 - ------------------------------------------------------------------------------------------------------------------------ UTILITIES Accumulation Unit Value, Beginning of Period $23.622 $28.985 $32.155 Accumulation Unit Value, End of Period $28.985 $32.155 $32.612 Number of Units Outstanding, End of Period 159,860 340,744 558,866 - -------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period -- -- $10.000 Accumulation Unit Value, End of Period -- -- $10.783 Number of Units Outstanding, End of Period 86,919 - ---------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period -- -- $10.000 Accumulation Unit Value, End of Period -- -- $9.069 Number of Units Outstanding, End of Period 430,045 - ---------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period -- -- $10.000 Accumulation Unit Value, End of Period -- -- $8.112 Number of Units Outstanding, End of Period 361,221 - ---------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 $12.590 $24.088 Accumulation Unit Value, End of Period $12.590 $24.088 $21.302 Number of Units Outstanding, End of Period 82,427 818,855 2,158,492 - -------------------------------------------------------------------------------------------------------------------------------- *Contracts with the Performance Benefit Combination Option were first offered under the Contracts on December 7, 1998. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. Contracts with the Death Benefit Combination Option were first made available on May 3, 1999. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.49% and an administrative expense charge of 0.10%. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH INCOME BENEFIT COMBINATION OPTION 2 For the Period Beginning October 30* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.237 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.319 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.407 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.859 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.941 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.835 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.210 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.872 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.051 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.423 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.387 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.271 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.585 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.330 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.283 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning October 30* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.358 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.024 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $9.288 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $9.838 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.834 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.069 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.560 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.401 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.090 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.576 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.212 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.749 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.022 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.074 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.942 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.661 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.112 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- *Contracts with the Income Benefit Combination Option 2 were first offered under the Contracts on October 30, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.55% and an administrative expense charge of 0.10%. The additional 0.30% mortality and expense risk charge is applicable to Contract owners who selected the Income Benefit Combination Option 2. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2 For the Years Beginning October 30* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.233 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.317 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.406 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.858 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.940 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.830 Number of Units Outstanding, End of Period 661 - ---------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.210 Number of Units Outstanding, End of Period 2,135 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.870 Number of Units Outstanding, End of Period 280 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.050 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.420 Number of Units Outstanding, End of Period 17,411 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.387 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.270 Number of Units Outstanding, End of Period 44,843 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.584 Number of Units Outstanding, End of Period 721 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.333 Number of Units Outstanding, End of Period 8,533 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.280 Number of Units Outstanding, End of Period 5,147 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning October 30* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.360 Number of Units Outstanding, End of Period 3,234 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.836 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.832 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.070 Number of Units Outstanding, End of Period 4,189 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.559 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.400 Number of Units Outstanding, End of Period 6,003 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.088 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.573 Number of Units Outstanding, End of Period 314 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.210 Number of Units Outstanding, End of Period 19,728 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.747 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.021 Number of Units Outstanding, End of Period 1,268 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.072 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.940 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.659 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.00 Accumulation Unit Value, End of Period $8.110 Number of Units Outstanding, End of Period 6,591 - ------------------------------------------------------------------------------------------------------------------- *Contracts with the Income and Death Benefit Combination Option 2 were first offered under the Contracts on October 30, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on pages C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.75% and an administrative expense charge of 0.10%. The additional 0.50% mortality and expense risk charge is applicable to Contract owners who selected the Income and Death Benefit Combination Option 2. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.896 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.159 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.928 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.359 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.808 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.130 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.869 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.496 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.538 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.829 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.401 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.320 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.543 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.278 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.199 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.320 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.500 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.018 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.072 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.979 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.140 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.226 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.316 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.818 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.839 Number of Units Outstanding, End of Period 0 *Contracts with the Enhanced Earnings Death Benefit Option were first offered under the Contracts on December 6, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of the Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.45% and an administrative expense charge of 0.10%. The additional 0.20% mortality and expense risk charge is applicable to Contract owners who selected the Enhanced Earnings Death Benefit Rider, Performance Income Benefit Rider or Performance Death Benefit Rider. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE ENHANCED DEATH BENEFIT RIDER, PERFORMANCE INCOME BENEFIT RIDER OR PERFORMANCE DEATH BENEFIT RIDER For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - ------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.896 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.159 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.928 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.359 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.808 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.130 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.869 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.495 Number of Units Outstanding, End of Period 5,188 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.538 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 4,354 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.829 Number of Units Outstanding, End of Period 1,183 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.401 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 1,060 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.542 Number of Units Outstanding, End of Period 2,053 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 9,373 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - ------------------------------------------------------------------------------------ INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.199 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.320 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.500 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.018 Number of Units Outstanding, End of Period 14,084 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.007 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.072 Number of Units Outstanding, End of Period 11,272 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.979 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 5,505 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.139 Number of Units Outstanding, End of Period 6,965 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.226 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.316 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.818 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.838 Number of Units Outstanding, End of Period 463 * Contracts with the Enhanced Earnings Death Benefit Option and Enhanced Death Benefit Option, Performance Income Benefit Option or Performance Death Benefit Option were first made available under the Contracts on December 6, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.58% and an administrative expense charge of 0.10%. The additional 0.33% mortality and expense risk charge is applicable to Contract owners who selected the Enhanced Earnings Death Benefit Option and Enhanced Death Benefit Option, Performance Income Benefit Option or Performance Death Benefit Option. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND THE DEATH BENEFIT COMBINATION OPTION OR PERFORMANCE BENEFIT COMBINATION OPTION For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.895 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.159 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.927 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.359 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.808 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.129 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.869 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.496 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.538 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.829 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.401 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.542 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.199 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.320 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.499 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.018 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.072 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.978 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.139 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.225 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.316 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.817 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.838 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- *Contracts with the Enhanced Earnings Death Benefit Option and Death Benefit Combination Option or Performance Income Benefit Combination Option were first offered under the Contracts on December 6, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.69% and an administrative expense charge of 0.10%. The additional 0.44% mortality and expense risk charge is applicable to Contract owners who selected the Enhanced Earnings Death Benefit Option and Death Benefit Combination Option or Performance Income Benefit Combination Option. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND INCOME BENEFIT COMBINATION OPTION 2 For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.895 Number of Units Outstanding, End of Period 0 - ------------------------------------------------------------------------------------------ AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.158 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.927 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.358 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.807 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.129 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.868 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.495 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.537 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.828 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.400 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.541 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.198 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.016 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.499 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.071 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.978 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.139 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.225 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.160 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.817 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.838 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- *Contracts with the Enhanced Earnings Death Benefit Option and Income Benefit Combination Option 2 were first offered under the Contracts on December 6, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.75% and an administrative expense charge of 0.10%. The additional 0.50% mortality and expense risk charge is applicable to Contract owners who selected the Enhanced Earnings Death Benefit Option and Income Benefit Combination Option 2. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION AND INCOME AND DEATH BENEFIT COMBINATION OPTION 2 For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - ------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.895 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.158 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.927 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.359 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.807 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.129 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.869 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.495 Number of Units Outstanding, End of Period 3,475 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.538 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.829 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.401 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.542 Number of Units Outstanding, End of Period 98 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.198 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.499 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 2,755 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.007 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.071 Number of Units Outstanding, End of Period 3,347 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.978 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.139 Number of Units Outstanding, End of Period 6,315 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.225 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.316 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.817 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.838 Number of Units Outstanding, End of Period 0 * Contracts with the Enhanced Earnings Death Benefit Option and Income and Death Benefit Combination Option 2 were first made available under the Contracts on December 6, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.95% and an administrative expense charge of 0.10%. The additional 0.70% mortality and expense risk charge is applicable to Contract owners who selected the Enhanced Earnings Death Benefit Option and Income and Death Benefit Combination Option 2. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE LONGEVITY REWARD RIDER For the Years Beginning June 5* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - -------------------------------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.288 Number of Units Outstanding, End of Period 18,076 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.402 Number of Units Outstanding, End of Period 33,449 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.325 Number of Units Outstanding, End of Period 33,192 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.003 Number of Units Outstanding, End of Period 18,271 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.246 Number of Units Outstanding, End of Period 6,267 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.982 Number of Units Outstanding, End of Period 14,138 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.695 Number of Units Outstanding, End of Period 72,420 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.719 Number of Units Outstanding, End of Period 139,613 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.434 Number of Units Outstanding, End of Period 36,893 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.702 Number of Units Outstanding, End of Period 996,619 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.389 Number of Units Outstanding, End of Period 4,827 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.543 Number of Units Outstanding, End of Period 1,289,081 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.339 Number of Units Outstanding, End of Period 16,016 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.208 Number of Units Outstanding, End of Period 434,294 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning June 5* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.951 Number of Units Outstanding, End of Period 220,380 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.956 Number of Units Outstanding, End of Period 94,315 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.050 Number of Units Outstanding, End of Period 9,550 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.594 Number of Units Outstanding, End of Period 0 - ------------------------------------------------------------------------------------ INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.057 Number of Units Outstanding, End of Period 1,690 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.235 Number of Units Outstanding, End of Period 2,735 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.281 Number of Units Outstanding, End of Period 185,342 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.275 Number of Units Outstanding, End of Period 42,478 - ---------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.774 Number of Units Outstanding, End of Period 374,073 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.008 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.940 Number of Units Outstanding, End of Period 1,009,853 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.970 Number of Units Outstanding, End of Period 70,626 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $11.507 Number of Units Outstanding, End of Period 9,341 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.142 Number of Units Outstanding, End of Period 781,016 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.568 Number of Units Outstanding, End of Period 79 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.019 Number of Units Outstanding, End of Period 24,612 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.120 Number of Units Outstanding, End of Period 25,462 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.132 Number of Units Outstanding, End of Period 95,704 * Contracts with the Longevity Reward Rider were first made available under the Contracts on June 5, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.18% and an administrative expense charge of 0.10%. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE LONGEVITY REWARD RIDER AND ENHANCED DEATH BENEFIT OPTION, PERFORMANCE DEATH BENEFIT OPTION OR PERFORMANCE INCOME BENEFIT OPTION For the Years Beginning June 5* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - ------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.282 Number of Units Outstanding, End of Period 4,937 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.397 Number of Units Outstanding, End of Period 5,869 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.159 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.998 Number of Units Outstanding, End of Period 6,857 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.239 Number of Units Outstanding, End of Period 10,486 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.976 Number of Units Outstanding, End of Period 5,139 - ---------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.688 Number of Units Outstanding, End of Period 32,338 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.712 Number of Units Outstanding, End of Period 24,368 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.427 Number of Units Outstanding, End of Period 5,746 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.694 Number of Units Outstanding, End of Period 274,154 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.389 Number of Units Outstanding, End of Period 12 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.536 Number of Units Outstanding, End of Period 323,143 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.333 Number of Units Outstanding, End of Period 17,488 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.202 Number of Units Outstanding, End of Period 118,339 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning June 5* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.943 Number of Units Outstanding, End of Period 95,817 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.951 Number of Units Outstanding, End of Period 24,508 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.042 Number of Units Outstanding, End of Period 1,966 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.051 Number of Units Outstanding, End of Period 3,672 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.320 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.273 Number of Units Outstanding, End of Period 8,043 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.270 Number of Units Outstanding, End of Period 9,077 - ---------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.766 Number of Units Outstanding, End of Period 108,499 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.932 Number of Units Outstanding, End of Period 326,654 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.963 Number of Units Outstanding, End of Period 41,057 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $11.499 Number of Units Outstanding, End of Period 452 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.135 Number of Units Outstanding, End of Period 226,311 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.560 Number of Units Outstanding, End of Period 5,419 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.013 Number of Units Outstanding, End of Period 3,997 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.114 Number of Units Outstanding, End of Period 3,404 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.126 Number of Units Outstanding, End of Period 49,523 * Contracts with these Options were first made available under the Contracts on June 5, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.31% and an administrative expense charge of 0.10%. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE LONGEVITY REWARD RIDER AND THE PERFORMANCE BENEFIT COMBINATION OPTION OR DEATH BENEFIT COMBINATION OPTION For the Years Beginning June 5* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - ------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.895 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.313 Number of Units Outstanding, End of Period 101 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.927 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.359 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.971 Number of Units Outstanding, End of Period 1,954 - ---------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.682 Number of Units Outstanding, End of Period 3,790 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.706 Number of Units Outstanding, End of Period 1,574 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.869 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.688 Number of Units Outstanding, End of Period 50,253 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.538 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.530 Number of Units Outstanding, End of Period 55,513 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.327 Number of Units Outstanding, End of Period 11,936 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.196 Number of Units Outstanding, End of Period 23,454 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning June 5* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.937 Number of Units Outstanding, End of Period 13,949 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.947 Number of Units Outstanding, End of Period 4,679 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.045 Number of Units Outstanding, End of Period 1,098 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.221 Number of Units Outstanding, End of Period 361 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.267 Number of Units Outstanding, End of Period 2,122 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period 7.265 Number of Units Outstanding, End of Period 651 - ---------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.759 Number of Units Outstanding, End of Period 9,069 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.926 Number of Units Outstanding, End of Period 52,247 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.957 Number of Units Outstanding, End of Period 9,545 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 30,526 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.225 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.316 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.109 Number of Units Outstanding, End of Period 482 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.121 Number of Units Outstanding, End of Period 14,669 *Contracts with the Longevity Reward Rider and Performance Benefit Combination Option or Death Benefit Combination Option were first made available under the Contracts on June 5, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.42% and an administrative expense charge of 0.10%. The additional 0.17% mortality and expense risk charge is applicable to Contract owners who selected the Longevity Reward Rider and Performance Benefit Combination Option or Death Benefit Combination Option. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE LONGEVITY REWARD RIDER AND THE INCOME BENEFIT COMBINATION OPTION 2 For the Years Beginning October 30* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - ------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.895 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.158 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.927 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.359 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.807 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.129 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.87 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.495 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.538 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.829 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.401 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning June 5* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.54 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.199 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.499 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.018 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.007 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.071 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.978 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.139 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.225 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.316 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.817 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.838 Number of Units Outstanding, End of Period 0 *Contracts with the Longevity Reward Rider With the Income Benefit Combination Option 2 were first made available under the Contracts on October 30, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.48% and an administrative expense charge of 0.10%. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE LONGEVITY REWARD RIDER AND THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2 For the Years Beginning October 30* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - ------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.895 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.910 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.158 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.927 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.356 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.807 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.129 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.318 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.868 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.494 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.537 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.127 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.828 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.400 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning June5* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.318 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.541 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.276 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.592 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.198 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.016 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.499 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.006 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.071 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.978 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.024 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.139 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.224 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.315 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.816 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.837 Number of Units Outstanding, End of Period 0 * Contracts with the Longevity Reward Rider with the Income and Death Benefit Combination Option 2 were first made available under the Contracts on October 30, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.68% and an administrative expense charge of 0.10%. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE LONGEVITY REWARD RIDER AND THE ENHANCED EARNINGS DEATH BENEFIT For the Years Beginning December 6, 2000* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - ------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.90 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.91 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.16 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.93 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.36 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.81 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.13 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.32 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.87 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.50 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.54 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.13 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.83 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.40 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning June5* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.32 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.54 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.28 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.59 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.20 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.32 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.02 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.50 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.02 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.01 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.07 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.98 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.03 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.14 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.23 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.32 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.82 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.84 Number of Units Outstanding, End of Period 0 *Contracts with the Longevity Reward Rider and the Enhanced Earnings Death Benefit were first made available under the Contracts on December 6, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.38% and an administrative expense charge of 0.10%. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE LONGEVITY REWARD RIDER, ENHANCED EARNINGS DEATH BENEFIT OPTION AND ENHANCED DEATH BENEFIT, THE PERFORMANCE DEATH BENEFIT INCOME BENEFIT, OR THE PERFORMANCE DEATH BENEFIT OPTION For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - ------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.896 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.159 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.928 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.359 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.808 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.130 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.869 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.495 Number of Units Outstanding, End of Period 18,159 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.538 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 31,703 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.829 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.401 Number of Units Outstanding, End of Period 23,608 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 11,559 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.542 Number of Units Outstanding, End of Period 5,110 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.199 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.320 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.500 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.018 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.072 Number of Units Outstanding, End of Period 20,031 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.979 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.140 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.225 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.316 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.817 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.838 Number of Units Outstanding, End of Period 0 * Contracts with the Longevity Reward Rider, Enhanced Earnings Death Benefit Option and Enhanced Death Benefit, the Performance Death Benefit Income Benefit, or the Performance Death Benefit Option were first made available under the Contracts on December 6, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.51% and an administrative expense charge of 0.10%. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH LONGEVITY REWARD RIDER, ENHANCED EARNINGS DEATH BENEFIT OPTION AND DEATH BENEFIT COMBINATION OPTION OR PERFORMANCE BENEFIT COMBINATION OPTION For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - ------------------------------------------------------------------------ AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.895 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.158 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.927 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.359 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.810 Number of Units Outstanding, End of Period 576 - -------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.129 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.869 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.495 Number of Units Outstanding, End of Period 11,924 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.838 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.538 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 3,680 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.829 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.401 Number of Units Outstanding, End of Period 9,466 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 8,932 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.542 Number of Units Outstanding, End of Period 3,187 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 3,460 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.199 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.499 Number of Units Outstanding, End of Period 348 - ---------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.018 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.071 Number of Units Outstanding, End of Period 1,636 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.978 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.139 Number of Units Outstanding, End of Period 1,818 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.225 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.316 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.817 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.838 Number of Units Outstanding, End of Period 3,527 * Contracts with the Longevity Reward Rider, Enhanced Earnings Death Benefit Option and Death Benefit Combination Option or Performance Combination were first made available under the Contracts on December 6, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.62% and an administrative expense charge of 0.10%. The additional 0.37% mortality and expense risk charge is applicable to Contract owners who selected the Longevity Reward Rider, the Enhanced Earnings Death Benefit Option, and the Death Benefit Combination Option of Performance Benefit Combination Option. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONTRACTS WERE FIRST OFFERED WITH THE LONGEVITY REWARD RIDER, ENHANCED EARNINGS DEATH BENEFIT OPTION AND INCOME BENEFIT COMBINATION OPTION 2 For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.895 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.158 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.927 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.356 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.807 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.129 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.869 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.495 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.538 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.829 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.401 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.542 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.199 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.499 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.018 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.007 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.071 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.978 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.139 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.225 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.316 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.817 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.838 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- * Contracts with the Longevity Reward Rider, Enhanced Earnings Death Benefit Option and Income Benefit Combination Option 2 were first made available under the Contracts on December 6, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.68% and an administrative expense charge of 0.10%. The additional 0.43% mortality and expense risk charge is applicable to Contract owners who selected the Longevity Reward Rider, the Enhanced Earnings Death Benefit and Income Benefit Combination Option 2. APPENDIX A ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE THE CONRACTS WERE FIRST OFFERED WITH THE LONGEVITY REWARD RIDER, ENHANCED EARNINGS DEATH BENEFIT OPTION AND INCOME AND DEATH BENEFIT COMBINATION OPTION 2 For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.895 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. GROWTH FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.911 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AIM V.I. VALUE FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.159 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.927 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.359 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- ALLIANCE PREMIER GROWTH PORTFOLIO Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.807 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.129 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.869 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.495 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.538 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.128 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.829 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.401 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.319 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning December 6* and Ending December 31, VARIABLE SUB-ACCOUNT 2000 - --------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.542 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.593 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.277 Number of Units Outstanding, End of Period 0 - -------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.199 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MID CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.320 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.017 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.499 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.018 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.007 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.072 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.978 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.025 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.139 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GROWTH AND INCOME FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.225 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.316 Number of Units Outstanding, End of Period 0 - --------------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VOYAGER FUND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.817 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIT EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.838 Number of Units Outstanding, End of Period 0 - ---------------------------------------------------------------------------------------------------------------------------------
* Contracts with the Longevity Reward Rider, Enhanced Earnings Death Benefit Option and Income and Death Benefit Combination Option 2 were first made available under the Contracts on December 6, 2000. The inception dates for the Variable Sub-Accounts are shown above the first table of Accumulation Unit Values on page C-1 above. The Accumulation Unit Value for each of these Sub-Accounts was initially set at $10.000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.88% and an administrative expense charge of 0.10%. The additional 0.63% mortality and expense risk charge is applicable to Contract owners who selected the Longevity Reward Rider, Enhanced Earnings Death Benefit and Income and Death Benefit Combination Option 2. APPENDIX B CALCULATION OF ENHANCED EARNINGS DEATH BENEFIT EXAMPLE 1. In this example, assume that the oldest Owner is age 65 at the time the Contract is issued and elects the Enhanced Earnings Death Benefit Option when the Contract is issued. The Owner makes an initial purchase payment of $100,000. After four years, the Owner dies. On the date Northbrook receives Due Proof of Death, the Contract Value is $125,000. Prior to his death, the Owner did not make any additional purchase payments or take any withdrawals. Excess-of-Earnings Withdrawals = $0 In-Force Premium = $100,000 ($100,000 + $0 - $0) Death Benefit Earnings = $25,000 ($125,000 - $100,000) Enhanced Earnings Death Benefit = 40% x $25,000 = $10,000. Since Death Benefit Earnings are less than In-Force Premium, the Death Benefit Earnings are used to compute the Enhanced Earnings Death Benefit amount. EXAMPLE 2. In the second example, assume the same facts as above, except that the Owner has taken a withdrawal of $10,000 during the second year of the Contract. At the time the withdrawal is taken, the Contract Value is $105,000. Here, $5,000 of the withdrawal is in excess of the Death Benefit Earnings at the time of the withdrawal. The Contract Value on the date Northbrook receives due proof of death will be assumed to be $114,000. Excess of Earnings Withdrawals = $5,000 ($10,000 - $5,000) In-Force Premium = $95,000 ($100,000 + $0 - $5,000) Death Benefit Earnings = $19,000 ($114,000 - $95,000) Enhanced Earnings Death Benefit = 40% x $19,000 = $7,600. Since Death Benefit Earnings are less than In-Force Premium, the Death Benefit Earnings are used to compute the Enhanced Earnings Death Benefit amount. EXAMPLE 3. This third example is intended to illustrate the effect of adding the Enhanced Earnings Death Benefit Option after the Contract has been issued and the effect of later purchase payments. In this example, assume that the oldest Owner is age 75 at the time the Enhanced Earnings Death Benefit is elected. At the time the Contract is issued, the Owner makes a purchase payment of $100,000. After two years pass, the Owner elects to add the Enhanced Earnings Death Benefit Option. On the date this Option is added, the Contract Value is $110,000. Two years later, the Owner withdraws $50,000. Immediately prior to the withdrawal, the Contract Value is $130,000. Another two years later, the Owner makes an additional purchase payment of $40,000. A year later, the owner dies with a Contract Value of $140,000 on the date we receive Due Proof of Death. Excess of Earnings Withdrawals = $30,000 ($50,000 - $20,000) In-Force Premium = $120,000 ($110,000 + $40,000 - $30,000) Death Benefit Earnings = $20,000 ($140,000 - $120,000) Enhanced Earnings Death Benefit = 25% of $20,000 = $5,000. In this example, In-Force Premium is the Contract Value on the date the Rider was issued plus all later withdrawals and minus Excess-of-Earnings withdrawals. Since Death Benefit Earnings are less than In-Force Premium, the Death Benefit Earnings are used to compute the Enhanced Earnings Death Benefit amount. B-1 STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - ------------------------------------------------------------------- DESCRIPTION PAGE - ---------------------------------------------------------------------- ---- - ---------------------------------------------------------------------------- Additions, Deletions or Substitutions of Investments - ---------------------------------------------------------------------------- The Contract Purchases Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers) - ---------------------------------------------------------------------------- Performance Information - ---------------------------------------------------------------------------- Calculation of Accumulation Unit Values - ---------------------------------------------------------------------------- Calculation of Variable Income Payments - ---------------------------------------------------------------------------- General Matters Incontestability Settlements Safekeeping of the Variable Account's Assets Premium Taxes Tax Reserves - ---------------------------------------------------------------------------- Federal Tax Matters - ---------------------------------------------------------------------------- Qualified Plans - ---------------------------------------------------------------------------- Experts - ---------------------------------------------------------------------------- Financial Statements - ---------------------------------------------------------------------------- ------------------------------ THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH SUCH OFFERING MAY NOT LAWFULLY BE MADE. WE DO NOT AUTHORIZE ANYONE TO PROVIDE ANY INFORMATION OR REPRESENTATIONS REGARDING THE OFFERING DESCRIBED IN THIS PROSPECTUS OTHER THAN AS CONTAINED IN THIS PROSPECTUS. MORGAN STANLEY DEAN WITTER VARIABLE ANNUITY II ASSETMANAGER NORTHBROOK LIFE INSURANCE COMPANY P.O. BOX 94040 PALATINE, IL 60094 TELEPHONE NUMBER: 1-800-654-2397 PROSPECTUS DATED MAY 1, 2001 - -------------------------------------------------------------------------------- Northbrook Life Insurance Company ("NORTHBROOK") is offering the Morgan Stanley Dean Witter Variable Annuity II AssetManager, an individual and group flexible premium deferred variable annuity contract ("CONTRACT"). This prospectus contains information about the Contract that you should know before investing. Please keep it for future reference. New Contracts may not be purchased in all states. Please check with your Morgan Stanley Dean Witter Financial Advisor for current availability. If you have already purchased the Contract you may contintue to add to it. The Contract offers 24 investment alternatives ("INVESTMENT ALTERNATIVES"). The investment alternatives include 2 fixed account options ("FIXED ACCOUNT OPTIONS") and 22 variable sub-accounts ("VARIABLE SUB-ACCOUNTS") of the Northbrook Variable Annuity Account II ("VARIABLE ACCOUNT"). Each Variable Sub-Account invests exclusively in shares of portfolios ("PORTFOLIOS") of the following mutual funds ("FUNDS"): - MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES - THE UNIVERSAL INSTITUTIONAL FUNDS, INC. - VAN KAMPEN LIFE INVESTMENT TRUST We (Northbrook) have filed a Statement of Additional Information, dated May 1, 2001, with the Securities and Exchange Commission ("SEC "). It contains more information about the Contract and is incorporated herein by reference, which means that it is legally a part of this prospectus. Its table of contents appears on page B-1 of this prospectus. For a free copy, please write or call us at the address or telephone number above, or go to the SEC's Web site (http://www.sec.gov). You can find other information and documents about us, including documents that are legally a part of this prospectus, at the SEC's Web site. - -------------------------------------------------------------------------------- THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR IMPORTANT DISAPPROVED THE SECURITIES DESCRIBED IN THIS PROSPECTUS, NOR NOTICES HAS IT PASSED ON THE ACCURACY OR THE ADEQUACY OF THIS PROSPECTUS. ANY ONE WHO TELLS YOU OTHERWISE IS COMMITTING A FEDERAL CRIME. INVESTMENT IN THE CONTRACTS INVOLVES INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. TABLE OF CONTENTS - ------------------------------------------------------------------- PAGE - ---------------------------------------------------------------------------- OVERVIEW - ---------------------------------------------------------------------------- Important Terms - ---------------------------------------------------------------------------- The Contract at a Glance - ---------------------------------------------------------------------------- How the Contract Works - ---------------------------------------------------------------------------- Expense Table - ---------------------------------------------------------------------------- Financial Information - ---------------------------------------------------------------------------- CONTRACT FEATURES - ---------------------------------------------------------------------------- The Contract - ---------------------------------------------------------------------------- Purchases - ---------------------------------------------------------------------------- Contract Value - ---------------------------------------------------------------------------- Investment Alternatives - ---------------------------------------------------------------------------- The Variable Sub-Accounts - ---------------------------------------------------------------------------- The Fixed Account Options - ---------------------------------------------------------------------------- Transfers - ---------------------------------------------------------------------------- Expenses - ---------------------------------------------------------------------------- Access To Your Money - ---------------------------------------------------------------------------- Income Payments - ---------------------------------------------------------------------------- Death Benefits - ---------------------------------------------------------------------------- OTHER INFORMATION - ---------------------------------------------------------------------------- More Information: - ---------------------------------------------------------------------------- Northbrook - ---------------------------------------------------------------------------- The Variable Account - ---------------------------------------------------------------------------- The Portfolios - ---------------------------------------------------------------------------- The Contract - ---------------------------------------------------------------------------- Qualified Plans - ---------------------------------------------------------------------------- Legal Matters - ---------------------------------------------------------------------------- Taxes - ---------------------------------------------------------------------------- Performance Information - ---------------------------------------------------------------------------- APPENDIX A -- ACCUMULATION UNIT VALUES A-1 - ---------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS B-1 - ---------------------------------------------------------------------------- IMPORTANT TERMS - ------------------------------------------------------------------- This prospectus uses a number of important terms that you may not be familiar with. The index below identifies the page that describes each term. The first use of each term in this prospectus appears in highlights. PAGE - ---------------------------------------------------------------------------- Accumulation Phase - ---------------------------------------------------------------------------- Accumulation Unit - ---------------------------------------------------------------------------- Accumulation Unit Value - ---------------------------------------------------------------------------- Annuitant - ---------------------------------------------------------------------------- Automatic Additions Program - ---------------------------------------------------------------------------- Automatic Portfolio Rebalancing Program - ---------------------------------------------------------------------------- Beneficiary - ---------------------------------------------------------------------------- Cancellation Period - ---------------------------------------------------------------------------- *Contract - ---------------------------------------------------------------------------- Contract Anniversary - ---------------------------------------------------------------------------- Contract Owner ("You") - ---------------------------------------------------------------------------- Contract Value - ---------------------------------------------------------------------------- Contract Year - ---------------------------------------------------------------------------- Death Benefit Anniversary - ---------------------------------------------------------------------------- Death Benefit Combination Option - ---------------------------------------------------------------------------- Dollar Cost Averaging Fixed Account Options - ---------------------------------------------------------------------------- Dollar Cost Averaging Program - ---------------------------------------------------------------------------- Due Proof of Death - ---------------------------------------------------------------------------- Enhanced Death Benefit Option - ---------------------------------------------------------------------------- Fixed Account Options - ---------------------------------------------------------------------------- Free Withdrawal Amount - ---------------------------------------------------------------------------- Funds - ---------------------------------------------------------------------------- Income Plan - ---------------------------------------------------------------------------- Investment Alternatives - ---------------------------------------------------------------------------- Issue Date - ---------------------------------------------------------------------------- Northbrook ("We") - ---------------------------------------------------------------------------- Payout Phase - ---------------------------------------------------------------------------- Payout Start Date - ---------------------------------------------------------------------------- Performance Benefit Combination Option - ---------------------------------------------------------------------------- Performance Death Benefit Option - ---------------------------------------------------------------------------- Performance Income Benefit Option - ---------------------------------------------------------------------------- Portfolios - ---------------------------------------------------------------------------- Qualified Contracts - ---------------------------------------------------------------------------- Right to Cancel - ---------------------------------------------------------------------------- SEC - ---------------------------------------------------------------------------- Settlement Value - ---------------------------------------------------------------------------- Systematic Withdrawal Program - ---------------------------------------------------------------------------- Valuation Date - ---------------------------------------------------------------------------- Variable Account - ---------------------------------------------------------------------------- Variable Sub-Account - ---------------------------------------------------------------------------- *In certain states the Contract is available only as a group Contract. In these states, we will issue you a certificate that represents your ownership and that summarizes the provisions of the group Contract. References to "Contract" in this prospectus include certificates, unless the context requires otherwise. THE CONTRACT AT A GLANCE - ------------------------------------------------------------------- The following is a snapshot of the Contract. Please read the remainder of this prospectus for more information.
FLEXIBLE PAYMENTS You can purchase a Contract with an initial purchase payment of $10,000 or more. You can add to your Contract as often and as much as you like, but each payment must be at least $100. You must maintain a minimum account size of $500. - ------------------------------------------------------------------------------- RIGHT TO CANCEL You may cancel your Contract within 20 days of receipt or any longer period as your state may require ("CANCELLATION PERIOD"). Upon cancellation, we will return your purchase payments adjusted, to the extent applicable law permits, to reflect the investment experience of any amounts allocated to the Variable Account. - ------------------------------------------------------------------------------- EXPENSES You will bear the following expenses: - Total Variable Account annual fees equal to 1.59% of average daily net assets (1.72% if you select the ENHANCED DEATH BENEFIT OPTION, the PERFORMANCE DEATH BENEFIT OPTION, or the PERFORMANCE INCOME BENEFIT OPTION, and 1.83% if you select the PERFORMANCE BENEFIT COMBINATION OPTION, or the DEATH BENEFIT COMBINATION OPTION) - Annual contract maintenance charge of $35(waived in certain cases) - Withdrawal charges not to exceed 1% of purchase payment(s) withdrawn (with certain exceptions) - Transfer fee of $10 after 12th transfer in any CONTRACT YEAR (fee currently waived) - State premium tax (if your state imposes one) In addition, each Portfolio pays expenses that you will bear indirectly if you invest in a Variable Sub-Account. - ------------------------------------------------------------------------------------ INVESTMENT ALTERNATIVES The Contract offers 24 investment alternatives including: - 2 Fixed Account Options (which credit interest at rates we guarantee) - 22 Variable Sub-Accounts investing in Portfolios offering professional money management by these investment advisers: - MORGAN STANLEY DEAN WITTER ADVISORS, INC. - MORGAN STANLEY ASSET MANAGEMENT - VAN KAMPEN ASSET MANAGEMENT, INC. To find out current rates being paid on the Fixed Account Options, or to find out how the Variable Sub-Accounts have performed, call us at 1-800-654-2397. - ------------------------------------------------------------------------------------ SPECIAL SERVICES For your convenience, we offer these special services: - AUTOMATIC ADDITIONS PROGRAM - AUTOMATIC PORTFOLIO REBALANCING PROGRAM - DOLLAR COST AVERAGING PROGRAM - SYSTEMATIC WITHDRAWAL PROGRAM - ------------------------------------------------------------------------------------ INCOME PAYMENTS You can choose fixed income payments, variable income payments, or a combination of the two. You can receive your income payments in one of the following ways: - life income with payments guaranteed for 10 years - joint and survivor life income - guaranteed payments for a specified period - ------------------------------------------------------------------------------------ DEATH BENEFITS If you or the ANNUITANT dies before the PAYOUT START DATE, we will pay the death benefit described in the Contract. We also offer 3 Death Benefit Options. - ------------------------------------------------------------------------------------ TRANSFERS Before the Payout Start Date, you may transfer your Contract value ("CONTRACT VALUE ") among the investment alternatives, with certain restrictions. Transfers must be at least $100 or the total amount in the investment alternative, whichever is less. We do not currently impose a fee upon transfers. However, we reserve the right to charge $10 per transfer after the 12th transfer in each "Contract Year," which we measure from thedate we issue your contract or a Contract anniversary ("CONTRACT ANNIVERSARY "). - ------------------------------------------------------------------------------------ WITHDRAWALS You may withdraw some or all of your Contract Value at anytime during the Accumulation Phase. In general, you must withdraw at least $100 at a time or the total amount in the investment alternative, if less. A 10% federal tax penalty may apply if you withdraw before you are 59 1/2 years old. A withdrawal charge also may apply.
HOW THE CONTRACT WORKS - ------------------------------------------------------------------- The Contract basically works in two ways. First, the Contract can help you (we assume you are the "CONTRACT OWNER") save for retirement because you can invest in up to 24 investment alternatives and pay no federal income taxes on any earnings until you withdraw them. You do this during what we call the "ACCUMULATION PHASE" of the Contract. The Accumulation Phase begins on the date we issue your Contract (we call that date the "ISSUE DATE") and continues until the Payout Start Date, which is the date we apply your money to provide income payments. During the Accumulation Phase, you may allocate your purchase payments to any combination of the Variable Sub-Accounts and/or the Fixed Account Options. If you invest in the Fixed Account Options, you will earn a fixed rate of interest that we declare periodically. If you invest in any of the Variable Sub-Accounts, your investment return will vary up or down depending on the performance of the corresponding Portfolios. Second, the Contract can help you plan for retirement because you can use it to receive retirement income for life and/or for a pre-set number of years, by selecting one of the income payment options (we call these "INCOME PLANS") described on page 21. You receive income payments during what we call the "PAYOUT PHASE" of the Contract, which begins on the Payout Start Date and continues until we make the last payment required by the Income Plan you select. During the Payout Phase, if you select a fixed income payment option, we guarantee the amount of your payments, which will remain fixed. If you select a variable income payment option, based on one or more of the Variable Sub-Accounts, the amount of your payments will vary up or down depending on the performance of the corresponding Portfolios. The amount of money you accumulate under your Contract during the Accumulation Phase and apply to an Income Plan will determine the amount of your income payments during the Payout Phase. The timeline below illustrates how you might use your Contract.
Issue Accumulation Phase Payout Start Payout Phase Date Date - ---------------------------------------------------------------------------------> You buy You save for You elect to receive You can receive Or you can a Contract retirement income payments or income payments receive receive a lump sum for a set period income payments payment for life
As the Contract owner, you exercise all of the rights and privileges provided by the Contract. If you die, any surviving Contract owner or, if there is none, the BENEFICIARY will exercise the rights and privileges provided by the Contract. See "The Contract." In addition, if you die before the Payout Start Date, we will pay a death benefit to any surviving Contract owner, or if there is none, to your Beneficiary. See "Death Benefits." Please call us at 1-800-654-2397 if you have any question about how the Contract works. EXPENSE TABLE - ------------------------------------------------------------------- The table below lists the expenses that you will bear directly or indirectly when you buy a Contract. The table and the examples that follow do not reflect premium taxes that may be imposed by the state where you reside. For more information about Variable Account expenses, see "Expenses," below. For more information about Portfolio expenses, please refer to the accompanying prospectuses for the Funds. CONTRACT OWNER TRANSACTION EXPENSES Withdrawal Charge (as a percentage of purchase payments withdrawn)*
Number of Complete Years Since We Received the Purchase Payment Being Withdrawn: 0 1 - ----------------------------------------------------------------------------------------------------- Applicable Charge: 1% 0% - ----------------------------------------------------------------------------------------------------- Annual Contract Maintenance Charge $35.00** - ----------------------------------------------------------------------------------------------------- Transfer Fee $10.00*** - -----------------------------------------------------------------------------------------------------
*Each Contract Year, you may withdraw up to 15% of the aggregate amount of your purchase payments as of the beginning of the Contract Year without incurring a withdrawal charge. **We will waive this charge in certain cases. See "Expenses." ***Applies solely to the thirteenth and subsequent transfers within a Contract Year excluding transfers due to dollar cost averaging and automatic portfolio rebalancing. We are currently waiving the transfer fee. VARIABLE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY NET ASSET VALUE DEDUCTED FROM EACH VARIABLE SUB-ACCOUNT)
- ---------------------------- -------------------------- -------------------------- -------------------------- Basic Contract With the Enhanced Death With the Performance Benefit, Performance Benefit Combination or Income Benefit or the Death Benefit Performance Death Combination Option Benefit Option - ---------------------------- -------------------------- -------------------------- -------------------------- - ---------------------------- -------------------------- -------------------------- -------------------------- Mortality and Expenses 1.49% 1.62% 1.73% Risk Charge - ---------------------------- -------------------------- -------------------------- -------------------------- - ---------------------------- -------------------------- -------------------------- -------------------------- Administrative Expense 0.10% 0.10% 0.10% Charge - ---------------------------- -------------------------- -------------------------- -------------------------- - ---------------------------- -------------------------- -------------------------- -------------------------- Total Variable Account 1.59% 1.72% 1.83% Annual Expense - ---------------------------- -------------------------- -------------------------- --------------------------
PORTFOLIO ANNUAL EXPENSES (After Voluntary Reductions and Reimbursements) (as a percentage of Portfolio average daily net assets)1
Total Portfolio Management Fees Rule Other Portfolio 12b-1 Fees Expenses Annual Expenses - -------------------------------------------------------------- ------------------- ----------- -------------- ---------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity 0.75% N/A 0.07% 0.82% Capital Growth 0.65% N/A 0.04% 0.69% Competitive Edge "Best Ideas" 0.65% N/A 0.06% 0.71% Dividend Growth 0.53% N/A 0.01% 0.54% Equity 0.49% N/A 0.01% 0.50% European Growth 0.94% N/A 0.06% 1.00% Global Dividend Growth 0.75% N/A 0.05% 0.80% High Yield 0.50% N/A 0.04% 0.54% Income Builder 0.75% N/A 0.06% 0.81% Information (2) 0.00% N/A 0.00% 0.00% Money Market 0.50% N/A 0.02% 0.52% Pacific Growth 0.95% N/A 0.26% 1.21% Quality Income Plus 0.50% N/A 0.02% 0.52% Short-Term Bond 0.45% N/A 0.53% 0.98% Strategist 0.50% N/A 0.02% 0.52% S&P 500 Index 0.40% N/A 0.05% 0.45% Utilities 0.64% N/A 0.02% 0.66% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (3) Emerging Markets Equity 1.09% N/A 0.71% 1.80% Equity Growth 0.48% N/A 0.37% 0.85% International Magnum 0.50% N/A 0.68% 1.18% U.S. Real Estate 0.74% N/A 0.36% 1.10% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth 0.70% N/A 0.05% 0.75%
1. Figures shown in the Table are for the year ended December 31, 2000 (except as otherwise noted). 2. The Investment Manager has agreed to assume all operating expenses and to waive the compensation provided for in its Investment Management Agreement until such time as the Portfolio has $50 million of net assets or December 31, 2001, whichever occurs first. If the Investment Manager had not assumed and waived these expenses, the annualized ratio of expenses to average net assets would have been 0.75% for "Management Fees" and 1.07% for "Other Expenses" and 1.82% for "Total Portfolio Annual Expenses." 3. Absent voluntary reductions and reimbursements for certain Portfolios, "Management Fees," "Rule 12b-1 Fees," "Other Expenses," and "Total Portfolio Annual Expenses" as a percent of average net assets of the portfolios would have been as follows:
Total Portfolio Management Fees Rule 12b-1 Fees Other Portfolio Expenses Annual Expenses - ------------------------------------------------- --------------------------- ---------------- -------------- ---------------- Emerging Markets Equity 1.25% N/A 0.71% 1.96% Equity Growth 0.55% N/A 0.37% 0.92% International Magnum 0.80% N/A 0.68% 1.48% U.S. Real Estate 0.80% N/A 0.36% 1.16%
The Portfolio's Advisor may discontinue all or part of these reductions and reimbursements at any time. Additionally, in determining the actual amount of voluntary management fee waiver and/or expense reimbursement for a Portfolio, if any, the adviser excluded from the total annual operating expenses certain investment related expenses, such as foreign country tax expense and interest expense on borrowing. Included in "Other Expenses", respectively, the additional Other Expenses would be as follows: Emerging Markets Equity Portfolio 0.05% and International Magnum Portfolio 0.03%. EXPENSE EXAMPLE The example below shows the dollar amount of expenses that you would bear directly or indirectly if you: - - invested $1,000 in a Variable Sub-Account, - - earned a 5% annual return on your investment, - - surrendered your Contract, continued your Contract, or you began receiving income payments for a specified period of less than 120 months, at the end of each time period, and - - elected the Performance Benefit Combination Option or the Death Benefit Combination Option. THE EXAMPLE ASSUMES THAT ANY PORTFOLIO EXPENSE WAIVERS OR REIMBURSEMENT ARRANGEMENTS DESCRIBED IN THE FOOTNOTES ABOVE ARE IN EFFECT FOR THE TIME PERIODS PRESENTED BELOW. THE EXAMPLE DOES NOT INCLUDE ANY TAXES OR TAX PENALTIES YOU MAY BE REQUIRED TO PAY IF YOU SURRENDER YOUR CONTRACT.
1 YEAR 3 YEAR 5 YEAR 10 YEAR ------ ------ ------ ------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity $28 $85 $145 $306 Capital Growth $26 $81 $138 $293 Competitive Edge "Best Ideas" $27 $82 $139 $295 Dividend Growth $25 $76 $130 $278 Equity $24 $75 $128 $274 European Growth $30 $90 $154 $324 Global Dividend Growth $27 $84 $144 $304 High Yield $25 $76 $130 $278 Income Builder $28 $85 $144 $305 Information $19 $60 $102 $221 Money Market $25 $76 $129 $276 Pacific Growth $32 $97 $164 $344 Quality Income Plus $25 $76 $129 $276 Short-Term Bond $29 $90 $153 $322 S&P 500 Index $24 $74 $126 $269 Strategist $25 $76 $129 $276 Utilities $26 $80 $137 $290 THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity $38 $115 $193 $399 Equity Growth $28 $86 $146 $309 International Magnum $31 $96 $163 $341 U.S. Real Estate $31 $93 $159 $333 VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth $27 $83 $141 $299
PLEASE REMEMBER THAT YOU ARE LOOKING AT AN EXAMPLE AND NOT A REPRESENTATION OF PAST OR FUTURE EXPENSES. YOUR ACTUAL EXPENSES MAY BE LOWER OR GREATER THAN THOSE SHOWN ABOVE. SIMILARLY, YOUR RATE OF RETURN MAY BE LOWER OR GREATER THAN 5%, WHICH IS NOT GUARANTEED. THE ABOVE EXAMPLES ASSUME THE ELECTION OF THE PERFORMANCE BENEFIT COMBINATION OPTION, OR THE DEATH BENEFIT COMBINATION OPTION, WITH A MORTALITY AND EXPENSE RISK CHARGE OF 1.73%. IF THOSE OPTIONS WERE NOT ELECTED, THE EXPENSE FIGURES SHOWN ABOVE WOULD BE SLIGHTLY LOWER. TO REFLECT THE CONTRACT MAINTENANCE CHARGE IN THE EXAMPLES, WE ESTIMATED AN EQUIVALENT PERCENTAGE CHARGE, BASED ON AN ASSUMED AVERAGE CONTRACT SIZE OF $54,945. FINANCIAL INFORMATION - ------------------------------------------------------------------- To measure the value of your investment in the Variable Sub-Accounts during the Accumulation Phase, we use a unit of measure we call the "ACCUMULATION UNIT." Each Variable Sub-Account has a separate value for its Accumulation Units we call the "ACCUMULATION UNIT VALUE." Accumulation Unit Value is similar to, but not the same as, the share price of a mutual fund. Attached as Appendix A to this prospectus are tables showing the Accumulation Unit Values of each Variable Sub-Account since the date we first offered the Contracts. To obtain additional detail on each Variable Sub-Account's finances, please refer to the Variable Account's financial statements contained in the Statement of Additional Information. The financial statements of Northbrook also appear in the Statement of Additional Information. THE CONTRACT - ------------------------------------------------------------------- CONTRACT OWNER The Variable Annuity II AssetManager is a contract between you, the Contract owner, and Northbrook, a life insurance company. As the Contract owner, you may exercise all of the rights and privileges provided to you by the Contract. That means it is up to you to select or change (to the extent permitted): - - the investment alternatives during the Accumulation and Payout Phases, - - the amount and timing of your purchase payments and withdrawals, - - the programs you want to use to invest or withdraw money, - - the income payment plan you want to use to receive retirement income, - - the Owner, while the Annuitant is alive, - - the Annuitant (either yourself or someone else)on whose life the income payments will be based, - - the Beneficiary or Beneficiaries who will receive the benefits that the Contract provides when the last surviving Contract owner dies, and - - any other rights that the Contract provides. If you die, any surviving Contract owner, or, if none, the Beneficiary will exercise the rights and privileges provided to them by the Contract. The Contract cannot be jointly owned by both a non-natural person and a natural person. The age of the oldest Contract Owner cannot exceed 90 as of the date we receive the completed application. You can use the Contract with or without a qualified plan. A "qualified plan" is a retirement savings plan, such as an IRA or tax-sheltered annuity, that meets the requirements of the Internal Revenue Code. Qualified plans may limit or modify your rights and privileges under the Contract. We use the term "Qualified Contract" to refer to a Contract used with a qualified plan. See "Qualified Plans" on page 27. ANNUITANT The Annuitant is the individual whose life determines the amount and duration of income payments (other than under Income Plans with guaranteed payments for a specified period). The Annuitant must be a natural person. The age of the oldest Annuitant cannot exceed 90 as of the date we receive the completed application. You initially designate an Annuitant in your application. If the Contract owner is a natural person, you may change the Annuitant at any time prior to the Payout Start Date. Once we receive your change request, any change will be effective at the time you sign the written notice. We are not liable for any payment we make or other action we take before receiving any written request from you. Before the Payout Start Date, you may designate a joint Annuitant, who is a second person on whose life income payments depend. If the Annuitant dies prior to the Payout Start Date, the new Annuitant will be the youngest Contract owner, otherwise, the youngest Beneficiary, unless the Contract owner names a different Annuitant. BENEFICIARY The Beneficiary is the person who may elect to receive the death benefit or become the new Contract owner if the sole surviving Contract owner dies before the Payout Start Date. If the sole surviving Contract owner dies after the Payout Start Date, the Beneficiary will receive any guaranteed income payments scheduled to continue. You may name one or more Beneficiaries when you apply for a Contract. You may change or add Beneficiaries at any time by writing to us, unless you have designated an irrevocable Beneficiary. We will provide a change of Beneficiary form to be signed and filed with us. Any change will be effective at the time you sign the written notice, whether or not the Annuitant is living when we receive the notice. Until we receive your written notice to change a Beneficiary, we are entitled to rely on the most recent Beneficiary information in our files. We will not be liable as to any payment or settlement made prior to receiving the written notice. Accordingly, if you wish to change your Beneficiary, you should deliver your written notice to us promptly. If you did not name a Beneficiary or, if the named Beneficiary is no longer living and there are no other surviving Beneficiaries, the new Beneficiary will be: - - your spouse, if he or she is still alive, otherwise - - your surviving children equally, or if you have no surviving children, - - your estate. If more than one Beneficiary survives you, (or the Annuitant, if the Contract owner is not a natural person) we will divide the death benefit among your Beneficiaries according to your most recent written instructions. If you have not given us written instructions, we will pay the death benefit in equal amounts to the surviving Beneficiaries. MODIFICATION OF THE CONTRACT Only a Northbrook officer may approve a change in or waive any provision of the Contract. Any change or waiver must be in writing. None of our agents has the authority to change or waive the provisions of the Contract. We may not change the terms of the Contract without your consent, except to conform the Contract to applicable law or changes in the law. If a provision of the Contract is inconsistent with state law, we will follow state law. ASSIGNMENT We will not honor an assignment of an interest in a Contract as collateral or security for a loan. However, you may assign periodic income payments under the Contract prior to the Payout Start Date. No Beneficiary may assign benefits under the Contract until they are payable to the Beneficiary. We will not be bound by any assignment until the assignor signs it and files it with us. We are not responsible for the validity of any assignment. Federal law prohibits or restricts the assignment of benefits under many types of retirement plans and the terms of such plans may themselves contain restrictions on assignments. An assignment may also result in taxes or tax penalties. YOU SHOULD CONSULT WITH AN ATTORNEY BEFORE TRYING TO ASSIGN YOUR CONTRACT. PURCHASES - ------------------------------------------------------------------- MINIMUM PURCHASE PAYMENTS Your initial purchase payment must be at least $10,000. We may increase or decrease this minimum in the future. You may make additional purchase payments of at least $100 at any time prior to the Payout Start Date. We reserve the right to limit the maximum amount of purchase payments we will accept. We also reserve the right to reject any application. The Contract may not be available for sale in all states. AUTOMATIC ADDITIONS PROGRAM You may make subsequent purchase payments of at least $100 by automatically transferring amounts from your bank account or your Morgan Stanley Dean Witter Active Assets (TM) Account. Please consult your Morgan Stanley Dean Witter Financial Advisor for details. ALLOCATION OF PURCHASE PAYMENTS At the time you apply for a Contract, you must decide how to allocate your purchase payments among the investment alternatives. The allocation you specify on your application will be effective immediately. All allocations must be in whole percentages that total 100% or in whole dollars. The minimum you may allocate to any investment alternative is $100. You can change your allocations by notifying us in writing. We will allocate your purchase payments to the investment alternatives according to your most recent instructions on file with us. Unless you notify us in writing otherwise, we will allocate subsequent purchase payments according to the allocation for the previous purchase payment. We will effect any change in allocation instructions at the time we receive written notice of the change in good order. We will credit the initial purchase payment that accompanies your completed application to your Contract within 2 business days after we receive the payment at our headquarters. If your application is incomplete, we will ask you to complete your application within 5 business days. If you do so, we will credit your initial purchase payment to your Contract within that 5 business day period. If you do not, we will return your purchase payment at the end of the 5 business day period unless you expressly allow us to hold it until you complete the application. We will credit subsequent purchase payments to the Contract on the business day that we receive the purchase payment at our headquarters. We use the term "business day" to refer to each day Monday through Friday that the New York Stock Exchange is open for business. We also refer to these days as "VALUATION DATES." If we receive your purchase payment after 3 p.m. Central Time on any Valuation Date, we will credit your purchase payment using the Accumulation Unit Values computed on the next Valuation Date. RIGHT TO CANCEL You may cancel the Contract within the Cancellation Period, which is the 20-day period after you receive the Contract or such longer period as your state may require. If you exercise this RIGHT TO CANCEL, the Contract terminates and we will pay you the full amount of your purchase payments allocated to the Fixed Account Options. We also will return your purchase payments allocated to the Variable Account after an adjustment, to the extent applicable law permits, to reflect investment gain or loss that occurred from the date of allocation through the date of cancellation. Some states may require us to return a greater amount to you. CONTRACT VALUE - ------------------------------------------------------------------- Your Contract Value at any time during the Accumulation Phase is equal to the sum of the value of your Accumulation Units in the Variable Sub-Accounts you have selected, plus the value of your investment in the Fixed Account Options. ACCUMULATION UNITS To determine the number of Accumulation Units of each Variable Sub-Account to allocate to your Contract, we divide (i) the amount of the purchase payment or transfer you have allocated to a Variable Sub-Account by (ii) the Accumulation Unit Value of that Variable Sub-Account next computed after we receive your payment or transfer. For example, if we receive a $10,000 purchase payment allocated to a Variable Sub-Account when the Accumulation Unit Value for the Sub-Account is $10, we would credit 1,000 Accumulation Units of that Variable Sub-Account to your Contract. Withdrawals and transfers from a Variable Sub-Account would, of course, reduce the number of Accumulation Units of that Sub-Account allocated to your Contract. ACCUMULATION UNIT VALUE As a general matter, the Accumulation Unit Value for each Variable Sub-Account will rise or fall to reflect: - - changes in the share price of the Portfolio in which the Variable Sub-Account invests, and - - the deduction of amounts reflecting the mortality and expense risk charge, administrative expense charge, and any provision for taxes that have accrued since we last calculated the Accumulation Unit Value. We determine contract maintenance charges, withdrawal charges, and transfer fees (currently waived) separately for each Contract. They do not affect Accumulation Unit Value. Instead, we obtain payment of those charges and fees by redeeming Accumulation Units. For details on how we calculate Accumulation Unit Value, please refer to the Statement of Additional Information. We determine a separate Accumulation Unit Value for each Variable Sub-Account on each Valuation Date. We also determine a second set of Accumulation Unit Values that reflect the cost of the Enhanced Death Benefit Option, the Performance Death Benefit Option, or the Performance Income Benefit Option, and a third set of Accumulation Unit Values that reflect the cost of the Performance Benefit Combination Option and Death Benefit Combination Option. YOU SHOULD REFER TO THE PROSPECTUSES FOR THE FUNDS THAT ACCOMPANY THIS PROSPECTUS FOR A DESCRIPTION OF HOW THE ASSETS OF EACH PORTFOLIO ARE VALUED, SINCE THAT DETERMINATION DIRECTLY BEARS ON THE ACCUMULATION UNIT VALUE OF THE CORRESPONDING VARIABLE SUB-ACCOUNT AND, THEREFORE, YOUR CONTRACT VALUE. INVESTMENT ALTERNATIVES: THE VARIABLE SUB-ACCOUNTS - ------------------------------------------------------------------- You may allocate your purchase payments to up to 22 Variable Sub-Accounts. Each Variable Sub-Account invests in the shares of a corresponding Portfolio. Each Portfolio has its own investment objective(s) and policies. We briefly describe the Portfolios below. For more complete information about each Portfolio, including expenses and risks associated with the Portfolio, please refer to the accompanying prospectuses for the Funds. You should carefully review the Fund prospectuses before allocating amounts to the Variable Sub-Accounts.
PORTFOLIO: EACH PORTFOLIO SEEKS: INVESTMENT ADVISER: MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Morgan Stanley Dean Witter Advisors, Inc. Aggressive Equity Portfolio Capital growth Capital Growth Portfolio Long-term capital growth Competitive Edge "Best Ideas" Portfolio Long-term capital growth Dividend Growth Portfolio Reasonable current income and long-term growth of income and capital Equity Portfolio Growth of capital and, as a secondary objective, income when consistent with its primary objective. European Growth Portfolio Maximum capital appreciation on its investments Global Dividend Growth Portfolio Reasonable current income and long-term growth of income and capital High Yield Portfolio High current income and, as a secondary objective, capital appreciation when consistent with its primary objective Income Builder Portfolio Reasonable income and, as a secondary objective, growth of capital Information Portfolio Long-term capital appreciation Money Market Portfolio High current income, preservation of capital, and liquidity Pacific Growth Portfolio Maximum capital appreciation on its investments Quality Income Plus Portfolio High current income and, as a secondary objective, capital appreciation when consistent with its primary objective Short-Term Bond Portfolio High current income consistent with preservation of capital Strategist Portfolio High total investment return S&P 500 Index Portfolio Investment results that, before expenses, correspond to the total return of the Standard and Poor's 500 Composite Stock Price Index Utilities Portfolio Current income and long-term growth of income and capital THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity Portfolio Long-term capital appreciation Equity Growth Portfolio Long-term capital appreciation
Morgan Stanley Asset Management International Magnum Portfolio Long-term capital appreciation U.S. Real Estate Portfolio Above-average current income and long-term capital appreciation VAN KAMPEN LIFE INVESTMENT TRUST Emerging Growth Portfolio Capital appreciation Van Kampen Asset Management, Inc.
AMOUNTS YOU ALLOCATE TO VARIABLE SUB-ACCOUNTS MAY GROW IN VALUE, DECLINE IN VALUE, OR GROW LESS THAN YOU EXPECT, DEPENDING ON THE INVESTMENT PERFORMANCE OF THE PORTFOLIOS IN WHICH THOSE VARIABLE SUB-ACCOUNTS INVEST. YOU BEAR THE INVESTMENT RISK THAT THE PORTFOLIOS MIGHT NOT MEET THEIR INVESTMENT OBJECTIVES. SHARES OF THE PORTFOLIOS ARE NOT DEPOSITS, OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY ANY BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. INVESTMENT ALTERNATIVES: THE FIXED ACCOUNT - ------------------------------------------------------------------- You may allocate all or a portion of your purchase payments to the Fixed Account Options. We also currently offer the basic dollar cost averaging fixed account option, and we may offer the additional dollar cost averaging fixed account options described below. However, the 6 and 12 month dollar cost averaging options described below currently are not available. Please consult with your Morgan Stanley Dean Witter Financial Advisor for current information. The Fixed Account supports our insurance and annuity obligations. The Fixed Account consists of our general assets other than those in segregated asset accounts. We have sole discretion to invest the assets of the Fixed Account, subject to applicable law. Any money you allocate to a Fixed Account Option does not entitle you to share in the investment experience of the Fixed Account. DOLLAR COST AVERAGING FIXED ACCOUNT OPTIONS BASIC DOLLAR COST AVERAGING OPTION. You may establish a Dollar Cost Averaging Program, as described on pages 17-18, by allocating purchase payments to the Basic Dollar Cost Averaging Option. Purchase payments that you allocate to the Basic Dollar Cost Averaging Option will earn interest for a 1 year period at the current rate in effect at the time of allocation. We will credit interest daily at a rate that will compound over the year to the annual interest rate we guaranteed at the time of allocation. After the one year period, we will declare a renewal rate which we guarantee for a full year. Subsequent renewal dates will be every twelve months for each purchase payment. Renewal rates will not be less than the minimum guaranteed rate found in the Contract. You may not transfer funds from other investment alternatives to the Basic Dollar Cost Averaging Option. 6 AND 12 MONTH DOLLAR COST AVERAGING OPTIONS. In the future, we may offer 6 and 12 month dollar cost averaging options. Under these options, you may establish a Dollar Cost Averaging Program by allocating purchase payments to the Fixed Account either for 6 months (the "6 MONTH DOLLAR COST AVERAGING OPTION") or for 12 months (the "12 MONTH DOLLAR COST AVERAGING OPTION"). Your purchase payments will earn interest for the period you select at the current rates in effect at the time of allocation. The crediting rates for the 6 and 12 Month Dollar Cost Averaging Options will never be less than 3% annually. You must transfer all of your money out of the 6 or 12 Month Dollar Cost Averaging Options to the Variable Sub-Accounts in equal monthly installments. If you discontinue a 6 or 12 Month Dollar Cost Averaging Option prior to last scheduled transfer, we will transfer any remaining money immediately to the Money Market Variable Sub-Account, unless you request a different Variable Sub-Account. You may not transfer funds from other investment alternatives to the 6 or 12 Month Dollar Cost Averaging Options. Transfers out of the Dollar Cost Averaging Fixed Account Options do not count towards the 12 transfers you can make without paying a transfer fee. We may declare more than one interest rate for different monies based upon the date of allocation to the Dollar Cost Averaging Fixed Account Options. For availability and current interest rate information, please contact your Morgan Stanley Dean Witter Financial Advisor or our customer support unit at 1-800-654-2397. INVESTMENT ALTERNATIVES: TRANSFERS - ------------------------------------------------------------------- TRANSFERS DURING THE ACCUMULATION PHASE During the Accumulation Phase, you may transfer the Contract Value among the investment alternatives. You may not transfer Contract Value into any of the Dollar Cost Averaging Fixed Account Options. You may request transfers in writing on a form that we provide or by telephone according to the procedure described below. The minimum amount that you may transfer is $100 or the total amount in the investment alternative, whichever is less. We currently do not assess, but reserve the right to assess, a $10 charge on each transfer in excess of 12 per Contract Year. We will notify you at least 30 days before we begin imposing the transfer charge. We treat transfers to or from more than one Portfolio on the same day as one transfer. We will process transfer requests that we receive before 3:00 p.m. Central Time on any Valuation Date using the Accumulation Unit Values for that Date. We will process requests completed after 3:00 p.m. on any Valuation Date using the Accumulation Unit Values for the next Valuation Date. The Contract permits us to defer transfers from the Fixed Account Options for up to 6 months from the date we receive your request. If we decide to postpone transfers for 30 days or more, we will pay interest as required by applicable law. Any interest would be payable from the date we receive the transfer request to the date we make the transfer. EXCESSIVE TRADING LIMITS For Contracts issued after May 2, 1999, we reserve the right to limit transfers among the Variable Sub-Accounts if we determine, in our sole discretion, that transfers by one or more Contract owners would be to the disadvantage of other Contract owners. We may limit transfers by taking such steps as: - - imposing a minimum time period between each transfer, - - refusing to accept transfer requests of an agent acting under a power of attorney on behalf of more than one Contract owner, or - - limiting the dollar amount that a Contract owner may transfer between the Variable Sub-Accounts and the Fixed Account Options at any one time. We may apply the restrictions in any manner reasonably designed to prevent transfers that we consider disadvantageous to other Contract owners. We reserve the right to waive any transfer restrictions. TRANSFERS DURING THE PAYOUT PHASE During the Payout Phase, you may make transfers among the Variable Sub-Accounts so as to change the relative weighting of the Variable Sub-Accounts on which your variable income payments will be based. In addition, you will have a limited ability to make transfers from the Variable Sub-Accounts to increase the proportion of your income payments consisting of fixed income payments. You may not, however, convert any portion of your right to receive fixed income payments into variable income payments. You may not make any transfers for the first 6 months after the Payout Start Date. Thereafter, you may make transfers among the Variable Sub-Accounts or make transfers from the Variable Sub-Accounts to increase the proportion of your income payments consisting of fixed income payments. Your transfers must be at least 6 months apart. TELEPHONE TRANSFERS You may make transfers by telephone by calling 1-800-654-2397 if you first send us a completed authorization form. The cut off time for telephone transfer requests is 3:00 p.m. Central Time. In the event that the New York Stock Exchange closes early, i.e., before 3:00 p.m. Central Time. In the event that the Exchange closes early for a period of time but then reopens for trading on the same day, we will process telephone transfer requests as of the close of the Exchange on that particular day. We will not accept telephone requests received at any telephone number other than the number that appears in this paragraph or received after the close of trading on the Exchange. We may suspend, modify or terminate the telephone transfer privilege at any time without notice. We use procedures that we believe provide reasonable assurance that the telephone transfers are genuine. For example, we tape telephone conversations with persons purporting to authorize transfers and request identifying information. Accordingly, we disclaim any liability for losses resulting from allegedly unauthorized telephone transfers. However, if we do not take reasonable steps to help ensure that a telephone authorization is valid, we may be liable for such losses. DOLLAR COST AVERAGING PROGRAM Through our Dollar Cost Averaging Program, you may automatically transfer a set amount every month (or other intervals we may offer) during the Accumulation Phase from any Variable Sub-Account or the Dollar Cost Averaging Fixed Account Options to any Variable Sub-Account. Transfers made through dollar cost averaging must be $100 or more. We will not charge a transfer fee for transfers made under this Program, nor will such transfers count against the 12 transfers you can make each Contract Year without paying a transfer fee. The theory of dollar cost averaging is that if purchases of equal dollar amounts are made at fluctuating prices, the aggregate average cost per unit will be less than the average of the unit prices on the same purchase dates. However, participation in this Program does not assure you of a greater profit from your purchases under the Program nor will it prevent or necessarily reduce losses in a declining market. Call or write us for information on how to enroll. AUTOMATIC PORTFOLIO REBALANCING PROGRAM Once you have allocated your money among the Variable Sub-Accounts, the performance of each Sub-Account may cause a shift in the percentage you allocated to each Sub-Account. If you select our AUTOMATIC PORTFOLIO REBALANCING PROGRAM, we will automatically rebalance the Contract Value in each Variable Sub-Account and return it to the desired percentage allocations. We will not include money you allocate to the Fixed Account Options in the Automatic Portfolio Rebalancing Program. We will rebalance your account each quarter (or other intervals that we may offer) according to your instructions. We will transfer amounts among the Variable Sub-Accounts to achieve the percentage allocations you specify. You can change your allocations at any time by contacting us in writing or by telephone. The new allocation will be effective with the first rebalancing that occurs after we receive your request. We are not responsible for rebalancing that occurs prior to receipt of your request. Example: Assume that you want your initial purchase payment split among 2 Variable Sub-Accounts. You want 40% to be in the High Yield Variable Sub-Account and 60% to be in the Equity Growth Variable Sub-Account. Over the next 2 months the bond market does very well while the stock market performs poorly. At the end of the first quarter, the High Yield Variable Sub-Account now represents 50% of your holdings because of its increase in value. If you choose to have your holdings rebalanced quarterly, on the first day of the next quarter, we would sell some of your units in the High Yield Variable Sub-Account and use the money to buy more units in the Equity Growth Variable Sub-Account so that the percentage allocations would again be 40% and 60% respectively. The Automatic Portfolio Rebalancing Program is available only during the Accumulation Phase. The transfers made under the Program do not count towards the 12 transfers you can make without paying a transfer fee, and are not subject to a transfer fee. Portfolio rebalancing is consistent with maintaining your allocation of investments among market segments, although it is accomplished by reducing your Contract Value allocated to the better performing segments. EXPENSES - ------------------------------------------------------------------- As a Contract owner, you will bear, directly or indirectly, the charges and expenses described below. CONTRACT MAINTENANCE CHARGE During the Accumulation Phase, on each Contract Anniversary, we will deduct a $35 contract maintenance charge from your Contract Value. This charge will be deducted on a pro-rata basis from each investment alternative in the proportion that your investment in each bears to your Contract Value. We also will deduct a full contract maintenance charge if you withdraw your entire Contract Value. During the Payout Phase, we will deduct the charge proportionately from each income payment. The charge is to compensate us for the cost of administering the Contracts and the Variable Account. Maintenance costs include expenses we incur in billing and collecting purchase payments; keeping records; processing death claims, cash withdrawals, and policy changes; proxy statements; calculating Accumulation Unit Values and income payments; and issuing reports to Contract owners and regulatory agencies. We cannot increase the charge. We will waive this charge if: - - total purchase payments equal $50,000 or more, or - - all of your money is allocated to the Fixed Account Options, as of the Contract Anniversary. - - After the Payout Start Date, we will waive this charge if: - - the Contract Value is $50,000 or more as of the Payout Start Date, or - - all income payments are fixed amount income payments. MORTALITY AND EXPENSE RISK CHARGE We deduct a mortality and expense risk charge daily at an annual rate of 1.49% of the average daily net assets you have invested in the Variable Sub-Accounts (1.62% if you select either the Enhanced Death Benefit Option, the Performance Death Benefit Option or the Performance Income Benefit Option, and 1.73% if you select the Performance Benefit Combination Option or the Death Benefit Combination Option). The mortality and expense risk charge is for all the insurance benefits available with your Contract (including our guarantee of annuity rates and the death benefits), for certain expenses of the Contract, and for assuming the risk (expense risk) that the current charges will not be sufficient in the future to cover the cost of administering the Contract. If the charges under the Contract are not sufficient, then we will bear the loss. We charge an additional amount for the Death Benefit Options and the Income Benefit Options to compensate us for the additional risk that we accept by providing these Options. We guarantee the mortality and expense risk charge and we cannot increase it. We assess the mortality and expense risk charge during both the Accumulation Phase and the Payout Phase. ADMINISTRATIVE EXPENSE CHARGE We deduct an administrative expense charge daily at an annual rate of 0.10% of the average daily net assets you have invested in the Variable Sub-Accounts. We intend this charge to cover actual administrative expenses that exceed the revenues from the contract maintenance charge. There is no necessary relationship between the amount of administrative charge imposed on a given Contract and the amount of expenses that may be attributed to that Contract. We assess this charge each day during the Accumulation Phase and the Payout Phase. TRANSFER FEE We do not currently impose a fee upon transfers among the investment alternatives. However, we reserve the right to charge $10 per transfer after the 12th transfer in each Contract Year. We will not charge a transfer fee on transfers that are part of a Dollar Cost Averaging or Automatic Portfolio Rebalancing Program. WITHDRAWAL CHARGE We may assess a withdrawal charge of 1% of the purchase payment(s) you withdraw if the amount being withdrawn has been invested in the Contract for less than 1 year. However, during each Contract Year, you can withdraw up to 15% of the aggregate amount of your purchase payments as of the beginning of the Contract Year without paying the charge. Unused portions of this Free Withdrawal Amount are not carried forward to future Contract Years. We will deduct withdrawal charges, if applicable, from the amount paid, unless you instruct otherwise. For purposes of the withdrawal charge, we will treat withdrawals as coming from purchase payments, starting with the oldest purchase payments first. Therefore, additional purchase payments may reduce your ability to withdraw earnings without incurring a withdrawal charge. However, for federal income tax purposes, please note that withdrawals are considered to have come first from earnings, which means you pay taxes on the earnings portion of your withdrawal. We do not apply a withdrawal charge in the following situations: - - on the Payout Start Date (a withdrawal charge may apply if you elect to receive income payments for a specified period of less than 120 months); - - the death of the Contract owner or Annuitant(unless the Settlement Value is used); and - - withdrawals taken to satisfy IRS minimum distribution rules for the Contract. This waiver does not apply to Contracts owned by an Individual Retirement Account. We use the amounts obtained from the withdrawal charge to pay sales commissions and other promotional or distribution expenses associated with marketing the Contracts. To the extent that the withdrawal charge does not cover all sales commissions and other promotional or distribution expenses, we may use any of our corporate assets, including potential profit which may arise from the mortality and expense risk charge or any other charges or fee described above, to make up any difference. Withdrawals also may be subject to tax penalties or income tax. You should consult your own tax counsel or other tax advisers regarding any withdrawals. PREMIUM TAXES Some states and other governmental entities (e.g., municipalities) charge premium taxes or similar taxes. We are responsible for paying these taxes and will deduct them from your Contract Value. Some of these taxes are due when the Contract is issued, others are due when income payments begin or upon surrender. Our current practice is not to charge anyone for these taxes until income payments begin or when a total withdrawal occurs including payment upon death. At our discretion, we may discontinue this practice and deduct premium taxes from the purchase payments. Premium taxes generally range from 0% to 4%, depending on the state. At the Payout Start Date, if applicable, we deduct the charge for premium taxes from each investment alternative in the proportion that the Contract owner's value in the investment alternative bears to the total Contract Value. DEDUCTION FOR VARIABLE ACCOUNT INCOME TAXES We are not currently making a provision for taxes. In the future, however, we may make a provision for taxes if we determine, in our sole discretion, that we will incur a tax as a result of the operation of the Variable Account. We will deduct for any taxes we incur as a result of the operation of the Variable Account, whether or not we previously made a provision for taxes and whether or not it was sufficient. Our status under the Internal Revenue Code is briefly described in the Statement of Additional Information. OTHER EXPENSES Each Portfolio deducts advisory fees and other expenses from its assets. You indirectly bear the charges and expenses of the Portfolios whose shares are held by the Variable Sub-Accounts. These fees and expenses are described in the accompanying prospectuses for the Funds. For a summary of current estimates of those charges and expenses, see pages above. We may receive compensation from the investment advisers or administrators of the Portfolios for administrative services we provide to the Portfolios. ACCESS TO YOUR MONEY - ------------------------------------------------------------------- You can withdraw some or all of your Contract Value at any time during the Accumulation Phase. Withdrawals also are available under limited circumstances on or after the Payout Start Date. See "Income Plans" below. You can withdraw money from the Variable Account and/or the Fixed Account Options. The amount payable upon withdrawal is the Contract Value (or portion thereof) next computed after we receive the request for a withdrawal at our headquarters, less any withdrawal charges, contract maintenance charges, income tax withholding, penalty tax, and any premium taxes. To complete a partial withdrawal from the Variable Account, we will cancel Accumulation Units in an amount equal to the withdrawal and any applicable charges and taxes. We will pay withdrawals from the Variable Account within 7 days of receipt of the request, subject to postponement in certain circumstances. You have the opportunity to name the investment alternative(s) from which you are taking the withdrawal. If none are named, then we will withdraw the amount proportionately from the investment alternatives in which you are invested according to the value of your investments therein. In general, you must withdraw at least $100 at a time. You also may withdraw a lesser amount if you are withdrawing your entire interest in a Variable Sub-Account. Withdrawals also may be subject to income tax and a 10% penalty tax, as described below. The total amount paid at surrender may be more or less than the total purchase payments due to prior withdrawals, any deductions, and investment performance. POSTPONEMENT OF PAYMENTS We may postpone the payment of any amounts due from the Variable Account under the Contract if: 1. The New York Stock Exchange is closed for other than usual weekends or holidays, or trading on the Exchange is otherwise restricted; 2. An emergency exists as defined by the SEC; or 3. The SEC permits delay for your protection. In addition, we may delay payments or transfers from the Fixed Account Options for up to 6 months or shorter period if required by law. If we delay payment or transfer for 30 days or more, we will pay interest as required by law. Any interest would be payable from the date we receive the withdrawal request to the date we make the payment or transfer. SYSTEMATIC WITHDRAWAL PROGRAM You may choose to receive systematic withdrawal payments on a monthly basis at any time prior to the Payout Start Date. The minimum amount of each systematic withdrawal is $100. We will deposit systematic withdrawal payments into the Contract owner's bank account or Morgan Stanley Dean Witter Active Assets Account. Please consult with your Morgan Stanley Dean Witter Financial Advisor for details. Depending on fluctuations in the value of the Variable Sub-Accounts and the value of the Fixed Account Options, systematic withdrawals may reduce or even exhaust the Contract Value. Income taxes may apply to systematic withdrawals. Please consult your tax advisor before taking any withdrawal. We may modify or suspend the Systematic Withdrawal Program and charge a processing fee for the service. If we modify or suspend the Systematic Withdrawal Program, existing systematic withdrawal payments will not be affected. MINIMUM CONTRACT VALUE If your request for a partial withdrawal would reduce your Contract Value to less than $500, we may treat it as a request to withdraw your entire Contract Value. Your Contract will terminate if you withdraw all of your Contract Value. We will, however, ask you to confirm your withdrawal request before terminating your Contract. If we terminate your Contract, we will distribute to you its Contract Value, less withdrawal and other applicable charges, and applicable taxes. INCOME PAYMENTS - ------------------------------------------------------------------- PAYOUT START DATE The Payout Start Date is the day that money is applied to an Income Plan. The Payout Start Date must be: - at least 30 days after the Issue Date; - the first day of a calendar month; and - no later than the first day of the calendar month after the Annuitant's 90th birthday, or the 10th Contract Anniversary, if later. You may change the Payout Start Date at any time by notifying us in writing of the change at least 30 days before the scheduled Payout Start Date. Absent a change, we will use the Payout Start Date stated in your Contract. INCOME PLANS An "Income Plan" is a series of payments on a scheduled basis to you or to another person designated by you. You may choose and change your choice of Income Plan until 30 days before the Payout Start Date. If you do not select an Income Plan, we will make income payments in accordance with Income Plan 1. After the Payout Start Date, you may not make withdrawals (except as described below) or change your choice of Income Plan. Three Income Plans are available under the Contract. Each is available to provide: - fixed income payments; - variable income payments; or - a combination of the two. The three Income Plans are: INCOME PLAN 1. -- LIFE INCOME WITH PAYMENTS GUARANTEED FOR 10 YEARS. Under this plan, we make periodic income payments for at least as long as the Annuitant lives. If the Annuitant dies before we have made all of the guaranteed income payments, we will continue to pay the remainder of the guaranteed income payments as required by the Contract. INCOME PLAN 2. -- JOINT AND SURVIVOR LIFE INCOME. Under this plan, we make periodic income payments for as long as either the Annuitant or the joint Annuitant is alive. INCOME PLAN 3. -- GUARANTEED PAYMENTS FOR A SPECIFIED PERIOD. Under this plan, we make periodic income payments for the period you have chosen. These payments do not depend on the Annuitant's life. A withdrawal charge may apply if the specified period is less than 10 years. We will deduct the mortality and expense risk charge from the assets of the Variable Account supporting this Income Plan even though we may not bear any mortality risk. The length of any guaranteed payment period under your selected Income Plan generally will affect the dollar amounts of each income payment. As a general rule, longer guarantee periods result in lower income payments, all other things being equal. For example, if you choose an Income Plan with payments that depend on the life of the Annuitant but with no minimum specified period for guaranteed payments, the income payments generally will be greater than the income payments made under the same Income Plan with a minimum specified period for guaranteed payments. We may make other Income Plans available including ones that you and we agree upon. You may obtain information about them by writing or calling us. If you choose Income Plan 1 or 2, or, if available, another Income Plan with payments that continue for the life of the Annuitant or joint Annuitant, we may require proof of age and sex of the Annuitant or joint Annuitant before starting income payments, and proof that the Annuitant or joint Annuitant is still alive before we make each payment. Please note that under such Income Plans, if you elect to take no minimum guaranteed payments, it is possible that the payee could receive only 1 income payment if the Annuitant and any joint Annuitant both die before the second income payment, or only 2 income payments if they die before the third income payment, and so on. Generally, you may not make withdrawals after the Payout Start Date. One exception to this rule applies if you are receiving variable income payments that do not depend on the life of the Annuitant (such as under Income Plan 3). In that case you may terminate all or part of the Variable Account portion of the income payments at any time and receive a lump sum equal to the present value of the remaining variable payments associated with the amount withdrawn. To determine the present value of any remaining variable income payments being withdrawn, we use a discount rate equal to the assumed annual investment rate that we use to complete such variable income payments. The minimum amount you may withdraw under this feature is $1,000. A withdrawal charge may apply. You may apply your Contract Value to an Income Plan. If you elected the Performance Income Benefit Option or the Performance Benefit Combination Option, you may be able to apply an amount greater than your Contract Value to an Income Plan. You must apply at least the Contract Value in the Fixed Account Options on the Payout Start Date to fixed income payments. If you wish to apply any portion of your Fixed Account Options balance to provide variable income payments, you should plan ahead and transfer that amount to the Variable Sub-Accounts prior to the Payout Start Date. If you do not tell us how to allocate your Contract Value among fixed and variable income payments, we will apply your Contract Value in the Variable Account to variable income payments and your Contract Value in the Fixed Account Options to fixed income payments. We deduct applicable premium taxes from the Contract Value at the Payout Start Date. We will apply your Contract Value, less applicable taxes, to your Income Plan on the Payout Start Date. If the amount available to apply under an Income Plan is less than $2,000, or not enough to provide an initial payment of at least $20, and state law permits, we may: - - pay you the Contract Value, less any applicable taxes, in a lump sum instead of the periodic payments you have chosen, or - - we may reduce the frequency of your payments so that each payment will be at least $20. VARIABLE INCOME PAYMENTS The amount of your variable income payments depends upon the investment results of the Variable Sub-Accounts you select, the premium taxes you pay, the age and sex of the Annuitant, and the Income Plan you choose. We guarantee that the payments will not be affected by (a) actual mortality experience, and (b) the amount of our administration expenses. We cannot predict the total amount of your variable income payments. Your variable income payments may be more or less than your total purchase payments because (a) variable income payments vary with the investment results of the underlying Portfolios, and (b) the Annuitant could live longer or shorter than we expect based on the tables we use. In calculating the amount of the periodic payments in the annuity tables in the Contract, we assumed an annual investment rate of 3%. If the actual net investment return of the Variable Sub-Accounts you choose is less than this assumed investment rate, then the dollar amount of your variable income payments will decrease. The dollar amount of your variable income payments will increase, however, if the actual net investment return exceeds the assumed investment rate. The dollar amount of the variable income payments stays level if the net investment return equals the assumed investment rate. Please refer to the Statement of Additional Information for more detailed information as to how we determine variable income payments. We reserve the right to make other annual investment rates available under the Contract. FIXED INCOME PAYMENTS We guarantee income payment amounts derived from any Fixed Account Option for the duration of the Income Plan. We calculate the fixed income payments by: 1. deducting any applicable premium tax; and 2. applying the resulting amount to the greater of (a) the appropriate value from the income payment table in your Contract, or (b) such other value as we are offering at that time. We may defer making fixed income payments for a period of up to 6 months or such shorter time state law may require. If we defer payments for 30 days or more, we will pay interest as required by law from the date we receive the withdrawal request to the date we make payment. PERFORMANCE INCOME BENEFIT The Performance Income Benefit is an optional benefit that you may elect. Keep in mind that once you have selected an optional income or death benefit your ability to select a different option may be limited. At present, we do not permit you to simultaneously elect the Performance Income Benefit and the Death Benefit Combination Option. We do, however, reserve the right to do so in the future. Please consult with your Financial Advisor concerning any such limitations before selecting any option. Further, if you select another option, the benefits under the new option on the date we issue the new option will equal the Contract Value. You will not retain or transfer the benefits of the earlier option. Please consult with your Financial Advisor concerning the effect of selecting a different option before doing so. We may discontinue offering this option at any time. On the date we issue the rider for this benefit ("RIDER DATE"), the Performance Income Benefit is equal to the Contract Value. On each Contract Anniversary, we will recalculate your Performance Income Benefit to equal the greater of your Contract Value on that date or the most recently calculated Performance Income Benefit. We will also recalculate your Performance Income Benefit whenever you make an additional purchase payment or a partial withdrawal. Additional purchase payments will increase the Performance Income Benefit dollar-for-dollar. Withdrawals will reduce the Performance Income Benefit by an amount equal to: (i) the Performance Income Benefit just before the withdrawal, multiplied by (ii) the ratio of the withdrawal amount to the Contract Value just before the withdrawal. In the absence of any withdrawals or purchase payments, the Performance Income Benefit will be the greatest of the Contract Value on the Rider Date and all Contract Anniversary Contract Values on or prior to the Payout Start Date. We will recalculate the Performance Income Benefit as described above until the oldest Contract owner or Annuitant (if the Contract owner is not a natural person) attains age 85. After age 85, we will only recalculate the Performance Income Benefit to reflect additional purchase payments and withdrawals. If you select the Performance Income Benefit Option, the maximum age of any owner and annuitant as of the date we receive the completed application, or the date we receive the request to add the rider, whichever is later, cannot exceed age 75. To exercise your Performance Income Benefit, you must apply it to an Income Plan. The Payout Start Date you select must begin on or after your tenth Contract Anniversary, after electing the benefit, and within 30 days after a Contract Anniversary. In addition, you must apply your Performance Income Benefit to an Income Plan that provides guaranteed payments for either a single or joint life for at least: 1. 10 years, if the youngest Annuitant's age is 80 or less on the date you apply the Benefit, or 2. 5 years, if the youngest Annuitant's age is greater than 80 on the date you apply the Benefit. If your current Contract Value is higher than the Performance Income Benefit, you can apply the Contract Value to any Income Plan. The Performance Income Benefit may not be available in all states. CERTAIN EMPLOYEE BENEFIT PLANS The Contracts offered by this prospectus contain income payment tables that provide for different payments to men and women of the same age, except in states that require unisex tables. We reserve the right to use income payment tables that do not distinguish on the basis of sex to the extent permitted by law. In certain employment-related situations, employers are required by law to use the same income payment tables for men and women. Accordingly, if the Contract is to be used in connection with an employment-related retirement or benefit plan and we do not offer unisex annuity tables in your state, you should consult with legal counsel as to whether the purchase of a Contract is appropriate. DEATH BENEFITS - ------------------------------------------------------------------- We will pay a death benefit if, prior to the Payout Start Date: 1. any Contract owner dies, or 2. the Annuitant dies. We will pay the death benefit to the new Contract owner who is determined immediately after the death. The new Contract owner would be a surviving Contract owner(s)or, if none, the Beneficiary(ies). In the case of the death of an Annuitant, we will pay the death benefit to the current Contract owner. A request for payment of the death benefit must include "DUE PROOF OF DEATH." We will accept the following documentation as Due Proof of Death: - a certified copy of a death certificate, - a certified copy of a decree of a court of competent jurisdiction as to the finding of death, or - any other proof acceptable to us. DEATH BENEFIT AMOUNT Prior to the Payout Start Date, the death benefit is equal to the greatest of: 1. the Contract Value as of the date we determine the death benefit, or 2. the sum of all purchase payments made less any amounts deducted in connection with partial withdrawals (including any applicable withdrawal charges or premium taxes), or 3. the Contract Value on the most recent DEATH BENEFIT ANNIVERSARY prior to the date we determine the death benefit, plus any purchase payments and less any amounts deducted in connection with any partial withdrawals since that Death Benefit Anniversary. A "Death Benefit Anniversary" is every 6th Contract Anniversary beginning with the 6th Contract Anniversary. For example, the 6th, 12th and 18th Contract Anniversaries are the first three Death Benefit Anniversaries. We will determine the value of the death benefit as of the end of the Valuation Date on which we receive a complete request for payment of the death benefit. If we receive a request after 3 p.m. Central Time on a Valuation Date, we will process the request as of the end of the following Valuation Date. DEATH BENEFIT OPTIONS The Enhanced Death Benefit, the Performance Death Benefit, the Performance Benefit Combination, and the Death Benefit Combination Options are optional benefits that you may elect. Keep in mind that once you have selected an optional death benefit your ability to select a different option may be limited. Please consult with your Financial Advisor concerning any such limitations before selecting any option. Further, if you select another option, the benefits under the new option on the date we issue the new option will equal the Contract Value. You will not retain or transfer the benefits of the earlier option. Please consult with your Financial Advisor concerning the effect of selecting a different option before doing so. We may discontinue the offering of these options at any time. If the Contract owner is a natural person, theseOptions apply only on the death of the Contract owner. If the Contract owner is not a natural person, these Options apply only on the death of the Annuitant. For Contracts with a death benefit option, the death benefit will be the greater of (1) through (3) above, or (4) the death benefit option you selected. The death benefit options may not be available in all states. ENHANCED DEATH BENEFIT OPTION. The Enhanced Death Benefit on the date we issue the rider for this option ("RIDER DATE") is equal to the Contract Value. On the first Contract anniversary after the Rider Date, the Enhanced Death Benefit is equal to the Contract Value on the Rider Date plus interest at an annual rate of 5% per year for the portion of the year since the Rider Date. On each subsequent Contract Anniversary, but not beyond the Contract Anniversary preceding the oldest Contract owners' 75th birthdays, we will recalculate the Enhanced Death Benefit as follows: First, we multiply the Enhanced Death Benefit as of the prior Contract Anniversary by 1.05. This results in an increase of 5% annually. Further, for all ages, we will adjust the Enhanced Death Benefit on each Contract Anniversary, or upon receipt of a death claim, as follows: - - For cash withdrawal, we will reduce the Enhanced Death Benefit by the following withdrawal adjustment. The withdrawal adjustment is equal to (i) divided by (ii), with the result multiplied by (ii), when: (i) = withdrawal amount (ii) = the Contract Value just before the withdrawal, (iii) = the most recently calculated Enhanced Death Benefit. - - We will increase the Enhanced Death Benefit by any additional purchase payments since the prior Contract Anniversary. If you select the Enhanced Death Benefit Option, the maximum age of any owner, or annuitant if the owner is a non-natural person, on the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 70. PERFORMANCE DEATH BENEFIT OPTION. The Performance Death Benefit on the date we issue the rider for this option ("RIDER DATE") is equal to the Contract Value. On each Contract Anniversary, we will recalculate your Performance Death Benefit to equal the greater of your Contract Value on that date, or the most recently calculated Performance Death Benefit. We also will recalculate your Performance Death Benefit whenever you make an additional purchase payment or a partial withdrawal. Additional purchase payments will increase the Performance Death Benefit dollar- for-dollar. Withdrawals will reduce the Performance Death Benefit by an amount equal to: (i) the Performance Death Benefit immediately before the withdrawal, multiplied by (ii) the ratio of the withdrawal amount to the Contract Value just before the withdrawal. In the absence of any withdrawals or purchase payments, the Performance Death Benefit will be the greatest of the Contract Value on the Rider Date and all Contract Anniversary Contract Values on or before the date we calculate the death benefit. We will recalculate the Performance Death Benefit as described above until the oldest Contract owner (the Annuitant, if the owner is not a natural person), attains age 85. After age 85, we will recalculate the Performance Death Benefit only to reflect additional purchase payments and withdrawals. If you select the Performance Death Benefit Option, the maximum age of any owner and Annuitant as of the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 80. DEATH BENEFIT COMBINATION OPTION. If you select the Death Benefit Combination Option, the death benefit payable will be the greater of the death benefits provided by the Enhanced Death Benefit or the Performance Death Benefit (both calculated until the oldest Contract owner, or Annuitant if the Contract owner is a non-natural person, attains age 85). After age 85, the death benefit payable will be adjusted to reflect purchase payments and withdrawals to the extent described under "Enhanced Death Benefit Option" and "Performance Death Benefit Option" above. We sometimes refer to the Death Benefit Combination Option as the "Best of the Best" death benefit option. If you select the Death Benefit Combination Option, the maximum age of any Contract owner and Annuitant as of the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 80. PERFORMANCE BENEFIT COMBINATION OPTION. You may elect the Performance Death Benefit in combination with the Performance Income Benefit. We call this the "Performance Benefit Combination Option." If you select the Performance Benefit Combination Option, the maximum age of any Contract owner and Annuitant as of the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 75. None of the death benefits under the Enhanced Death Benefit, the Performance Death Benefit, the Performance Benefit Combination, or the Death Benefit Combination Option will ever be greater than the maximum death benefit allowed by any nonforfeiture laws which govern the Contract. DEATH BENEFIT PAYMENTS If the new Contract owner is a natural person, the new Contract owner may elect to: 1. receive the death benefit in a lump sum, or 2. apply the death benefit to an Income Plan. Payments from the Income Plan must begin within 1 year of the date of death and must be payable throughout: - the life of the new Contract owner; or - for a guaranteed number of payments from 5 to 30 years, but not to exceed the life expectancy of the Contract owner. Options 1 and 2 above are only available if the new Contract owner elects one of these options within 180 days of the date of death. Otherwise, the new Contract owner will receive the SETTLEMENT VALUE. The "Settlement Value" is the Contract Value, less any applicable withdrawal charge and premium tax. The Settlement Value paid will be the Settlement Value next computed on or after the requested distribution date for payment, or on the mandatory distribution date of 5 years after the date of your death, whichever is earlier. We reserve the right to waive the 180 day limit on a non-discriminatory basis. In any event, the entire value of the Contract must be distributed within 5 years after the date of death unless an Income Plan is elected or a surviving spouse continues the Contract in accordance with the provisions described below. If the new Contract owner is your spouse, then he or she may elect one of the options listed above or may continue the Contract in the Accumulation Phase as if the death had not occurred. The Contract may only be continued once. If the surviving spouse continues the Contract in the Accumulation Phase, the surviving spouse may make a single withdrawal of any amount within 1 year of the date of death without incurring a withdrawal charge. If the surviving spouse is under age 59 1/2, a 10% penalty tax may apply to the withdrawal. If the new Contract owner is corporation, trust, or other non-natural person, then the new Contract owner may elect, within 180 days of your death, to receive the death benefit in lump sum or may elect to receive the Settlement Value in a lump sum within 5 years of death. We are currently waiving the 180 day limit, but we reserve the right to enforce the limitation in the future. DEATH OF ANNUITANT. If any Annuitant who is not also the Contract owner dies prior to the Payout Start Date, the Contract owner must elect one of the applicable options described below. If the Contract owner is a natural person, the Contract owner may elect to continue the Contract as if the death had not occurred, or, if we receive Due Proof of Death within 180 days of the date of the Annuitant's death, the Contract owner may choose to: 1. receive the death benefit in a lump sum; or 2. apply the death benefit to an Income Plan that must begin within 1 year of the date of death and must be for a guaranteed number of payments for a period from 5 to 30 years but not to exceed the life expectancy of the Contract owner. If the Contract owner elects to continue the Contract or to apply the death benefit to an Income Plan, the new Annuitant will be the youngest Contract owner, unless the Contract owner names a different Annuitant. If the Contract owner is a non-natural person, the non-natural Contract owner may elect, within 180 days of the Annuitant's date of death, to receive the death benefit in a lump sum or may elect to receive the Settlement Value payable in a lump sum within 5 years of the Annuitant's date of death. If the non-natural Contract owner does not make one of the above described elections, the Settlement Value must be withdrawn by the non-natural Contract owner on or before the mandatory distribution date 5 years after the Annuitant's death. We reserve the right to waive the 180 day limit on a non-discriminatory basis. MORE INFORMATION - ------------------------------------------------------------------- NORTHBROOK Northbrook is the issuer of the Contract. Northbrook is a stock life insurance company organized under the laws of the State of Arizona in 1998. Previously, from 1978 to 1998, Northbrook was organized under the laws of the State of Illinois. Northbrook is currently licensed to operate in all states (except New York), the District of Columbia, and Puerto Rico. Our headquarters are located at 3100 Sanders Road, Northbrook, Illinois, 60062. Northbrook is a wholly owned subsidiary of Allstate Life Insurance Company ("ALLSTATE LIFE"), an Illinois stock life insurance company. Allstate Life is a wholly owned subsidiary of Allstate Insurance Company, an Illinois stock property- liability insurance company. All of the outstanding capital stock of Allstate Insurance Company is owned by The Allstate Corporation. Northbrook and Allstate Life entered into a reinsurance agreement effective December 31, 1987. Under the reinsurance agreement, Allstate Life reinsures all of Northbrook's liabilities under the Contracts. The reinsurance agreement provides us with financial backing from Allstate Life. However, it does not create a direct contractual relationship between Allstate Life and you. In other words, the obligations of Allstate Life under the reinsurance agreement are to Northbrook; Northbrook remains the sole obligor under the Contract to you. Independent rating agencies regularly evaluate life insurers' claims-paying ability, quality of investments, and overall stability. A.M. Best Company assigns an A+ (Superior) financial strength rating to Allstate Life, which results in an A+r rating to Northbrook due to the reinsurance agreement with Allstate Life mentioned above. Standard & Poor's assigns an AA+ (Very Strong) financial strength rating and Moody's Investors Service assigns an Aa2 (Excellent) financial strength rating to Northbrook, sharing the same ratings of its parent, Allstate Life. These ratings do not reflect the investment performance of the Variable Account. We may from time to time advertise these ratings in our sales literature. THE VARIABLE ACCOUNT Northbrook established the Northbrook Variable Annuity Account II on May 8, 1990. We have registered the Variable Account with the SEC as a unit investment trust. The SEC does not supervise the management of the Variable Account or Northbrook. We own the assets of the Variable Account. The Variable Account is a segregated asset account under Arizona insurance law. That means we account for the Variable Account's income, gains, and losses separately from the results of our other operations. It also means that only the assets of the Variable Account that are in excess of the reserves and other Contract liabilities with respect to the Variable Account are subject to liabilities relating to our other operations. Our obligations arising under the Contracts are general corporate obligations of Northbrook. The Variable Account consists of multiple Variable Sub-Accounts, 22 of which are available under the Contract. We may add new Variable Sub-Accounts or eliminate one or more of them, if we believe marketing, tax, or investment conditions so warrant. We do not guarantee the investment performance of the Variable Account, its Sub-Accounts or the Portfolios. We may use the Variable Account to fund our other annuity contracts. We will account separately for each type of annuity contract funded by the Variable Account. THE PORTFOLIOS DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. We automatically reinvest all dividends and capital gains distributions from the Portfolios in shares of the distributing Portfolio at their net asset value. VOTING PRIVILEGES. As a general matter, you do not have a direct right to vote the shares of the Portfolios held by the Variable Sub-Accounts to which you have allocated your Contract Value. Under current law, however, you are entitled to give us instructions on how to vote those shares on certain matters. Based on our present view of the law, we will vote the shares of the Portfolios that we hold directly or indirectly through the Variable Account in accordance with instructions that we receive from Contract owners entitled to give such instructions. As a general rule, before the Payout Start Date, the Contract owner or anyone with a voting interest is the person entitled to give voting instructions. The number of shares that a person has a right to instruct will be determined by dividing the Contract Value allocated to the applicable Variable Sub-Account by the net asset value per share of the corresponding Portfolio as of the record date of the meeting. After the Payout Start Date the person receiving income payments has the voting interest. The payee's number of votes will be determined by dividing the reserves for such Contract allocated to the applicable Variable Sub-Account by the net asset value per share of the corresponding Portfolio as of the record date of the meeting. The votes decrease as income payments are made and as the reserves for the Contract decrease. We will vote shares attributable to Contracts for which we have not received instructions, as well as shares attributable to us, in the same proportion as we vote shares for which we have received instructions, unless we determine that we may vote such shares in our own discretion. We will apply voting instructions to abstain on any item to be voted upon on a pro rata basis to reduce the votes eligible to be cast. We reserve the right to vote Portfolio shares as we see fit without regard to voting instructions to the extent permitted by law. If we disregard voting instructions, we will include a summary of that action and our reasons for that action in the next semi-annual financial report we send to you. CHANGES IN PORTFOLIOS. We reserve the right, subject to any applicable law, to make additions to, deletions from or substitutions for the Portfolio shares held by any Variable Sub-Account. If the shares of any of the Portfolios are no longer available for investment by the Variable Account or if, in our judgment, further investment in such shares is no longer desirable in view of the purposes of the Contract, we may eliminate that Portfolio and substitute shares of another eligible investment fund. Any substitution of securities will comply with the requirements of the Investment Company Act of 1940. We also may add new Variable Sub-Accounts that invest in additional mutual funds. We will notify you in advance of any change. CONFLICTS OF INTEREST. Certain of the Portfolios sell their shares to separate accounts underlying both variable life insurance and variable annuity contracts. It is conceivable that in the future it may be unfavorable for variable life insurance separate accounts and variable annuity separate accounts to invest in the same Portfolio. The boards of directors or trustees of these Portfolios monitor for possible conflicts among separate accounts buying shares of the Portfolios. Conflicts could develop for a variety of reasons. For example, differences in treatment under tax and other laws or the failure by a separate account to comply with such laws could cause a conflict. To eliminate a conflict, a Portfolio's board of directors or trustees may require a separate account to withdraw its participation in a Portfolio. A Portfolio's net asset value could decrease if it had to sell investment securities to pay redemption proceeds to a separate account withdrawing because of a conflict. THE CONTRACT The Contracts are distributed exclusively by their principal underwriter, Morgan Stanley DW Inc.* Morgan Stanley DW, a wholly owned subsidiary of Morgan Stanley Dean Witter & Co., is located at Two World Trade Center, New York, New York 10048. Morgan Stanley DW is a member of the New York Stock Exchange and the National Association of Securities Dealers. We may pay up to a maximum sales commission of 2.0% of purchase payments and an annual sales administration expense of up to 1.5% of the average net assets of the Contracts to Morgan Stanley DW. In addition, Morgan Stanley DW may pay annually to its representatives, from its profits a persistency bonus that will take into account among other things, the length of time purchase payments have been held under the Contract and Contract Values. *Effective April 2, 2001, Dean Witter Reynolds Inc. changed its name to Morgan Stanley DW Inc. ADMINISTRATION. We have primary responsibility for all administration of the Contracts and the Variable Account. We provide the following administrative services, among others: - - issuance of the Contracts; - - maintenance of Contract owner records; - - Contract owner services; - - calculation of unit values; - - maintenance of the Variable Account; and - - preparation of Contract owner reports. We will send you Contract statements at least annually prior to the Payout Start Date. Contract statements are currently being sent on a quarterly basis. You should notify us promptly in writing of any address change. You should read your statements and confirmations carefully and verify their accuracy. You should contact us promptly if you have a question about a periodic statement. We will investigate all complaints and make any necessary adjustments retroactively, but you must notify us of a potential error within a reasonable time after the date of the questioned statement. If you wait too long, we will make the adjustment as of the date that we receive notice of the potential error. We also will also provide you with additional periodic and other reports, information and prospectuses as may be required by federal securities laws. QUALIFIED PLANS If you use the Contract with a qualified plan, the plan may impose different or additional conditions or limitations on withdrawals, waivers of withdrawal charges, death benefits, Payout Start Dates, income payments, and other Contract features. In addition, adverse tax consequences may result if qualified plan limits on distributions and other conditions are not met. Please consult your qualified plan administrator for more information. LEGAL MATTERS Foley & Lardner, Washington, D.C., has advised Northbrook on certain federal securities law matters. All matters of state law pertaining to the Contracts, including the validity of the Contracts and Northbrook's right to issue such Contracts under state insurance law, have been passed upon by Michael J. Velotta, General Counsel of Northbrook. TAXES - ------------------------------------------------------------------- THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. NORTHBROOK MAKES NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION INVOLVING A CONTRACT. Federal, state, local and other tax consequences of ownership or receipt of distributions under an annuity contract depend on your individual circumstances. If you are concerned about any tax consequences with regard to your individual circumstances, you should consult a competent tax adviser. TAXATION OF ANNUITIES IN GENERAL TAX DEFERRAL. Generally, you are not taxed on increases in the Contract Value until a distribution occurs. This rule applies only where: 1. the Contract owner is a natural person, 2. the investments of the Variable Account are "adequately diversified" according to Treasury Department regulations, and 3. Northbrook is considered the owner of the Variable Account assets for federal income tax purposes. NON-NATURAL OWNERS. As a general rule, annuity contracts owned by non-natural persons such as corporations, trusts, or other entities are not treated as annuity contracts for federal income tax purposes. The income on such contracts is taxed as ordinary income received or accrued by the owner during the taxable year. Please see the Statement of Additional Information for a discussion of several exceptions to the general rule for Contracts owned by non-natural persons. DIVERSIFICATION REQUIREMENTS. For a Contract to be treated as an annuity for federal income tax purposes, the investments in the Variable Account must be "adequately diversified" consistent with standards under Treasury Department regulations. If the investments in the Variable Account are not adequately diversified, the Contract will not be treated as an annuity contract for federal income tax purposes. As a result, the income on the Contract will be taxed as ordinary income received or accrued by the Contract owner during the taxable year. Although Northbrook does not have control over the Portfolios or their investments, we expect the Portfolios to meet the diversification requirements. OWNERSHIP TREATMENT. The IRS has stated that you will be considered the owner of Variable Account assets if you possess incidents of ownership in those assets, such as the ability to exercise investment control over the assets. At the time the diversification regulations were issued, the Treasury Department announced that the regulations do not provide guidance concerning circumstances in which investor control of separate account investments may cause an investor to be treated as the owner of the separate account. The Treasury Department also stated that future guidance would be issued regarding the extent that owners could direct sub-account investments without being treated as owners of the underlying assets of the separate account. Your rights under the Contract are different than those described by the IRS in rulings in which it found that contract owners were not owners of separate account assets. For example, you have the choice to allocate premiums and Contract Values among more investment alternatives. Also, you may be able to transfer among investment alternatives more frequently than in such rulings. These differences could result in you being treated as the owner of the Variable Account. If this occurs, income and gain from the Variable Account assets would be includible in your gross income. Northbrook does not know what standards will be set forth in any regulations or rulings which the Treasury Department may issue. It is possible that future standards announced by the Treasury Department could adversely affect the tax treatment of your Contract. We reserve the right to modify the Contract as necessary to attempt to prevent you from being considered the federal tax owner of the assets of the Variable Account. However, we make no guarantee that such modification to the Contract will be successful. TAXATION OF PARTIAL AND FULL WITHDRAWALS. If you make a partial withdrawal under a non-Qualified Contract, amounts received are taxable to the extent the Contract Value, without regard to surrender charges, exceeds the investment in the Contract. The investment in the Contract is the gross premium paid for the Contract minus any amounts previously received from the Contract if such amounts were properly excluded from your gross income. If you make a partial withdrawal under a Qualified Contract, the portion of the payment that bears the same ratio to the total payment that the investment in the Contract (i.e., nondeductible IRA contributions, after tax contributions to qualified plans) bears to the Contract Value, is excluded from your income. If you make a full withdrawal under a non-Qualified Contract or a Qualified Contract, the amount received will be taxable only to the extent it exceeds the investment in the Contract. "Nonqualified distributions" from Roth IRAs are treated as made from contributions first and are included in gross income only to the extent that distributions exceed contributions. "Qualified distributions" from Roth IRAs are not included in gross income. "Qualified distributions" are any distributions made more than 5 taxable years after the taxable year of the first contribution to any Roth IRA and which are: - - made on or after the date the individual attains age 59 1/2, - - made to a Beneficiary after the Contract owner's death, - - attributable to the Contract owner being disabled, or - - for a first time home purchase (first time home purchases are subject to a lifetime limit of $10,000). If you transfer a non-Qualified Contract without full and adequate consideration to a person other than your spouse (or to a former spouse incident to a divorce), you will be taxed on the difference between the Contract Value and the investment in the Contract at the time of transfer. Except for certain Qualified Contracts, any amount you receive as a loan under a Contract, and any assignment or pledge (or agreement to assign or pledge) of the Contract Value is treated as a withdrawal of such amount or portion. TAXATION OF ANNUITY PAYMENTS. Generally, the rule for income taxation of annuity payments received from a non-Qualified Contract provides for the return of your investment in the Contract in equal tax-free amounts over the payment period. The balance of each payment received is taxable. For fixed annuity payments, the amount excluded from income is determined by multiplying the payment by the ratio of the investment in the Contract (adjusted for any refund feature or period certain) to the total expected value of annuity payments for the term of the Contract. If you elect variable annuity payments, the amount excluded from taxable income is determined by dividing the investment in the Contract by the total number of expected payments. The annuity payments will be fully taxable after the total amount of the investment in the Contract is excluded using these ratios. If you die, and annuity payments cease before the total amount of the investment in the Contract is recovered, the unrecovered amount will be allowed as a deduction for your last taxable year. TAXATION OF ANNUITY DEATH BENEFITS. Death of a Contract owner, or death of the Annuitant if the Contract is owned by a non-natural person, will cause a distribution of death benefits from a Contract. Generally, such amounts are included in income as follows: 1. if distributed in a lump sum, the amounts are taxed in the same manner as a full withdrawal, or 2. if distributed under an annuity option, the amounts are taxed in the same manner as an annuity payment. Please see the Statement of Additional Information for more detail on distribution at death requirements. PENALTY TAX ON PREMATURE DISTRIBUTIONS. A 10% penalty tax applies to the taxable amount of any premature distribution from a non-Qualified Contract. The penalty tax generally applies to any distribution made prior to the date you attain age 59 1/2. However, no penalty tax is incurred on distributions: 1. made on or after the date the Contract owner attains age 59 1/2; 2. made as a result of the Contract owner's death or disability; 3. made in substantially equal periodic payments over the Contract owner's life or life expectancy; 4. made under an immediate annuity; or 5. attributable to investment in the Contract before August 14, 1982. You should consult a competent tax advisor to determine if any other exceptions to the penalty apply to your situation. Similar exceptions may apply to distributions from Qualified Contracts. AGGREGATION OF ANNUITY CONTRACTS. All non-qualified deferred annuity contracts issued by Northbrook (or its affiliates) to the same Contract owner during any calendar year will be aggregated and treated as one annuity contract for purposes of determining the taxable amount of a distribution. TAX QUALIFIED CONTRACTS Contracts may be used as investments with certain qualified plans such as: - - Individual Retirement Annuities or Accounts (IRAs) under Section 408 of the Internal Revenue Code ("Code"); - - Roth IRAs under Section 408A of the Code; - - Simplified Employee Pension Plans under Section 408(k) of the Code; - - Savings Incentive Match Plans for Employees (SIMPLE) Plans under Section 408(p) of the Code; - - Tax Sheltered Annuities under Section 403(b) of the Code; - - Corporate and Self Employed Pension and Profit Sharing Plans; and - - State and Local Government and Tax-Exempt Organization Deferred Compensation Plans. The income on qualified plan and IRA investments is tax deferred and variable annuities held by such plans do not receive any additional tax deferral. You should review the annuity features, including all benefits and expenses, prior to purchasing a variable annuity in a qualified plan or IRA. Northbrook reserves the right to limit the availability of the Contract for use with any of the Qualified Plans listed above. In the case of certain qualified plans, the terms of the plans may govern the right to benefits, regardless of the terms of the Contract. RESTRICTIONS UNDER SECTION 403(b) Plans. Section 403(b) of the Code provides tax-deferred retirement savings plans for employees of certain non-profit and educational organizations. Under Section 403(b), any Contract used for a 403(b) plan must provide that distributions attributable to salary reduction contributions made after 12/31/88, and all earnings on salary reduction contributions, may be made only: 1. on or after the date an employee - attains age 59 1/2, - separates from service, - dies, - becomes disabled, or 2. on account of hardship (earnings on salary reduction contributions may be distributed on the account of hardship). These limitations do not apply to withdrawals where Northbrook is directed to transfer some or all of the Contract Value to another 403(b) plan. INCOME TAX WITHHOLDING Northbrook is required to withhold federal income tax at a rate of 20% on all "eligible rollover distributions" unless you elect to make a "direct rollover" of such amounts to an IRA or eligible retirement plan. Eligible rollover distributions generally include all distributions from Qualified Contracts, excluding IRAs, with the exception of: 1. required minimum distributions, or 2. a series of substantially equal periodic payments made over a period of at least 10 years, or, over the life (joint lives) of the participant (and beneficiary). Northbrook may be required to withhold federal and state income taxes on any distributions from non-Qualified Contracts or Qualified Contracts that are not eligible rollover distributions, unless you notify us of your election to not have taxes withheld. PERFORMANCE INFORMATION - ------------------------------------------------------------------- We may advertise the performance of the Variable Sub-Accounts, including yield and total return information. Yield refers to the income generated by an investment in a Variable Sub-Account over a specified period. Total return represents the change, over a specified period of time, in the value of an investment in a Variable Sub- Account after reinvesting all income distributions. All performance advertisements will include, as applicable, standardized yield and total return figures that reflect the deduction of insurance charges, the contract maintenance charge, and withdrawal charge. Performance advertisements also may include total return figures that reflect the deduction of insurance charges, but not the contract maintenance or withdrawal charges. The deduction of such charges would reduce the performance shown. In addition, performance advertisements may include aggregate, average, year-by-year, or other types of total return figures. Performance information for periods prior to the inception date of the Variable Sub- Accounts will be based on the historical performance of the corresponding Portfolios for the periods beginning with the inception dates of the Portfolios and adjusted to reflect current Contract expenses. You should not interpret these figures to reflect actual historical performance of the Variable Account. We may include in advertising and sales materials tax deferred compounding charts and other hypothetical illustrations that compare currently taxable and tax deferred investment programs based on selected tax brackets. Our advertisements also may compare the performance of our Variable Sub-Accounts with: (a) certain unmanaged market indices, including but not limited to the Dow Jones Industrial Average, the Standard & Poor's 500, and the Shearson Lehman Bond Index; and/or (b) other management investment companies with investment objectives similar to the underlying funds being compared. In addition, our advertisements may include the performance ranking assigned by various publications, including the Wall Street Journal, Forbes, Fortune, Money, Barron's, Business Week, USA Today, and statistical services, including Lipper Analytical Services Mutual Fund Survey, Lipper Annuity and Closed End Survey, the Variable Annuity Research Data Survey, and SEI. APPENDIX A ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED - -------------------------------------------------------------------------------
Base Policy For the Years Beginning January 1*, and Ending December 31, SUB-ACCOUNT 1998 1999 2000 AGGRESSIVE EQUITY VARIABLE Accumulation Unit Value, Beginning of Period -- $10.000 $14.450 Accumulation Unit Value, End of Period -- $14.450 $13.980 Number of Units Outstanding, End of Period -- 11,455 98,550 - ---------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.710 $12.738 Accumulation Unit Value, End of Period $ 9.710 $12.738 $12.699 Number of Units Outstanding, End of Period 6,192 27,471 64,471 - ---------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 $ 9.568 $11.948 Accumulation Unit Value, End of Period $ 9.568 $11.948 $ 9.716 Number of Units Outstanding, End of Period 17,570 59,367 137,800 - --------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.101 $ 9.704 Accumulation Unit Value, End of Period $10.101 $ 9.704 10.058 Number of Units Outstanding, End of Period 147,314 441,792 586,657 - --------------------------------------------------------------------------------------------------------------- EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.510 $21.141 Accumulation Unit Value, End of Period $10.510 $21.141 $18.696 Number of Units Outstanding, End of Period 10,947 90,139 245,349 - --------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 8.119 $15.558 Accumulation Unit Value, End of Period $ 8.119 $15.558 $ 9.356 Number of Units Outstanding, End of Period 123 8,933 28,385 - --------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.883 $13.564 Accumulation Unit Value, End of Period $ 9.883 $13.564 $11.783 Number of Units Outstanding, End of Period 14,358 48,641 123,037 - ---------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.273 $16.035 Accumulation Unit Value, End of Period $10.273 $16.035 $13.834 Number of Units Outstanding, End of Period 34,510 277,235 534,869 - --------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.014 $11.454 Accumulation Unit Value, End of Period $ 9.014 $11.454 $10.720 Number of Units Outstanding, End of Period 22,053 84,846 162,560 - --------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.886 $11.156 Accumulation Unit Value, End of Period $ 9.886 $11.156 $10.707 Number of Units Outstanding, End of Period 15,232 80,482 79,995 - ---------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 $ 8.866 $ 8.610 Accumulation Unit Value, End of Period $ 8.866 $ 8.610 $ 5.744 Number of Units Outstanding, End of Period 93,600 183,538 124,910 - ---------------------------------------------------------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 $ 9.685 $10.205 Accumulation Unit Value, End of Period $ 9.685 $10.205 $10.062 Number of Units Outstanding, End of Period 18,227 38,046 46,861 - --------------------------------------------------------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period -- -- $10.000 Accumulation Unit Value, End of Period -- -- $ 9.289 Number of Units Outstanding, End of Period -- -- 54,105 - --------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 $ 8.763 $10.797 Accumulation Unit Value, End of Period $ 8.763 $10.797 $ 9.307 Number of Units Outstanding, End of Period 6,589 25,209 68,164 - --------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $10.153 $10.470 Accumulation Unit Value, End of Period $10.153 $10.470 $10.931 Number of Units Outstanding, End of Period 81,705 326,539 267,768 - ---------------------------------------------------------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.994 $17.972 Accumulation Unit Value, End of Period $10.994 $17.972 $11.771 Number of Units Outstanding, End of Period 1,450 16,849 25,984
A-1
- ------------------------------------------------------------------------------------------------------------------- Base Policy For the Years Beginning January 1*, and Ending December 31, SUB-ACCOUNT 1998 1999 2000 QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 $10.359 $ 9.755 Accumulation Unit Value, End of Period $10.359 $ 9.755 $10.667 Number of Units Outstanding, End of Period 178,028 353,126 432,406 - ------------------------------------------------------------------------------------------------------------------- SHORT-TERM BOND Accumulation Unit Value, Beginning of Period -- $10.000 $10.050 Accumulation Unit Value, End of Period -- $10.050 $10.470 Number of Units Outstanding, End of Period -- 11,170 8,768 - ------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 $10.343 $11.946 Accumulation Unit Value, End of Period $10.343 $11.946 $11.952 Number of Units Outstanding, End of Period 70,036 198,638 324,724 - ------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 $10.382 $12.286 Accumulation Unit Value, End of Period $10.382 $12.286 $10.959 Number of Units Outstanding, End of Period 35,394 167,065 328,022 - ------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 $ 9.115 $ 8.839 Accumulation Unit Value, End of Period $ 9.115 $ 8.839 $11.247 Number of Units Outstanding, End of Period 3,294 13,344 27,787 - ------------------------------------------------------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 $10.904 $12.096 Accumulation Unit Value, End of Period $10.904 $12.096 $12.268 Number of Units Outstanding, End of Period 46,349 137,439 237,119 - -------------------------------------------------------------------------------------------------------------------
*The Contracts were first offered on July 20, 1998. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.49% and an administrative expense charge of 0.10%. All of the Variable Sub-Accounts commenced operations on or before July 20, 1998, except the Short-Term Bond and Aggressive Equity Variable Sub-Accounts, which commenced operations on May 3, 1999 and the Information Sub-Account which commenced operations on November 6, 2000. A-2 ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE ENHANCED DEATH BENEFIT, PERFORMANCE DEATH BENEFIT OR PERFORMANCE INCOME BENEFIT OPTION - -------------------------------------------------------------------
For the Years Beginning January 1*, and Ending December 31, SUB-ACCOUNT 1998 1999 2000 - --------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY VARIABLE Accumulation Unit Value, Beginning of Period -- $10.000 $14.440 Accumulation Unit Value, End of Period -- $14.440 $13.950 Number of Units Outstanding, End of Period -- 40,515 169,792 - --------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.704 $12.714 Accumulation Unit Value, End of Period $ 9.704 $12.714 $12.659 Number of Units Outstanding, End of Period 5,153 30,798 71,626 - --------------------------------------------------------------------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 $ 9.562 $11.926 Accumulation Unit Value, End of Period $ 9.562 $11.926 $ 9.686 Number of Units Outstanding, End of Period 24,807 72,820 186,984 - --------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.095 $ 9.685 Accumulation Unit Value, End of Period $10.095 $ 9.685 $10.026 Number of Units Outstanding, End of Period 165,990 662,841 676,030 - -------------------------------------------------------------------------------------------------------------------------------- EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.504 $21.101 Accumulation Unit Value, End of Period $10.504 $21.101 $18.637 Number of Units Outstanding, End of Period 31,051 108,684 215,874 - ---------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 8.114 $15.529 Accumulation Unit Value, End of Period $ 8.114 $15.529 $ 9.326 Number of Units Outstanding, End of Period 3,925 16,698 23,245 - ---------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.877 $13.539 Accumulation Unit Value, End of Period $ 9.877 $13.539 $11.746 Number of Units Outstanding, End of Period 17,925 104,259 160,415 - ---------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.267 $16.005 Accumulation Unit Value, End of Period $10.267 $16.005 $13.790 Number of Units Outstanding, End of Period 80,117 471,331 719,408 - ---------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.008 $11.432 Accumulation Unit Value, End of Period $ 9.008 $11.432 $10.686 Number of Units Outstanding, End of Period 206,430 194,903 317,816 - ------------------------------------------------------------------------------------------------------------------------------------ GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.881 $11.135 Accumulation Unit Value, End of Period $ 9.881 $11.135 $10.673 Number of Units Outstanding, End of Period 39,311 128,434 151,997 - ------------------------------------------------------------------------------------------------------------------------------------ HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 $ 8.861 $ 8.593 Accumulation Unit Value, End of Period $ 8.861 $ 8.593 $ 5.726 Number of Units Outstanding, End of Period 38,215 123,235 97,153 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 $ 9.679 $10.186 Accumulation Unit Value, End of Period $ 9.679 $10.186 $10.030 Number of Units Outstanding, End of Period 16,832 52,500 44,355 A-3 - ----------------------------------------------------------------------------------------------------------------------------------- For the Years Beginning January 1*, and Ending December 31, SUB-ACCOUNT 1998 1999 2000 - ----------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 $ 8.758 $10.777 Accumulation Unit Value, End of Period $ 8.758 $10.777 $ 9.278 Number of Units Outstanding, End of Period 9,575 30,807 54,387 - ------------------------------------------------------------------------------------------------------------------------------------ MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $10.147 $10.450 Accumulation Unit Value, End of Period $10.147 $10.450 $10.896 Number of Units Outstanding, End of Period 85,827 436,501 507,405 - ------------------------------------------------------------------------------------------------------------------------------------ QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 $10.353 $ 9.737 Accumulation Unit Value, End of Period $10.353 $ 9.737 $10.633 Number of Units Outstanding, End of Period 52,778 249,824 240,877 - ------------------------------------------------------------------------------------------------------------------------------------ PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.987 $17.938 Accumulation Unit Value, End of Period $10.987 $17.938 $11.733 Number of Units Outstanding, End of Period 1,623 38,449 53,153 - ------------------------------------------------------------------------------------------------------------------------------------ S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 $10.376 $12.263 Accumulation Unit Value, End of Period 10.376 $12.263 $10.924 Number of Units Outstanding, End of Period 04,952 349,707 461,674 - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM BOND Accumulation Unit Value, Beginning of Period -- $10.000 $10.040 Accumulation Unit Value, End of Period -- $10.040 $10.447 Number of Units Outstanding, End of Period -- 11,485 17,362 - ------------------------------------------------------------------------------------------------------------------------------------ STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 $10.337 $11.920 Accumulation Unit Value, End of Period $10.337 $11.920 $11.914 Number of Units Outstanding, End of Period 24,056 162,824 255,791 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 $ 9.110 $ 8.822 Accumulation Unit Value, End of Period $ 9.110 $ 8.822 $11.211 Number of Units Outstanding, End of Period 17,463 33,042 36,603 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES Accumulation Unit Value, Beginning of Period $10.000 $10.898 $12.073 Accumulation Unit Value, End of Period $10.898 $12.073 $12.229 Number of Units Outstanding, End of Period 33,289 165,102 237,119 - -----------------------------------------------------------------------------------------------------------------------------------
*The Contracts including the Enhanced Death Benefit Option, the Performance Death Benefit Option, and the Performance Income Benefit Option were first offered on July 20, 1998. All of the Variable Sub-Accounts commenced operations on or before July 20, 1998, except the Short-Term Bond and Aggressive Equity Variable Sub-Accounts, which commenced operations on May 3, 1999 and the Information Sub-Account which commenced operations on November 6, 2000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.62% and an administrative expense charge of 0.10%. A-4 ACCUMULATION UNIT VALUE AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH VARIABLE SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE PERFORMANCE BENEFIT COMBINATION OPTION OR THE DEATH BENEFIT COMBINATION OPTION - -------------------------------------------------------------------
For the Years Beginning January 1*, and Ending December 31, SUB-ACCOUNT 1998 1999 2000 - ----------------------------------------------------------------------------------------------------------------------------------- AGGRESSIVE EQUITY VARIABLE Accumulation Unit Value, Beginning of Period -- $10.000 $14.430 Accumulation Unit Value, End of Period -- $14.430 $13.924 Number of Units Outstanding, End of Period -- 44,292 268,946 - ----------------------------------------------------------------------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.699 $12.694 Accumulation Unit Value, End of Period $ 9.699 $12.694 $12.625 Number of Units Outstanding, End of Period 12,464 27,483 127,643 - ------------------------------------------------------------------------------------------------------------------------------------ COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 $ 9.557 $11.906 Accumulation Unit Value, End of Period $ 9.557 $11.906 $ 9.659 Number of Units Outstanding, End of Period 12,369 23,894 $131,742 - ----------------------------------------------------------------------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.090 $ 9.670 Accumulation Unit Value, End of Period $10.090 $ 9.670 $ 9.999 Number of Units Outstanding, End of Period 58,954 256,374 519,014 - ----------------------------------------------------------------------------------------------------------------------------------- EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.498 $21.066 Accumulation Unit Value, End of Period $10.498 $21.066 $18.585 Number of Units Outstanding, End of Period 27,030 129,629 388,197 - ----------------------------------------------------------------------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 $ 8.109 $15.503 Accumulation Unit Value, End of Period $ 8.109 $15.503 $ 9.300 Number of Units Outstanding, End of Period 4,235 51,240 113,031 - ----------------------------------------------------------------------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.872 $13.516 Accumulation Unit Value, End of Period $ 9.872 $13.516 $11.713 Number of Units Outstanding, End of Period -- 16,474 129,313 - ----------------------------------------------------------------------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 $10.262 $15.980 Accumulation Unit Value, End of Period $10.262 $15.980 $13.753 Number of Units Outstanding, End of Period 30,606 323,544 649,397 - ----------------------------------------------------------------------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.004 $11.414 Accumulation Unit Value, End of Period $ 9.004 11.414 $10.657 Number of Units Outstanding, End of Period 10,221 75,890 289,934 - ----------------------------------------------------------------------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 $ 9.876 $11.117 Accumulation Unit Value, End of Period $ 9.876 $11.117 $10.645 Number of Units Outstanding, End of Period 14,652 62,965 93,823 - ----------------------------------------------------------------------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 $ 8.857 $ 8.580 Accumulation Unit Value, End of Period $ 8.857 $ 8.580 $ 5.710 Number of Units Outstanding, End of Period 11,399 38,054 67,992 - ------------------------------------------------------------------------------------------------------------------------------------ INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 $ 9.674 $10.169 Accumulation Unit Value, End of Period $ 9.674 $10.169 $10.003 Number of Units Outstanding, End of Period 3,158 20,223 24,882 A-5 - ------------------------------------------------------------------------------------------- For the Years Beginning January 1*, and Ending December 31, SUB-ACCOUNT 1998 1999 2000 INFORMATION Accumulation Unit Value, Beginning of Period -- -- $10.000 Accumulation Unit Value, End of Period -- -- $ 9.285 Number of Units Outstanding, End of Period -- -- 4,195 - ----------------------------------------------------------------------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 $ 8.753 $10.759 Accumulation Unit Value, End of Period $ 8.753 $10.759 $ 9.252 Number of Units Outstanding, End of Period -- 21,796 55,354 - ----------------------------------------------------------------------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 $10.142 $10.440 Accumulation Unit Value, End of Period $10.142 $10.440 $10.867 Number of Units Outstanding, End of Period 15,056 123,921 280,898 - ------------------------------------------------------------------------------------------------------------------------------------ PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 $10.982 $17.910 Accumulation Unit Value, End of Period $10.982 $17.910 $11.702 Number of Units Outstanding, End of Period 4,550 73,243 119,400 - ------------------------------------------------------------------------------------------------------------------------------------ QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 $10.348 $ 9.721 Accumulation Unit Value, End of Period $10.348 $ 9.721 $10.605 Number of Units Outstanding, End of Period 81,071 172,419 276,236 - ----------------------------------------------------------------------------------------------------------------------------------- SHORT-TERM BOND Accumulation Unit Value, Beginning of Period -- $10.000 $10.030 Accumulation Unit Value, End of Period -- $10.030 $10.428 Number of Units Outstanding, End of Period -- 5,436 13,362 - ----------------------------------------------------------------------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 $10.332 $11.904 Accumulation Unit Value, End of Period $10.332 $11.904 $11.882 Number of Units Outstanding, End of Period 18,089 68,969 218,043 - ----------------------------------------------------------------------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 $10.371 $12.242 Accumulation Unit Value, End of Period $10.371 $12.242 $10.894 Number of Units Outstanding, End of Period 41,697 168,103 293,639 - ----------------------------------------------------------------------------------------------------------------------------------- U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 $ 9.105 $ 8.807 Accumulation Unit Value, End of Period $ 9.105 $ 8.807 $11.180 Number of Units Outstanding, End of Period -- 30,211 67,341 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES Accumulation Unit Value, Beginning of Period $10.000 $10.892 $12.054 Accumulation Unit Value, End of Period $10.892 $12.054 $12.197 Number of Units Outstanding, End of Period 19,644 100,464 217,451 - ------------------------------------------------------------------------------------------------------------------------------------
*The Contracts including the Performance Benefit Combination Option were first offered July 20, 1998. The Contracts including the Death Benefit Combination Option were first offered on May 3, 1999 . All of the Variable Sub-Accounts commenced operations on or before July 20, 1998, except the Short-Term Bond and Aggressive Equity Variable Sub-Accounts, which commenced operations on May 3, 1999 and the Information Sub-Account which commenced operations on November 6, 2000. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.73% and an administrative expense charge of 0.10%. A-6 STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - ------------------------------------------------------------------- DESCRIPTION - ---------------------------------------------------------------------------- Additions, Deletions or Substitutions of Investments - ---------------------------------------------------------------------------- The Contract Purchases Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers) - ---------------------------------------------------------------------------- Performance Information - ---------------------------------------------------------------------------- Calculation of Accumulation Unit Values - ---------------------------------------------------------------------------- Calculation of Variable Income Payments - ---------------------------------------------------------------------------- General Matters Incontestability Settlements Safekeeping of the Variable Account's Assets Premium Taxes Tax Reserves - ---------------------------------------------------------------------------- Federal Tax Matters - ---------------------------------------------------------------------------- Qualified Plans - ---------------------------------------------------------------------------- Experts - ---------------------------------------------------------------------------- Financial Statements - ---------------------------------------------------------------------------- ------------------------------ THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH SUCH OFFERING MAY NOT LAWFULLY BE MADE. WE DO NOT AUTHORIZE ANYONE TO PROVIDE ANY INFORMATION OR REPRESENTATIONS REGARDING THE OFFERING DESCRIBED IN THIS PROSPECTUS OTHER THAN AS CONTAINED IN THIS PROSPECTUS. B-1 MORGAN STANLEY VARIABLE ANNUITY 3 NORTHBROOK LIFE INSURANCE COMPANY P.O. BOX 94040 PALATINE, IL 60094 TELEPHONE NUMBER: 1-800-654-2397 PROSPECTUS DATED MAY 1, 2001 - -------------------------------------------------------------------------------- Northbrook Life Insurance Company ("Northbrook") is offering the Morgan Stanley Variable Annuity 3, an individual and group flexible premium deferred variable annuity contract ("Contract"). This prospectus contains information about the Contract that you should know before investing. Please keep it for future reference. The Contract offers 34 investment alternatives ("Investment Alternatives"). The investment alternatives include 2 fixed account option ("FIXED ACCOUNT OPTIONS") and 32 variable sub-accounts ("VARIABLE SUB-ACCOUNTS") of the Northbrook Variable Annuity Account II ("VARIABLE ACCOUNT"). Each Variable Sub-Account invests exclusively in shares of portfolios ("PORTFOLIOS") of the following mutual funds ("FUNDS"): - MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES (CLASS Y SHARES) - THE UNIVERSAL INSTITUTIONAL FUNDS, INC - VAN KAMPEN LIFE INVESTMENT TRUST (CLASS I or CLASS II) - AIM VARIABLE INSURANCE FUNDS - ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) - PUTNAM VARIABLE TRUST (CLASS IB SHARES) We (Northbrook) have filed a Statement of Additional Information, dated May 1, 2001, with the Securities and Exchange Commission ("SEC "). It contains more information about the Contract and is incorporated herein by reference, which means that it is legally a part of this prospectus. Its table of contents appears on page C-1 of this prospectus. For a free copy, please write or call us at the address or telephone number above, or go to the SEC's Web site (http://www.sec.gov). You can find other information and documents about us, including documents that are legally a part of this prospectus, at the SEC's Web site. - -------------------------------------------------------------------------------- THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR IMPORTANT DISAPPROVED THE SECURITIES DESCRIBED IN THIS PROSPECTUS, NOR NOTICE HAS IT PASSED ON THE ACCURACY OR THE ADEQUACY OF THIS IMPORTANT PROSPECTUS. ANY ONE WHO TELLS YOU OTHERWISE IS COMMITTING A FEDERAL CRIME. INVESTMENT IN THE CONTRACTS INVOLVES INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. TABLE OF CONTENTS - ------------------------------------------------------------------- PAGE - ---------------------------------------------------------------------------- OVERVIEW - ---------------------------------------------------------------------------- Important Terms - ---------------------------------------------------------------------------- The Contract At A Glance - ---------------------------------------------------------------------------- How the Contract Works - ---------------------------------------------------------------------------- Expense Table - ---------------------------------------------------------------------------- Financial Information - ---------------------------------------------------------------------------- CONTRACT FEATURES - ---------------------------------------------------------------------------- The Contract - ---------------------------------------------------------------------------- Purchase of Contracts - ---------------------------------------------------------------------------- Contract Value - ---------------------------------------------------------------------------- Investment Alternatives - ---------------------------------------------------------------------------- The Variable Sub-Accounts - ---------------------------------------------------------------------------- The Fixed Account Options - ---------------------------------------------------------------------------- Transfers - ---------------------------------------------------------------------------- Expenses - ---------------------------------------------------------------------------- Access to Your Money - ---------------------------------------------------------------------------- Income Payments - ---------------------------------------------------------------------------- Death Benefits - ---------------------------------------------------------------------------- OTHER INFORMATION - ---------------------------------------------------------------------------- More Information: - ---------------------------------------------------------------------------- Northbrook - ---------------------------------------------------------------------------- The Variable Account - ---------------------------------------------------------------------------- The Portfolios - ---------------------------------------------------------------------------- The Contract - ---------------------------------------------------------------------------- Qualified Plans - ---------------------------------------------------------------------------- Legal Matters - ---------------------------------------------------------------------------- Taxes - ---------------------------------------------------------------------------- Performance Information - ---------------------------------------------------------------------------- APPENDIX A CALCULATION OF ENHANCED EARNINGS DEATH BENEFIT PLUS A-1 - ---------------------------------------------------------------------------- APPENDIX B ACCUMULATION UNIT VALUES B-1 - --------------------------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS C-1 - ---------------------------------------------------------------------------- IMPORTANT TERMS - ------------------------------------------------------------------- This prospectus uses a number of important terms that you may not be familiar with. The index below identifies the page that describes each term. The first use of each term in this prospectus appears in highlights. PAGE - ----------------------------------------------------------------------------- Accumulation Phase - ----------------------------------------------------------------------------- Accumulation Unit - ----------------------------------------------------------------------------- Accumulation Unit Value - ----------------------------------------------------------------------------- Annuitant - ----------------------------------------------------------------------------- Automatic Additions Program - ----------------------------------------------------------------------------- Automatic Portfolio Rebalancing Program - ----------------------------------------------------------------------------- Beneficiary - ----------------------------------------------------------------------------- Cancellation Period - ----------------------------------------------------------------------------- Contract* - ----------------------------------------------------------------------------- Contract Anniversary - ----------------------------------------------------------------------------- Contract Owner ("You") - ----------------------------------------------------------------------------- Contract Value - ----------------------------------------------------------------------------- Contract Year - ----------------------------------------------------------------------------- Death Benefit Anniversary - ----------------------------------------------------------------------------- Death Benefit Combination Option - ----------------------------------------------------------------------------- Dollar Cost Averaging - ----------------------------------------------------------------------------- Dollar Cost Averaging Fixed Account Options - ----------------------------------------------------------------------------- Due Proof of Death - ----------------------------------------------------------------------------- Enhanced Earnings Death Benefit Plus Option - ----------------------------------------------------------------------------- Excess of Earnings Withdrawals - ----------------------------------------------------------------------------- Fixed Account Options - ----------------------------------------------------------------------------- Funds - ----------------------------------------------------------------------------- Income and Death Benefit Combination Option 2 - ----------------------------------------------------------------------------- Income Benefit Combination Option 2 - ----------------------------------------------------------------------------- In-Force Premium - ----------------------------------------------------------------------------- In-Force Earnings - ----------------------------------------------------------------------------- Income Plans - ----------------------------------------------------------------------------- Investment Alternatives - ------------------------------------------------------------------------------- Issue Date - ----------------------------------------------------------------------------- Northbrook ("We") - ----------------------------------------------------------------------------- Payout Phase - ----------------------------------------------------------------------------- Payout Start Date - ----------------------------------------------------------------------------- Performance Death Benefit Option - ----------------------------------------------------------------------------- Portfolios - ----------------------------------------------------------------------------- Qualified Contracts - ----------------------------------------------------------------------------- Right to Cancel - ----------------------------------------------------------------------------- SEC - ----------------------------------------------------------------------------- Settlement Value - ----------------------------------------------------------------------------- Systematic Withdrawal Program - ----------------------------------------------------------------------------- Valuation Date - ----------------------------------------------------------------------------- Variable Account - ----------------------------------------------------------------------------- Variable Sub-Account - ----------------------------------------------------------------------------- *In certain states the Contract is available only as a group Contract. In these states, we will issue you a certificate that represents your ownership and that summarizes the provisions of the group Contract. References to "Contract" in this prospectus include certificates unless the context requires otherwise.
THE CONTRACT AT A GLANCE - ------------------------------------------------------------------- The following is a snapshot of the Contract. Please read the remainder of this prospectus for more information. FLEXIBLE PAYMENTS You can purchase a Contract with an initial purchase payment of $1,000 or more. You can add to your Contract as often and as much as you like, but each payment must be at least $100. You must maintain a minimum account size of $500. - -------------------------------------------------------------------------------- RIGHT TO CANCEL You may cancel your Contract within 20 days of receipt or any longer period as your state may require ("Cancellation Period"). Upon cancellation, we will return your purchase payments adjusted, to the extent state and federal law permit, to reflect the investment experience of any amounts allocated to the Variable Account. - -------------------------------------------------------------------------------- EXPENSES You will bear the following expenses: o Total Variable Account annual fees equal to 1.35% of average daily net assets (1.48% if you select the Performance Death Benefit Option or 1.59% if you select the Death Benefit Combination Option, or 1.65% if you select the Income Benefit Combination Option 2 or 1.85% if you select the Income and Death Benefit Combination Option 2) o If you select the Enhanced Earnings Death Benefit Plus Option (available June 18, 2001), you would pay an additional mortality and expense risk charge of 0.15%, 0.25% or 0.35% (depending on the age of the oldest Contract owner (or Annuitant, if the Contract owner is a non-natural person) on the date we receive the completed application or written request to add the Option, whichever is later ("Rider Application Date")) o Annual contract maintenance charge of $35 (waived in certain cases) o Withdrawal charges ranging from 0% to 6% of purchase payment(s) withdrawn (with certain exceptions) o Transfer fee of $25 after the 12th transfer in any Contract Year (fee currently waived) o State premium tax (if your state imposes one) In addition, each Portfolio pays expenses that you will bear indirectly if you invest in a Variable Sub-Account. - ------------------------------------------------------------------------------------ INVESTMENT ALTERNATIVES The Contract offers 34 investment alternatives including: - 2 Fixed Account Options (which credit interest at rates we guarantee) - 32 Variable Sub-Accounts investing in Portfolios offering professional money management by these investment advisers: - AIM ADVISORS, INC. - ALLIANCE CAPITAL MANAGEMENT, L.P. - MILLER ANDERSON & SHERRERD, LLP - MORGAN STANLEY DEAN WITTER ADVISORS, INC. - MORGAN STANLEY ASSET MANAGEMENT - PUTNAM INVESTMENT MANAGEMENT, INC. - VAN KAMPEN ASSET MANAGEMENT INC. To find out current rates being paid on the Fixed Account Options, or to find out how the Variable Sub-Accounts have performed, call us at 1-800-654-2397. - ------------------------------------------------------------------------------------ SPECIAL SERVICES For your convenience, we offer these special services: o AUTOMATIC ADDITIONS PROGRAM o AUTOMATIC PORTFOLIO REBALANCING PROGRAM o DOLLAR COST AVERAGING PROGRAM o SYSTEMATIC WITHDRAWAL PROGRAM - ------------------------------------------------------------------------------------ INCOME PAYMENTS You can choose fixed amount income payments, variable amount income payments or a combination of the two. You can receive your income payments in one of the following ways: o life income with guaranteed payments o joint and survivor life income o guaranteed payments for a specified period - ------------------------------------------------------------------------------------ DEATH BENEFITS If you die before the Payout Start Date, we will pay the death benefit described in the Contract. We also offer death benefit options. - ------------------------------------------------------------------------------------
TRANSFERS Before the Payout Start Date, you may transfer your Contract value ("CONTRACT VALUE")among the investment alternatives, with certain restrictions. Transfers must be at least $100 or the total amount in the investment alternative, whichever is less. Transfers to the Standard Fixed Account Option for any Guarantee Period must be at least $500. We do not currently impose a fee upon transfers. However, we reserve the the right to charge $25 per transfer after the 12th transfer in each "Contract Year," which we measure from the date we issue your Contract or a Contract anniversary ("CONTRACT ANNIVERSARY"). - ------------------------------------------------------------------------------------ WITHDRAWALS You may withdraw some or all of your Contract Value at any time during the Accumulation Phase and during the Payout Phase in certain cases. In general, you must withdraw at least $500 at a time or the total amount in the investment alternative, if less. A 10% Federal tax penalty may apply if you make a withdrawal before you are 59 1/2 years old. A withdrawal charge may also apply.
HOW THE CONTRACT WORKS - ------------------------------------------------------------------- The Contract basically works in two ways. First, the Contract can help you (we assume you are the "CONTRACT OWNER") save for retirement because you can invest in up to 34 Investment Alternatives and pay no federal income taxes on any earnings until you withdraw them. You do this during what we call the "Accumulation Phase" of the Contract. The Accumulation Phase begins on the date we issue your Contract (we call that date the "ISSUE DATE") and continues until the Payout Start Date, which is the date we apply your money to provide income payments. During the Accumulation Phase, you may allocate your purchase payments to any combination of the Variable Sub-Accounts and/or the Fixed Account Options. If you invest in any of the Fixed Account Options you will earn a fixed rate of interest that we declare periodically. If you invest in any of the Variable Sub-Accounts your investment return will vary up or down depending on the performance of the corresponding Portfolios. Second, the Contract can help you plan for retirement because you can use it to receive retirement income for life, and/or for a pre-set number of years, by selecting one of the income payment options (we call these "INCOME PLANS") described on page 25. You receive income payments during what we call the "PAYOUT PHASE" of the Contract, which begins on the Payout Start Date and continues until we make the last payment required by the Income Plan you select. During the Payout Phase, if you select a fixed amount income payment option, we guarantee the amount of your payments, which will remain fixed. If you select a variable amount income payment option, based on one or more of the Variable Sub-Accounts, the amount of your payments will vary up or down depending on the performance of the corresponding Portfolios. The amount of money you accumulate under your Contract during the Accumulation Phase and apply to an Income Plan will determine the amount of your income payments during the Payout Phase. The timeline below illustrates how you might use your Contract.
ISSUE PAYOUT START DATE ACCUMULATION PHASE DATE PAYOUT PHASE - -----------------------------------------------------------------------------------> You save for retirement You buy You elect to receive You can receive Or you can Contract income payments or income payments receive receive a lump sum for a set period income payment payments for life
As the Contract owner you exercise all of the rights and privileges provided by the Contract. If you die, any surviving Contract owner or, if there is none, the Beneficiary will exercise the rights and privileges provided by the Contract. See "The Contract." In addition, if you die before the Payout Start Date, we will pay a death benefit to any surviving Contract owner or, if there is none, to your Beneficiary. See "Death Benefits." Please call us at 1-800-654-2397 if you have any question about how the Contract works. EXPENSE TABLE - ------------------------------------------------------------------- The table below lists the expenses that you will bear directly or indirectly when you buy a Contract. The table and the examples that follow do not reflect premium taxes that may be imposed by the state where you reside. For more information about Variable Account expenses, see "Expenses," below. For more information about Portfolio expenses, please refer to the accompanying prospectuses for the Funds. CONTRACT OWNER TRANSACTION EXPENSES Withdrawal Charge (as a percentage of purchase payments withdrawn)* Number of Complete Years Since We Received the Purchase Payment Being Withdrawn: 0 1 2 3 4 5 6+ - -------------------------------------------------------------------------------- Applicable Charge: 6% 5% 5% 4% 3% 2% 0% - -------------------------------------------------------------------------------- Annual Contract Maintenance Charge $35** - -------------------------------------------------------------------------------- Transfer Fee $25*** - -------------------------------------------------------------------------------- *During each Contract Year you may withdraw up to 15% of the aggregate amount of purchase payments as of the beginning of the Contract Year without incurring a withdrawal charge. **If your Contract Value equals or exceeds $40,000, we will waive the charge for the remaining time your Contract is in force. ***Applies solely to the thirteenth and all subsequent transfers within a Contract Year excluding transfers due to dollar cost averaging and automatic portfolio rebalancing. We are currently waiving the transfer fee. VARIABLE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF AVERAGE DAILY NET ASSET VALUE DEDUCTED FROM EACH VARIABLE SUB-ACCOUNT)
- ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- Basic With the With the Death With the With the Income and Contract Performance Death Benefit Income Benefit Death Benefit Benefit Option Combination Option Combination Combination Option 2 Option 2 - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- Mortality and 1.25% 1.38% 1.49% 1.55% 1.75% Expense Risk Charge - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- Administrative 0.10% 0.10% 0.10% 0.10% 0.10% Expense Charge - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- Total Variable 1.35% 1.48% 1.59% 1.65% 1.85% Account Annual Expense - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- - --------------------------------------------------------------------------------------------------------------------- If the Enhanced Earnings Death Benefit Plus Option is elected with the Base Contract or with one of the Options listed above (assuming age is between 66 and 75 on Rider Application Date)* - --------------------------------------------------------------------------------------------------------------------- - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- Basic With the With the Death With the With the Income and Contract Performance Death Benefit Income Benefit Death Benefit Benefit Option Combination Option Combination Combination Option 2 Option 2 - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- Mortality and 1.60% 1.73% 1.84% 1.90% 2.10% Expense Risk Charge - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- Administrative 0.10% 0.10% 0.10% 0.10% 0.10% Expense Charge - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- - ---------------------- ------------- ------------------- -------------------- ---------------- ---------------------- Total Variable 1.70% 1.83% 1.94% 2.00% 2.20% Account Annual Expense - ---------------------- ------------- ------------------- -------------------- ---------------- ----------------------
*The mortality and expense risk charge shown for the Enhanced Earnings Death Benefit Plus Option (available June 18, 2001) reflects a charge of 0.35% for the Option, assuming the age of the oldest Owner (or Annuitant if the Contract owner is a non-natural person) is between 66 and 75 on the Rider Application Date. If the age of the oldest Owner (or Annuitant if the Contract owner is a non-natural person) is between 56 and 65 on the Rider Application Date, the charge for the Option is 0.25%. If the age of the oldest Owner (or Annuitant if the Contract owner is a non-natural person) is 55 or younger on the Rider Application Date, the charge for the Option is 0.15%. PORTFOLIO ANNUAL EXPENSES (After Voluntary Reductions and Reimbursements) (as a percentage of Portfolio average daily net assets)1
Management Total Portfolio Portfolio Fees Rule 12b-1 Other Expenses Annual Expenses Fees - ------------------------------------------------------------ --------------- ------------ --------------- ------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES (CLASS Y SHARES) (2) Aggressive Equity Portfolio 0.75% 0.25% 0.05% 1.05% Capital Growth Portfolio 0.65% 0.25% 0.04% 0.94% Competitive Edge "Best Ideas" Portfolio 0.65% 0.25% 0.06% 0.96% Dividend Growth Portfolio 0.53% 0.25% 0.01% 0.79% Equity Portfolio 0.49% 0.25% 0.01% 0.75% European Growth Portfolio 0.94% 0.25% 0.06% 1.25% Global Dividend Growth Portfolio 0.75% 0.25% 0.05% 1.05% High Yield Portfolio 0.50% 0.25% 0.04% 0.79% Income Builder Portfolio 0.75% 0.25% 0.06% 1.06% Information Portfolio (3) 0.00% 0.25% 0.00% 0.25% Money Market Portfolio 0.50% 0.25% 0.02% 0.77% Pacific Growth Portfolio 0.95% 0.25% 0.26% 1.46% Quality Income Plus Portfolio 0.50% 0.25% 0.02% 0.77% Short-Term Bond Portfolio 0.45% 0.25% 0.47% 1.17% Strategist Portfolio 0.50% 0.25% 0.02% 0.77% S&P 500 Index Portfolio 0.40% 0.25% 0.06% 0.71% Utilities Portfolio 0.64% 0.25% 0.02% 0.91% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (4) Emerging Markets Equity Portfolio 1.09% N/A 0.71% 1.80% Equity Growth Portfolio 0.48% N/A 0.37% 0.85% International Magnum Portfolio 0.50% N/A 0.68% 1.18% Mid Cap Value Portfolio 0.53% N/A 0.52% 1.05% U.S. Real Estate Portfolio 0.74% N/A 0.36% 1.10% AIM VARIABLE INVESTMENT FUNDS AIM V.I. Capital Appreciation Fund 0.61% N/A 0.21% 0.82% AIM V.I. Growth Fund 0.61% N/A 0.22% 0.83% AIM V.I. Value Fund 0.61% N/A 0.23% 0.84% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) (5) Alliance Growth Portfolio 0.75% 0.25% 0.08% 1.08% Alliance Growth and Income Portfolio 0.63% 0.25% 0.07% 0.95% Alliance Premier Growth Portfolio 1.00% 0.25% 0.05% 1.30% PUTNAM VARIABLE TRUSTS (CLASS 1B SHARES) Putnam VT Growth and Income Fund 0.46% 0.15% 0.04% 0.65% Putnam VT International Growth Fund 0.80% 0.15% 0.17% 1.12% Putnam VT Voyager Fund 0.51% 0.15% 0.05% 0.71% VAN KAMPEN LIFE INVESTMENT TRUST (CLASS II SHARES)(6) Van Kampen LIT Emerging Growth Portfolio 0.70% 0.25% 0.05% 1.00%
(1) Figures shown in the Table are for the year ended December 31, 2000 (except as otherwise noted). (2) Class Y of the Morgan Stanley Dean Witter Variable Investment Series has a distribution plan or "Rule 12b-1" plan as described in the Fund's prospectus. The portfolios commenced operations on June 5, 2000, except for the Information Portfolio, which commenced operations on November 6, 2000. "Total Portfolio Annual Expenses" are annualized and based on actual expenses incurred during 2000. (3) The Investment Manager has agreed to assume all operating expenses and to waive the compensation provided for in its Investment Management Agreement (except for 12b-1 fees) until such time as the Portfolio has $50 million of net assets or December 31, 2001, whichever occurs first. If the Investment Manager had not assumed and waived these expenses, the annualized ratio of expenses to average net assets would have been 0.75% for "Management Fees" and 1.07% for "Other Expenses" and 1.82% for "Total Portfolio Annual Expenses." (4) Absent voluntary reductions and reimbursements for certain Portfolios, "Management Fees," "Rule 12b-1 Fees," "Other Expenses," and "Total Portfolio Annual Expenses" as a percent of average net assets of the portfolios would have been as follows:
Total Portfolio Portfolio Management Rule Other Annual Expenses Fees 12b-1 Expenses Fees - ---------------------------------------------------------------------- ------------ --------- ----------- ------------------ Emerging Markets Equity Portfolio 1.25% N/A 0.71% 1.96% Equity Growth Portfolio 0.55% N/A 0.37% 0.92% International Magnum Portfolio 0.80% N/A 0.68% 1.48% Mid Cap Value Portfolio 0.75% N/A 0.52% 1.27% U.S. Real Estate Portfolio 0.80% N/A 0.36% 1.16%
The Portfolio's Advisor may discontinue all or part of these reductions and reimbursements at any time. Additionally, in determining the actual amount of voluntary management fee waiver and/or expense reimbursement for a Portfolio, if any, the adviser excluded from the total annual operating expenses certain investment related expenses, such as foreign country tax expense and interest expense on borrowing. If included, in "Other Expenses", respectively, Other Expenses would be increased as follows: Morgan Stanley UIF Emerging Markets Equity Portfolio 0.05% and Morgan Stanley UIF International Magnum Portfolio 0.03%. (5) Class B of the Alliance Variable Products Series Fund, Inc. has a distribution plan or "Rule 12b-1" plan as described in the Fund's prospectus. (6) The Van Kampen LIT Emerging Growth Variable Sub-Account (Class II) that invests in the Van Kampen LIT Emerging Growth Fund (Class II shares or "12b-1 class") will be available under all Contracts issued on or after May 17, 2001. Only owners of Contracts issued before May 17, 2001 may invest in the Van Kampen LIT Emerging Growth Variable Sub-Account (Class I) that invests in the non-12b-1 class of the Van Kampen LIT Emerging Growth Fund. For more information about the distribution or "12b-1 plan" for the Class II shares, please read the Fund's prospectus. EXAMPLE 1 The example below shows the dollar amount of expenses that you would bear directly or indirectly if you: - - invested $1,000 in a Variable Sub-Account, - - earned a 5% annual return on your investment, - - surrendered your Contract or you began receiving income payments for a specified period of less than 120 months at the end of each time period, - - elected the Income and Death Benefit Combination Option 2, and - - elected the Enhanced Earnings Death Benefit Plus Option (assuming age of oldest Contract owner (or Annuitant, if the Contract owner is a non-natural person) is between 66 and 75 on the Rider Application Date). THE EXAMPLE ASSUMES THAT ANY PORTFOLIO EXPENSE WAIVERS OR REIMBURSEMENT ARRANGEMENTS DESCRIBED IN THE FOOTNOTES ABOVE ARE IN EFFECT FOR THE TIME PERIODS PRESENTED BELOW. THE EXAMPLE DOES NOT INCLUDE ANY TAXES OR TAX PENALTIES YOU MAY BE REQUIRED TO PAY IF YOU SURRENDER YOUR CONTRACT.
Variable Sub-Account 1 YEAR 3 YEARS 5 YEARS 10 YEARS -------- --------- --------- --------- AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation $73 $129 $178 $337 AIM V.I. Growth $74 $129 $178 $338 AIM V.I. Value $74 $129 $179 $339 ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income $76 $136 $191 $362 Alliance Growth $75 $133 $184 $350 Alliance Premier Growth $78 $143 $201 $382 THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity $83 $158 $226 $427 Equity Growth $74 $130 $179 $340 International Magnum $77 $140 $196 $371 Mid Cap Value $76 $136 $189 $359 U.S. Real Estate $76 $137 $192 $364 MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES (CLASS Y SHARES) Aggressive Equity $76 $136 $189 $359 Capital Growth $75 $132 $184 $349 Competitive Edge "Best Ideas" $75 $133 $185 $351 Dividend Growth $73 $128 $176 $335 Equity $73 $126 $174 $331 European Growth $78 $142 $199 $378 Global Dividend Growth $76 $136 $189 $359 High Yield $73 $128 $176 $335 Income Builder $76 $136 $190 $360 Information $65 $104 $136 $255 Money Market $73 $127 $175 $333 Pacific Growth $80 $148 $209 $397 Quality Income Plus $73 $127 $175 $333 Short-Term Bond $72 $125 $172 $327 S&P 500 Index $77 $139 $195 $370 Strategist $73 $127 $175 $333 Utilities $74 $131 $182 $346 PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income $73 $126 $174 $331 Putnam VT International Growth $78 $141 $198 $375 Putnam VT Voyager $73 $128 $177 $336 VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth $75 $134 $187 $354 EXAMPLE 2 Same assumptions as Example 1 above, except that you decided not to surrender your Contract, or you began receiving income payments (for at least 120 months if under an Income Plan with a specified period), at the end of each period. Variable Sub-Account 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------ ------- ------- -------- AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation $31 $95 $161 $337 AIM V.I. Growth $31 $95 $161 $338 AIM V.I. Value $31 $95 $162 $339 ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income $34 $102 $174 $362 Alliance Growth $32 $99 $167 $350 Alliance Premier Growth $36 $109 $184 $382 THE UNIVERWSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity $41 $124 $209 $427 Equity Growth $31 $96 $162 $340 International Magnum $35 $106 $179 $371 Mid Cap Value $33 $102 $172 $359 U.S. Real Estate $34 $103 $175 $364 MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES (CLASS Y SHARES) Aggressive Equity $33 $102 $172 $359 Capital Growth $32 $98 $167 $349 Competitive Edge "Best Ideas" $32 $99 $168 $351 Dividend Growth $31 $94 $159 $335 Equity $30 $92 $157 $331 European Growth $35 $108 $182 $378 Global Dividend Growth $33 $102 $172 $359 High Yield $31 $94 $159 $335 Income Builder $33 $102 $173 $360 Information $23 $70 $119 $255 Money Market $30 $93 $158 $333 Pacific Growth $38 $114 $192 $397 Quality Income Plus $30 $93 $158 $333 Short-Term Bond $30 $91 $155 $327 S&P 500 Index $35 $105 $178 $370 Strategist $30 $93 $158 $333 Utilities $32 $97 $165 $346 PUTNAM VARIABLE TRUST (CLASS IB SHARES) Putnam VT Growth and Income $30 $92 $157 $331 Putnam VT International Growth $35 $107 $181 $375 Putnam VT Voyager $31 $94 $160 $336 VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth $33 $100 $170 $354
PLEASE REMEMBER THAT YOU ARE LOOKING AT EXAMPLES AND NOT A REPRESENTATION OF PAST OR FUTURE EXPENSES. YOUR ACTUAL EXPENSES MAY BE LOWER OR GREATER THAN THOSE SHOWN ABOVE. SIMILARLY, YOUR RATE OF RETURN MAY BE LOWER OR GREATER THAN 5%, WHICH IS NOT GUARANTEED. THE EXAMPLES ASSUME THAT ANY PORTFOLIO EXPENSE WAIVERS OR REIMBURSEMENT ARRANGEMENTS DESCRIBED IN THE FOOTNOTES TO THE PORTFOLIO ANNUAL EXPENSE TABLE ARE IN EFFECT FOR THE TIME PERIODS PRESENTED ABOVE. IF ANY OR ALL OF THESE FEATURES WERE NOT ELECTED, THE EXPENSE FIGURES SHOWN ABOVE WOULD BE SLIGHTLY LOWER. TO REFLECT THE CONTRACT MAINTENANCE CHARGE IN THE EXAMPLES, WE ESTIMATED AN EQUIVALENT PERCENTAGE CHARGE, BASED UPON AN ASSUMED AVERAGE CONTRACT SIZE OF $45,000. FINANCIAL INFORMATION - ------------------------------------------------------------------- To measure the value of your investment in the Variable Sub-Accounts during the Accumulation Phase we use a unit of measure we call the "Accumulation Unit." Each Variable Sub-Account has a separate value for its Accumulation Units we call the "Accumulation Unit Value." Accumulation Unit Value is analogous to, but not the same as, the share price of a mutual fund. Attached as Appendix A to this prospectus are tables showing the Accumulation Unit Values of each Variable Sub-Account since the date we first offered the Contracts. No Accumulation Unit Values are shown for Contracts with the Enhanced Earnings Death Benefit Option because the Option was not available uner the Contract as of December 31, 2000. To obtain additional detail on each of the Variable Sub-Account's financial statements contained in the Statement of Additional Information. The financial statements of Northbrook appear in the Statement of Additional Information. THE CONTRACT - ------------------------------------------------------------------- CONTRACT OWNER The Variable Annuity 3 is a contract between you, the Contract owner, and Northbrook, a life insurance company. As the Contract owner, you may exercise all of the rights and privileges provided to you by the Contract. That means it is up to you to select or change (to the extent permitted): - - the investment alternatives during the Accumulation and Payout Phases, - - the amount and timing of your purchase payments and withdrawals, - - the programs you want to use to invest or withdraw money, - - the income payment plan you want to use to receive retirement income, - - the Owner, while the Annuitant is alive, - - the Annuitant (either yourself or someone else) on whose life the income payments will be based, - - the Beneficiary or Beneficiaries who will receive the benefits that the Contract provides when the last surviving Contract owner dies, and - - any other rights that the Contract provides. If you die, any surviving Contract owner or, if none, the Beneficiary, will exercise the rights and privileges provided to them by the Contract. The Contract cannot be jointly owned by both a non-natural person and a natural person. The age of the oldest Contract Owner cannot exceed 90 as of the date we receive the completed application or request to change or select a new Contract owner. You can use the Contract with or without a qualified plan. A "qualified plan" is a retirement savings plan, such as an IRA or tax-sheltered annuity, that meets the requirements of the Internal Revenue Code. Qualified plans may limit or modify your rights and privileges under the Contract. We use the term "Qualified Contract" to refer to a Contract used with a qualified plan. See "Qualified Plans" on page 33. ANNUITANT The Annuitant is the individual whose life determines the amount and duration of income payments (other than under Income Plans with guaranteed payments for a specified period). The Annuitant must be a natural person. The age of the oldest Annuitant cannot exceed 90 as of the date we receive the completed application. You initially designate an Annuitant in your application. If the Contract owner is a natural person, you may change the Annuitant at any time prior to the Payout Start Date. Once we receive your change request, any change will be effective at the time you sign the written notice. We are not liable for any payment we make or other action we take before receiving any written request from you. Before the Payout Start Date, you may designate a joint Annuitant, who is a second person on whose life income payments depend. If the Annuitant dies prior to the Payout Start Date, the new Annuitant will be the youngest Contract owner, otherwise, the youngest Beneficiary, unless the Contract owner names a different Annuitant. BENEFICIARY The Beneficiary is the person who may elect to receive the death benefit or become the new Contract owner if the sole surviving Contract owner dies before the Payout Start Date. If the sole surviving Contract owner dies after the Payout Start Date, the Beneficiary will receive any guaranteed income payments scheduled to continue. You may name one or more Beneficiaries when you apply for a Contract. You may change or add Beneficiaries at any time by writing to us, unless you have designated an irrevocable Beneficiary. We will provide a change of Beneficiary form to be signed and filed with us. Any change will be effective at the time you sign the written notice, whether or not the Annuitant is living when we receive the notice. Until we receive your written notice to change a Beneficiary, we are entitled to rely on the most recent Beneficiary information in our files. We will not be liable as to any payment or settlement made prior to receiving the written notice. Accordingly, if you wish to change your Beneficiary, you should deliver your written notice to us promptly. If you did not name a Beneficiary or, if the named Beneficiary is no longer living and there are no other surviving Beneficiaries, the new Beneficiary will be: - - your spouse, if he or she is still alive, otherwise - - your surviving children equally, or if you have no surviving children, - - your estate. If more than one Beneficiary survives you, (or the Annuitant, if the Contract owner is not a natural person) we will divide the death benefit among your Beneficiaries according to your most recent written instructions. If you have not given us written instructions, we will pay the death benefit in equal amounts to the surviving Beneficiaries. MODIFICATION OF THE CONTRACT Only a Northbrook officer may approve a change in or waive any provision of the Contract. Any change or waiver must be in writing. None of our agents has the authority to change or waive the provisions of the Contract. We may not change the terms of the Contract without your consent, except to conform the Contract to applicable law or changes in the law. If a provision of the Contract is inconsistent with state law, we will follow state law. ASSIGNMENT We will not honor an assignment of an interest in a Contract as collateral or security for a loan. However, you may assign periodic income payments under the Contract prior to the Payout Start Date. No Beneficiary may assign benefits under the Contract until they are payable to the Beneficiary. We will not be bound by any assignment until the assignor signs it and files it with us. We are not responsible for the validity of any assignment. Federal law prohibits or restricts the assignment of benefits under many types of retirement plans and the terms of such plans may themselves contain restrictions on assignments. An assignment may also result in taxes or tax penalties. YOU SHOULD CONSULT WITH AN ATTORNEY BEFORE TRYING TO ASSIGN YOUR CONTRACT. PURCHASES - ------------------------------------------------------------------- MINIMUM PURCHASE PAYMENTS Your initial purchase payment must be at least $1,000. We may increase or decrease this minimum in the future. You may make additional purchase payments of at least $100 at any time prior to the Payout Start Date. We reserve the right to lower the minimum and limit the maximum amount of purchase payments we will accept. We also reserve the right to reject any application. AUTOMATIC ADDITIONS PROGRAM You may make subsequent purchase payments of at least $25 by automatically transferring amounts from your bank account or your Morgan Stanley Dean Witter Active Assets-TM- Account. Please consult your Morgan Stanley Dean Witter Financial Advisor for details. ALLOCATION OF PURCHASE PAYMENTS At the time you apply for a Contract, you must decide how to allocate your purchase payments among the investment alternatives. The allocation you specify on your application will be effective immediately. All allocations must be in whole percentages that total 100% or in whole dollars. The minimum you may allocate to any investment alternative is $100. The minimum amount that you may allocate to the Guarantee Periods is $500. You can change your allocations by notifying us in writing. We will allocate your purchase payments to the investment alternatives according to your most recent instructions on file with us. Unless you notify us in writing otherwise, we will allocate subsequent purchase payments according to the allocation for the previous purchase payment. We will effect any change in allocation instructions at the time we receive written notice of the change in good order. We will credit the initial purchase payment that accompanies your completed application to your Contract within 2 business days after we receive the payment at our headquarters. If your application is incomplete, we will ask you to complete your application within 5 business days. If you do so, we will credit your initial purchase payment to your Contract within that 5 business day period. If you do not, we will return your purchase payment at the end of the 5 business day period unless you expressly allow us to hold it until you complete the application. We will credit subsequent purchase payments to the Contract on the business day that we receive the purchase payment at our headquarters. We use the term "business day" to refer to each day Monday through Friday that the New York Stock Exchange is open for business. We also refer to these days as "Valuation Dates." If we receive your purchase payment after 3 p.m. Central Time on any Valuation Date, we will credit your purchase payment using the Accumulation Unit Values computed on the next Valuation Date. RIGHT TO CANCEL You may cancel the Contract within the Cancellation Period, which is the 20-day period after you receive the Contract or such longer period as your state may require. If you exercise this "Right To Cancel," the Contract terminates and we will pay you the full amount of your purchase payments allocated to the Fixed Account Options. We also will return your purchase payments allocated to the Variable Account after an adjustment, to the extent state or federal law permit, to reflect the investment gain or loss that occurred from the date of allocation through the date of cancellation. Some states may require us to return a greater amount to you. CONTRACT VALUE - ------------------------------------------------------------------- Your Contract Value at any time during the Accumulation Phase is equal to the sum of the value of your Accumulation Units in the Variable Sub-Accounts you have selected, plus the value of your investment in the Fixed Account Options. ACCUMULATION UNITS To determine the number of Accumulation Units of each Variable Sub-Account to allocate to your Contract, we divide (i) the amount of the purchase payment or transfer you have allocated to a Variable Sub-Account by (ii) the Accumulation Unit Value of that Variable Sub-Account next computed after we receive your payment or transfer. For example, if we receive a $10,000 purchase payment allocated to a Variable Sub-Account when the Accumulation Unit Value for the Sub-Account is $10, we would credit 1,000 Accumulation Units of that Variable Sub-Account to your Contract. Withdrawals and transfers from a Variable Sub-Account would, of course, reduce the number of Accumulation Units of that Sub-Account allocated to your Contract. ACCUMULATION UNIT VALUE As a general matter, the Accumulation Unit Value for each Variable Sub-Account will rise or fall to reflect: - - changes in the share price of the Portfolio in which the Variable Sub-Account invests, and - - the deduction of amounts reflecting the mortality and expense risk charge, administrative expense charge, and any provision for taxes that have accrued since we last calculated the Accumulation Unit Value. We determine contract maintenance charges, withdrawal charges and transfer fees (currently waived) separately for each Contract. They do not affect Accumulation Unit Value. Instead, we obtain payment of those charges and fees by redeeming Accumulation Units. For details on how we calculate Accumulation Unit Value, please refer to the Statement of Additional Information. We determine a separate Accumulation Unit Value for each Variable Sub-Account on each Valuation Date. We also determine a separate set of Accumulation Unit Values that reflect the cost of each optional benefit, or available combinations thereof, offered under the Contract. YOU SHOULD REFER TO THE PROSPECTUSES FOR THE FUNDS THAT ACCOMPANY THIS PROSPECTUS FOR A DESCRIPTION OF HOW THE ASSETS OF EACH PORTFOLIO ARE VALUED, SINCE THAT DETERMINATION DIRECTLY BEARS ON THE ACCUMULATION UNIT VALUE OF THE CORRESPONDING VARIABLE SUB-ACCOUNT AND, THEREFORE, YOUR CONTRACT VALUE. INVESTMENT ALTERNATIVES: THE VARIABLE SUB-ACCOUNTS - ------------------------------------------------------------------- You may allocate your purchase payments to up to 32 Variable Sub-Accounts. Each Variable Sub-Account invests in the shares of a corresponding Portfolio. Each Portfolio has its own investment objective(s) and policies. We briefly describe the Portfolios below. For more complete information about each Portfolio, including the investment objective(s), expenses and risks associated with the Portfolio, please refer to the accompanying prospectuses for the Funds. You should carefully review the Fund prospectuses before allocating amounts to the Variable Sub-Accounts.
PORTFOLIO: EACH PORTFOLIO SEEKS: INVESTMENT ADVISER: - -------------- -------------------------- ---------------------------- AIM VARIABLE INSURANCE FUNDS* AIM V.I. Capital Appreciation Fund Growth of capital AIM V.I. Growth Fund Growth of capital AIM Advisors, Inc. AIM V.I. Value Fund Long-term growth of capital. Income is a secondary objective. ALLIANCE VARIABLE PRODUCTS SERIES FUND Growth Portfolio Long-term growth of capital. Current income is incidental to the Portfolio's objective Growth and Income Portfolio Reasonable current income and Alliance Capital reasonable opportunity for Management, L.P. appreciation Premier Growth Portfolio Growth of capital by pursuing aggressive investment policies MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Money Market Portfolio High current income, preservation of capital, and liquidity Quality Income Plus Portfolio High current income and, as a secondary objective, capital appreciation when consistent with its primary objective Short-Term Bond Portfolio High current income consistent with preservation of capital High Yield Portfolio High current income and, as a Secondary objective, capital appreciation when consistent with its primary objective Utilities Portfolio Current income and long term growth of income and capital Income Builder Portfolio Reasonable income and, as a secondary objective, growth of capital Information Portfolio Long-term capital appreciation Dividend Growth Portfolio Reasonable current income and long-term growth of income and capital Capital Growth Portfolio Long-term capital growth Morgan Stanley Dean Witter Advisors, Inc. Global Dividend Growth Portfolio Reasonable current income and long-term growth of income and capital European Growth Portfolio To maximize the capital appreciation on its investments Pacific Growth Portfolio To maximize the capital appreciation on its investments Aggressive Equity Portfolio Capital Growth Equity Portfolio Growth of capital and, as a secondary objective, income when consistent with its primary objective. S&P 500 Index Portfolio Investment results that, before expenses, correspond to the total return of the Standard and Poor's 500 Composite Stock Price Index Competitive Edge "Best Ideas" Portfolio Long-term capital growth Strategist Portfolio High total investment return THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Equity Growth Portfolio Long-term capital appreciation U.S. Real Estate Portfolio Above-average current income and long-term capital appreciation Morgan Stanley Asset Management International Magnum Portfolio Long-term capital appreciation Emerging Markets Equity Portfolio Long-term capital appreciation Mid-Cap Value Portfolio Above-average total return over a market cycle of three to five years Miller Anderson & Sherrerd, LLP PUTNAM VARIABLE TRUST Putnam VT Growth and Income Fund Capital growth and current income Putnam Investment Management, Inc. Putnam VT International Growth Fund Capital growth Putnam VT Voyager Fund Capital appreciation VAN KAMPEN LIFE INVESTMENT TRUST Emerging Growth Portfolio Capital appreciation Van Kampen Asset Management Inc.
* A Portfolio's investment objective may be changed by the Fund's Board of Trustees without shareholder approval. AMOUNTS YOU ALLOCATE TO VARIABLE SUB-ACCOUNTS MAY GROW IN VALUE, DECLINE IN VALUE, OR GROW LESS THAN YOU EXPECT, DEPENDING ON THE INVESTMENT PERFORMANCE OF THE PORTFOLIOS IN WHICH THOSE VARIABLE SUB-ACCOUNTS INVEST. YOU BEAR THE INVESTMENT RISK THAT THE PORTFOLIOS MIGHT NOT MEET THEIR INVESTMENT OBJECTIVES. SHARES OF THE PORTFOLIOS ARE NOT DEPOSITS, OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY ANY BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. INVESTMENT ALTERNATIVES: THE FIXED ACCOUNT OPTIONS - ------------------------------------------------------------------- You may allocate all or a portion of your purchase payments to the Fixed Account Options. We also currently offer the basic dollar cost averaging fixed account option, and may offer the additional dollar cost averaging fixed account options described below. The 6 and 12 month dollar cost averaging options currently are not available, but we may offer them in the future. Please consult with your Morgan Stanley Dean Witter Financial Advisor for current information. The Fixed Account supports our insurance and annuity obligations. The Fixed Account consists of our general assets other than thosein segregated asset accounts. We have sole discretion to invest the assets of the Fixed Account, subject to applicable law. Any money you allocate to a Fixed Account Option does not entitle you to share in the investment experience of the Fixed Account. DOLLAR COST AVERAGING FIXED ACCOUNT OPTIONS BASIC DOLLAR COST AVERAGING OPTION. You may establish a Dollar Cost Averaging Program, as described on page 21, by allocating purchase payments to the Basic Dollar Cost Averaging Option. Purchase payments that you allocate to the Basic Dollar Cost Averaging Option will earn interest for a 1 year period at the current rate in effect at the time of allocation. We will credit interest daily at a rate that will compound over the year to the annual interest rate we guaranteed at the time of allocation. Rates may be different than those available for the Guarantee Periods described below. After the one year period, we will declare a renewal rate which we guarantee for a full year. Subsequent renewal dates will be every twelve months for each purchase payment. Renewal rates will not be less than the minimum guaranteed rate found in the Contract. You may not transfer funds from other investment alternatives to the Basic Dollar Cost Averaging Option. 6 AND 12 MONTH DOLLAR COST AVERAGING OPTIONS. In the future, we may offer 6 and 12 month dollar cost averaging options. Under these options, you may establish a Dollar Cost Averaging Program by allocating purchase payments to the Fixed Account either for 6 months (the "6 Month Dollar Cost Averaging Option") or for 12 months (the "12 Month Dollar Cost Averaging Option"). Your purchase payments will earn interest for the period you select at the current rates in effect at the time of allocation. Rates may differ from those available for the Guarantee Periods described below. However, the crediting rates for the 6 and 12 Month Dollar Cost Averaging Options will never be less than the minimum guaranteed. You must transfer all of your money out of the 6 or 12 Month Dollar Cost Averaging Options to the Variable Sub-Accounts in equal monthly installments. If we do not receive an allocation from you within one month of the date of payment, the payment plus associated interest will be transferred to the Money Market Variable Sub-Account in equal monthly installments using the longest transfer period being offered at the time the purchase payment is made. If you discontinue a 6 or 12 Month Dollar Cost Averaging Option prior to last scheduled transfer, we will transfer any remaining money immediately to the Money Market Variable Sub-Account, unless you request a different Variable Sub-Account. You may not transfer funds from other investment alternatives to the 6 or 12 Month Dollar Cost Averaging Options. Transfers out of the Dollar Cost Averaging Fixed Account Options do not count towards the 12 transfers you can make without paying a transfer fee. We may declare more than one interest rate for different monies based upon the date of allocation to the Dollar Cost Averaging Fixed Account Options. STANDARD FIXED ACCOUNT OPTION You may allocate purchase payments or transfers to one or more Guarantee Periods of the Standard Fixed Account Option. Each payment or transfer allocated to a Guarantee Period earns interest at a specified rate that we guarantee for a period of years. We currently offer a 6 year Guarantee Period. We offer additional Guarantee Periods at our sole discretion. INTEREST RATES. We will tell you what interest rates and Guarantee Periods we are offering at a particular time. We will not change the interest rate that we credit to a particular allocation until the end of the relevant Guarantee Period. We may declare different interest rates for Guarantee Periods of the same length that begin at different times. We have no specific formula for determining the rate of interest that we will declare initially or in the future. We will set those interest rates based on investment returns available at the time of the determination. In addition, we may consider various other factors in determining interest rates including regulatory and tax requirements, our sales commission and administrative expenses, general economic trends, and competitive factors. We determine the interest rates to be declared in our sole discretion. We can neither predict nor guarantee what those rates will be in the future. For availability and current interest rate information, please contact your sales representative or Northbrook at 1-800-654-2397. The interest rate will never be less than the minimum guaranteed rate stated in the Contract. After the Guarantee Period, we will declare a renewal rate. Subsequent renewal dates will be on anniversaries of the first renewal date. On or about each renewal date, the Company will notify the owner of the interest rate(s) for the Contract Year then starting. INVESTMENT ALTERNATIVES: TRANSFERS - ------------------------------------------------------------------- TRANSFERS DURING THE ACCUMULATION PHASE During the Accumulation Phase, you may transfer the Contract Value among the investment alternatives. You may not transfer Contract Value into any of the Dollar Cost Averaging Fixed Account Options. You may request transfers in writing on a form that we provide or by telephone according to the procedure described below. The minimum amount that you may transfer is $100 or the total amount in the investment alternative, whichever is less. Transfers to any Guarantee Period of the Standard Fixed Account Option must be at least $500. We currently do not assess, but reserve the right to assess, a $25 charge on each transfer in excess of 12 per Contract Year. We will notify you at least 30 days before we begin imposing the transfer charge. We treat transfers to or from more than one Portfolio on the same day as one transfer. We limit the amount you may transfer from the Standard Fixed Account Option to the Variable Account or between Guarantee Periods of the Standard Fixed Account Option in any Contract Year to the greater of: 1. 25% of the aggregate value in the Standard Fixed Account Option as of the most recent Contract Anniversary (if the amount is less than $1,000, then up to $1,000 may be transferred); or 2. 25% of the sum of all purchase payments and transfers allocated to the Standard Fixed Account Option as of the most recent Contract Anniversary. These restrictions do not apply to transfers pursuant to dollar cost averaging. If the first renewal interest rate is less than the rate that was in effect at the time money was allocated or transferred to the Standard Fixed Account Option, we will waive the transfer restriction for that money and the accumulated interest thereon during the 60-day period following the first renewal date. We will process transfer requests that we receive before 3:00 p.m. Central Time on any Valuation Date using the Accumulation Unit Values for that Date. We will process requests received after 3:00 p.m. on any Valuation Date using the Accumulation Unit Values for the next Valuation Date. The Contract permits us to defer transfers from the Fixed Account Options for up to 6 months from the date we receive your request. If we decide to postpone transfers for 30 days or more, we will pay interest as required by applicable law. Any interest would be payable from the date we receive the transfer request to the date we make the transfer. LIMITATIONS ON EXCESSIVE TRANSFERS We reserve the right to limit transfers among the Variable Sub-Accounts if we determine, in our sole discretion, that transfers by one or more Contract owners would be to the disadvantage of other Contract owners. We may limit transfers by taking such steps as: - - imposing a minimum time period between each transfer, - - refusing to accept transfer requests of an agent acting under a power of attorney on behalf of more than one Contract owner, or - - limiting the dollar amount that a Contract owner may transfer among the Variable Sub-Accounts and the Fixed Account Options at any one time. We may apply the restrictions in any manner reasonably designed to prevent transfers that we consider disadvantageous to other Contract owners. We reserve the right to waive any transfer restrictions. TRANSFERS DURING THE PAYOUT PHASE During the Payout Phase, you may make transfers among the Variable Sub-Accounts so as to change the relative weighting of the Variable Sub-Accounts on which your variable amount income payments will be based. In addition, you will have a limited ability to make transfers from the Variable Sub-Accounts to increase the proportion of your income payments consisting of fixed amount income payments. You may not, however, convert any portion of your right to receive fixed amount income payments into variable amount income payments. You may not make any transfers for the first 6 months after the Payout Start Date. Thereafter, you may make transfers among the Variable Sub-Accounts or make transfers from the Variable Sub-Accounts to increase fixed amount income payments. Your transfers must be at least 6 months apart. TELEPHONE TRANSFERS You may make transfers by telephone by calling 1-800-654-2397 if you have on file a completed authorization form. The cut off time for telephone transfer requests is 3:00 p.m. Central Time. In the event that the New York Stock Exchange closes early, i.e., before 3:00 p.m. Central Time, or in the event that the Exchange closes early for a period of time but then reopens for trading on the same day, we will process telephone transfer requests as of the close of the Exchange on that particular day. We will not accept telephone requests received at any telephone number other than the number that appears in this paragraph or received after the close of trading on the Exchange. We may suspend, modify or terminate the telephone transfer privilege at any time without notice. We use procedures that we believe provide reasonable assurance that the telephone transfers are genuine. For example, we tape telephone conversations with persons purporting to authorize transfers and request identifying information. Accordingly, we disclaim any liability for losses resulting from allegedly unauthorized telephone transfers. However, if we do not take reasonable steps to help ensure that a telephone authorization valid, we may be liable for such losses. DOLLAR COST AVERAGING PROGRAM Through our Dollar Cost Averaging Program, you may automatically transfer a set amount every month (or other intervals we may offer) during the Accumulation Phase from any Variable Sub-Account or the Dollar Cost Averaging Fixed Account Options to any Variable Sub-Account. Transfers made through dollar cost averaging must be $100 or more. We will not charge a transfer fee for transfers made under this Program, nor will such transfers count against the 12 transfers you can make each Contract Year without paying a transfer fee. The theory of dollar cost averaging is that if purchases of equal dollar amounts are made at fluctuating prices, the aggregate average cost per unit will be less than the average of the unit prices on the same purchase dates. However, participation in this Program does not assure you of a greater profit from your purchases under the Program nor will it prevent or necessarily reduce losses in a declining market. Call or write us for information on how to enroll. AUTOMATIC PORTFOLIO REBALANCING PROGRAM Once you have allocated your money among the Variable Sub-Accounts, the performance of each Sub-Account may cause a shift in the percentage you allocated to each Sub-Account. If you select our Automatic Portfolio Rebalancing Program, we will automatically rebalance the Contract Value in each Variable Sub-Account and return it to the desired percentage allocations. We will not include money you allocate to the Fixed Account Options in the Automatic Portfolio Rebalancing Program. We will rebalance your account each quarter (or other intervals that we may offer) according to your instructions. We will transfer amounts among the Variable Sub-Accounts to achieve the percentage allocations you specify. You can change your allocations at any time by contacting us in writing or by telephone. The new allocation will be effective with the first rebalancing that occurs after we receive your requests. We are not responsible for rebalancing that occurs prior to receipt of your request. Example: Assume that you want your initial purchase payment split among 2 Variable Sub-Accounts. You want 40% to be in the High Yield Variable Sub-Account and 60% to be in the Equity Growth Variable Sub-Account. Over the next 2 months the bond market does very well while the stock market performs poorly. At the end of the first quarter, the High Yield Variable Sub-Account now represents 50% of your holdings because of its increase in value. If you choose to have your holdings rebalanced quarterly, on the first day of the next quarter, we would sell some of your units in the High Yield Variable Sub-Account and use the money to buy more units in the Equity Growth Variable Sub-Account so that the percentage allocations would again be 40% and 60% respectively. The Automatic Portfolio Rebalancing Program is available only during the Accumulation Phase. The transfers made under the Program do not count towards the 12 transfers you can make without paying a transfer fee, and are not subject to a transfer fee. Portfolio rebalancing is consistent with maintaining your allocation of investments among market segments, although it is accomplished by reducing your Contract Value allocated to the better performing segments. EXPENSES - ------------------------------------------------------------------- As a Contract owner, you will bear, directly or indirectly, the charges and expenses described below. CONTRACT MAINTENANCE CHARGE During the Accumulation Phase, on each Contract Anniversary, we will deduct a $35 contract maintenance charge from your Contract Value. The charge will be deducted from each Variable Sub-Account in the proportion that your investment in each bears to your Contract Value. We also will deduct a full contract maintenance charge if you withdraw your entire Contract Value. During the Payout Phase, we will deduct the charge proportionately from each variable income payment. We will waive the charge for the remaining time your contract is in force if the Contract Value is $40,000 or more on or after the Issue Date. The charge is to compensate us for the cost of administering the Contracts and the Variable Account. Maintenance costs include expenses we incur in billing and collecting purchase payments; keeping records; processing death claims, cash withdrawals, and policy changes; proxy statements; calculating Accumulation Unit Values and income payments; and issuing reports to Contract owners and regulatory agencies. We cannot increase the charge. MORTALITY AND EXPENSE RISK CHARGE We deduct a mortality and expense risk charge daily at an annual rate of 1.25% of the average daily net assets you have invested in the Variable Sub-Accounts (1.38% if you select the Performance Death Benefit Option, 1.49% if you select the Death Benefit Combination Option, 1.55% if you select the Income Benefit Combination Option 2, and 1.75% if you select the Income and Death Benefit Combination Option 2). The mortality and expense risk charge is for all the insurance benefits available with your Contract (including our guarantee of annuity rates and the death benefits), for certain expenses of the Contract, and for assuming the risk (expense risk) that the current charges will not be sufficient in the future to cover the cost of administering the Contract. If the charges under the Contract are not sufficient, then we will bear the loss. We charge an additional amount for the Performance Death Benefit Option, the Death Benefit Combination Option, the Income Benefit Combination Option 2, and the Income and Death Benefit Combination Option 2 to compensate us for the additional risk that we accept by providing these Options. If you select the Enhanced Earnings Death Benefit Plus Option, the mortality and expense risk charge will include an additional 0.15% for the option if, on the Rider Application Date, the oldest Contract owner (or Annuitant if the Contract owner is a non-natural person) is age 55 or younger, and an additional 0.25% if on the Rider Application Date, the oldest Owner (or Annuitant if the Contract owner is a non-natural person) is between the ages of 56 and 65, and an additional 0.35% if, on the Rider Application Date, the oldest Contract owner (or Annuitant if the Contract owner is a non-natural person) is between the ages of 66 and 75. We charge the additional fees for the Enhanced Earnings Death Benefit Plus Option to compensate us for the additional risk that we accept by providing the option. We will not increase the mortality and expense risk charge for the life of the Contract. We assess the mortality and expense risk charge during both the Accumulation Phase and the Payout Phase. ADMINISTRATIVE EXPENSE CHARGE We deduct an administrative expense charge daily at an annual rate of 0.10% of the average daily net assets you have invested in the Variable Sub-Accounts. We will not increase the administrative expense charge for the life of the Contract. We intend this charge to cover actual administrative expenses that exceed the revenues from the contract maintenance charge. There is no necessary relationship between the amount of administrative charge imposed on a given Contract and the amount of expenses that may be attributed to that Contract. We assess this charge each day during the Accumulation Phase and the Payout Phase. TRANSFER FEE We do not currently impose a fee upon transfers among the investment alternatives. However, we reserve the right to charge $25 per transfer after the 12th transfer in each Contract Year. We will not charge a transfer fee on transfers that are part of a Dollar Cost Averaging or Automatic Portfolio Rebalancing Program. WITHDRAWAL CHARGE We may assess a withdrawal charge of up to 6% of the purchase payment(s) you withdraw. This charge declines to 0% after the expiration of 6 years from the day we receive the purchase payment being withdrawn. A schedule showing how the withdrawal charge declines over the 6-year period is shown on page 7. During each Contract Year, you can withdraw all remaining purchase payments beyond the withdrawal charge period or up to 15% of the aggregate amount of your purchase payments as of the beginning of the Contract Year, whichever is greater, without paying the charge. Unused portions of this Free Withdrawal Amount are not carried forward to future Contract Years. We will deduct withdrawal charges, if applicable, from the amount paid, unless you instruct otherwise. For purposes of the withdrawal charge, we will treat withdrawals as coming from purchase payments, starting with the oldest purchase payments first and then from earnings. Therefore, additional purchase payments may reduce your ability to withdraw earnings without incurring a withdrawal charge. However, for federal income tax purposes, please note that withdrawals are considered to have come first from earnings, which means you pay taxes on the earnings portion of your withdrawal. We do not apply a withdrawal charge in the following situations: o on the Payout Start Date (a withdrawal charge may apply if you elect to receive income payments for a specified period of less than 120 months); o the death of the Contract owner or Annuitant (unless the Settlement Value is used) o withdrawals taken to satisfy IRS minimum distribution rules for the Contract. We use the amounts obtained from the withdrawal charge to pay sales commissions and other promotional or distribution expenses associated with marketing the Contracts. To the extent that the withdrawal charge does not cover all sales commissions and other promotional or distribution expenses, we may use any of our corporate assets, including potential profit which may arise from the mortality and expense risk charge or any other charges or fee described above, to make up any difference. Withdrawals also may be subject to tax penalties or income tax. You should consult your own tax counsel or other tax advisers regarding any withdrawals. PREMIUM TAXES Some states and other governmental entities (e.g., municipalities) charge premium taxes or similar taxes. We are responsible for paying these taxes and will deduct them from your Contract Value. Some of these taxes are due when the Contract is issued, others are due when income payments begin or upon surrender. Our current practice is not to charge anyone for these taxes until income payments begin or when a total withdrawal occurs including payment upon death. At our discretion, we may discontinue this practice and deduct premium taxes from the purchase payments. Premium taxes generally range form 0% to 4%, depending on the state. At the Payout Start Date, if applicable, we deduct the charge for premium taxes from each investment alternative in the proportion that the Contract owner's value in the investment alternative bears to the total Contract Value. DEDUCTION FOR VARIABLE ACCOUNT INCOME TAXES We are not currently making a provision for taxes. In the future, however, we may make a provision for taxes if we determine, in our sole discretion, that we will incur a tax as a result of the operation of the Variable Account. We will deduct for any taxes we incur as a result of the operation of the Variable Account, whether or not we previously made a provision for taxes and whether or not it was sufficient. Our status under the Internal Revenue Code is briefly described in the Statement of Additional Information. OTHER EXPENSES Each Portfolio deducts advisory fees and other expenses from its assets. You indirectly bear the charges and expenses of the Portfolios whose shares are held by the Variable Sub-Accounts. These fees and expenses are described in the accompanying prospectuses for the Funds. For a summary of current estimates of those charges and expenses, see pages above. We may receive compensation from the investment advisers or administrators of the Portfolios for administrative services we provide to the Portfolios. ACCESS TO YOUR MONEY - ------------------------------------------------------------------- You can withdraw some or all of your Contract Value at any time during the Accumulation Phase. Withdrawals also are available under limited circumstances on or after the Payout Start Date. See "Income Plans" on page 25. You can withdraw money from the Variable Account and/or the Fixed Account Options. The amount payable upon withdrawal is the Contract Value (or portion thereof) next computed after we receive the request for a withdrawal at our headquarters, less any withdrawal charges, contract maintenance charges, income tax withholding, penalty tax, and any premium taxes. To complete a partial withdrawal from the Variable Account, we will cancel Accumulation Units in an amount equal to the withdrawal and any applicable charges and taxes. We will pay withdrawals from the Variable Account within 7 days of receipt of the request, subject to postponement in certain circumstances. Withdrawals also may be subject to income tax and a 10% penalty tax, as described below. You have the opportunity to name the investment alternative(s) from which you are taking the withdrawal. If none are named, then we will withdraw the amount proportionately from the investment alternatives according to the value of your investments therein. In general, you must withdraw at least $500 at a time. You may also withdraw a lesser amount if you are withdrawing your entire interest in a Variable Sub-Account. The total amount paid at surrender may be more or less than the total purchase payments due to prior withdrawals, any deductions, and investment performance. POSTPONEMENT OF PAYMENTS We may postpone the payment of any amounts due from the Variable Account under the Contract if: 1. The New York Stock Exchange is closed for other than usual weekends or holidays, or trading on the Exchange is otherwise restricted; 2. An emergency exists as defined by the SEC; or 3. The SEC permits delay for your protection. In addition, we may delay payments or transfers from the Fixed Account Options for up to 6 months or a shorter period if required by law. If we delay payment or transfer for 30 days or more, we will pay interest as required by applicable law. Any interest would be payable from the date we receive the withdrawal request to the date we make the payment or transfer. SYSTEMATIC WITHDRAWAL PROGRAM You may choose to receive systematic withdrawal payments on a monthly basis at any time prior to the Payout Start Date. The minimum amount of each systematic withdrawal is $100. We will deposit systematic withdrawal payments into the Contract owner's bank account or Morgan Stanley Dean Witter Account. Please consult with your Morgan Stanley Dean Witter Financial Advisor for details. Depending on fluctuations in the value of the Variable Sub-Accounts and the value of the Fixed Account Options, systematic withdrawals may reduce or even exhaust the Contract Value. Income taxes may apply to systematic withdrawals. Please consult your tax advisor before taking any withdrawal. We may modify or suspend the Systematic Withdrawal Program and charge a processing fee for the service. If we modify or suspend the Systematic Withdrawal Program, existing systematic withdrawal payments will not be affected. MINIMUM CONTRACT VALUE If your request for a partial withdrawal would reduce your Contract Value to less than $500, we may treat it as a request to withdraw your entire Contract Value. Your Contract will terminate if you withdraw all of your Contract Value. We will, however, ask you to confirm your withdrawal request before terminating your Contract. If we terminate your Contract, we will distribute to you its Contract Value, less any applicable charges and taxes. INCOME PAYMENTS - ------------------------------------------------------------------- PAYOUT START DATE The Payout Start Date is the day that we apply your Contract Value to an Income Plan. The Payout Start Date must be no later than: o the Annuitant's 90th Birthday, or o the 10th Contract Anniversary, if later. You may change the Payout Start Date at any time by notifying us in writing of the change at least 30 days before the scheduled Payout Start Date. Absent a change, we will use the Payout Start Date stated in your Contract. INCOME PLANS An "Income Plan" is a series of payments on a scheduled basis to you or to another person designated by you. You may choose and change your choice of Income Plan until 30 days before the Payout Start Date. If you do not select an Income Plan, we will make income payments in accordance with Income Plan 1 with guaranteed payments for 10 years unless changed by the Contract owner. After the Payout Start Date, you may not make withdrawals (except as described below) or change your choice of Income Plan. Three Income Plans are available under the Contract. Each is available to provide: o fixed amount income payments; o variable amount income payments; or o a combination of the two. The three Income Plans are: INCOME PLAN 1 -- LIFE INCOME WITH GUARANTEED PAYMENTS. Under this plan, we make periodic income payments for at least as long as the Annuitant lives. If the Annuitant dies before we have made all of the guaranteed income payments, we will continue to pay the remainder of the guaranteed income payments as required by the Contract. INCOME PLAN 2 -- JOINT AND SURVIVOR LIFE INCOME. Under this plan, we make periodic income payments for as long as either the Annuitant or the joint Annuitant is alive. INCOME PLAN 3 -- GUARANTEED PAYMENTS FOR A SPECIFIED PERIOD. Under this plan, we make periodic income payments for the period you have chosen. These payments do not depend on the Annuitant's life. A withdrawal charge may apply if the specified period is less than 10 years. We will deduct the mortality and expense risk charge from the assets of the Variable Account supporting this Income Plan even though we may not bear any mortality risk. The length of any guaranteed payment period under your selected Income Plan generally will affect the dollar amounts of each income payment. As a general rule, longer guaranteed periods result in lower income payments, all other things being equal. For example, if choose an Income Plan with payments that depend on the life of the Annuitant but with no minimum specified period for guaranteed payments, the income payments generally will be greater than the income payments made under the same Income Plan with a minimum specified period for guaranteed payments. We deduct applicable premium taxes from the contract value at the Payout Start Date. We may make other Income Plans available including ones that you and we agree upon. You may obtain information about them by writing or calling us. If you choose Income Plan 1 or 2, or, if available, another Income Plan with payments that continue for the life of the Annuitant or joint Annuitant, we may require proof of age and sex of the Annuitant or joint Annuitant before starting income payments, and proof that the Annuitant or joint Annuitant is still alive before we make each payment. Please note that under such Income Plans, if you elect to take no minimum guaranteed payments, it is possible that the payee could receive only 1 income payment if the Annuitant and any joint Annuitant both die before the second income payment, or only 2 income payments if they die before the third income payment, and so on. Generally, you may not make withdrawals after the Payout Start Date. One exception to this rule applies if you are receiving variable income payments that do not depend on the life of the Annuitant (such as under Income Plan 3). In that case you may terminate all or part of the Variable Account portion of the income payments at any time and receive a lump sum equal to the present value of the remaining variable payments associated with the amount withdrawn. To determine the present value of any remaining variable income payments being withdrawn, we use a discount rate equal to the assumed annual investment rate that we use to compute such variable income payments. The minimum amount you may withdraw under this feature is $1,000. A withdrawal charge may apply. You may apply your Contract Value to an Income Plan. If you elected the Income Benefit Combination Option 2 or the Income and Death Benefit Combination Option 2 you may be able to apply an amount greater than your Contract Value to an Income Plan. You must apply at least the Contract Value in the Fixed Account Options on the Payout Start Date to fixed amount income payments. If you wish to apply any portion of your Fixed Account Options balance to provide variable amount income payments, you should plan ahead and transfer that amount to the Variable Sub-Accounts prior to the Payout Start Date. If you do not tell us how to allocate your Contract Value among fixed and variable amount income payments, we will apply your Contract Value in the Variable Account to variable amount income payments and your Contract Value in the Fixed Account Options to fixed amount income payments. We will apply your Contract Value, less applicable taxes, to your Income Plan on the Payout Start Date. If the amount available to apply under an Income Plan is less than $2,000, or not enough to provide an initial payment of at least $20, and state law permits, we may: o terminate the Contract and pay you the Contract Value, less any applicable taxes, in a lump sum instead of the periodic payments you have chosen, or o we may reduce the frequency of your payments so that each payment will be at least $20. VARIABLE AMOUNT INCOME PAYMENTS The amount of your variable amount income payments depends upon the investment results of the Variable Sub-Accounts you select, the premium taxes you pay, the age and sex of the Annuitant, and the Income Plan you choose. We guarantee that the payments will not be affected by (a) actual mortality experience and (b) the amount of our administration expenses. We cannot predict the total amount of your variable amount income payments. Your variable amount income payments may be more or less than your total purchase payments because (a) variable amount income payments vary with the investment results of the underlying Portfolios, and (b) the Annuitant could live longer or shorter than we expect based on the tables we use. In calculating the amount of the periodic payments in the annuity tables in the Contract, we assumed an annual investment rate of 3%. If the actual net investment return of the Variable Sub-Accounts you choose is less than this assumed investment rate, then the dollar amount of your variable amount income payments will decrease. The dollar amount of your variable amount income payments will increase, however, if the actual net investment return exceeds the assumed investment rate. The dollar amount of the variable amount income payments stays level if the net investment return equals the assumed investment rate. Please refer to the Statement of Additional Information for more detailed information as to how we determine variable amount income payments. FIXED AMOUNT INCOME PAYMENTS We guarantee income payment amounts derived from any Fixed Account Option for the duration of the Income Plan. We calculate the fixed amount income payments by: 1. deducting any applicable premium tax; and 2. applying the resulting amount to the greater of (a) the appropriate value from the income payment table in your Contract or (b) such other value as we are offering at that time. We may defer making fixed amount income payments for a period of up to 6 months or such shorter time state law may require. If we defer payments for 30 days or more, we will pay interest as required by law from the date we receive the withdrawal request to the date we make payment. INCOME BENEFIT COMBINATION OPTION 2 You have the option to add Income Benefit Combination Option 2 to your Contract. This Option guarantees that the amount you apply to an Income Plan will not be less than the income base ("Income Base") (which is the greater of Income Base A or Income Base B), described below. Eligibility. If you select the Income Benefit Combination Option 2, the highest age of any Contract owner and Annuitant as of the date we receive the completed application or the date we receive the written request to add the rider, whichever is later, cannot exceed age 75. To qualify for this benefit, you must meet the following conditions as of the Payout Start Date: o You must elect a payout Start Date that is on or after the 10th anniversary of the date we issued the rider for this Option (the "Rider Date"); o The Payout Start Date must occur during the 30 day period following a Contract Anniversary; and o You must apply the Income Base to fixed income payments or variable income payments as we may permit from time to time. Currently, you must elect to receive fixed income payments, which will be calculated using the appropriate Guaranteed Income Payment Table provided in your Contract; and o The Income Plan you have selected must provide for payments guaranteed for either a single life or joint lives with a specified period of at least: 1. 10 years, if the youngest Annuitant's age is 80 or less on the date the amount is applied; or 2. 5 years, if the youngest Annuitant's age is greater than 80 on the date the amount is applied. If your current Contract Value is higher than the value calculated under Income Benefit Combination Option 2, you can apply the Contract Value to any Income Plan. The Income Benefit Combination Option 2 may not be available in all states. INCOME BASE The Income Base is the greater of Income Base A or Income Base B. The Income Base is used solely for the purpose of calculating the guaranteed income benefit under this Option ("guaranteed income benefit") and does not provide a Contract Value or guarantee performance of any investment option. INCOME BASE A On the Rider Date, Income Base A is equal to the Contract Value. After the Rider Date, we recalculate Income Base A as follows on the Contract Anniversary and when a purchase payment or withdrawal is made. For purchase payments, Income Base A is equal to the most recently calculated Income Base A plus the purchase payment. For withdrawals, Income Base A is equal to the most recently calculated Income Base A reduced by a withdrawal adjustment (described below). On each Contract Anniversary, Income Base A is equal to the greater of the Contract Value or the most recently calculated Income Base A. In the absence of any withdrawals or purchase payments, Income Base A will be the greatest of the Contract Value on the Rider Date and all Contract Anniversary Contract Values between the Rider Date and the Payout Start Date. We will recalculate Income Base A as described above until the first Contract Anniversary after the 85th birthday of the oldest Contract owner or Annuitant (if the Contract owner is not a natural person). After age 85, we will only recalculate Income Base A to reflect additional purchase payments and withdrawals. INCOME BASE B On the Rider Date, Income Base B is equal to the Contract Value. After the Rider Date, Income Base B plus any subsequent purchase payments and less a withdrawal adjustment (described below) for any subsequent withdrawals will accumulate daily at a rate equivalent to 5% per year until the first Contract Anniversary after the 85th birthday of the oldest Contract owner or Annuitant (if the Contract owner is not a natural person). WITHDRAWAL ADJUSTMENT. The withdrawal adjustment is equal to (1) divided by (2), with the result multiplied by (3) where: (1) = the withdrawal amount (2) = the Contract Value immediately prior to the withdrawal, and (3) = the most recently calculated Income Base The guaranteed income benefit amount is determined by applying the Income Base less any applicable taxes to the guaranteed rates for the Income Plan you elect. The Income Plan you elect must satisfy the conditions described above. You may also elect the Income and Death Benefit Combination Option 2 which combines the features of the Income Benefit Combination Option 2 with the features of the Death Benefit Combination Option (described below). CERTAIN EMPLOYEE BENEFIT PLANS The Contracts offered by this prospectus contain income payment tables that provide for different payments to men and women of the same age, except in states that require unisex tables. We reserve the right to use income payment tables that do not distinguish on the basis of sex to the extent permitted by law. In certain employment-related situations, employers are required by law to use the same income payment tables for men and women. Accordingly, if the Contract is to be used in connection with an employment-related retirement or benefit plan and we do not offer unisex annuity tables in your state, you should consult with legal counsel as to whether the purchase of a Contract is appropriate. DEATH BENEFITS - ------------------------------------------------------------------- We will pay a death benefit if, prior to the Payout Start Date, any Contract owner dies. We will pay the death benefit to the new Contract owner who is determined immediately after the death. The new Contract owner would be the surviving Contract owner(s) or, if none, the Beneficiary(ies). A request for payment of the death benefit must include "Due Proof of Death." We will accept the following documentation as Due Proof of Death: o a certified copy of a death certificate, o a certified copy of a decree of a court of competent jurisdiction as to the finding of death, or o any other proof acceptable to us. DEATH BENEFIT AMOUNT Prior to the Payout Start Date, the death benefit is equal to the greatest of: 1. the Contract Value as of the date we determine the death benefit, or 2. the sum of all purchase payments made less any withdrawals, and less any amounts deducted in connection with partial withdrawals (including any withdrawal charges or applicable premium taxes), or 3. the Contract Value on the most recent Death Benefit Anniversary prior to the date we determine the death benefit, plus any purchase payments and less any withdrawals, and less any amounts deducted in connection with any partial withdrawals since that Death Benefit Anniversary. A "Death Benefit Anniversary" is every 6th Contract Anniversary beginning with the 6th Contract Anniversary. For example, the 6th, 12th and 18th Contract Anniversaries are the first three Death Benefit Anniversaries. We will determine the value of the death benefit as of the end of the Valuation Date on which we receive a complete request for payment of the death benefit. If we receive a request after 3 p.m. Central Time on a Valuation Date, we will process the request as of the end of the following Valuation Date. DEATH BENEFIT OPTIONS The Performance Death Benefit Option, Death Benefit Combination Option, Income and Death Benefit Combination Option 2 and the Enhanced Earnings Death Benefit Plus Option are optional benefits that you may elect. Please note, once you have selected an optional income or death benefit (each an "option"), your ability to select a different option may be limited. Please consult with your financial advisor concerning any such limitations before selecting any option. Further, if you select another option, the benefit under the new option on the date we issue the new option will equal the Contract Value. You will not retain or transfer the benefits from the earlier option. Please consult with your financial advisor concerning the effect of selecting a different option before doing so. We may discontinue offering these options at any time. If the Contract owner is a natural person, these death benefit options apply only on the death of the Contract owner. If the Contract owner is not a natural person, these options apply only on the death of the Annuitant. For Contracts with the Performance Death Benefit Option, Death Benefit Combination Option, and Income and Death Benefit Combination Option 2, the death benefit will be the greater of Death Benefit Amounts (1) through (3) above, or (4) the death benefit option you selected. For Contracts with the Enhanced Earnings Death Benefit Plus Option, the death benefit will be increased a described on page ( ) below. The death benefit options may not be available in all states. PERFORMANCE DEATH BENEFIT OPTION. The Performance Death Benefit on the date we issue the rider for this option ("Rider Date") is equal to the Contract Value. On each Contract Anniversary, we will recalculate your Performance Death Benefit to equal the greater of your Contract Value on that date, or the most recently calculated Performance Death Benefit. We also will recalculate your Performance Death Benefit whenever you make an additional purchase payment or a partial withdrawal. Additional purchase payments will increase the Performance Death Benefit dollar-for-dollar. Withdrawals will reduce the Performance Death Benefit by an amount equal to: (i) the Performance Death Benefit immediately before the withdrawal, multiplied by (ii) the ratio of the withdrawal amount to the Contract Value just before the withdrawal. In the absence of any withdrawals or purchase payments, the Performance Death Benefit will be the greatest of the Contract Value on the Rider Date and all Contract Anniversary Contract Values on or before the date we calculate the death benefit. We will recalculate the Performance Death Benefit as described above until the oldest Contract owner (the Annuitant, if the owner is not a natural person), attains age 85. After age 85, we will recalculate the Performance Death Benefit only to reflect additional purchase payments and withdrawals. If you select the Performance Death Benefit Option, the highest age of any Contract owner and Annuitant as of the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 80. DEATH BENEFIT COMBINATION OPTION. If you select the Death Benefit Combination Option, the death benefit payable will be the greater of the death benefits provided by Death Benefit A or Death Benefit B. Death Benefit B is the Performance Death Benefit Option described above. DEATH BENEFIT A IS ONLY AVAILABLE THROUGH THE DEATH BENEFIT COMBINATION OPTION. We sometimes refer to the Death Benefit Combination Option as the "Best of the Best" death benefit option. DEATH BENEFIT A. Death Benefit A on the date we issue the rider for this option ("Rider Date") is equal to the Contract Value. On the first Contract Anniversary after the Rider Date, Death Benefit A is equal to the Contract Value on the Rider Date plus interest at an annual rate of 5% per year for the portion of the year since the Rider Date. On each subsequent Contract Anniversary, we will multiply Death Benefit A as of the prior Contract Anniversary by 1.05. This results in an increase of 5% annually. We will recalculate Death Benefit A as described above, but not beyond the Contract Anniversary preceding the oldest Contract owner's (the Annuitant, if the owner is not a natural person), 85th birthday. For all ages, we will recalculate Death Benefit A on each Contract Anniversary, or upon receipt of a death claim, as follows: o We will reduce the Death Benefit A by a withdrawal adjustment (as described above under Performance Death Benefit Option) for any withdrawals since the prior Contract Anniversary; and o We will increase Death Benefit A by any additional purchase payments since the prior Contract Anniversary. If you select the Death Benefit Combination Option, the highest age of any Contract owner and Annuitant as of the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 80. INCOME AND DEATH BENEFIT COMBINATION OPTION 2. You may also elect the Income and Death Benefit Combination Option 2 which combines the features of the Income Benefit Combination (described on page ) with the features of the Death Benefit Combination Option. If you select the Income and Death Benefit Combination Option 2, the highest age of any Contract owner and Annuitant as of the date we receive the completed application, or the date we receive the written request to add the rider, whichever is later, cannot exceed age 75. ENHANCED EARNINGS DEATH BENEFIT PLUS OPTION (available June 18, 2001) If the oldest Contract owner (or Annuitant if the Contract owner is a non-natural person) is age 75 or younger as of the Rider Application Date, you may elect the Enhanced Earnings Death Benefit Plus Option. You may elect the Enhanced Earnings Death Benefit Plus Option alone or together with any other death and/or income benefit option offered under the Contract. The Enhanced Earnings Death Benefit Plus Option may not be available in all states. We may discontinue offering this Option at any time. The Enhanced Earnings Death Benefit Plus Option and the charge for this option will terminate upon the change of Contract owner (or Annuitant if the Contract owner is a non-natural person) for reasons other than death. Under the Enhanced Earnings Death Benefit Plus Option, if the oldest Contract owner (or Annuitant if the Contract owner is a non-natural person) is age 55 or younger on the Rider Application Date, the death benefit is increased by: o the lesser of In-Force Premium, excluding purchase payments made after the Rider Date and in the twelve month period immediately preceding the date of death of the Contract owner (or Annuitant if the Contract owner is a non-natural person) or 50% of In-Force Earnings. If the oldest Contract owner (or the Annuitant if the Contract owner is a non-natural person) is between the ages of 56 and 65 on the date we receive the complete application or the date we receive the written request to add this option, whichever is later, the death benefit is increased by: o the lesser of 80% of In-Force Premium, excluding purchase payments made after the Rider Date and in the twelve month period immediately preceding the date of death of the Contract owner (or Annuitant if the Contract owner is a non-natural person) or 40% of In-Force Earnings. If the oldest Contract owner (or the Annuitant if the Contract owner is a non-natural person) is between the ages of 66 and 75 on the date we receive the complete application or the date we receive the written request to add this option, whichever is later, the death benefit is increased by: o the lesser of 50% of In-Force Premium, excluding purchase payments made after the Rider Date and in the twelve month period immediately preceding the date of death of the Contract owner (or Annuitant if the Contract owner is a non-natural person) or 25% of In-Force Earnings. For purpose of calculating the Enhanced Earnings Death Benefit Plus, the following definitions apply: o In-Force Premium equals the Contract Value on the date the Enhanced Earnings Death Benefit Plus Option is made a part of your Contract ("Rider Date") plus all purchase payments made after the date the Rider Date less the sum of all Excess-of-Earnings Withdrawals after the Rider Date. If the Rider Date is the same as the Issue Date, then the Contract Value on the Rider Date is equal to your initial purchase payment. o In-Force Earnings equal the Contract Value minus the In-Force Premium. The In-Force Earnings amount will never be less than zero. An Excess-of-Earnings Withdrawal is the amount of a withdrawal in excess of the Death Benefit Earnings in the Contract immediately prior to the withdrawal. We will calculate the Enhanced Earnings Death Benefit Plus as of the date we receive Due Proof of Death. We will pay the Enhanced Earnings Death Benefit Plus with the death benefit as described under "Death Benefit Payments" below. The value of the Enhanced Earnings Death Benefit Plus largely depends on the amount of earnings that accumulate under your Contract. If you expect to withdraw the earnings from your Contract Value, electing the Enhanced Earnings Death Benefit Plus Option may not be appropriate. For purposes of calculating the Enhanced Earnings Death Benefit Plus, earnings are considered to be withdrawn first before purchase payments. Your Financial Advisor can help you decide if the Enhanced Earnings Death Benefit Plus Option is right for you. For examples of how the death benefit is calculated under the Enhanced Earnings Death Benefit Plus Option, see Appendix A. DEATH BENEFIT PAYMENTS If the new Contract owner is a natural person, the new Contract owner may elect to: 1. receive the death benefit in a lump sum, or 2. apply the death benefit to an Income Plan. Payments from the Income Plan must begin within 1 year of the date of death and must be payable throughout: o the life of the new Contract owner; or o for a guaranteed number of payments from 5 to 30 years, but not to exceed the life expectancy of the (new) Contract owner. Options 1 and 2 above are only available if the new Contract owner elects one of these options within 180 days of the date of death. Otherwise, the new Contract owner will receive the Settlement Value. The "Settlement Value" is the Contract Value, less applicable withdrawal charge and premium tax. The Settlement Value paid will be the Settlement Value next computed on or after the requested distribution date for payment, or on the mandatory distribution date of 5 years after the date of your death, whichever is earlier. We reserve the right to extend or waive the 180 day limit on a non-discriminatory basis. In any event, the entire value of the Contract must be distributed within 5 years after the date of the death unless an Income Plan is elected or a surviving spouse continues the Contract in accordance with the provisions described below. If the sole new Contract owner is your spouse, within 180 days after the date of your death, he or she may elect one of the options listed above or may continue the Contract in the Accumulation Phase as if the death had not occurred. On the date the Contract is continued, the Contract Value will equal the amount of the death benefit as determined as of the Valuation Date on which we received Due Proof of Death (the next Valuation Date, if we receive Due Proof of Death after 3 p.m. Central Time). Unless otherwise instructed by the continuing spouse, the excess, if any, of the death benefit amount over the Contract Value will be allocated to the Variable Sub-Accounts. This excess will be allocated in proportion to your Contract Value in the investment alternatives on the Valuation Date that we receive Due Proof of Death, except that any portion of this excess attributable to the Fixed Account Options will be allocated to the Money Market Variable Sub-Account. Within 30 days of the date the Contract is continued, your surviving spouse may choose one of the following transfer alternatives without incurring a transfer fee: o Transfer all or a portion of the excess among the Variable Sub-Accounts; o Transfer all or a pjortion of the excess into the Standard Fixed Account;or o Transfer all of a portion of the excess into a combination of Variable Sub-Accounts and the Standard Fixed Account. Any such transfer does not count as one of the free transfers allowed each Contract Year and is subject to any minimum allocation amount specified in your Contract. If you elected the Enhanced Earnings Death Benefit Plus Option,and your spouse continues the Contract as described above, the Enhanced Earnings Death Benefit Plus Option and the daily charge for this Option will terminate if your spouse is over age 75 on the date the contract is continued, or if your spouse elects to terminate the Option. If the Enhanced Earnings Death Benefit Plus Option is not terminated, on the date the Contract is continued, the Rider Date for this Option will be reset to the date the contract is continued ("new Rider Date"). The age of the oldest Contract owner on the new Rider Date will be used to determine the Enhanced Earnings Death Benefit Plus after the new Rider Date. Also, the age of the oldest Contract owner on the new Rider Date will be used to determine the mortality and expense risk charge for the Option after the new Rider Date. If the Contract is continued in the Accumulation Phase, the surviving spouse may make a single withdrawal of any amount within one year of the date of death without incurring a withdrawal charge. The Contract may only be continued once. If the new Contract owner is a corporation, trust, or other non-natural person, then the new Contract owner may elect, within 180 days of your death, to receive the death benefit in lump sum or may elect to receive the Settlement Value in a lump sum within 5 years of death. We reserve the right to extend or waive the 180 day limit on a non-discriminatory basis. MORE INFORMATION - ------------------------------------------------------------------- NORTHBROOK Northbrook is the issuer of the Contract. Northbrook is a stock life insurance company organized under the laws of the State of Arizona in 1998. Previously, from 1978 to 1998, Northbrook was organized under the laws of the State of Illinois. Northbrook is currently licensed to operate in all states (except New York), the District of Columbia, and Puerto Rico. We intend to offer the Contract in those jurisdictions in which we are licensed. Our headquarters are located at 3100 Sanders Road, Northbrook, Illinois, 60062. Northbrook is a wholly owned subsidiary of Allstate Life Insurance Company ("Allstate Life"), an Illinois stock life insurance company. Allstate Life is a wholly owned subsidiary of Allstate Insurance Company, an Illinois stock property-liability insurance company. All of the outstanding capital stock of Allstate Insurance Company is owned by The Allstate Corporation. Northbrook and Allstate Life entered into a reinsurance agreement effective December 31, 1987. Under the reinsurance agreement, Allstate Life reinsures all of Northbrook's liabilities under the Contracts. The reinsurance agreement provides us with financial backing from Allstate Life. However, it does not create a direct contractual relationship between Allstate Life and you. In other words, the obligations of Allstate Life under the reinsurance agreement are to Northbrook; Northbrook remains the sole obligor under the Contract to you. Independent rating agencies regularly evaluate life insurers' claims-paying ability, quality of investments, and overall stability. A.M. Best Company assigns an A+ (Superior) financial strength rating to Allstate Life, which results in an A+r rating to Northbrook due to the reinsurance agreement with Allstate Life mentioned above. Standard & Poor's assigns an AA+ (Very Strong) financial strength rating and Moody's Investors Service assigns an Aa2 (Excellent) financial strength rating to Northbrook, sharing the same ratings of its parent, Allstate Life. These ratings do not reflect the investment performance of the Variable Account. We may from time to time advertise these ratings in our sales literature. THE VARIABLE ACCOUNT Northbrook established the Northbrook Variable Annuity Account II on May 8, 1990. We have registered the Variable Account with the SEC as a unit investment trust. The SEC does not supervise the management of the Variable Account or Northbrook. We own the assets of the Variable Account. The Variable Account is a segregated asset account under Arizona insurance law. That means we account for the Variable Account's income, gains, and losses separately from the results of our other operations. It also means that only the assets of the Variable Account that are in excess of the reserves and other Contract liabilities with respect to the Variable Account are subject to liabilities relating to our other operations. Our obligations arising under the Contracts are general corporate obligations of Northbrook. The Variable Account consists of multiple Variable Sub-Accounts, 32 of which invests in a corresponding Portfolio. We may add new Variable Sub-Accounts or eliminate one or more of them, if we believe marketing, tax, or investment conditions so warrant. We do not guarantee the investment performance of the Variable Account, its Sub-Accounts or the Portfolios. We may use the Variable Account to fund our other annuity contracts. We will account separately for each type of annuity contract funded by the Variable Account. THE PORTFOLIOS DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. We automatically reinvest all dividends and capital gains distributions from the Portfolios in shares of the distributing Portfolio at their net asset value. VOTING PRIVILEGES. As a general matter, you do not have a direct right to vote the shares of the Portfolios held by the Variable Sub-Accounts to which you have allocated your Contract Value. Under current law, however, you are entitled to give us instructions on how to vote those shares on certain matters. Based on our present view of the law, we will vote the shares of the Portfolios that we hold directly or indirectly through the Variable Account in accordance with instructions that we receive from Contract owners entitled to give such instructions. As a general rule, before the Payout Start Date, the Contract owner or anyone with a voting interest is the person entitled to give voting instructions. The number of shares that a person has a right to instruct will be determined by dividing the Contract Value allocated to the applicable Variable Sub-Account by the net asset value per share of the corresponding Portfolio as of the record date of the meeting. After the Payout Start Date the person receiving income payments has the voting interest. The payee's number of votes will be determined by dividing the reserves for such Contract allocated to the applicable Variable Sub-Account by the net asset value per share of the corresponding Portfolio as of the record date of the meeting. The votes decrease as income payments are made and as the reserves for the Contract decrease. We will vote shares attributable to Contracts for which we have not received instructions, as well as shares attributable to us, in the same proportion as we vote shares for which we have received instructions, unless we determine that we may vote such shares in our own discretion. We will apply voting instructions to abstain on any item to be voted upon on a pro rata basis to reduce the votes eligible to be cast. We reserve the right to vote Portfolio shares as we see fit without regard to voting instructions to the extent permitted by law. If we disregard voting instructions, we will include a summary of that action and our reasons for that action in the next semi-annual financial report we send to you. CHANGES IN PORTFOLIOS. We reserve the right, subject to any applicable law, to make additions to, deletions from or substitutions for the Portfolio shares held by any Variable Sub-Account. If the shares of any of the Portfolios are no longer available for investment by the Variable Account or if, in our judgment, further investment in such shares is no longer desirable in view of the purposes of the Contract, we may eliminate that Portfolio and substitute shares of another eligible investment fund. Any substitution of securities will comply with the requirements of the Investment Company Act of 1940. We also may add new Variable Sub-Accounts that invest in additional mutual funds. We will notify you in advance of any change. CONFLICTS OF INTEREST. Certain of the Portfolios sell their shares to separate accounts underlying both variable life insurance and variable annuity contracts. It is conceivable that in the future it may be unfavorable for variable life insurance separate accounts and variable annuity separate accounts to invest in the same Portfolio. The boards of directors or trustees of these Portfolios monitor for possible conflicts among separate accounts buying shares of the Portfolios. Conflicts could develop for a variety of reasons. For example, differences in treatment under tax and other laws or the failure by a separate account to comply with such laws could cause a conflict. To eliminate a conflict, a Portfolio's board of directors or trustees may require a separate account to withdraw its participation in a Portfolio. A Portfolio's net asset value could decrease if it had to sell investment securities to pay redemption proceeds to a separate account withdrawing because of a conflict. THE CONTRACT The Contracts are distributed exclusively by their principal underwriter, Morgan Stanley DW Inc.* Morgan Stanley DW , a wholly owned subsidiary of Morgan Stanley Dean Witter & Co., is located at Two World Trade Center, New York, New York 10048. Morgan Stanley DW is a member of the New York Stock Exchange and the National Association of Securities Dealers. We may pay up to a maximum sales commission of 6.0% of purchase payments and an annual sales administration expense of up to 0.20% of the average net assets of the Fixed Account Options to Morgan Stanley DW. In addition, Morgan Stanley DW may pay annually to its representatives, from its profits, a persistency bonus that will take into account, among other things, the length of time purchase payments have been held under the Contract and Contract Value. *Effective April 2, 2001, Dean Witter Reynolds Inc. changed its name to Morgan Stanley DW Inc. ADMINISTRATION. We have primary responsibility for all administration of the Contracts and the Variable Account. We provide the following administrative services, among others: o issuance of the Contracts; o maintenance of Contract owner records; o Contract owner services; o calculation of unit values; o maintenance of the Variable Account; and o preparation of Contract owner reports. We will send you Contract statements at least annually prior to the Payout Start Date. You should notify us promptly in writing of any address change. You should read your statements and confirmations carefully and verify their accuracy. You should contact us promptly if you have a question about a periodic statement. We will investigate all complaints and make any necessary adjustments retroactively, but you must notify us of a potential error within a reasonable time after the date of the questioned statement. If you wait too long, we will make the adjustment as of the date that we receive notice of the potential error. We also will provide you with additional periodic and other reports, information and prospectuses as may be required by federal securities laws. QUALIFIED PLANS If you use the Contract with a qualified plan, the plan may impose different or additional conditions or limitations on withdrawals, waivers of withdrawal charges, death benefits, Payout Start Dates, income payments, and other Contract features. In addition, adverse tax consequences may result if qualified plan limits on distributions and other conditions are not met. Please consult your qualified plan administrator for more information. LEGAL MATTERS Foley & Lardner, Washington, D.C., has advised Northbrook on certain federal securities law matters. All matters of state law pertaining to the Contracts, including the validity of the Contracts and Northbrook's right to issue such Contracts under state insurance law, have been passed upon by Michael J. Velotta, General Counsel of Northbrook. TAXES - ------------------------------------------------------------------- THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. NORTHBROOK MAKES NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION INVOLVING A CONTRACT. Federal, state, local and other tax consequences of ownership or receipt of distributions under an annuity contract depend on your individual circumstances. If you are concerned about any tax consequences with regard to your individual circumstances, you should consult a competent tax adviser. TAXATION OF ANNUITIES IN GENERAL TAX DEFERRAL. Generally, you are not taxed on increases in the Contract Value until a distribution occurs. This rule applies only where: 1. the Contract owner is a natural person, 2. the investments of the Variable Account are "adequately diversified" according to Treasury Department regulations, and 3. Northbrook is considered the owner of the Variable Account assets for federal income tax purposes. NON-NATURAL OWNERS. As a general rule, annuity contracts owned by non-natural persons such as corporations, trusts, or other entities are not treated as annuity contracts for federal income tax purposes. The income on such contracts is taxed as ordinary income received or accrued by the owner during the taxable year. Please see the Statement of Additional Information for a discussion of several exceptions to the general rule for Contracts owned by non-natural persons. DIVERSIFICATION REQUIREMENTS. For a Contract to be treated as an annuity for federal income tax purposes, the investments in the Variable Account must be "adequately diversified" consistent with standards under Treasury Department regulations. If the investments in the Variable Account are not adequately diversified, the Contract will not be treated as an annuity contract for federal income tax purposes. As a result, the income on the Contract will be taxed as ordinary income received or accrued by the Contract owner during the taxable year. Although Northbrook does not have control over the Portfolios or their investments, we expect the Portfolios to meet the diversification requirements. OWNERSHIP TREATMENT. The IRS has stated that you will be considered the owner of Variable Account assets if you possess incidents of ownership in those assets, such as the ability to exercise investment control over the assets. At the time the diversification regulations were issued, the Treasury Department announced that the regulations do not provide guidance concerning circumstances in which investor control of separate account investments may cause an investor to be treated as the owner of the separate account. The Treasury Department also stated that future guidance would be issued regarding the extent that owners could direct sub-account investments without being treated as owners of the underlying assets of the separate account. Your rights under the Contract are different than those described by the IRS in rulings in which it found that contract owners were not owners of separate account assets. For example, you have the choice to allocate premiums and Contract Values among more investment alternatives. Also, you may be able to transfer among investment alternatives more frequently than in such rulings. These differences could result in you being treated as the owner of the Variable Account. If this occurs, income and gain from the Variable Account assets would be includible in your gross income. Northbrook does not know what standards will be set forth in any regulations or rulings which the Treasury Department may issue. It is possible that future standards announced by the Treasury Department could adversely affect the tax treatment of your Contract. We reserve the right to modify the Contract as necessary to attempt to prevent you from being considered the federal tax owner of the assets of the Variable Account. However, we make no guarantee that such modification to the Contract will be successful. TAXATION OF PARTIAL AND FULL WITHDRAWALS. If you make a partial withdrawal under a non-Qualified Contract, amounts received are taxable to the extent the Contract Value, without regard to surrender charges, exceeds the investment in the Contract. The investment in the Contract is the gross premium paid for the Contract minus any amounts previously received from the Contract if such amounts were properly excluded from your gross income. If you make a partial withdrawal under a Qualified Contract, the portion of the payment that bears the same ratio to the total payment that the investment in the Contract (i.e., nondeductible IRA contributions, after tax contributions to qualified plans) bears to the Contract Value, is excluded from your income. If you make a full withdrawal under a non-Qualified Contract or a Qualified Contract, the amount received will be taxable only to the extent it exceeds the investment in the Contract. "Nonqualified distributions" from Roth IRAs are treated as made from contributions first and are included in gross income only to the extent that distributions exceed contributions. "Qualified distributions" from Roth IRAs are not included in gross income. "Qualified distributions" are any distributions made more than 5 taxable years after the taxable year of the first contribution to any Roth IRA and which are: o made on or after the date the individual attains age 59 1/2, o made to a Beneficiary after the Contract owner's death, o attributable to the Contract owner being disabled, or o for a first time home purchase (first time home purchases are subject to a lifetime limit of $10,000). If you transfer a non-Qualified Contract without full and adequate consideration to a person other than your spouse (or to a former spouse incident to a divorce), you will be taxed on the difference between the Contract Value and the investment in the Contract at the time of transfer. Except for certain Qualified Contracts, any amount you receive as a loan under a Contract, and any assignment or pledge (or agreement to assign or pledge) of the Contract Value is treated as a withdrawal of such amount or portion. TAXATION OF ANNUITY PAYMENTS. Generally, the rule for income taxation of annuity payments received from a non-Qualified Contract provides for the return of your investment in the Contract in equal tax-free amounts over the payment period. The balance of each payment received is taxable. For fixed annuity payments, the amount excluded from income is determined by multiplying the payment by the ratio of the investment in the Contract (adjusted for any refund feature or period certain) to the total expected value of annuity payments for the term of the Contract. If you elect variable annuity payments, the amount excluded from taxable income is determined by dividing the investment in the Contract by the total number of expected payments. The annuity payments will be fully taxable after the total amount of the investment in the Contract is excluded using these ratios. If you die, and annuity payments cease before the total amount of the investment in the Contract is recovered, the unrecovered amount will be allowed as a deduction for your last taxable year. TAXATION OF ANNUITY DEATH BENEFITS. Death of a Contract owner, or death of the Annuitant if the Contract is owned by a non-natural person, will cause a distribution of death benefits from a Contract. Generally, such amounts are included in income as follows: 1. if distributed in a lump sum, the amounts are taxed in the same manner as a full withdrawal, or 2. if distributed under an annuity option, the amounts are taxed in the same manner as an annuity payment. Please see the Statement of Additional Information for more detail on distribution at death requirements. PENALTY TAX ON PREMATURE DISTRIBUTIONS. A 10% penalty tax applies to the taxable amount of any premature distribution from a non-Qualified Contract. The penalty tax generally applies to any distribution made prior to the date you attain age 59 1/2. However, no penalty tax is incurred on distributions: 1. made on or after the date the Contract owner attains age 59 1/2; 2. made as a result of the Contract owner's death or disability; 3. made in substantially equal periodic payments over the Contract owner's life or life expectancy; 4. made under an immediate annuity; or 5. attributable to investment in the Contract before August 14, 1982. You should consult a competent tax advisor to determine if any other exceptions to the penalty apply to your situation. Similar exceptions may apply to distributions from Qualified Contracts. AGGREGATION OF ANNUITY CONTRACTS. All non-qualified deferred annuity contracts issued by Northbrook (or its affiliates) to the same Contract owner during any calendar year will be aggregated and treated as one annuity contract for purposes of determining the taxable amount of a distribution. TAX QUALIFIED CONTRACTS The income on qualified plan and IRA investments is tax deferred, and the income on variable annuities held by such plans does not receive any additional tax deferral. You should review the annuity features, including all benefits and expenses, prior to purchasing a variable annuity in a qualified plan or IRA. Contracts may be used as investments with certain qualified plans such as: o Individual Retirement Annuities or Accounts (IRAs) under Section 408 of the Internal Revenue Code ("Code"); o Roth IRAs under Section 408A of the Code; o Simplified Employee Pension Plans under Section 408(k) of the Code; o Savings Incentive Match Plans for Employees (SIMPLE) Plans under Section 408(p) of the Code; o Tax Sheltered Annuities under Section 403(b) of the Code; o Corporate and Self Employed Pension and Profit Sharing Plans; and o State and Local Government and Tax-Exempt Organization Deferred Compensation Plans. THE DEATH BENEFIT AND QUALIFIED CONTRACTS. Pursuant to IRS regulations, IRAs may not invest in life insurance contracts. We do not believe that these regulations prohibit a death benefit, including that provided by the optional Earnings Protection Death Benefit, from being provided under the Contracts when we issue the Contracts as Traditional IRAs, Roth IRAs or SIMPLE IRAs. However, it is possible that the death benefit could be viewed as violating the prohibition on investment in life insurance contracts with the result that the contract would not be viewed as satisfying the requirements of an IRA. It is also possible that the Enhanced Earnings Death Benefit could be characterized as an incidental death benefit. If the Enhanced Earnings Death Benefit were so characterized, this could result in currently taxable income to a Contract Owner. In addition, there are limitations on the amount of incidental death benefits that may be provided under qualified plans, such as in connection with a 403(b) plan. Northbrook reserves the right to limit the availability of the Contract for use with any of the qualified plans listed above. In the case of certain qualified plans, the terms of the plans may govern the right to benefits, regardless of the terms of the Contract. RESTRICTIONS UNDER SECTION 403(b) Plans. Section 403(b) of the Code provides tax-deferred retirement savings plans for employees of certain non-profit and educational organizations. Under Section 403(b), any Contract used for a 403(b) plan must provide that distributions attributable to salary reduction contributions made after December 31, 1988, and all earnings on salary reduction contributions, may be made only: 1. on or after the date an employee o attains age 59 1/2, o separates from service, o dies, o becomes disabled, or 2. on account of hardship (earnings on salary reduction contributions may not distributed on the account of hardship). These limitations do not apply to withdrawals where Northbrook is directed to transfer some or all of the Contract Value to another 403(b) plan. INCOME TAX WITHHOLDING Northbrook is required to withhold federal income tax at a rate of 20% on all "eligible rollover distributions" unless you elect to make a "direct rollover" of such amounts to an IRA or eligible retirement plan. Eligible rollover distributions generally include all distributions from Qualified Contracts, excluding IRAs, with the exception of: 1. required minimum distributions, or 2. a series of substantially equal periodic payments made over a period of at least 10 years, or over the life (joint lives) of the participant (and beneficiary). Northbrook may be required to withhold federal and state income taxes on any distributions from non-Qualified Contracts or Qualified Contracts that are not eligible rollover distributions, unless you notify us of your election to not have taxes withheld. PERFORMANCE INFORMATION - ------------------------------------------------------------------- We may advertise the performance of the Variable Sub-Accounts, including yield and total return information. Yield refers to the income generated by an investment in a Variable Sub-Account over a specified period. Total return represents the change, over a specified period of time, in the value of an investment in a Variable Sub-Account after reinvesting all income distributions. All performance advertisements will include, as applicable, standardized yield and total return figures that reflect the deduction of insurance charges, the contract maintenance charge, and withdrawal charge. Performance advertisements also may include total return figures that reflect the deduction of insurance charges, but not the contract maintenance or withdrawal charges. The deduction of such charges would reduce the performance shown. Performance advertisements may include aggregate, average, year-by-year, or other types of total return figures. Performance information for periods prior to the inception date of the Variable Sub-Accounts will be based on the historical performance of the corresponding Portfolios for the periods beginning with the inception dates of the Portfolios and adjusted to reflect current Contract expenses. You should not interpret these figures to reflect actual historical performance of the Variable Account. We may include in advertising and sales materials tax deferred compounding charts and other hypothetical illustrations that compare currently taxable and tax deferred investment programs based on selected tax brackets. Our advertisements also may compare the performance of our Variable Sub-Accounts with: (a) certain unmanaged market indices, including but not limited to the Dow Jones Industrial Average, the Standard & Poor's 500, and the Shearson Lehman Bond Index; and/or (b) other management investment companies with investment objectives similar to the underlying funds being compared. In addition, our advertisements may include the performance ranking assigned by various publications, including the Wall Street Journal, Forbes, Fortune, Money, Barron's, Business Week, USA Today, and statistical services, including Lipper Analytical Services Mutual Fund Survey, Lipper Annuity and Closed End Survey, the Variable Annuity Research Data Survey, and SEI. APPENDIX A CALCULATION OF ENHANCED EARNINGS DEATH BENEFIT PLUS AMOUNT EXAMPLE 1: Assume that the oldest Owner (or Annuitant if the Contract owner is a non-natural person) is age 55 on the Rider Application Date and elects the Earnings Protection Death Benefit Option when the contract is issued. The Owner makes an initial purchase payment of $100,000. After four years, the Owner dies. On the date Northbrook receives Due Proof of Death, the Contract Value is $125,000. Prior to his death, the Owner did not make any additional purchase payments or take any withdrawals. The calculation is: (A) Contract Value: $125,000.00 (B) Total Purchase Payments $100,000.00 (C) Total Excess-of-Earnings Withdrawals: $0.00 (D) In-Force Premium: (D) = (B) - (C) $100,000.00 (E) In-Force (E) = (A) - (D) $25,000.00 Earnings: (F) Cap: (F) = 100% * (D) $100,000.00 - -------------------------------------------------------------------------------- (G) ENHANCED EARNINGS (G) = MIN[50% * (E); (F)] $12,500.00 DEATH BENEFIT PLUS*: - -------------------------------------------------------------------------------- * If the oldest Owner (or Annuitant if the Contract owner is a non-natural person) had been between the ages of 56 and 65 on the Rider Application Date, the Earnings Protection Death Benefit would be 40% of the In-Force Earnings ($10,000.00). If the oldest Owner (or Annuitant if the Contract owner is a non-natural person) had been between the ages of 66 and 75 on the Rider Application Date, the Earnings Protection Death Benefit would be 25% of the In-Force Earnings ($6,250.00). EXAMPLE 2: Assume the same facts as above, except that the Owner has taken a withdrawal of $10,000 during the second year of the Contract. Immediately prior to withdrawal, the Contract Value is $105,000. The Contract Value on the date Northbrook receives Due Proof of Death will be assumed to be $114,000. The calculation of the Total Excess-of-Earnings Withdrawals is: (1) Contract Value: $105,000.00 (2) Total Purchase Payments: $100,000.00 (3) Prior Excess-of-Earnings Withdrawals: $0.00 (4) In-Force Premium: $100,000.00 (5) In-Force Earnings: (5) = (1) - (4) $5,000.00 (6) Withdrawal Amount: $10,000.00 (7) Excess-of-Earnings (7) = (6) - (5) and cannot be $5,000.00 Withdrawal: negative (8) Total Excess-of- (8) = (3) + (7) $5,000.00 Earnings Withdrawals: The calculation of the Earnings Protection Death Benefit is: (A) Contract Value: $114,000.00 (B) In-Force Premium (before withdrawal): $100,000.00 (C) Total Excess-of-Earnings Withdrawals: $5,000.00 (D) In-Force Premium (after withdrawal): (D) = (B) - (C) $95,000.00 (E) In-Force Earnings: (E) = (A) - (D) $19,000.00 (F) Cap: (F) = 100% * (D) $95,000.00 - -------------------------------------------------------------------------------- (G) ENHANCED EARNINGS (G) = MIN[50% * (E); (F)] $9,500.00 DEATH BENEFIT PLUS*: - -------------------------------------------------------------------------------- * If the oldest Owner (or Annuitant if the Contract owner is a non-natural person) had been between the ages of 56 and 65 on the Rider Application Date, the Earnings Protection Death Benefit would be 40% of the In-Force Earnings ($7600.00). If the oldest Owner (or Annuitant if the Contract owner is a non-natural person) had been between the ages of 66 and 75 on the Rider Application Date, the Earnings Protection Death Benefit would be 25% of the In-Force Earnings ($4,750.00). EXAMPLE 3: This example is intended to illustrate the effect of adding the Enhanced Earnings Death Benefit Rider after the Contract has been issued and the effect of later purchase payments. Assume that the oldest Owner (or Annuitant if the Contract owner is a non-natural person) is age 70 on the Rider Application Date. At the time the Contract is issued, the Owner makes a purchase payment of $100,000. After two years pass, the Owner elects to add the Enhanced Earnings Death Benefit Rider. On the date this Rider is added, the Contract Value is $110,000. Two years later, the Owner withdraws $50,000. Immediately prior to the withdrawal, the Contract Value is $130,000. Another two years later, the Owner makes an additional purchase payment of $40,000. Two years later, the Owner dies with a Contract Value of $140,000 on the date Northbrook receives Due Proof of Death. The calculation of the Total Excess-of-Earnings Withdrawals is: (1) Contract Value: $130,000.00 (2) Contract Value on Rider Date: $110,000.00 (3) Prior Excess-of-Earnings Withdrawals: $0.00 (4) In-Force Premium $110,000.00 (5) In-Force Earnings: (5) = (1) - (4) $20,000.00 (6) Withdrawal Amount: $50,000.00 (7) Excess-of-Earnings (7) = (6) - (5) and cannot be $30,000.00 Withdrawal: negative (8) Total Excess-of- (8) = (3) + (7) $30,000.00 Earnings Withdrawals: The calculation of the Earnings Protection Death Benefit is: (A) Contract Value: $140,000.00 (B) In-Force Premium (before withdrawal and $110,000.00 purchase payment): (C) Total Excess-of-Earnings Withdrawals: $30,000.00 (D) Additional Purchase Payment: $40,000.00 (E) In-Force Premium (after withdrawal and purchase $120,000.00 payment): (F) In-Force Earnings: (F) = (A) - (E) $20,000.00 (G) Cap: (G) = 50% * (E) $60,000.00 - -------------------------------------------------------------------------------- (H) ENHANCED EARNINGS (H) = MIN[25% * (F); (G)] $5,000.00 DEATH BENEFIT PLUS*: - -------------------------------------------------------------------------------- * If the oldest Owner (or Annuitant if the Contract owner is a non-natural person) had been age 55 or younger on the Rider Application Date, the Earnings Protection Death Benefit would be 50% of the In-Force Earnings ($10,000.00). If the oldest Owner (or Annuitant if the Contract owner is a non-natural person) had been between the ages of 56 and 65 on the Rider Application Date, the Earnings Protection Death Benefit would be 40% of the In-Force Earnings ($8,000.00). APPENDIX B ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITHOUT ANY OPTION For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM VARIABLE INSURANCE FUNDS AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.285 Number of Units Outstanding, End of Period 90,817 - ----------------------------------------------------------------------- AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.400 Number of Units Outstanding, End of Period 110,924 - ----------------------------------------------------------------------- AIM V.I. VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.321 Number of Units Outstanding, End of Period 312,033 - ----------------------------------------------------------------------- ALLIANCE VARIABLE PRODUCTS SERIES FUND (Class B) ALLIANCE GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.000 Number of Units Outstanding, End of Period 119,976 - ----------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.242 Number of Units Outstanding, End of Period 102,708 - ----------------------------------------------------------------------- ALLIANCE PREMIER GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.978 Number of Units Outstanding, End of Period 304,578 - ----------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.677 Number of Units Outstanding, End of Period 198,351 - ----------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.701 Number of Units Outstanding, End of Period 64,349 - ----------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.414 Number of Units Outstanding, End of Period 83,033 - ----------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.683 Number of Units Outstanding, End of Period 251,851 - ----------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.528 Number of Units Outstanding, End of Period 675,279 - ----------------------------------------------------------------------- For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.190 Number of Units Outstanding, End of Period 224,691 - ----------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.931 Number of Units Outstanding, End of Period 33,924 - ----------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.944 Number of Units Outstanding, End of Period 33,813 - ----------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.292 Number of Units Outstanding, End of Period 27,581 - ----------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.030 Number of Units Outstanding, End of Period 27,433 - ----------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.262 Number of Units Outstanding, End of Period 272,169 - ----------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.272 Number of Units Outstanding, End of Period 7,527 - ----------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.748 Number of Units Outstanding, End of Period 176,424 - ----------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.303 Number of Units Outstanding, End of Period 22,608 - ----------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.922 Number of Units Outstanding, End of Period 426,068 - ----------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.959 Number of Units Outstanding, End of Period 301,630 - ----------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.130 Number of Units Outstanding, End of Period 337,753 - ----------------------------------------------------------------------- THE UNIVERSAL INSTITUTIONAL FUNDS, INC. U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $11.503 Number of Units Outstanding, End of Period 20,901 - ----------------------------------------------------------------------- For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.054 Number of Units Outstanding, End of Period 41,665 - ----------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.386 Number of Units Outstanding, End of Period 61,310 - ----------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.335 Number of Units Outstanding, End of Period 182,173 - ----------------------------------------------------------------------- MID-CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.231 Number of Units Outstanding, End of Period 54,051 - ----------------------------------------------------------------------- PUTNAM VARIABLE TRUST (Class IB) PUTNAM VT GROWTH AND INCOME Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.564 Number of Units Outstanding, End of Period 73,374 - ----------------------------------------------------------------------- PUTNAM VT INTERNATIONAL Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.016 Number of Units Outstanding, End of Period 187,566 - ----------------------------------------------------------------------- PUTNAM VT VOYAGER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.117 Number of Units Outstanding, End of Period 211,436 - ----------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST EMERGING GROWTH (CLASS I) Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.129 Number of Units Outstanding, End of Period 472,104 Contracts were first offered on June 5, 2000. All the Variable Sub-Accounts were first offered under the Contracts on June 5, 2000 except for the Information Sub-Account which commenced operations on November 6, 2000. No Accumulation Unit Values are shown for the Van Kampen Life Investment Trust Emerging Growth (Class II) Variable Sub-Account which had not commenced operations as of the date of this prospectus. The Accumulation Unit Value for each of the Variable Sub-Accounts was initially set at $10.00. The Accumulation Unit Values in this table reflect a mortality and expense risk charge of 1.25%. APPENDIX B ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE PERFORMANCE DEATH BENEFIT OPTION For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM VARIABLE INSURANCE FUNDS AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.279 Number of Units Outstanding, End of Period 255,570 - ----------------------------------------------------------------------- AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.394 Number of Units Outstanding, End of Period 213,188 - ----------------------------------------------------------------------- AIM V.I. VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.315 Number of Units Outstanding, End of Period 473,796 - ----------------------------------------------------------------------- ALLIANCE VARIABLE PRODUCTS SERIES FUND (Class B) ALLIANCE GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.994 Number of Units Outstanding, End of Period 132,881 - ----------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.235 Number of Units Outstanding, End of Period 146,820 - ----------------------------------------------------------------------- ALLIANCE PREMIER GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.973 Number of Units Outstanding, End of Period 403,783 - ----------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.670 Number of Units Outstanding, End of Period 383,413 - ----------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.694 Number of Units Outstanding, End of Period 114,072 - ----------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.407 Number of Units Outstanding, End of Period 181,032 - ----------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.675 Number of Units Outstanding, End of Period 438,718 - ----------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.521 Number of Units Outstanding, End of Period 1,035,141 - ----------------------------------------------------------------------- EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.183 Number of Units Outstanding, End of Period 284,828 - ----------------------------------------------------------------------- For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.924 Number of Units Outstanding, End of Period 73,926 - ----------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.939 Number of Units Outstanding, End of Period 40,393 - ----------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.290 Number of Units Outstanding, End of Period 57,578 - ----------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.022 Number of Units Outstanding, End of Period 17,095 - ----------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.254 Number of Units Outstanding, End of Period 333,297 - ----------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.267 Number of Units Outstanding, End of Period 12,627 - ----------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.741 Number of Units Outstanding, End of Period 106,629 - ----------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.295 Number of Units Outstanding, End of Period 32,340 - ----------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.915 Number of Units Outstanding, End of Period 474,436 - ----------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.952 Number of Units Outstanding, End of Period 424,465 - ----------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.122 Number of Units Outstanding, End of Period 377,975 - ----------------------------------------------------------------------- For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 THE UNIVERSAL INSTITUTIONAL FUNDS, INC. U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $11.494 Number of Units Outstanding, End of Period 25,524 - ---------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.047 Number of Units Outstanding, End of Period 38,115 - ---------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.381 Number of Units Outstanding, End of Period 31,762 - ---------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.329 Number of Units Outstanding, End of Period 441,371 - ---------------------------------------------------------------------- MID-CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.224 Number of Units Outstanding, End of Period 88,818 - ---------------------------------------------------------------------- PUTNAM VARIABLE TRUST (Class IB) PUTNAM VT GROWTH AND INCOME Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.556 Number of Units Outstanding, End of Period 73,293 - ---------------------------------------------------------------------- PUTNAM VT INTERNATIONAL Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.009 Number of Units Outstanding, End of Period 267,159 - ---------------------------------------------------------------------- PUTNAM VT VOYAGER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.111 Number of Units Outstanding, End of Period 307,692 - ---------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST EMERGING GROWTH (CLASS I) Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.123 Number of Units Outstanding, End of Period 788,781 Contracts with the Performance Death Benefit Option were first offered under the Contracts on June 5, 2000. All the Variable Sub-Accounts were first offered under the Contracts on June 5, 2000 except for the Information Sub-Account which commenced operations on November 6, 2000. No Accumulation Unit Values are shown for the Van Kampen Life Investment Trust Emerging Growth (Class II) Variable Sub-Account which had not commenced operations as of the date of this prospectus. The Accumulation Unit Value for each of the Variable Sub-Accounts was initially set at $10.00. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.38%. APPENDIX B ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE DEATH BENEFIT COMBINATION RIDER For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM VARIABLE INSURANCE FUNDS AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.273 Number of Units Outstanding, End of Period 146,236 - ----------------------------------------------------------------------- AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.389 Number of Units Outstanding, End of Period 130,991 - ----------------------------------------------------------------------- AIM V.I. VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.310 Number of Units Outstanding, End of Period 345,205 - ----------------------------------------------------------------------- ALLIANCE VARIABLE PRODUCTS SERIES FUND (Class B) ALLIANCE GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.989 Number of Units Outstanding, End of Period 126,220 - ----------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.228 Number of Units Outstanding, End of Period 139,161 - ----------------------------------------------------------------------- ALLIANCE PREMIER GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.968 Number of Units Outstanding, End of Period 373,195 - ----------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.664 Number of Units Outstanding, End of Period 256,441 - ----------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.688 Number of Units Outstanding, End of Period 54,484 - ----------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.402 Number of Units Outstanding, End of Period 110,885 - ----------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.669 Number of Units Outstanding, End of Period 279,490 - ----------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.515 Number of Units Outstanding, End of Period 692,900 - ----------------------------------------------------------------------- For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.178 Number of Units Outstanding, End of Period 222,221 - ----------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.918 Number of Units Outstanding, End of Period 34,125 - ----------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.935 Number of Units Outstanding, End of Period 139,820 - ----------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.289 Number of Units Outstanding, End of Period 26,108 - ----------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.016 Number of Units Outstanding, End of Period 36,714 - ----------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.248 Number of Units Outstanding, End of Period 322,690 - ----------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.262 Number of Units Outstanding, End of Period 28,422 - ----------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.248 Number of Units Outstanding, End of Period 83,975 - ----------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.289 Number of Units Outstanding, End of Period 21,819 - ----------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.909 Number of Units Outstanding, End of Period 456,525 - ----------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.946 Number of Units Outstanding, End of Period 283,453 - ----------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.116 Number of Units Outstanding, End of Period 357,734 - ----------------------------------------------------------------------- For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 THE UNIVERSAL INSTITUTIONAL FUNDS, INC. U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $11.487 Number of Units Outstanding, End of Period 23,718 - ---------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.041 Number of Units Outstanding, End of Period 73,831 - ---------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.377 Number of Units Outstanding, End of Period 78,128 - ---------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.324 Number of Units Outstanding, End of Period 301,548 - ---------------------------------------------------------------------- MID-CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.217 Number of Units Outstanding, End of Period 98,471 - ---------------------------------------------------------------------- PUTNAM VARIABLE TRUST (Class IB) PUTNAM VT GROWTH AND INCOME Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.549 Number of Units Outstanding, End of Period 59,847 - ---------------------------------------------------------------------- PUTNAM VT INTERNATIONAL Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.003 Number of Units Outstanding, End of Period 180,652 - ---------------------------------------------------------------------- PUTNAM VT VOYAGER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.106 Number of Units Outstanding, End of Period 292,798 - ---------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST EMERGING GROWTH (CLASS I) Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.118 Number of Units Outstanding, End of Period 663,700 Contracts with the Death Benefit Combination Option were first offered under the Contracts on June 5, 2000. All the Variable Sub-Accounts were first offered under the Contracts on June 5, 2000 except for the Information Sub-Account which commenced operations on November 6, 2000. No Accumulation Unit Values are shown for the Van Kampen Life Investment Trust Emerging Growth (Class II) Variable Sub-Account which had not commenced operations as of the date of this prospectus. The Accumulation Unit Value for each of the Variable Sub-Accounts was initially set at $10.00. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.49%. APPENDIX B ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE INCOME BENEFIT COMBINATION OPTION 2 For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM VARIABLE INSURANCE FUNDS AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.271 Number of Units Outstanding, End of Period 6,211 - ----------------------------------------------------------------------- AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.387 Number of Units Outstanding, End of Period 9,309 - ----------------------------------------------------------------------- AIM V.I. VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.307 Number of Units Outstanding, End of Period 81,095 - ----------------------------------------------------------------------- ALLIANCE VARIABLE PRODUCTS SERIES FUND (Class B) ALLIANCE GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.987 Number of Units Outstanding, End of Period 8,756 - ----------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.225 Number of Units Outstanding, End of Period 7,310 - ----------------------------------------------------------------------- ALLIANCE PREMIER GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.965 Number of Units Outstanding, End of Period 30,555 - ----------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.661 Number of Units Outstanding, End of Period 42,754 - ----------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.685 Number of Units Outstanding, End of Period 5,881 - ----------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.399 Number of Units Outstanding, End of Period 29,414 - ----------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.665 Number of Units Outstanding, End of Period 21,693 - ----------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.512 Number of Units Outstanding, End of Period 85,912 - ----------------------------------------------------------------------- For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.175 Number of Units Outstanding, End of Period 33,630 - ----------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.914 Number of Units Outstanding, End of Period 725 - ----------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.933 Number of Units Outstanding, End of Period 6,400 - ----------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.288 Number of Units Outstanding, End of Period 1,995 - ----------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.244 Number of Units Outstanding, End of Period 42,625 - ----------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.260 Number of Units Outstanding, End of Period 2,401 - ----------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.730 Number of Units Outstanding, End of Period 11,910 - ----------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.285 Number of Units Outstanding, End of Period 8,832 - ----------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.905 Number of Units Outstanding, End of Period 18,516 - ----------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.943 Number of Units Outstanding, End of Period 18,563 - ----------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.113 Number of Units Outstanding, End of Period 14,072 - ----------------------------------------------------------------------- For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 THE UNIVERSAL INSTITUTIONAL FUNDS, INC. U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $11.483 Number of Units Outstanding, End of Period 4,475 - ---------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.038 Number of Units Outstanding, End of Period 6,737 - ---------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.375 Number of Units Outstanding, End of Period 28,025 - ---------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.321 Number of Units Outstanding, End of Period 28,025 - ---------------------------------------------------------------------- MID-CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.214 Number of Units Outstanding, End of Period 13,153 - ---------------------------------------------------------------------- PUTNAM VARIABLE TRUST (Class IB) PUTNAM VT GROWTH AND INCOME Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.546 Number of Units Outstanding, End of Period 10,484 - ---------------------------------------------------------------------- PUTNAM VT INTERNATIONAL Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.000 Number of Units Outstanding, End of Period 23,069 - ---------------------------------------------------------------------- PUTNAM VT VOYAGER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.103 Number of Units Outstanding, End of Period 94,544 - ---------------------------------------------------------------------- Van Kampen Life Investment Trust EMERGING GROWTH (CLASS I) Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.115 Number of Units Outstanding, End of Period 196,257 Contracts with the Income Benefit Combination Option 2 were first offered under the Contracts on June 5, 2000. All the Variable Sub-Accounts were first offered under the Contracts on June 5, 2000 except for the Information Sub-Account which commenced operations on November 6, 2000. No Accumulation Unit Values are shown for the Van Kampen Life Investment Trust Emerging Growth (Class II) Variable Sub-Account which had not commenced operations as of the date of this prospectus. The Accumulation Unit Value for each of the Variable Sub-Accounts was initially set at $10.00. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.55%. APPENDIX B ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR EACH SUB-ACCOUNT SINCE CONTRACTS WERE FIRST OFFERED WITH THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2 For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 AIM VARIABLE INSURANCE FUNDS AIM V.I. CAPITAL APPRECIATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.261 Number of Units Outstanding, End of Period 149,322 - ----------------------------------------------------------------------- AIM V.I. GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.379 Number of Units Outstanding, End of Period 142,591 - ----------------------------------------------------------------------- AIM V.I. VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.298 Number of Units Outstanding, End of Period 327,180 - ----------------------------------------------------------------------- ALLIANCE VARIABLE PRODUCTS SERIES FUND (Class B) ALLIANCE GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.978 Number of Units Outstanding, End of Period 95,260 - ----------------------------------------------------------------------- ALLIANCE GROWTH AND INCOME Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.213 Number of Units Outstanding, End of Period 284,825 - ----------------------------------------------------------------------- ALLIANCE PREMIER GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.956 Number of Units Outstanding, End of Period 438,221 - ----------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES AGGRESSIVE EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.650 Number of Units Outstanding, End of Period 469,487 - ----------------------------------------------------------------------- CAPITAL GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.674 Number of Units Outstanding, End of Period 108,466 - ----------------------------------------------------------------------- COMPETITIVE EDGE "BEST IDEAS" Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.390 Number of Units Outstanding, End of Period 138,177 - ----------------------------------------------------------------------- DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.653 Number of Units Outstanding, End of Period 271,910 - ----------------------------------------------------------------------- EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.501 Number of Units Outstanding, End of Period 774,487 - ----------------------------------------------------------------------- For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 EUROPEAN GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.164 Number of Units Outstanding, End of Period 366,996 - ----------------------------------------------------------------------- GLOBAL DIVIDEND GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.903 Number of Units Outstanding, End of Period 76,411 - ----------------------------------------------------------------------- HIGH YIELD Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.925 Number of Units Outstanding, End of Period 54,190 - ----------------------------------------------------------------------- INCOME BUILDER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.001 Number of Units Outstanding, End of Period 10,568 - ----------------------------------------------------------------------- INFORMATION Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.285 Number of Units Outstanding, End of Period 90,368 - ----------------------------------------------------------------------- MONEY MARKET Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.233 Number of Units Outstanding, End of Period 331,136 - ----------------------------------------------------------------------- PACIFIC GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 7.251 Number of Units Outstanding, End of Period 44,446 - ----------------------------------------------------------------------- QUALITY INCOME PLUS Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.718 Number of Units Outstanding, End of Period 71,637 - ----------------------------------------------------------------------- SHORT TERM BOND Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.274 Number of Units Outstanding, End of Period 44,141 - ----------------------------------------------------------------------- STRATEGIST Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.894 Number of Units Outstanding, End of Period 927,640 - ----------------------------------------------------------------------- S&P 500 INDEX Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.933 Number of Units Outstanding, End of Period 349,739 - ----------------------------------------------------------------------- UTILITIES Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.101 Number of Units Outstanding, End of Period 262,820 - ----------------------------------------------------------------------- For the Period Beginning June 5 and Ending December 31, VARIABLE SUB-ACCOUNT 2000 THE UNIVERSAL INSTITUTIONAL FUNDS, INC. U.S. REAL ESTATE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $11.470 Number of Units Outstanding, End of Period 24,307 - ---------------------------------------------------------------------- INTERNATIONAL MAGNUM Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 9.028 Number of Units Outstanding, End of Period 64,366 - ---------------------------------------------------------------------- EMERGING MARKETS EQUITY Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 6.368 Number of Units Outstanding, End of Period 83,363 - ---------------------------------------------------------------------- EQUITY GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.312 Number of Units Outstanding, End of Period 289,749 - ---------------------------------------------------------------------- MID-CAP VALUE Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.202 Number of Units Outstanding, End of Period 169,809 - ---------------------------------------------------------------------- PUTNAM VARIABLE TRUST (Class IB) PUTNAM VT GROWTH AND INCOME Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $10.534 Number of Units Outstanding, End of Period 87,345 - ---------------------------------------------------------------------- PUTNAM VT INTERNATIONAL Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.990 Number of Units Outstanding, End of Period 291,584 - ---------------------------------------------------------------------- PUTNAM VT VOYAGER Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.094 Number of Units Outstanding, End of Period 409,032 - ---------------------------------------------------------------------- Van Kampen Life Investment Trust EMERGING GROWTH Accumulation Unit Value, Beginning of Period $10.000 Accumulation Unit Value, End of Period $ 8.106 Number of Units Outstanding, End of Period 1,125,425 Contracts with the Income and Death Benefit Combination Option 2 were first offered under the Contracts on June 5, 2000. All the Variable Sub-Accounts were first offered under the Contracts on June 5, 2000 except for the Information Sub-Account which commenced operations on November 6, 2000. No Accumulation Unit Values are shown for the Van Kampen Life Investment Trust Emerging Growth (Class 2) Variable Sub-Account which had not commenced operations as of the date of this prospectus. The Accumulation Unit Value for each of the Variable Sub-Accounts was initially set at $10.00. The Accumulation Unit Values in this table reflect mortality and expense risk charge of 1.75%. STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS - ------------------------------------------------------------------- DESCRIPTION - ---------------------------------------------------------------------------- Additions, Deletions or Substitutions of Investments - ---------------------------------------------------------------------------- The Contract Purchase of Contracts Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers) - ---------------------------------------------------------------------------- Performance Information - ---------------------------------------------------------------------------- Calculation of Accumulation Unit Values - ---------------------------------------------------------------------------- Calculation of Variable Amount Income Payments - ---------------------------------------------------------------------------- General Matters Incontestability Settlements Safekeeping of the Variable Account's Assets Premium Taxes Tax Reserves - ---------------------------------------------------------------------------- Federal Tax Matters - ---------------------------------------------------------------------------- Experts - ---------------------------------------------------------------------------- Financial Statements - ---------------------------------------------------------------------------- ------------------------------ THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH SUCH OFFERING MAY NOT LAWFULLY BE MADE. WE DO NOT AUTHORIZE ANYONE TO PROVIDE ANY INFORMATION OR REPRESENTATIONS REGARDING THE OFFERING DESCRIBED IN THIS PROSPECTUS OTHER THAN AS CONTAINED IN THIS PROSPECTUS. B-1 THE MORGAN STANLEY DEAN WITTER VARIABLE ANNUITY II MORGAN STANLEY DEAN WITTER VARIABLE ANNUITY II ASSETMANAGER Northbrook Life Insurance Company Statement of Additional Information Northbrook Variable Annuity Account II dated May 1, 2001 Post Office Box 94040 Palatine, IL 60094-4040 1 (800) 654-2397 This Statement of Additional Information supplements the information in the prospectus for the Morgan Stanley Dean Witter Variable Annuity II Contracts ("VA II Contracts") and the Morgan Stanley Dean Witter Variable Annuity II AssetManager Contracts ("AssetManager Contracts"). This Statement of Additional Information is not a prospectus. You should read it in conjunction with the prospectus, dated May 1, 2001, for each form of Contract. You may obtain a prospectus by calling or writing us at the address or telephone number listed above, or by calling or writing your Morgan Stanley Dean Witter Financial Advisor. Except as otherwise noted, this Statement of Additional Information uses the same defined terms as the prospectus for each form of Contract described above. TABLE OF CONTENTS Description Page Additions, Deletions or Substitutions of Investments The Contract Purchases Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers) Performance Information Calculation of Accumulation Unit Values Calculation of Variable Income Payments General Matters Incontestability Settlements Safekeeping of the Variable Account's Assets Premium Taxes Tax Reserves Federal Tax Matters Qualified Plans Experts Financial Statements ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS We may add, delete, or substitute the Portfolio shares held by any Variable Sub-Account to the extent the law permits. We may substitute shares of any Portfolio with those of another Portfolio of the same or different mutual Portfolio if the shares of the Portfolio are no longer available for investment, or if we believe investment in any Portfolio would become inappropriate in view of the purposes of the Variable Account. We will not substitute shares attributable to a Contract owner's interest in a Variable Sub-Account until we have notified the Contract owner of the change, and until the Securities and Exchange Commission has approved the change, to the extent such notification and approval are required by law. Nothing contained in this Statement of Additional Information shall prevent the Variable Account from purchasing other securities for other series or classes of contracts, or from effecting a conversion between series or classes of contracts on the basis of requests made by Contract owners. We also may establish additional Variable Sub-Accounts or series of Variable Sub-Accounts. Each additional Variable Sub-Account would purchase shares in a new Portfolio of the same or different mutual fund. We may establish new Variable Sub-Accounts when we believe marketing needs or investment conditions warrant. We determine the basis on which we will offer any new Variable Sub-Accounts in conjunction with the Contract to existing Contract owners. We may eliminate one or more Variable Sub-Accounts if, in our sole discretion, marketing, tax or investment conditions so warrant. We may, by appropriate endorsement, change the Contract as we believe necessary or appropriate to reflect any substitution or change in the Portfolios. If we believe the best interests of persons having voting rights under the Contracts would be served, we may operate the Variable Account as a management company under the Investment Company Act of 1940 or we may withdraw its registration under such Act if such registration is no longer required. THE CONTRACT The Contract is primarily designed to aid individuals in long-term financial planning. You can use it for retirement planning regardless of whether the retirement plan qualifies for special federal income tax treatment. PURCHASES Morgan Stanley DW Inc. is the principal underwriter and distributor of the Contracts. We are no longer offering the Contracts in all states. Please check with your Morgan Stanley Dean Witter Financial Advisor for availability. TAX-FREE EXCHANGES (1035 EXCHANGES, ROLLOVERS AND TRANSFERS) We accept purchase payments that are the proceeds of a Contract in a transaction qualifying for a tax-free exchange under Section 1035 of the Internal Revenue Code ("Code"). Except as required by federal law in calculating the basis of the Contract, we do not differentiate between Section 1035 purchase payments and non-Section 1035 purchase payments. We also accept "rollovers" and transfers from Contracts qualifying as tax-sheltered annuities ("TSAs"), individual retirement annuities or accounts ("IRAs"), or any other Qualified Contract that is eligible to "rollover" into an IRA. We differentiate among non-Qualified Contracts, TSAs, IRAs and other Qualified Contracts to the extent necessary to comply with federal tax laws. For example, we restrict the assignment, transfer, or pledge of TSAs and IRAs so the Contracts will continue to qualify for special tax treatment. A Contract owner contemplating any such exchange, rollover or transfer of a Contract should contact a competent tax adviser with respect to the potential effects of such a transaction. PERFORMANCE INFORMATION From time to time we may advertise the "standardized," "non-standardized," and "adjusted historical" total returns of the Variable Sub-Accounts, as described below. Please remember that past performance is not an estimate or guarantee of future performance and does not necessarily represent the actual experience of amounts invested by a particular Contract owner. Also, please note that the performance figures do not reflect any applicable taxes. STANDARDIZED TOTAL RETURNS A Variable Sub-Account's standardized total return represents the average annual total return of that Sub-Account over a particular period. We compute standardized total return by finding the annual percentage rate that, when compounded annually, will accumulate a hypothetical $1,000 purchase payment to the redeemable value at the end of the one, five or ten year period, or for a period from the date of commencement of the Variable Sub-Account's operations, if shorter than any of the foregoing. We use the following formula prescribed by the SEC for computing standardized total return: 1000(1 + T)n = ERV where: T = average annual total return ERV = ending redeemable value of a hypothetical $1,000 payment made at the beginning of 1, 5, or 10 year periods or shorter period n = number of years in the period $1000 = hypothetical $1,000 investment When factoring in the withdrawal charge assessed upon redemption, we exclude the Free Withdrawal Amount, which is the amount you can withdraw from the Contract without paying a withdrawal charge. We also use the withdrawal charge that would apply upon redemption at the end of each period. Thus, for example, when factoring in the withdrawal charge for a one year standardized total return calculation, we would use the withdrawal charge that applies to a withdrawal of a purchase payment made one year prior. When factoring in the contract maintenance charge, we pro rate the charge by dividing (i) the contract maintenance charge by (ii) the average contract size of $54,945. We then multiply the resulting percentage by a hypothetical $1,000 investment. The standardized total returns for the Variable Sub-Accounts available under each form of Contract for the periods ended December 31, 2000 are set out below. No standardized total returns are shown for the Money Market Variable Sub-Account. The AssetManager Contracts were first offered to the public on July 20, 1998. Accordingly, performance figures for certain Variable Sub-Accounts prior to those dates reflect the historical performance of the Variable Sub-Accounts, adjusted to reflect the current level of charges that apply to the Variable Sub-Accounts under the AssetManager Contracts, as well as the withdrawal and contract maintenance charges described above. In addition, performance figures for periods prior to the availability of any income benefit, death benefit or combination thereof that we offer have been adjusted to reflect the current charge for such features as if they had been available throughout the periods shown. Variable Sub-Account Inception Dates: The Money Market, Quality Income Plus, High Yield, Utilities, Dividend Growth, Equity and Strategist Variable Sub-Accounts commenced operations on October 25, 1990. The Capital Growth and European Growth Variable Sub-Accounts commenced operations on March 1, 1991. The Global Dividend Growth and Pacific Growth Variable Sub-Accounts commenced operations on February 23, 1994. The Income Builder Variable Sub-Account commenced operation on January 21, 1997. The Equity Growth, International Magnum, Emerging Markets Equity, and Emerging Growth Variable Sub-Accounts commenced operation on March 16, 1998. The S&P 500 Index, Competitive Edge ("Best Ideas") and U.S. Real Estate Variable Sub-Accounts commenced operations of May 18, 1998. The Short-Term Bond and Aggressive Equity Variable Sub-Accounts commenced operations on May 3, 1999. The Mid-Cap Value Sub-Account, the AIM V.I. Capital Appreciation, Growth and Value Variable Sub-Accounts, the Alliance Growth, Growth and Income, and Premier Growth Variable Sub-Accounts, and the Putnam VT Growth and Income, International Growth and Voyager Variable Sub-Accounts, which are available under Variable Annuity II Contracts only, commenced operations on January 31, 2000. The Information Sub-Account commenced operations on November 6, 2001. VARIABLE ANNUITY II CONTRACTS (WITHOUT AN OPTIONAL DEATH BENEFIT OR INCOME BENEFIT)
10 Years or Since FUND One Year 5 Year Inception - ------------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity - 7.36% N/A 20.36% Capital Growth - 4.38% 15.83% 12.27% Competitive Edge "Best Ideas" -22.79% N/A - 1.66% Dividend Growth - 0.41% 11.17% 12.76% Equity -17.83% 21.10% 20.23% European Growth -10.49% 16.38% 15.32% Global Dividend Growth - 8.10% 8.99% 9.34% High Yield -37.43% - 6.25% 6.01% Income Builder - 5.47% N/A 5.98% Information* N/A N/A -12.24% Pacific Growth -38.65% -10.07% - 7.80% Quality Income Plus 5.30% 3.83% 6.69% S&P 500 Index -14.90% N/A 5.29% Short-Term Bond 0.13% N/A 0.45% Strategist - 4.02% 12.89% 11.50% Utilities - 2.64% 13.03% 12.27% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -16.99% AIM V.I. Growth N/A N/A -25.32% AIM V.I. Value N/A N/A -29.88% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 12.75% Alliance Growth N/A N/A -21.82% Alliance Premier Growth N/A N/A -20.18% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.02% N/A - 8.23% Equity Growth -17.23% N/A 5.95% International Magnum -17.90% N/A 0.33% Mid Cap Value N/A N/A 8.99% U.S. Real Estate 23.24% N/A 3.26% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 5.58% Putnam VT International Growth N/A N/A -12.39% Putnam VT Voyager N/A N/A -21.97% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -15.66% N/A 30.66% - -------------------------------------------------------------------------------------------------------
*Not Annualized
(WITH THE ENHANCED DEATH BENEFIT OPTION, PERFORMANCE DEATH BENEFIT OPTION OR PERFORMANCE INCOME BENEFIT OPTION) 10 Years or Since FUND One Year 5 Year Inception - ------------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.49% N/A 20.20% Capital Growth -4.51% 15.68% 12.12% Competitive Edge "Best Ideas" -22.90% N/A -1.79% Dividend Growth -0.54% 11.02% 12.61% Equity -17.94% 20.95% 20.07% European Growth -10.61% 16.22% 15.17% Global Dividend Growth -8.23% 8.84% 9.20% High Yield -37.52% -6.38% 5.87% Income Builder -5.60% N/A 5.84% Information* N/A N/A -12.26% Pacific Growth -38.74% -10.19% -7.92% Quality Income Plus 5.16% 3.70% 6.55% S&P 500 Index -15.01% N/A 5.15% Short-Term Bond -0.01% N/A 0.32% Strategist -4.15% 12.75% 11.35% Utilities -2.78% 12.88% 12.13% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -17.12% AIM V.I. Growth N/A N/A -25.43% AIM V.I. Value N/A N/A -29.98% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 12.59% Alliance Growth N/A N/A -21.94% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.10% N/A -8.35% Equity Growth -17.34% N/A 5.81% International Magnum -18.02% N/A 0.19% Mid Cap Value N/A N/A 8.83% U.S. Real Estate 23.08% N/A 3.13% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 5.43% Putnam VT International Growth N/A N/A -12.51% Putnam VT Voyager N/A N/A -22.09% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -15.77% N/A 30.49% - -------------------------------------------------------------------------------------------------------
*Not Annualized
(WITH PERFORMANCE BENEFIT COMBINATION OPTION OR DEATH BENEFIT COMBINATION OPTION) 10 Years or FUND One Year 5 Year Since Inception - -------------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.59% N/A 20.06% Capital Growth -4.62% 15.55% 12.00% Dividend Growth -0.66% 10.90% 12.49% Equity -18.03% 20.81% 19.94% European Growth -10.72% 16.10% 15.05% Global Dividend Growth -8.33% 8.72% 9.08% High Yield -37.59% -6.48% 5.75% Income Builder -5.71% N/A 5.72% Information* N/A N/A -12.27% Pacific Growth -38.81% -10.29% -8.02% Quality Income Plus 5.04% 3.58% 6.43% S&P 500 Index -15.11% N/A 5.03% Short-Term Bond -0.12% N/A 0.20% Strategist -4.25% 12.62% 11.23% Utilities -2.89% 12.76% 12.00% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -17.21% AIM V.I. Growth N/A N/A -25.51% AIM V.I. Value N/A N/A -20.55% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 12.47% Alliance Growth N/A N/A -22.02% Alliance Premier Growth N/A N/A -20.38% Emerging Markets Equity -44.17% N/A -8.46% Equity Growth -17.44% N/A 5.69% International Magnum -18.11% N/A 0.08% Mid Cap Value N/A N/A 8.72% U.S. Real Estate 22.94% N/A 3.01% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 5.32% Putnam VT International Growth N/A N/A -12.61% Putnam VT Voyager N/A N/A -22.17% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -15.87% 26.69% 30.34% - --------------------------------------------------------------------------------------------------------
*Not Annualized (WITH THE INCOME BENEFIT COMBINATION OPTION 2)
10 Years of Since FUND One Year 5 Year Inception - -------------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.66% N/A 19.97% Capital Growth -4.69% 15.37% 11.92% Competitive Edge "Best Ideas" -23.05% N/A -2.32% Dividend Growth -0.73% 10.71% 12.40% Equity -18.10% 20.64% 19.85% European Growth -10.79% 15.92% 14.96% Global Dividend Growth -11.35% 7.84% 8.51% High Yield -37.64% -6.78% 5.68% Income Builder -5.78% N/A 5.45% Information* N/A N/A -12.28% Pacific Growth -33.51% -9.16% -7.03% Quality Income Plus 4.96% 3.36% 6.35% S&P 500 Index -15.17% N/A 4.65% Short-Term Bond -0.20% N/A 0.13% Strategist -4.33% 12.43% 11.15% Utilities -2.96% 12.57% 11.92% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -17.26% AIM V.I. Growth N/A N/A -25.56% AIM V.I. Value N/A N/A -30.10% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 12.38% Alliance Growth N/A N/A -22.08% Alliance Premier Growth N/A N/A -20.45% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.21% N/A -9.07% Equity Growth -17.50% N/A 5.33% International Magnum -18.17% N/A -0.44% Mid Cap Value N/A N/A 8.63% U.S. Real Estate 22.84% N/A 1.66% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 5.24% Putnam VT International Growth N/A N/A -12.67% Putnam VT Voyager N/A N/A -22.23% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -15.94% N/A 30.05% - --------------------------------------------------------------------------------------------------------
*Not Annualized (WITH THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2)
10 Years or Since FUND One Year 5 Year Inception - -------------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.86% N/A 19.72% Capital Growth -4.89% 15.13% 11.69% Competitive Edge "Best Ideas" -23.21% N/A -2.53% Dividend Growth -0.94% 10.48% 12.17% Equity -18.27% 20.40% 19.61% European Growth -10.98% 15.68% 14.73% Global Dividend Growth -11.53% 7.62% 8.29% High Yield -37.78% -6.97% 5.46% Income Builder -5.98% N/A 5.23% Information* N/A N/A -12.31% Pacific Growth -33.65% -9.35% -7.22% Quality Income Plus 4.74% 3.14% 6.14% S&P 500 Index -15.35% N/A 4.43% Short-Term Bond -0.41% N/A -0.09% Strategist -4.53% 12.20% 10.92% Utilities -3.17% 12.33% 11.69% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -17.44% AIM V.I. Growth N/A N/A -25.73% AIM V.I. Value N/A N/A -30.26% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 12.14% Alliance Growth N/A N/A -22.25% Alliance Premier Growth N/A N/A -20.62% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.33% N/A -9.26% Equity Growth -17.68% N/A 5.11% International Magnum -18.35% N/A -0.65% Mid Cap Value N/A N/A 8.40% U.S. Real Estate 22.59% N/A 1.44% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 5.01% Putnam VT International Growth N/A N/A -12.86% Putnam VT Voyager N/A N/A -22.40% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -16.11% N/A 29.78% - --------------------------------------------------------------------------------------------------------
*Not Annualized (WITH THE ENHANCED EARNINGS DEATH BENEFIT OPTION)
10 years or Since FUND One Year 5 Year Inception - ------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.56% N/A 20.10% Capital Growth -4.59% 15.49% 12.03% Competitive Edge "Best Ideas" -22.96% N/A -2.21% Dividend Growth -0.63% 10.82% 12.52% Equity -18.01% 20.77% 19.97% European Growth -10.69% 16.03% 15.08% Global Dividend Growth -11.26% 7.95% 8.62% High Yield -37.57% -6.68% 5.78% Income Builder -5.68% N/A 5.56% Information* N/A N/A -12.27% Pacific Growth -33.44% -9.07% -6.94% Quality Income Plus 5.07% 3.46% 6.46% S&P 500 Index -15.08% N/A 4.76% Short-Term Bond -0.09% N/A 0.23% Strategist -4.23% 12.55% 11.26% Utilities -2.86% 12.68% 12.03% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -17.17% AIM V.I. Growth N/A N/A -25.48% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 12.50% Alliance Growth N/A N/A -22.00% Alliance Premier Growth N/A N/A -20.36% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.15% N/A -8.97% Equity Growth -17.41% N/A 5.44% International Magnum -18.09% N/A -0.33% Mid Cap Value N/A N/A 8.75% U.S. Real Estate 22.97% N/A 1.77% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 5.35% Putnam VT International Growth N/A N/A -12.58% Putnam VT Voyager N/A N/A -22.15% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -15.85% N/A 30.19% - -------------------------------------------------------------------------------------------------
*Not Annualized
(WITH THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2 AND ENHANCED EARNINGS DEATH BENEFIT OPTION) 10 Years or Since FUND One Year 5 Year Inception - ------------------------------------------------------------------------------------------------ MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -8.00% N/A 19.53% Capital Growth -5.04% 14.96% 11.52% Competitive Edge "Best Ideas" -23.33% N/A -2.68% Dividend Growth -1.10% 10.31% 12.00% Equity -18.40% 20.21% 19.42% European Growth -11.12% 15.50% 14.55% Global Dividend Growth -11.67% 7.45% 8.13% High Yield -37.88% -7.12% 5.30% Income Builder -6.13% N/A 5.07% Information* N/A N/A -12.33% Pacific Growth -33.75% -9.49% -7.36% Quality Income Plus 4.57% 2.98% 5.98% S&P 500 Index -15.49% N/A 4.26% Short-Term Bond -0.56% N/A -0.25% Strategist -4.68% 12.03% 10.75% Utilities -3.32% 12.16% 11.52% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -17.57% AIM V.I. Growth N/A N/A -25.85% AIM V.I. Value N/A N/A -30.37% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 11.96% Alliance Growth N/A N/A -22.38% Alliance Premier Growth N/A N/A -20.75% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.43% N/A -9.41% Equity Growth -17.81% N/A 4.94% International Magnum -18.48% N/A -0.81% Mid Cap Value N/A N/A 8.23% U.S. Real Estate 22.39% N/A 1.28% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 4.85% Putnam VT International Growth N/A N/A -13.00% Putnam VT Voyager N/A N/A -22.53% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -16.25% N/A 29.58% - -------------------------------------------------------------------------------------------------
*Not Annualized ASSETMANAGER CONTRACTS (WITHOUT AN OPTIONAL DEATH BENEFIT OR INCOME BENEFIT OPTION)
10 Years or Since FUND One Year 5 Year Inception - ------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.34% N/A 22.32% Capital Growth -0.37% 15.65% 12.00% Competitive Edge "Best Ideas" -18.74% N/A -0.58% Dividend Growth 3.59% 11.01% 12.49% Equity -13.78% 20.89% 19.94% European Growth -6.47% 16.19% 15.05% Global Dividend Growth -4.08% 8.84% 9.08% High Yield -33.34% -6.26% 5.75% Income Builder -1.46% N/A 6.26% Information* N/A N/A -8.02% Money Market 4.32% 3.56% 3.07% Pacific Growth -34.56% -10.03% -8.02% Quality Income Plus 9.29% 3.73% 6.43% S&P 500 Index -10.86% N/A 6.22% Short Term Bond 4.13% N/A 2.74% Strategist -0.005% 12.73% 11.23% Utilities 1.36% 12.86% 12.00% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -39.92% N/A -7.05% Equity Growth -13.19% N/A 6.78% International Magnum -13.86% N/A 1.28% U.S. Real Estate 27.19% N/A 4.23% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.62% N/A 31.10% - -------------------------------------------------------------------------------------------------
*Not Annualized
(WITH THE ENHANCED DEATH BENEFIT OPTION, PERFORMANCE DEATH BENEFIT OPTION, OR PERFORMANCE INCOME BENEFIT OPTION) 10 Years or Since FUND One Year 5 Year Inception - ------------------------------------------------------------------------------------------------ MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.55% N/A 22.16% Capital Growth -0.49% 15.50% 11.85% Competitive Edge "Best Ideas" -18.84% N/A -0.71% Dividend Growth 3.46% 10.87% 12.34% Equity -13.30% N/A 6.64% European Growth -6.59% 16.04% 14.90% Global Dividend Growth -4.20% 8.70% 8.94% High Yield -33.43% -6.38% 5.62% Income Builder -1.59% N/A 6.13% Information* N/A N/A -8.04% Money Market 4.19% 3.43% 2.94% Pacific Growth -34.65% -10.14% -8.14% Quality Income Plus 9.15% 3.59% 6.29% S&P 500 Index -10.97% N/A 6.08% Short Term Bond 3.91% N/A 2.61% Strategist -0.13% 12.58% 11.09% Utilities 1.23% 12.71% 11.86% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -40.00% N/A -7.17% Equity Growth -13.90% 20.74% 19.78% International Magnum -13.97% N/A 1.15% U.S. Real Estate 27.02% N/A 4.10% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.73% N/A 30.93% - -------------------------------------------------------------------------------------------------
*Not Annualized
(WITH PERFORMANCE BENEFIT COMBINATION OPTION OR DEATH BENEFIT COMBINATION OPTION) 10 Years or Since FUND One Year 5 Year Inception - ------------------------------------------------------------------------------------------------ MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.57% N/A 22.02% Capital Growth -0.60% 15.37% 11.73% Competitive Edge "Best Ideas" -18.93% N/A -0.82% Dividend Growth 3.35% 10.75% 12.22% Equity -13.99% 20.60% 19.65% European Growth -6.69% 15.91% 14.77% Global Dividend Growth -4.31% 8.58% 8.82% High Yield -33.50% -6.49% 5.50% Income Builder -1.69% N/A 6.01% Information* N/A N/A -8.05% Money Market 4.07% 3.31% 2.83% Pacific Growth -34.72% -10.24% -8.25% Quality Income Plus 9.03% 3.48% 6.18% S&P 500 Index -11.07% N/A 5.96% Short Term Bond 3.88% N/A 2.49% Strategist -0.24% 12.46% 10.96% Utilities 1.12% 12.59% 11.73% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -40.06% N/A -7.28% Equity Growth -13.39% N/A 6.52% International Magnum -14.07% N/A 1.04% U.S. Real Estate 26.88% N/A 3.98% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.83% N/A 30.78% - -------------------------------------------------------------------------------------------------
*Not Annualized NON-STANDARDIZED TOTAL RETURNS From time to time, we also may quote rates of return that reflect changes in the values of each Variable Sub-Account's accumulation units. We may quote these "non-standardized total returns" on an annualized, cumulative, year-by-year, or other basis. These rates of return take into account asset-based charges, such as the mortality and expense risk charge and administration charge. However, these rates of return do not reflect withdrawal charges, contract maintenance charges, or any taxes. Such charges, if reflected, would reduce the performance shown. Annualized returns reflect the rate of return that, when compounded annually, would equal the cumulative rate of return for the period shown. We compute annualized returns according to the following formula: Annualized Return = (1 = r)1/n - 1 where r = cumulative rate of return for the period shown, and n = number of years in period. The method of computing annualized rates of return is similar to that for computing standardized performance, described above, except that rather than using a hypothetical $1,000 investment and the ending redeemable value thereof, we use the changes in value of an accumulation unit. Cumulative rates of return reflect the cumulative change in value of an accumulation unit over a period shown. Year-by-year rates of return reflect the change in value of accumulation unit during the course of each year shown. We compute these returns by dividing the accumulation unit value at the end of each period shown, by the accumulation unit value at the beginning of that period, and subtracting one. We compute other total returns on a similar basis. We may quote non-standardized total returns for 1, 3, 5 and 10 year periods, or period since inception of the Variable Sub-Account's operations, as well as other periods, such as "year-to-date" (prior calendar year end to the day stated in the advertisement); "year to most recent quarter" (prior calendar year end to the end of the most recent quarter); the prior calendar year; and the "n" most recent calendar years. The non-standardized annualized total returns for the Variable Sub-Accounts for the period ended December 31, 2000 are set out below. The AssetManager Contracts were first offered to the public on July 20, 1998. Accordingly, performance figures for certain Variable Sub-Accounts prior to those dates reflect the historical performance of the Variable Sub-Accounts, adjusted to reflect the current asset-based charges (but not the withdrawal charge, contract maintenance charge, or taxes) under the AssetManager Contracts that would have applied had it been available during the period shown. In addition, performance figures for periods prior to the availability of an optional income benefit, death benefit or combination thereof have been adjusted to reflect the current charge for such features as if they had been available throughout the periods shown. The inception date of each Variable Sub-Account appears under "Standardized Total Returns," above. VARIABLE ANNUITY II CONTRACTS (WITHOUT AN OPTIONAL DEATH BENEFIT PROVISION OR INCOME BENEFIT)
10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.06% N/A 22.65% Capital Growth -0.07% 15.97% 12.30% Competitive Edge "Best Ideas" -18.49% N/A -0.28% Dividend Growth 3.89% 11.32% 12.79% Equity -13.52% 21.22% 20.25% European Growth -6.19% 16.51% 15.34% Global Dividend Growth -3.80% 9.15% 9.38% High Yield -33.13% -5.99% 6.04% Income Builder -1.17% N/A 6.56% Information* N/A N/A -7.08% Pacific Growth -34.35% -9.74% -7.73% Quality Income Plus 9.61% 4.03% 6.73% S&P 500 Index -10.59% N/A 6.52% Short-Term Bond 4.43% N/A 3.05% Strategist 0.29% 13.04% 11.53% Utilities 1.66% 13.17% 12.31% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -11.41% AIM V.I. Growth N/A N/A -19.78% AIM V.I. Value N/A N/A -24.36% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 18.46% Alliance Growth N/A N/A -16.26% Alliance Premier Growth N/A N/A -14.61% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -39.72% N/A -6.76% Equity Growth -12.92% N/A 7.08% International Magnum -13.60% N/A 1.58% Mid Cap Value N/A N/A 14.69% U.S. Real Estate 27.54% N/A 4.55% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 11.27% Putnam VT International Growth N/A N/A -6.78% Putnam VT Voyager N/A N/A -16.42% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.35% N/A 31.43% - ----------------------------------------------------------------------------------------------------
*Not Annualized
(WITH THE ENHANCED DEATH BENEFIT OPTION, PERFORMANCE DEATH BENEFIT OPTION, OR THE PERFORMANCE INCOME BENEFIT OPTION) 10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.18% N/A 22.49% Capital Growth -0.20% 15.82% 12.15% Competitive Edge "Best Ideas" -18.59% N/A -0.41% Dividend Growth 3.76% 11.18% 12.64% Equity -13.63% 21.06% 20.10% European Growth -6.31% 16.35% 15.19% Global Dividend Growth -3.92% 9.01% 9.24% High Yield -33.22% -6.11% 5.90% Income Builder -1.30% N/A 6.42% Information* N/A N/A -7.10% Pacific Growth -34.43% -9.86% -7.85% Quality Income Plus 9.47% 3.89% 6.59% S&P 500 Index -10.71% N/A 6.39% Short-Term Bond 4.30% N/A 2.92% Strategist 0.16% 12.89% 11.39% Utilities 1.53% 13.03% 12.16% AIM VARIALE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -11.52% AIM V.I. Growth N/A N/A -19.88% AIM V.I. Value N/A N/A -24.46% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 18.31% Alliance Growth N/A N/A -16.37% Alliance Premier Growth N/A N/A -14.72% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -39.80% N/A -6.89% Equity Growth -13.04% N/A 6.94% International Magnum -13.71% N/A 1.45% Mid Cap Value N/A N/A 14.54% U.S. Real Estate 27.38% N/A 4.41% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 11.13% Putnam VT International Growth N/A N/A -6.90% Putnam VT Voyager N/A N/A -16.52% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.47% N/A 31.26% - ----------------------------------------------------------------------------------------------------
*Not Annualized (WITH THE PERFORMANCE DEATH BENEFIT OPTION OR DEATH BENEFIT COMBINATION OPTION)
10 Years or Since FUND One Year 5 Year Inception - -------------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.29% N/A 22.36% Capital Growth -0.31% 15.69% 12.03% Competitive Edge "Best Ideas" -18.68% N/A -0.52% Dividend Growth 3.65% 11.05% 12.52% Equity -13.73% 20.93% 19.97% European Growth -6.41% 16.23% 15.07% Global Dividend Growth -4.03% 8.89% 9.12% High Yield -33.29% -6.21% 5.78% Income Builder -1.40% N/A 6.31% Information* N/A N/A -7.12% Pacific Growth -34.51% -9.96% -7.95% Quality Income Plus 9.35% 3.78% 6.47% S&P 500 Index -10.80% N/A 6.27% Short-Term Bond 4.19% N/A 2.80% Strategist 0.05% 12.77% 11.27% Utilities 1.42% 12.90% 12.04% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -11.62% AIM V.I. Growth N/A N/A -19.97% AIM V.I. Value N/A N/A -14.98% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 18.18% Alliance Growth N/A N/A -16.46% Alliance Premier Growth N/A N/A -14.82% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -39.86% N/A -6.99% Equity Growth -13.13% N/A 6.83% International Magnum -13.81% N/A 1.34% Mid Cap Value N/A N/A 14.41% U.S. Real Estate 27.24% N/A 4.30% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 11.00% Putnam VT International Growth N/A N/A -7.00% Putnam VT Voyager N/A N/A -16.62% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.57% N/A 31.11% - --------------------------------------------------------------------------------------------------------
*Not Annualized (WITH THE INCOME BENEFIT COMBINATION OPTION 2)
10 Years or FUND One Year 5 Year Since Inception - ------------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.36% N/A 22.27% Capital Growth -0.38% 15.60% 11.95% Competitive Edge "Best Ideas" -18.74% N/A -0.59% Dividend Growth 3.57% 10.97% 12.43% Equity -13.79% 20.84% 19.88% European Growth -6.48% 16.14% 14.98% Global Dividend Growth -7.05% 8.13% 8.55% High Yield -33.34% -6.28% 5.70% Income Builder -1.48% N/A 6.23% Information* N/A N/A -7.12% Pacific Growth -29.21% -8.60% -6.96% Quality Income Plus 9.27% 3.70% 6.39% S&P 500 Index -10.87% N/A 6.19% Short-Term Bond 4.11% N/A 2.73% Strategist -0.02% 12.69% 11.18% Utilities 1.34% 12.82% 11.95% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -11.67% AIM V.I. Growth N/A N/A -20.03% AIM V.I. Value N/A N/A -24.59% ALLIANCE VARIABLE RODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 18.09% Alliance Growth N/A N/A -16.52% Alliance Premier Growth N/A N/A -14.88% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -39.91% N/A -7.23% Equity Growth -13.20% N/A 6.75% International Magnum -13.87% N/A 1.13% Mid Cap Value N/A N/A 14.33% U.S. Real Estate 27.15% N/A 3.28% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 10.92% Putnam VT International Growth N/A N/A -7.07% Putnam VT Voyager N/A N/A -16.68% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.63% N/A 31.01% - -------------------------------------------------------------------------------------------------------
*Not Annualized (WITH THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2)
10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.55% N/A 22.02% Capital Growth -0.59% 15.37% 11.72% Competitive Edge "Best Ideas" -18.91% N/A -0.80% Dividend Growth 3.36% 10.75% 12.21% Equity -13.97% 20.59% 19.63% European Growth -6.67% 15.91% 14.75% Global Dividend Growth -7.23% 7.91% 8.33% High Yield -33.47% -6.47% 5.49% Income Builder -1.67% N/A 6.01% Information* N/A N/A -7.15% Pacific Growth -29.35% -8.78% -7.15% Quality Income Plus 9.04% 3.49% 6.18% S&P 500 Index -11.05% N/A 5.98% Short-Term Bond 3.90% N/A 2.52% Strategist -0.23% 12.46% 10.96% Utilities 1.14% 12.59% 11.73% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -11.85% AIM V.I. Growth N/A N/A -20.19% AIM V.I. Value N/A N/A -24.75% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 17.85% Alliance Growth N/A N/A -16.69% Alliance Premier Growth N/A N/A -15.05% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -40.03% N/A -7.42% Equity Growth -13.37% N/A 6.53% International Magnum -14.04% N/A 0.93% Mid Cap Value N/A N/A 14.10% U.S. Real Estate 26.89% N/A 3.07% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 10.70% Putnam VT International Growth N/A N/A -7.26% Putnam VT Voyager N/A N/A -16.85% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.81% N/A 30.75% - ----------------------------------------------------------------------------------------------------
*Not Annualized (WITH ENHANCED EARNINGS DEATH BENEFIT OPTION)
10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.26% N/A 22.39% Capital Growth -0.28% 15.72% 12.06% Competitive Edge "Best Ideas" -18.66% N/A -0.49% Dividend Growth 3.68% 11.08% 12.55% Equity -13.71% 20.96% 20.00% European Growth -6.39% 16.26% 15.10% Global Dividend Growth -6.96% 8.24% 8.66% High Yield -33.27% -6.18% 5.81% Income Builder -1.38% N/A 6.34% Information* N/A N/A -7.11% Pacific Growth -29.14% -8.51% -6.86% Quality Income Plus 9.38% 3.81% 6.50% S&P 500 Index -10.78% N/A 6.30% Short-Term Bond 4.21% N/A 2.83% Strategist 0.08% 12.80% 11.30% Utilities 1.45% 12.93% 12.07% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -11.58% AIM V.I. Growth N/A N/A -19.94% AIM V.I. Value N/A N/A -24.52% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 18.21% Alliance Growth N/A N/A -16.44% Alliance Premier Growth N/A N/A -14.79% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -39.85% N/A -7.13% Equity Growth -13.11% N/A 6.86% International Magnum -13.78% N/A 1.24% Mid Cap Value N/A N/A 14.45% U.S. Real Estate 27.28% N/A 3.39% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income Fund N/A N/A 11.04% Putnam VT International Growth Fund N/A N/A -6.97% Putnam VT Voyager Fund N/A N/A -16.59% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth Portfolio -11.54% N/A 31.15% - ----------------------------------------------------------------------------------------------------
*Not Annualized
(WITH THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2 AND ENHANCED EARNINGS DEATH BENEFIT OPTION) 10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.70% N/A 21.83% Capital Growth -0.74% 15.19% 11.55% Competitive Edge "Best Ideas" -19.03% N/A -0.95% Dividend Growth 3.20% 10.58% 12.03% Equity -14.10% 20.41% 19.45% European Growth -6.81% 15.73% 14.58% Global Dividend Growth -7.36% 7.75% 8.16% High Yield -33.57% -6.61% 5.33% Income Builder -1.82% N/A 5.85% Information* N/A N/A -7.17% Pacific Growth -29.45% -8.92% -7.29% Quality Income Plus 8.88% 3.33% 6.02% S&P 500 Index -11.19% N/A 5.81% Short-Term Bond 3.74% N/A 2.36% Strategist -0.38% 12.28% 10.79% Utilities 0.99% 12.42% 11.56% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation N/A N/A -11.99% AIM V.I. Growth N/A N/A -20.31% AIM V.I. Value N/A N/A -24.86% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income N/A N/A 17.67% Alliance Growth N/A N/A -16.82% Alliance Premier Growth N/A N/A -15.18% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -40.12% N/A -7.56% Equity Growth -13.50% N/A 6.37% International Magnum -14.17% N/A 0.77% Mid Cap Value N/A N/A 13.93% U.S. Real Estate 26.70% N/A 2.92% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income N/A N/A 10.53% Putnam VT International Growth N/A N/A -7.40% Putnam VT Voyager N/A N/A -16.97% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.94% N/A 30.55% - ----------------------------------------------------------------------------------------------------
*Not Annualized ASSETMANAGER CONTRACTS (WITHOUT AN OPTIONAL DEATH BENEFIT OR INCOME BENEFIT)
10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.29% N/A 22.36% Capital Growth -0.31% 15.69% 12.03% Competitive Edge "Best Ideas" -18.68% N/A -0.52% Dividend Growth 3.65% 11.05% 12.52% Equity -13.73% 20.93% 19.97% European Growth -6.41% 16.23% 15.07% Global Dividend Growth -4.03% 8.89% 9.12% High Yield -33.29% -6.21% 5.78% Income Builder -1.40% N/A 6.31% Information* N/A N/A -7.11% Money Market 4.38% 3.61% 3.12% Pacific Growth -34.51% -9.96% -7.95% Quality Income Plus 9.35% 3.78% 6.47% S&P 500 Index -10.80% N/A 6.27% Short Term Bond 4.19% N/A 2.80% Strategist 0.05% 12.77% 11.27% Utilities 1.42% 12.90% 12.04% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -39.86% N/A -6.99% Equity Growth -13.13% N/A 6.83% International Magnum -13.81% N/A 1.34% U.S. Real Estate 27.24% N/A 4.30% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.57% N/A 31.11% - ----------------------------------------------------------------------------------------------------
*Not Annualized
(WITH THE ENHANCED DEATH BENEFIT OPTION, PERFORMANCE INCOME BENEFIT OPTION OR THE PERFORMANCE DEATH BENEFIT OPTION) 10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTERVARIABLE INVESTMENT SERIES Aggressive Equity -3.50% N/A 22.20% Capital Growth -0.44% 15.54% 11.88% Competitive Edge "Best Ideas" -18.79% N/A -0.65% Dividend Growth 3.51% 10.91% 12.37% Equity -13.84% 20.77% 19.81% European Growth -6.53% 16.08% 14.92% Global Dividend Growth -4.15% 8.75% 8.98% High Yield -33.38% -6.33% 5.64% Income Builder -1.53% N/A 6.17% Information* N/A N/A -7.13% Money Market 4.24% 3.48% 2.99% Pacific Growth -34.59% -10.07% -8.07% Quality Income Plus 9.20% 3.65% 6.33% S&P 500 Index -10.92% N/A 6.13% Short Term Bond 3.96% N/A 2.67% Strategist -0.08% 12.62% 11.12% Utilities 1.29% 12.76% 11.89% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -39.94% N/A -7.11% Equity Growth -13.24% N/A 6.69% International Magnum -13.92% N/A 1.21% U.S. Real Estate 27.08% N/A 4.16% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.68% N/A 30.94% - ----------------------------------------------------------------------------------------------------
*Not Annualized
(WITH PERFORMANCE BENEFIT COMBINATION OPTION OR DEATH BENEFIT COMBINATION OPTION) 10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.52% N/A 22.07% Capital Growth -0.55% 15.41% 11.76% Competitive Edge "Best Ideas" -18.88% N/A -0.76% Dividend Growth 3.40% 10.79% 12.25% Equity -13.94% 20.64% 19.68% European Growth -6.64% 15.95% 14.79% Global Dividend Growth -4.25% 8.63% 8.86% High Yield -33.45% -6.44% 5.53% Income Builder -1.64% N/A 6.05% Information* N/A N/A -7.15% Money Market 4.13% 3.36% 2.87% Pacific Growth -34.66% -10.17% -8.17% Quality Income Plus 9.09% 3.53% 6.22% S&P 500 Index -11.02% N/A 6.01% Short Term Bond 3.94% N/A 2.56% Strategist -0.19% 12.50% 11.00% Utilities 1.18% 12.63% 11.77% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -40.01% N/A -7.21% Equity Growth -13.34% N/A 6.57% International Magnum -14.01% N/A 1.09% U.S. Real Estate 26.94% N/A 4.04% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.78% N/A 30.79% - ----------------------------------------------------------------------------------------------------
*Not Annualized ADJUSTED HISTORICAL TOTAL RETURNS We may advertise the total return for periods prior to the date that the Variable Sub-Accounts commenced operations. We will calculate such "adjusted historical total returns" using the historical performance of the underlying Portfolios and adjusting such performance to reflect the current level of charges that apply to the Variable Sub-Accounts under the Contract as well as the contract maintenance charge and the withdrawal charge. The adjusted historical total returns for the Variable Sub-Accounts for the periods ended December 31, 2000 are set out below. No adjusted historical total returns are shown for the Money Market Variable Sub-Account. Where the returns included in the following tables give effect to the optional income benefits, death benefits, or combinations thereof. the performance figures have been adjusted to reflect the current charge for the feature as if that feature had been available throughout the periods shown. The following list provides the inception date for the Portfolio corresponding to each of the Variable Sub-Accounts included in the tables. Variable Annuity II and AssetManager Contracts Inception Date of Corresponding Variable Sub-Account Portfolio High Yield March 9, 1984 Equity March 9, 1984 Quality Income Plus March 1, 1987 Strategist March 1, 1987 Dividend Growth March 1, 1990 Utilities March 1, 1990 European Growth March 1, 1991 Capital Growth March 1, 1991 Pacific Growth February 24, 1994 Global Dividend Growth February 24, 1994 Income Builder January 21, 1997 Information November 6, 2000 Equity Growth January 2, 1997 International Magnum January 2, 1997 Emerging Markets Equity October 1,1996 U.S. Real Estate March 4, 1997 Competitive Edge May 18, 1998 ("Best Ideas") S&P 500 Index May 18, 1998 Short Term Bond May 2, 1999 Aggressive Equity May 1, 1999 Van Kampen LIT Emerging Growth July 3, 1995 Variable Annuity II Contracts Only Mid-Cap Value January 2, 1997 AIM V.I. Capital Appreciation May 5, 1993 AIM V.I. Growth May 5, 1993 AIM V.I Value May 5, 1993 Alliance Growth* September 15, 1994 Alliance Growth and Income* January 14, 1991 Alliance Premier Growth* July 14, 1999 Putnam VT Growth and Income** February 1, 1988 Putnam VT International Growth** January 2, 1997 Putnam VT Voyager** February 1, 1988 * The Portfolios' Class B shares ("12b-1 class") corresponding to the Alliance Growth and Alliance Growth and Income Variable Sub-Accounts were first offered on May 3, 1999. For periods prior to these dates, the performance shown is based on the historical performance of the Portfolios' Class A shares ("non-12b-1 class"), adjusted to reflect the current expenses of the Portfolios' 12b-1 class. The inception dates for the Portfolios are as shown above. ** The Portfolios' Class IB shares ("12b-1 class") corresponding to the Putnam VT Growth and Income, International Growth, and voyager Variable Sub-Accounts ere first offered on April 6, 1998, April 30, 1998 and April 30, 1998 respectively. For periods prior to these dates, the performance shown is based on the historical performance of the Portfolios' Class IA shares ("non-12b-1 class"), adjusted to reflect the current expenses of the Portfolios' 12b-1 class. The inception dates for the Portfolios are as shown above. VARIABLE ANNUITY II CONTRACTS (WITHOUT AN OPTIONAL DEATH BENEFIT OR INCOME BENEFIT)
10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.36% N/A 20.36% Capital Growth -4.38% 15.83% 12.27% Competitive Edge "Best Ideas" -22.79% N/A -1.66% Dividend Growth -0.41% 11.17% 12.76% Equity -17.83% 21.10% 20.23% European Growth -10.49% 16.38% 15.32% Global Dividend Growth -8.10% 8.99% 9.34% High Yield -37.43% -6.25% 6.01% Income Builder -5.47% N/A 5.98% Information* N/A N/A -12.24% Pacific Growth -38.65% -10.07% -7.80% Quality Income Plus 5.30% 3.83% 6.69% S&P 500 Index -14.90% N/A 5.29% Short-Term Bond 0.13% N/A 0.45% Strategist -4.02% 12.89% 11.50% Utilities -2.64% 13.03% 12.27% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation -16.40% 13.10% 15.33% AIM V.I. Growth -25.85% 13.36% 13.50% AIM V.I. Value -20.09% 13.05% 14.99% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income 7.62% 17.81% 13.70% Alliance Growth -23.28% 17.17% 19.72% Alliance Premier Growth -22.20% N/A -8.42% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.02% N/A -4.68% Equity Growth -17.23% N/A 16.25% International Magnum -17.90% N/A 4.39% Mid Cap Value 4.97% N/A 18.75% U.S. Real Estate 23.24% N/A 5.88% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income 2.18% 12.09% 12.93% Putnam VT International Growth -15.08% N/A 16.77% Putnam VT Voyager -21.96% 16.75% 18.57% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -15.66% 27.00% 27.78% - ----------------------------------------------------------------------------------------------------
*Not Annualized
(WITH THE ENHANCED DEATH BENEFIT OPTION, PERFORMANCE INCOME BENEFIT OPTION OR PERFORMANCE DEATH BENEFIT OPTIONN) 10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.49% N/A 20.20% Capital Growth -4.51% 15.68% 12.12% Competitive Edge "Best Ideas" -22.90% N/A -1.79% Dividend Growth -0.54% 11.02% 12.61% Equity -17.94% 20.95% 20.07% European Growth Portfolio -10.61% 16.22% 15.17% Global Dividend Growth -8.23% 8.84% 9.20% High Yield -37.52% -6.38% 5.87% Income Builder -5.60% N/A 5.84% Information* N/A N/A -12.26% Pacific Growth -38.74% -10.19% -7.92% Quality Income Plus 5.16% 3.70% 6.55% S&P 500 Index -15.01% N/A 5.15% Short-Term Bond -0.01% N/A 0.32% Strategist -4.15% 12.75% 11.35% Utilities -2.78% 12.88% 12.13% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation -16.53% 12.94% 15.18% AIM V.I. Growth -25.97% 13.20% 13.35% AIM V.I. Value -20.21% 10.96% 14.83% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income 7.46% 17.65% 13.55% Alliance Growth -23.39% 17.01% 19.56% Alliance Premier Growth -19.36% N/A -8.53% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.10% N/A -4.81% Equity Growth -17.34% N/A 16.09% International Magnum -18.02% N/A 4.25% Mid Cap Value 4.82% N/A 18.58% U.S. Real Estate 23.08% N/A 5.74% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income 2.03% 11.93% 12.79% Putnam VT International Growth -15.20% N/A 16.61% Putnam VT Voyager -22.07% 16.59% 18.42% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -15.77% 26.83% 27.62% - ----------------------------------------------------------------------------------------------------
*Not Annualized
(WITH PERFORMANCE BENEFIT COMBINATION OPTION OR DEATH BENEFIT COMBINATION OPTION) 10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.59% N/A 20.06% Capital Growth -4.62% 15.55% 12.00% Competitive Edge "Best Ideas" -22.99% N/A -1.91% Dividend Growth -0.66% 10.90% 12.49% Equity -18.03% 20.81% 19.94% European Growth -10.72% 16.10% 15.05% Global Dividend Growth -8.33% 8.72% 9.08% High Yield -37.59% -6.48% 5.75% Income Builder -5.71% N/A 5.72% Information* N/A N/A -12.27% Pacific Growth -38.81% -10.29% -8.02% Quality Income Plus 5.04% 3.58% 6.43% S&P 500 Index -15.11% N/A 5.03% Short-Term Bond -0.12% N/A 0.20% Strategist -4.25% 12.62% 11.23% Utilities -2.89% 12.76% 12.00% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation -16.61% 12.82% 15.06% AIM V.I. Growth -26.04% 13.08% 13.23% AIM V.I. Value -20.29% 12.78% 14.71% ALLIANCE VARIABLE RODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income 7.35% 17.53% 13.43% Alliance Growth -23.47% 16.88% 19.44% Alliance Premier Growth -22.39% N/A -8.65% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.17% N/A -4.91% Equity Growth -17.44% N/A 15.96% International Magnum -18.11% N/A 4.14% Mid Cap Value 4.71% N/A 18.46% U.S. Real Estate 22.94% N/A 5.62% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income 1.93% 11.82% 12.66% Putnam VT International Growth -15.29% N/A 16.48% Putnam VT Voyager -22.15% 16.47% 18.29% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -15.87% 26.69% 27.48% - ----------------------------------------------------------------------------------------------------
*Not Annualized (WITH THE INCOME BENEFIT COMBINATION OPTION 2)
10 Years or Since FUND One Year 5 Year Inception - ---------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.66% N/A 19.97% Capital Growth -4.69% 15.37% 11.92% Competitive Edge "Best Ideas" -23.05% N/A -2.32% Dividend Growth -0.73% 10.71% 12.40% Equity -18.10% 20.64% 19.85% European Growth -10.79% 15.92% 14.96% Global Dividend Growth -11.35% 7.84% 8.51% High Yield -37.64% -6.78% 5.68% Income Builder -5.78% N/A 5.45% Information* N/A N/A -12.28 Pacific Growth -33.51% -9.16% -7.03% Quality Income Plus 4.96% 3.36% 6.35% S&P 500 Index -15.17% N/A 4.65% Short-Term Bond -0.20% N/A 0.13% Strategist -4.33% 12.43% 11.15% Utilities -2.96% 12.57% 11.92% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation -16.68% 13.31% 15.41% AIM V.I. Growth -26.10% 14.51% 14.19% AIM V.I. Value -29.02% 11.25% 13.74% ALLIANCDE VARIABLE RODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income 7.27% 17.35% 13.35% Alliance Growth -23.53% 16.71% 19.35% Alliance Premier Growth -22.45% N/A -8.72% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.21% N/A -5.34% Equity Growth -17.50% N/A 15.74% International Magnum -18.17% N/A 3.77% Mid Cap Value 4.63% N/A 18.24% U.S. Real Estate 22.84% N/A 4.68% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income 1.85% 11.62% 12.58% Putnam VT International Growth -15.36% N/A 16.26% Putnam VT Voyager -22.21% 16.29% 18.20% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -15.94% 26.53% 27.33% - ----------------------------------------------------------------------------------------------------
*Not Annualized (WITH THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2)
10 Years or Since FUND One Year 5 Year Inception - --------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.86% N/A 19.72% Capital Growth -4.89% 15.13% 11.69% Competitive Edge "Best Ideas" -23.21% N/A -2.53% Dividend Growth -0.94% 10.48% 12.17% Equity -18.27% 20.40% 19.61% European Growth -10.98% 15.68% 14.73% Global Dividend Growth -11.53% 7.62% 8.29% High Yield -37.78% -6.97% 5.46% Income Builder -5.98% N/A 5.23% Information* N/A N/A -12.31 Pacific Growth -33.65% -9.35% -7.22% Quality Income Plus 4.74% 3.14% 6.14% S&P 500 Index -15.35% N/A 4.43% Short-Term Bond -0.41% N/A -0.09% Strategist -4.53% 12.20% 10.92% Utilities -3.17% 12.33% 11.69% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation -16.85% 13.08% 15.18% AIM V.I. Growth -26.26% 14.27% 13.96% AIM V.I. Value -29.17% 11.02% 13.51% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income 7.04% 17.11% 13.12% Alliance Growth -23.69% 16.47% 19.11% Alliance Premier Growth -22.62% N/A -8.91% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.33% N/A -5.54% Equity Growth -17.68% N/A 15.50% International Magnum -18.35% N/A 3.55% Mid Cap Value 4.41% N/A 18.00% U.S. Real Estate 22.59% N/A 4.46% PUTNAM VARIABLE TRUST (CLASS B SHARES) Putnam VT Growth and Income 1.63% 11.39% 12.35% Putnam VT International Growth -15.54% N/A 16.02% Putnam VT Voyager -22.38% 16.06% 17.96% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -16.11% 26.27% 27.07% - ---------------------------------------------------------------------------------------------------
*Not Annualized (WITH ENHANCED EARNINGS DEATH BENEFIT OPTION)
10 Years or Since FUND One Year 5 year Inception - ----------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -7.56% N/A 20.10% Capital Growth -4.59% 15.49% 12.03% Competitive Edge "Best Ideas" -22.96% N/A -2.21% Dividend Growth -0.63% 10.82% 12.52% Equity -18.01% 20.77% 19.97% European Growth -10.69% 16.03% 15.08% Global Dividend Growth -11.26% 7.95% 8.62% High Yield -37.57% -6.68% 5.78% Income Builder -5.68% N/A 5.56% Information* N/A N/A -12.27 Pacific Growth -33.44% -9.07% -6.94% Quality Income Plus 5.07% 3.46% 6.46% S&P 500 Index -15.08% N/A 4.76% Short-Term Bond -0.09% N/A 0.23% Strategist -4.23% 12.55% 11.26% Utilities -2.86% 12.68% 12.03% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation -16.59% 13.42% 15.53% AIM V.I. Growth -26.02% 14.62% 14.30% AIM V.I. Value -28.94% 11.36% 13.85% ALLIANCE VARIABLE PRODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income 7.38% 17.47% 13.46% Alliance Growth -23.45% 16.83% 19.47% Alliance Premier Growth -22.37% N/A -8.62% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.15% N/A -5.24% Equity Growth -17.41% N/A 15.86% International Magnum -18.09% N/A 3.88% Mid Cap Value 4.74% N/A 18.36% U.S. Real Estate 22.97% N/A 4.79% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income 1.96% 11.74% 12.69% Putnam VT International Growth -15.27% N/A 16.38% Putnam VT Voyager -22.13% 16.41% 18.32% VANKAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -15.85% 26.66% 27.46% - -----------------------------------------------------------------------------------------------------
*Not Annualized
(WITH THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2 AND ENHANCED EARNINGS DEATH BENEFIT OPTION) 10 Years or Since FUND One Year 5 Year Inception - ----------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -8.00% N/A 19.53% Capital Growth -5.04% 14.96% 11.52% Competitive Edge "Best Ideas" -23.33% N/A -2.68% Dividend Growth -1.10% 10.31% 12.00% Equity -18.40% 20.21% 19.42% European Growth -11.12% 15.50% 14.55% Global Dividend Growth -11.67% 7.45% 8.13% High Yield -37.88% -7.12% 5.30% Income Builder -6.13% N/A 5.07% Information* N/A N/A -12.33 Pacific Growth -33.75% -9.49% -7.36% Quality Income Plus 4.57% 2.98% 5.98% S&P 500 Index -15.49% N/A 4.26% Short-Term Bond -0.56% N/A -0.25% Strategist -4.68% 12.03% 10.75% Utilities -3.32% 12.16% 11.52% AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation -16.99% 12.90% 15.00% AIM V.I. Growth -26.38% 14.09% 13.78% AIM V.I. Value -29.28% 10.85% 13.33% ALLIANCE VARIABLE RODUCTS SERIES FUND (CLASS B SHARES) Alliance Growth and Income 6.87% 16.93% 12.94% Alliance Growth -23.82% 16.29% 18.93% Alliance Premier Growth -22.75% N/A -9.06% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -44.43% N/A -5.69% Equity Growth -17.81% N/A 15.32% International Magnum -18.48% N/A 3.39% Mid Cap Value 4.24% N/A 17.81% U.S. Real Estate 22.39% N/A 4.30% PUTNAM VARIABLE TRUST (CLASS 1B SHARES) Putnam VT Growth and Income 1.47% 11.22% 12.18% Putnam VT International Growth -15.67% N/A 15.84% Putnam VT Voyager -22.50% 15.88% 17.78% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -16.25% 26.08% 26.88% - -----------------------------------------------------------------------------------------------------
*Not Annualized ASSETMANAGER CONTRACTS (WITHOUT AN OPTIONAL DEATH BENEFIT OR INCOME BENEFIT OPTION)
10 Years or Since FUND One Year 5 Year Inception - ----------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.34% N/A 22.32% Capital Growth -0.37% 15.65% 12.00% Competitive Edge "Best Ideas" -18.74% N/A -0.58% Dividend Growth 3.59% 11.01% 12.49% Equity -13.78% 20.89% 19.94% European Growth -6.47% 16.19% 15.05% Global Dividend Growth -4.08% 8.84% 9.08% High Yield -33.34% -6.26% 5.75% Income Builder -1.46% N/A 6.26% Information* N/A N/A -8.02% Money Market 4.32% 3.56% 3.07% Pacific Growth -34.56% -10.03% -8.02% Quality Income Plus 9.29% 3.73% 6.43% S&P 500 Index -10.86% N/A 6.22% Short Term Bond 4.13% N/A 2.74% Strategist -0.005% 12.73% 11.23% Utilities 1.36% 12.86% 12.00% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -39.92% N/A -4.45% Equity Growth -13.19% N/A 16.37% International Magnum -13.86% N/A 4.70% U.S. Real Estate 27.19% N/A 6.19% VAN KAMPEN LIFE INVDESTMENT TRUST Van Kampen LIT Emerging Growth -11.62% 26.76% 27.53% - ----------------------------------------------------------------------------------------------------- *Not Annualized
(WITH THE ENHANCED DEATH BENEFIT OPTION, PERFORMANCE DEATH BENEFIT OPTION OR PERFORMANCE INCOME BENEFIT OPTION) 10 Years or Since FUND One Year 5 Year Inception - ----------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.55% N/A 22.16% Capital Growth -0.49% 15.50% 11.85% Competitive Edge "Best Ideas" -18.84% N/A -0.71% Dividend Growth 3.46% 10.87% 12.34% Equity -13.30% N/A 16.22% European Growth -6.59% 16.04% 14.90% Global Dividend Growth -4.20% 8.70% 8.94% High Yield -33.43% -6.38% 5.62% Income Builder -1.59% N/A 6.13% Information* N/A N/A -8.04% Money Market 4.19% 3.43% 2.94% Pacific Growth -34.65% -10.14% -8.14% Quality Income Plus 9.15% 3.59% 6.29% S&P 500 Index -10.97% N/A 6.08% Short Term Bond 3.91% N/A 2.61% Strategist -0.13% 12.58% 11.09% Utilities 1.23% 12.71% 11.86% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -40.00% N/A -4.57% Equity Growth -13.90% 20.74% 19.78% International Magnum -13.97% N/A 4.56% U.S. Real Estate 27.02% N/A 6.05% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.73% 26.59% 27.36% - -----------------------------------------------------------------------------------------------------
*Not Annualized
(WITH PERFORMANCE BENEFIT COMBINATION OPTION OR DEATH BENEFIT COMBINATION OPTION) 10 Years or Since FUND One Year 5 Year Inception - ----------------------------------------------------------------------------------------------------- MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity -3.57% N/A 22.02% Capital Growth -0.60% 15.37% 11.73% Competitive Edge "Best Ideas" -18.93% N/A -0.56% Dividend Growth 3.35% 10.75% 12.22% Equity -13.99% 20.60% 19.65% European Growth -6.69% 15.91% 14.77% Global Dividend Growth -4.31% 8.58% 8.82% High Yield -33.50% -6.49% 5.50% Income Builder -1.69% N/A 6.01% Information* N/A N/A -8.05% Money Market 4.07% 3.31% 2.83% Pacific Growth -34.72% -10.24% -8.25% Quality Income Plus 9.03% 3.48% 6.18% S&P 500 Index -11.07% N/A 4.04% Short Term Bond 3.88% N/A 2.49% Strategist -0.24% 12.46% 10.96% Utilities 1.12% 12.59% 11.73% THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Emerging Markets Equity -40.06% N/A -4.68% Equity Growth -13.39% N/A 16.09% International Magnum -14.07% N/A 4.44% U.S. Real Estate 26.88% N/A 5.93% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Emerging Growth -11.83% 26.45% 27.22% - -----------------------------------------------------------------------------------------------------
*Not Annualized CALCULATION OF ACCUMULATION VALUES The value of Accumulation Units will change each Valuation Period according to the investment performance of the Portfolio shares purchased by each Variable Sub-Account and the deduction of certain expenses and charges. A "Valuation Period" is the period from the end of one Valuation Date and continues to the end of the next Valuation Date. A Valuation Date ends at the close of regular trading on the New York Stock Exchange (currently 3:00 p.m. Central Time). The Accumulation Unit Value of a Variable Sub-Account for any Valuation Period equals the Accumulation Unit Value as of the immediately preceding Valuation Period, multiplied by the Net Investment Factor (described below) for that Variable Sub-Account for the current Valuation Period. NET INVESTMENT FACTOR The Net Investment Factor for a Valuation Period is a number representing the change, since the last Valuation Period, in the value of Variable Sub-Account assets per Accumulation Unit due to investment income, realized or unrealized capital gain or loss, deductions for taxes, if any, and deductions for the mortality and expense risk charge and administrative expense charge. We determine the Net Investment Factor for each Variable Sub-Account for any Valuation Period by dividing (A) by (B) and subtracting (C) from the result, where: (A) is the sum of: (1) the net asset value per share of the Portfolio underlying the Variable Sub-Account determined at the end of the current Valuation Period; plus, (2) the per share amount of any dividend or capital gain distributions made by the Portfolio underlying the Variable Sub-Account during the current Valuation Period; (B) is the net asset value per share of the Portfolio underlying the Variable Sub-Account determined as of the end of the immediately preceding Valuation Period; and (C) is the annualized mortality and expense risk and administrative expense charges divided by the number of days in the current calendar year and then multiplied by the number of calendar days in the current Valuation Period. CALCULATION OF VARIABLE INCOME PAYMENTS We calculate the amount of the first variable income payment under an Income Plan by applying the Contract Value allocated to each Variable Sub-Account less any applicable premium tax charge deducted at the time, to the income payment tables in the Contract. We divide the amount of the first variable annuity income payment by the Variable Sub-Account's then current Annuity Unit value to determine the number of annuity units ("Annuity Units") upon which later income payments will be based. To determine income payments after the first, we simply multiply the number of Annuity Units determined in this manner for each Variable Sub-Account by the then current Annuity Unit value ("Annuity Unit Value") for that Variable Sub-Account. CALCULATION OF ANNUITY UNIT VALUES Annuity Units in each Variable Sub-Account are valued separately and Annuity Unit Values will depend upon the investment experience of the particular Portfolio in which the Variable Sub-Account invests. We calculate the Annuity Unit Value for each Variable Sub-Account at the end of any Valuation Period by: o multiplying the Annuity Unit Value at the end of the immediately preceding Valuation Period by the Variable Sub-Account's Net Investment Factor (described in the preceding section) for the Period; and then o dividing the product by the sum of 1.0 plus the assumed investment rate for the Valuation Period. The assumed investment rate adjusts for the interest rate assumed in the income payment tables used to determine the dollar amount of the first variable income payment, and is at an effective annual rate which is disclosed in the Contract. We determine the amount of the first variable income payment paid under an Income Plan using the income payment tables set out in the Contracts. The Contracts include tables that differentiate on the basis of sex, except in states that require the use of unisex tables. GENERAL MATTERS INCONTESTABILITY We will not contest the Contract after we issue it. SETTLEMENTS The Contract must be returned to us prior to any settlement. We must receive due proof of the Contract owner(s) death (or Annuitant's death if there is a non-natural Contract owner) before we will settle a death claim. SAFEKEEPING OF THE VARIABLE ACCOUNT'S ASSETS We hold title to the assets of the Variable Account. We keep the assets physically segregated and separate and apart from our general corporate assets. We maintain records of all purchases and redemptions of the Portfolio shares held by each of the Variable Sub-Accounts. The Portfolios do not issue stock certificates. Therefore, we hold the Variable Account's assets in open account in lieu of stock certificates. See the Portfolios' prospectuses for a more complete description of the custodian of the Portfolios. PREMIUM TAXES Applicable premium tax rates depend on the Contract owner's state of residency and the insurance laws and our status in those states where premium taxes are incurred. Premium tax rates may be changed by legislation, administrative interpretations, or judicial acts. TAX RESERVES We do not establish capital gains tax reserves for any Variable Sub-Account nor do we deduct charges for tax reserves because we believe that capital gains attributable to the Variable Account will not be taxable. However, we reserve the right to deduct charges to establish tax reserves for potential taxes on realized or unrealized capital gains. FEDERAL TAX MATTERS THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. WE MAKE NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION INVOLVING A CONTRACT. Federal, state, local and other tax consequences of ownership or receipt of distributions under an annuity contract depend on the individual circumstances of each person. If you are concerned about any tax consequences with regard to your individual circumstances, you should consult a competent tax adviser. TAXATION OF NORTHBROOK LIFE INSURANCE COMPANY Northbrook is taxed as a life insurance company under Part I of Subchapter L of the Internal Revenue Code. Since the Variable Account is not an entity separate from Northbrook, and its operations form a part of Northbrook, it will not be taxed separately as a "Regulated Investment Company" under Subchapter M of the Code. Investment income and realized capital gains of the Variable Account are automatically applied to increase reserves under the contract. Under existing federal income tax law, Northbrook believes that the Variable Account investment income and capital gains will not be taxed to the extent that such income and gains are applied to increase the reserves under the contract. Accordingly, Northbrook does not anticipate that it will incur any federal income tax liability attributable to the Variable Account, and therefore Northbrook does not intend to make provisions for any such taxes. If Northbrook is taxed on investment income or capital gains of the Variable Account, then Northbrook may impose a charge against the Variable Account in order to make provision for such taxes. EXCEPTIONS TO THE NON-NATURAL OWNER RULE There are several exceptions to the general rule that annuity contracts held by a non-natural owner are not treated as annuity contracts for federal income tax purposes. Contracts will generally be treated as held by a natural person if the nominal owner is a trust or other entity which holds the Contract as agent for a natural person. However, this special exception will not apply in the case of an employer who is the nominal owner of an annuity contract under a non-qualified deferred compensation arrangement for its employees. Other exceptions to the non-natural owner rule are: (1) contracts acquired by an estate of a decedent by reason of the death of the decedent; (2) certain qualified contracts; (3) contracts purchased by employers upon the termination of certain qualified plans; (4) certain contracts used in connection with structured settlement agreements, and (5) contracts purchased with a single premium when the annuity starting date is no later than a year from purchase of the annuity and substantially equal periodic payments are made, not less frequently than annually, during the annuity period. IRS REQUIRED DISTRIBUTION AT DEATH RULES In order to be considered an annuity contract for federal income tax purposes, an annuity contract must provide: (1) if any owner dies on or after the annuity start date but before the entire interest in the contract has been distributed, the remaining portion of such interest must be distributed at least as rapidly as under the method of distribution being used as of the date of the owner's death; (2) if any owner dies prior to the annuity start date, the entire interest in the contract will be distributed within five years after the date of the owner's death. These requirements are satisfied if any portion of the owner's interest which is payable to (or for the benefit of) a designated beneficiary is distributed over the life of such beneficiary (or over a period not extending beyond the life expectancy of the beneficiary) and the distributions begin within one year of the owner's death. If the owner's designated beneficiary is the surviving spouse of the owner, the contract may be continued with the surviving spouse as the new owner. If the owner of the contract is a non-natural person, then the annuitant will be treated as the owner for purposes of applying the distribution at death rules. In addition, a change in the annuitant on a contract owned by a non-natural person will be treated as the death of the owner. QUALIFIED PLANS The Contract may be used with several types of qualified plans. The tax rules applicable to participants in such qualified plans vary according to the type of plan and the terms and conditions of the plan itself. Adverse tax consequences may result from excess contributions, premature distributions, distributions that do not conform to specified commencement and minimum distribution rules, excess distributions and in other circumstances. Contract owners and participants under the plan and annuitants and beneficiaries under the Contract may be subject to the terms and conditions of the plan regardless of the terms of the Contract. INDIVIDUAL RETIREMENT ANNUITIES Section 408 of the Code permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity (IRA). Individual Retirement Annuities are subject to limitations on the amount that can be contributed and on the time when distributions may commence. Certain distributions from other types of qualified plans may be "rolled over" on a tax-deferred basis into an Individual Retirement Annuity. An IRA generally may not provide life insurance, but it may provide a death benefit that equals the greater of the premiums paid and the Contract's Cash Value. The Contract provides a death benefit that in certain circumstances may exceed the greater of the payments and the Contract Value. It is possible that the death benefit could be viewed as violating the prohibition on investment in life insurance contracts with the result that the Contract would not be viewed as satisfying the requirements of an IRA. ROTH INDIVIDUAL RETIREMENT ANNUITIES Section 408A of the Code permits eligible individuals to make nondeductible contributions to an individual retirement program known as a Roth Individual Retirement Annuity. Roth Individual Retirement Annuities are subject to limitations on the amount that can be contributed and on the time when distributions may commence. "Qualified distributions" from Roth Individual Retirement Annuities are not includible in gross income. "Qualified distributions" are any distributions made more than five taxable years after the taxable year of the first contribution to the Roth Individual Retirement Annuity, and which are made on or after the date the individual attains age 59 1/2, made to a beneficiary after the owner's death, attributable to the owner being disabled or for a first time home purchase (first time home purchases are subject to a lifetime limit of $10,000). "Nonqualified distributions" are treated as made from contributions first and are includible in gross income to the extent such distributions exceed the contributions made to the Roth Individual Retirement Annuity. The taxable portion of a "nonqualified distribution" may be subject to the 10% penalty tax on premature distributions. Subject to certain limitations, a traditional Individual Retirement Account or Annuity may be converted or "rolled over" to a Roth Individual Retirement Annuity. The taxable portion of a conversion or rollover distribution is includible in gross income, but is exempted from the 10% penalty tax on premature distributions. SIMPLIFIED EMPLOYEE PENSION PLANS Section 408(k) of the Code allows employers to establish simplified employee pension plans for their employees using the employees' individual retirement annuities if certain criteria are met. Under these plans the employer may, within specified limits, make deductible contributions on behalf of the employees to their individual retirement annuities. Employers intending to use the Contract in connection with such plans should seek competent advice. In particular, employers should consider that an IRA generally may not provide life insurance, but it may provide a death benefit that equals the greater of the premiums paid and the contract's cash value. The Contract provides a death benefit that in certain circumstances may exceed the greater of the payments and the Contract Value. SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE PLANS) Sections 408(p) and 401(k) of the Code allow employers with 100 or fewer employees to establish SIMPLE retirement plans for their employees. SIMPLE plans may be structured as a SIMPLE retirement account using an employee's IRA to hold the assets or as a Section 401(k) qualified cash or deferred arrangement. In general, a SIMPLE plan consists of a salary deferral program for eligible employees and matching or nonelective contributions made by employers. Employers intending to use the Contract in conjunction with SIMPLE plans should seek competent tax and legal advice. TAX SHELTERED ANNUITIES Section 403(b) of the Code permits public school employees and employees of certain types of tax-exempt organizations (specified in Section 501(c)(3) of the Code) to have their employers purchase annuity contracts for them, and subject to certain limitations, to exclude the purchase payments from the employees' gross income. An annuity contract used for a Section 403(b) plan must provide that distributions attributable to salary reduction contributions made after 12/31/88, and all earnings on salary reduction contributions, may be made only on or after the date the employee attains age 59 1/2, separates from service, dies, becomes disabled or on the account of hardship (earnings on salary reduction contributions may not be distributed for hardship). These limitations do not apply to withdrawals where Northbrook is directed to transfer some or all of the Contract Value to another 403(b) plan. CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS Sections 401(a) and 403(a) of the Code permit corporate employers to establish various types of tax favored retirement plans for employees. The Self-Employed Individuals Retirement Act of 1962, as amended, (commonly referred to as "H.R. 10" or "Keogh") permits self-employed individuals to establish tax favored retirement plans for themselves and their employees. Such retirement plans may permit the purchase of annuity contracts in order to provide benefits under the plans. STATE AND LOCAL GOVERNMENT AND TAX-EXEMPT ORGANIZATION DEFERRED COMPENSATION PLANS Section 457 of the Code permits employees of state and local governments and tax-exempt organizations to defer a portion of their compensation without paying current taxes. The employees must be participants in an eligible deferred compensation plan. To the extent the Contracts are used in connection with an eligible plan, employees are considered general creditors of the employer and the employer as owner of the contract has the sole right to the proceeds of the contract. Generally, under the non-natural owner rules, such Contracts are not treated as annuity contracts for federal income tax purposes. Under these plans, contributions made for the benefit of the employees will not be includible in the employees' gross income until distributed from the plan. However, under a Section 457 plan all the compensation deferred under the plan must remain solely the property of the employer, subject only to the claims of the employer's general creditors, until such time as made available to the employee or a beneficiary. EXPERTS The financial statements of Northbrook as of December 31, 2000 and 1999 and for each of the three years in the period ended December 31, 2000 and the related financial statement schedule that appear in this Statement of Additional Information have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing herein, and are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The financial statements of the Variable Account as of December 31, 2000 and for each of the periods in the two years then ended that appear in this Statement of Additional Information have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing herein, and are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. FINANCIAL STATEMENTS The financial statements of the Variable Account as of December 31, 2000 and for each of the periods in the two years then ended, as well as the financial statements of Northbrook as of December 31, 2000 and 1999 and for each of the three years in the period ended December 31, 2000 and related financial statement schedule and the accompanying Independent Auditors' Reports appear in the pages that follow. The financial statements and schedule of Northbrook included herein should be considered only as bearing upon the ability of Northbrook to meet its obligations under the Contracts. Northbrook Life Insurance Company Statement of Additional Information Northbrook Variable Annuity Account II Dated May 1, 2001 Post Office Box 94040 Palatine, IL 60094-4040 1 (800) 654-2397 This Statement of Additional Information supplements the information in the prospectus for the Variable Annuity 3 Contracts that we offer. This Statement of Additional Information is not a prospectus. You should read it with the prospectus, dated May 1, 2001, for the Contract. You may obtain a prospectus by calling or writing us at the address or telephone number listed above, or by calling or writing your Morgan Stanley Dean Witter Financial Advisor. Except as otherwise noted, this Statement of Additional Information uses the same defined terms as the prospectus for the Morgan Stanley Variable Annuity 3 Contracts. TABLE OF CONTENTS Description Page Additions, Deletions or Substitutions of Investments The Contract Purchase of Contracts Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers) Performance Information Calculation of Accumulation Unit Values Calculation of Variable Amount Income Payments Net Investment Factor Calculation of Variable Amount Income Payments Calculation of Annuity Unit Values General Matters Incontestability Settlements Safekeeping of the Variable Account's Assets Premium Taxes Tax Reserves Federal Tax Matters Experts Financial Statements ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS We may add, delete, or substitute the Portfolio shares held by any Variable Sub-Account to the extent the law permits. We may substitute shares of any Portfolio with those of another Portfolio of the same or different mutual Portfolio fund if the shares of the Portfolio are no longer available for investment or if we believe investment in any Portfolio would become inappropriate in view of the purposes of the Variable Account. We will not substitute shares attributable to a Contract owner's interest in a Variable Sub-Account until we have notified the Contract owner of the change, and until the Securities and Exchange Commission has approved the change, to the extent such notification and approval are required by law. Nothing contained in this Statement of Additional Information shall prevent the Variable Account from purchasing other securities for other series or classes of contracts or from effecting a conversion between series or classes of contracts on the basis of requests made by Contract owners. We also may establish additional Variable Sub-Accounts or series of Variable Sub-Accounts. Each additional Variable Sub-Account would purchase shares in a new Portfolio of the same or different mutual fund. We may establish new Variable Sub-Accounts when we believe marketing needs or investment conditions warrant. We determine the basis on which we will offer any new Variable Sub-Accounts in conjunction with the Contract to existing Contract owners. We may eliminate one or more Variable Sub-Accounts if, in our sole discretion, marketing, tax or investment conditions so warrant. We may, by appropriate endorsement, change the Contract as we believe necessary or appropriate to reflect any substitution or change in the Portfolios. If we believe the best interests of persons having voting rights under the Contracts would be served, we may operate the Variable Account as a management company under the Investment Company Act of 1940 or we may withdraw its registration under such Act if such registration is no longer required. THE CONTRACT The Contract is primarily designed to aid individuals in long-term financial planning. You can use it for retirement planning regardless of whether the retirement plan qualifies for special federal income tax treatment. PURCHASE OF CONTRACTS Morgan Stanley DW Inc. , is the principal underwriter and distributor of the Contracts. The offering of the Contracts is continuous. We do not anticipate discontinuing the offering of the Contracts but we reserve the right to do so at any time. TAX-FREE EXCHANGES (1035 EXCHANGES, ROLLOVERS AND TRANSFERS) We accept purchase payments that are the proceeds of a Contract in a transaction qualifying for a tax-free exchange under Section 1035 of the Internal Revenue Code ("Code"). Except as required by federal law in calculating the basis of the Contract, we do not differentiate between Section 1035 purchase payments and non-Section 1035 purchase payments. We also accept "rollovers" and transfers from Contracts qualifying as tax-sheltered annuities ("TSAs"), individual retirement annuities or accounts ("IRAs"), or any other Qualified Contract that is eligible to "rollover" into an IRA. We differentiate among non-Qualified Contracts, TSAs, IRAs and other Qualified Contracts to the extent necessary to comply with federal tax laws. For example, we restrict the assignment, transfer, or pledge of TSAs and IRAs so the Contracts will continue to qualify for special tax treatment. A Contract owner contemplating any such exchange, rollover or transfer of a Contract should contact a competent tax adviser with respect to the potential effects of such a transaction. PERFORMANCE INFORMATION From time to time we may advertise the "standardized," "non-standardized," and "adjusted historical" total returns of the Variable Sub-Accounts, as described below. Please remember that past performance is not an estimate or guarantee of future performance and does not necessarily represent the actual experience of amounts invested by a particular Contract owner. Also, please note that the performance figures shown do not reflect any applicable taxes. STANDARDIZED TOTAL RETURNS A Variable Sub-Account's standardized total return represents the average annual total return of that Sub-Account over a particular period. We compute standardized total return by finding the annual percentage rate that, when compounded annually, will accumulate a hypothetical $1,000 purchase payment to the redeemable value at the end of the one, five or ten year period, or for a period from the date of commencement of the Variable Sub-Account's operations, if shorter than any of the foregoing. We use the following formula prescribed by the SEC for computing standardized total return: 1000(1 + T)n = ERV where: T = average annual total return ERV = ending redeemable value of a hypothetical $1,000 payment made at the beginning of 1, 5, or 10 year periods or shorter period n = number of years in the period 1000 = hypothetical $1,000 investment When factoring in the withdrawal charge assessed upon redemption, we exclude the Free Withdrawal Amount, which is the amount you can withdraw from the Contract without paying a withdrawal charge. We also use the withdrawal charge that would apply upon redemption at the end of each period. Thus, for example, when factoring in the withdrawal charge for a one year standardized total return calculation, we would use the withdrawal charge that applies to a withdrawal of a purchase payment made one year prior. When factoring the contract maintenance charge, we pro rate the charge by dividing (a) the contract maintenance charge by (b) the average contract size of $45,000. We then multiply the resulting percentage by a hypothetical $1,000 investment. The standardized total returns for the Variable Sub-Accounts available under the Contract for the periods ended December 31, 2000 are set out below. No standardized total returns are shown for the Money Market Variable Sub-Account. No standardized total returns are shown for the Van Kampen Emerging Growth Variable Sub-Account (Class II), which will commence operations on May 17, 2001. The Variable Annuity 3 Contracts were first offered to the public on June 5, 2000. Accordingly, performance figures for Variable Sub-Accounts prior to those dates reflect the historical performance of the Variable Sub-Accounts, adjusted to reflect the current level of charges that apply to the Variable Sub-Accounts under the Variable Annuity 3 Contracts as well as the withdrawal and contract maintenance charges described above. Contracts with the Enhanced Earnings Death Benefit Plus Option will first be offered to the public on June 18, 2001. The Variable Sub-Accounts were available for investment prior to that date. Accordingly, performance figures for Variable Sub-Accounts for periods prior to the availability of the Enhanced Earnings Death Benefit Plus Option reflect the historical performance of the Variable Sub-Accounts, adjusted to reflect the current charge for such features as if they had been available throughout the periods shown, as well as the withdrawal and contract maintenance charge. Variable Sub-Account Inception Dates: Variable Sub-Account Date Morgan Stanley Dean Witter Variable Investment Series: Quality Income Plus June 5, 2000 High Yield June 5, 2000 Utilities June 5, 2000 Dividend Growth June 5, 2000 Equity June 5, 2000 Strategist June 5, 2000 Capital Growth June 5, 2000 European Growth June 5, 2000 Global Dividend Growth June 5, 2000 Pacific Growth June 5, 2000 Income Builder June 5, 2000 Information November 6, 2000 Short-Term Bond June 5, 2000 Aggressive Equity June 5, 2000 S&P 500 Index June 5, 2000 Competitive Edge ("Best Ideas") June 5, 2000 The Universal Institutional Fund, Inc.: Equity Growth March 16, 1998 International Magnum March 16, 1998 Emerging Markets Equity March 16, 1998 U.S. Real Estate May 18, 1998 Mid-Cap Value January 31, 2000 Van Kampen Life Investment Trust: Emerging Growth, Class I March 16, 1998 Emerging Growth, Class II May 17, 2001 AIM Variable Insurance Funds: Capital Appreciation January 31, 2000 Growth January 31, 2000 Value January 31, 2000 Alliance Variable Products Series Fund: Growth January 31, 2000 Growth and Income January 31, 2000 Premier Growth January 31, 2000 Putnam Variable Trust: Growth and Income January 31, 2000 International Growth January 31, 2000 Voyager January 31, 2000
BASE 10 Years or One Year 5 Year Since Inception Aggressive Equity* N/A N/A -9.68% Capital Growth* N/A N/A -10.88% Competitive Edge "Best Ideas"* N/A N/A -23.18% Dividend Growth* N/A N/A 2.87% Equity* N/A N/A -13.44% European Growth* N/A N/A -11.22% Global Dividend Growth* N/A N/A -3.05% High Yield* N/A N/A -36.82% Income Builder* N/A N/A -4.72% Information* N/A N/A -12.24% Pacific Growth* N/A N/A -34.90% Quality Income Plus* N/A N/A 3.00% S&P 500 Index* N/A N/A -15.62% Short-Term Bond* N/A N/A -1.82% Strategist* N/A N/A -6.93% Utilities* N/A N/A -5.98% AIM V.I. Capital Appreciation N/A N/A -15.61% AIM V.I. Growth N/A N/A -26.72% AIM V.I. Value N/A N/A -27.64% Alliance Growth and Income N/A N/A 11.55% Alliance Growth N/A N/A -20.11% Alliance Premier Growth N/A N/A -18.58% Morgan Stanley UIF Emerging Markets Equity -44.03% N/A - 8.77% Morgan Stanley UIF Equity Growth -17.24% N/A 5.66% Morgan Stanley UIF International Magnum -17.91% N/A - 0.12% Morgan Stanley UIF Mid Cap Value N/A N/A 8.98% Morgan Stanley UIF U.S. Real Estate 23.23% N/A 1.98% Putnam VT Growth and Income N/A N/A 5.07% Putnam VT International Growth N/A N/A -11.36% Putnam VT Voyager N/A N/A -20.25% Van Kampen LIT Emerging Growth -15.67% N/A 30.46% (Class I) Van Kampen LIT Emerging Growth (Class II) N/A N/A N/A *Not Annualized PERFORMANCE DEATH BENEFIT 10 Years or One Year 5 Year Since Inception Aggressive Equity* N/A N/A -9.77% Capital Growth* N/A N/A -10.97% Competitive Edge "Best Ideas"* N/A N/A -23.25% Dividend Growth* N/A N/A 2.78% Equity* N/A N/A -13.52% European Growth* N/A N/A -11.30% Global Dividend Growth* N/A N/A -3.14% High Yield* N/A N/A -36.88% Income Builder* N/A N/A -4.81% Information* N/A N/A -12.26% Pacific Growth* N/A N/A -34.97% Quality Income Plus* N/A N/A 3.23% S&P 500 Index* N/A N/A -15.70% Short-Term Bond* N/A N/A -1.91% Strategist* N/A N/A -7.02% Utilities* N/A N/A -6.07% AIM V.I. Capital Appreciation N/A N/A -15.72% AIM V.I. Growth N/A N/A -26.82% AIM V.I. Value N/A N/A -27.74% Alliance Growth and Income N/A N/A 11.41% Alliance Growth N/A N/A -20.21% Alliance Premier Growth N/A N/A -18.69% Morgan Stanley UIF Emerging Markets Equity -44.11% N/A -8.90% Morgan Stanley UIF Equity Growth -17.35% N/A 5.52% Morgan Stanley UIF International Magnum -18.02% N/A -0.26% Morgan Stanley UIF Mid Cap Value N/A N/A 8.83% Morgan Stanley UIF U.S. Real Estate 23.06% N/A 1.84% Putnam VT Growth and Income N/A N/A 4.94% Putnam VT International Growth N/A N/A -11.48% Putnam VT Voyager N/A N/A -20.35% Van Kampen LIT Emerging Growth (Class I) -15.78% N/A 30.28% Van Kampen LIT Emerging Growth Class II N/A N/A N/A *Not Annualized DEATH BENEFIT COMBINATION OPTION 10 Years or One Year 5 Year Since Inception Aggressive Equity* N/A N/A -9.84% Capital Growth* N/A N/A -11.04% Competitive Edge "Best Ideas"* N/A N/A -23.31% Dividend Growth* N/A N/A 2.70% Equity* N/A N/A -13.59% European Growth* N/A N/A -11.37% Global Dividend Growth* N/A N/A -3.22% High Yield* N/A N/A -36.93% Income Builder* N/A N/A -4.89% Information* N/A N/A -12.27% Pacific Growth* N/A N/A -35.02% Quality Income Plus* N/A N/A 3.15% S&P 500 Index* N/A N/A -15.77% Short-Term Bond* N/A N/A -1.98% Strategist* N/A N/A -7.09% Utilities* N/A N/A -6.14% AIM V.I. Capital Appreciation N/A N/A -15.81% AIM V.I. Growth N/A N/A -26.91% AIM V.I. Value N/A N/A -26.91% Alliance Growth and Income N/A N/A 11.29% Alliance Growth N/A N/A -20.30% Alliance Premier Growth N/A N/A -18.78% Morgan Stanley UIF Emerging Markets Equity -44.18% N/A -9.01% Morgan Stanley UIF Equity Growth -17.45% N/A 5.40% Morgan Stanley UIF International Magnum -18.12% N/A -0.37% Morgan Stanley UIF Mid Cap Value N/A N/A 8.70% Morgan Stanley UIF U.S. Real Estate 22.92% N/A 1.72% Putnam VT Growth and Income N/A N/A 4.83% Putnam VT International Growth N/A N/A -11.57% Putnam VT Voyager N/A N/A -20.44% Van Kampen LIT Emerging Growth -15.88% N/A 30.13% (Class I) Van Kampen LIT Emerging Growth Class II N/A N/A N/A *Not Annualized INCOME BENEFIT COMBINATION 2 10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -9.88% Capital Growth* N/A N/A -11.07% Competitive Edge "Best Ideas"* N/A N/A -23.34% Dividend Growth* N/A N/A 2.65% Equity* N/A N/A -13.62% European Growth* N/A N/A -11.41% Global Dividend Growth* N/A N/A -3.26% High Yield* N/A N/A -36.96% Income Builder* N/A N/A -4.93% Information* N/A N/A -12.28% Pacific Growth* N/A N/A -35.05% Quality Income Plus* N/A N/A 3.11% S&P 500 Index* N/A N/A -15.80% Short-Term Bond* N/A N/A -2.02% Strategist* N/A N/A -7.13% Utilities* N/A N/A -6.18% AIM V.I. Capital Appreciation N/A N/A -15.86% AIM V.I. Growth N/A N/A -26.95% AIM V.I. Value N/A N/A -27.86% Alliance Growth and Income N/A N/A 11.23% Alliance Growth N/A N/A -20.35% Alliance Premier Growth N/A N/A -18.82% Morgan Stanley UIF Emerging Markets Equity -44.21% N/A -9.07% Morgan Stanley UIF Equity Growth -17.50% N/A 5.33% Morgan Stanley UIF International Magnum -18.17% N/A -0.44% Morgan Stanley UIF Mid Cap Value N/A N/A 8.63% Morgan Stanley UIF U.S. Real Estate 22.84% N/A 1.66% Putnam VT Growth and Income N/A N/A 4.77% Putnam VT International Growth N/A N/A -11.62% Putnam VT Voyager N/A N/A -20.49% Van Kampen LIT Emerging Growth -15.94% N/A 30.05% (Clas I) Van Kampen LIT Emerging Growth N/A N/A N/A Class II *Not Annualized INCOME AND DEATH BENEFIT COMBINATION 2 10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -10.00% Capital Growth* N/A N/A -11.20% Competitive Edge "Best Ideas"* N/A N/A -23.45% Dividend Growth* N/A N/A 2.51% Equity* N/A N/A -13.75% European Growth* N/A N/A -11.54% Global Dividend Growth* N/A N/A -3.39% High Yield* N/A N/A -37.05% Income Builder* N/A N/A -5.06% Information* N/A N/A -12.31% Pacific Growth* N/A N/A -35.14% Quality Income Plus* N/A N/A 2.96% S&P 500 Index* N/A N/A -15.92% Short-Term Bond* N/A N/A -2.16% Strategist* N/A N/A -7.26% Utilities* N/A N/A -6.31% AIM V.I. Capital Appreciation N/A N/A -16.03% AIM V.I. Growth N/A N/A -27.11% AIM V.I. Value N/A N/A -28.00% Alliance Growth and Income N/A N/A 11.01% Alliance Growth N/A N/A -20.50% Alliance Premier Growth N/A N/A -18.98% Morgan Stanley UIF Emerging Markets Equity -44.33% N/A -9.26% Morgan Stanley UIF Equity Growth -17.68% N/A 5.11% Morgan Stanley UIF International Magnum -18.35% N/A -0.65% Morgan Stanley UIF Mid Cap Value N/A N/A 8.40% Morgan Stanley UIF U.S. Real Estate 22.59% N/A 1.44% Putnam VT Growth and Income N/A N/A 4.56% Putnam VT International Growth N/A N/A -11.80% Putnam VT Voyager N/A N/A -20.64% Van Kampen LIT Emerging Growth -16.11% N/A 29.78% Class I Van Kampen LIT Emerging Growth Class II N/A N/A N/A *Not Annualized
ENHANCED EARNINGS DEATH BENEFIT PLUS OPTION (OLDEST CONRACT OWNER (OR ANNUITANT IF THE CONTRACT OWNER IS A NON-NATURAL PERSON) IS AGE 66-75)
10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -9.91% Capital Growth* N/A N/A -11.10% Competitive Edge "Best Ideas"* N/A N/A -23.37% Dividend Growth* N/A N/A 2.62% Equity* N/A N/A -13.65% European Growth* N/A N/A -11.44% Global Dividend Growth* N/A N/A -3.29% High Yield* N/A N/A -36.98% Income Builder* N/A N/A -4.96% Information* N/A N/A -12.29% Pacific Growth* N/A N/A -35.07% Quality Income Plus* N/A N/A 3.07% S&P 500 Index* N/A N/A -15.83% Short-Term Bond* N/A N/A -2.06% Strategist* N/A N/A -7.16% Utilities* N/A N/A -6.21% AIM V.I. Capital Appreciation N/A N/A -15.90% AIM V.I. Growth N/A N/A -26.99% AIM V.I. Value N/A N/A -27.89% Alliance Growth and Income N/A N/A 11.17% Alliance Growth N/A N/A -20.39% Alliance Premier Growth N/A N/A -18.86% Morgan Stanley UIF Emerging Markets Equity -44.24% N/A -9.11% Morgan Stanley UIF Equity Growth -17.54% N/A 5.27% Morgan Stanley UIF International Magnum -18.22% N/A -0.49% Morgan Stanley UIF Mid Cap Value N/A N/A 8.58% Morgan Stanley UIF U.S. Real Estate 22.78% N/A 1.61% Putnam VT Growth and Income N/A N/A 4.71% Putnam VT International Growth N/A N/A -11.67% Putnam VT Voyager N/A N/A -20.53% Van Kampen LIT Emerging Growth, Class I -15.98% N/A 29.99% Van Kampen LIT Emerging Growth, Class II N/A N/A N/A *Not Annualized ENHANCED EARNINGS DEATH BENEFIT PLUS OPTION (OLDEST CONRACT OWNER (OR ANNUITANT IF THE CONTRACT OWNER IS A NON-NATURAL PERSON) IS AGE 66-75) AND THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2) 10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -10.23% Capital Growth* N/A N/A -11.42% Competitive Edge "Best Ideas"* N/A N/A -23.64% Dividend Growth* N/A N/A 2.26% Equity* N/A N/A -13.96% European Growth* N/A N/A -11.76% Global Dividend Growth* N/A N/A -3.63% High Yield* N/A N/A -37.21% Income Builder* N/A N/A -5.30% Information* N/A N/A -12.35% Pacific Growth* N/A N/A -35.31% Quality Income Plus* N/A N/A 2.71% S&P 500 Index* N/A N/A -16.13% Short-Term Bond* N/A N/A -2.41% Strategist* N/A N/A -7.49% Utilities* N/A N/A -6.54% AIM V.I. Capital Appreciation N/A N/A -16.32% AIM V.I. Growth N/A N/A -27.39% AIM V.I. Value N/A N/A -28.25% Alliance Growth and Income N/A N/A 10.64% Alliance Growth N/A N/A -20.78% Alliance Premier Growth N/A N/A -19.26% Morgan Stanley UIF Emerging Markets Equity -44.55% N/A -9.60% Morgan Stanley UIF Equity Growth -17.98% N/A 4.72% Morgan Stanley UIF International Magnum -18.65% N/A -1.02% Morgan Stanley UIF Mid Cap Value N/A N/A 8.00% Morgan Stanley UIF U.S. Real Estate 22.14% N/A 1.07% Putnam VT Growth and Income N/A N/A 4.21% Putnam VT International Growth N/A N/A -12.10% Putnam VT Voyager N/A N/A -20.92% Van Kampen LIT Emerging Growth, Class I -16.43% N/A 29.31% Van Kampen LIT Emerging Growth , Class II N/A N/A N/A *Not Annualized
NON-STANDARDIZED TOTAL RETURNS From time to time, we also may quote rates of return that reflect changes in the values of each Variable Sub-Account's accumulation units. We may quote these "non-standardized total returns" on an annualized, cumulative, year-by-year, or other basis. These rates of return take into account asset-based charges, such as the mortality and expense risk charge and administration charge as well as the contract maintenance charge. However, these rates of return do not reflect, withdrawal charges or any taxes. Such charges, if reflected, would reduce the performance shown. Annualized returns reflect the rate of return that, when compounded annually, would equal the cumulative rate of return for the period shown. We compute annualized returns according to the following formula: Annualized Return = (1+r)1/n-1 where: r = cumulative rate of return for the period shown, and n = number of years in the period. The method of computing annualized rates of return is similar to that for computing standardized performance, described above, except that rather than using a hypothetical $1,000 investment and the ending redeemable value thereof, we use the changes in value of an accumulation unit. Cumulative rates of return reflect the cumulative change in value of an accumulation unit over the period shown. Year-by-year rates of return reflect the change in value of accumulation unit during the course of each year shown. We compute these returns by dividing the accumulation unit value at the end of each period shown, by accumulation unit value at the beginning of that period, and subtracting one. We compute other total returns on a similar basis. We may quote non-standardized total returns for 1, 3, 5, and 10 year periods, or period since inception of the Variable Sub-Account's operations, as well as other periods, such as "year-to-date" (prior calendar year end to the day stated in the advertisement); "year to most recent quarter" (prior calendar year end to the end of the most recent quarter); the prior calendar year; and the "n" most recent calendar years. The non-standardized average annual total returns for the Variable Sub-Accounts for the periods ended December 31, 2000 are set out below. No non-standardized total returns are shown for the Money Market Variable Sub-Account. No non-standardized total returns are shown for the Van Kampen Emerging Growth Variable Sub-Account (Class II), which will commence operations on May 17, 2001. The Variable Annuity 3 Contracts were first offered to the public on June 5, 2000. Accordingly, performance figures for Variable Sub-Accounts prior to those dates reflect the historical performance of the Variable Sub-Accounts, adjusted to reflect the current level of charges that apply to the Variable Sub-Accounts under the Variable Annuity 3 Contracts, excluding the withdrawal charge but including the contract maintenance charges. Contracts with the Enhanced Earnings Death Benefit Plus Option will first be offered to the public on June 18, 2001. The Variable Sub-Accounts were available for investment prior to that date. Accordingly, performance figures for Variable Sub-Accounts for periods prior to the availability of the Enhanced Earnings Death Benefit Plus Option reflect the historical performance of the Variable Sub-Accounts, adjusted to reflect the current charge for this feature as if it had been available throughout the periods shown, excluding the withdrawal charge but including the contract maintenance charge. The inception dates of each Variable Sub-Account appears under "Standardized Total Returns" above. BASE
10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -4.53% Capital Growth* N/A N/A -5.73% Competitive Edge "Best Ideas"* N/A N/A -18.02% Dividend Growth* N/A N/A 8.02% Equity* N/A N/A -8.28% European Growth* N/A N/A -6.07% Global Dividend Growth* N/A N/A 2.10% High Yield* N/A N/A -31.67% Income Builder* N/A N/A 0.43% Information* N/A N/A -7.08% Pacific Growth* N/A N/A -29.75% Quality Income Plus* N/A N/A 8.48% S&P 500 Index* N/A N/A -10.47% Short-Term Bond* N/A N/A 3.34% Strategist* N/A N/A -1.78% Utilities* N/A N/A -0.82% AIM V.I. Capital Appreciation N/A N/A -10.46% AIM V.I. Growth N/A N/A -21.56% AIM V.I. Value N/A N/A -22.49% Alliance Growth and Income N/A N/A 16.71% Alliance Growth N/A N/A -14.96% Alliance Premier Growth N/A N/A -13.43% Morgan Stanley UIF Emerging Markets Equity -39.73% N/A -6.94% Morgan Stanley UIF Equity Growth -12.93% N/A 7.07% Morgan Stanley UIF International Magnum -13.61% N/A 1.44% Morgan Stanley UIF Mid Cap Value N/A N/A 14.68% Morgan Stanley UIF U.S. Real Estate 27.53% N/A 3.60% Putnam VT Growth and Income N/A N/A 10.22% Putnam VT International Growth N/A N/A -6.21% Putnam VT Voyager N/A N/A -15.10% Van Kampen LIT Emerging Growth (Class I) -11.36% N/A 31.41% Van Kampen LIT Emerging Growth Class II N/A N/A N/A *Not Annualized PERFORMANCE DEATH BENEFIT 10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -4.61% Capital Growth* N/A N/A -5.81% Competitive Edge "Best Ideas"* N/A N/A -18.09% Dividend Growth* N/A N/A 7.93% Equity* N/A N/A -8.36% European Growth* N/A N/A -6.15% Global Dividend Growth* N/A N/A 2.01% High Yield* N/A N/A -31.73% Income Builder* N/A N/A 0.34% Information* N/A N/A -7.10% Pacific Growth* N/A N/A -29.81% Quality Income Plus* N/A N/A 8.39% S&P 500 Index* N/A N/A -10.55% Short-Term Bond* N/A N/A 3.25% Strategist* N/A N/A -1.86% Utilities* N/A N/A -0.91% AIM V.I. Capital Appreciation N/A N/A -10.57% AIM V.I. Growth N/A N/A -21.66% AIM V.I. Value N/A N/A -22.58% Alliance Growth and Income N/A N/A 16.57% Alliance Growth N/A N/A -15.06% Alliance Premier Growth N/A N/A -13.53% Morgan Stanley UIF Emerging Markets Equity -39.80% N/A -7.07% Morgan Stanley UIF Equity Growth -13.05% N/A 6.93% Morgan Stanley UIF International Magnum -13.72% N/A 1.31% Morgan Stanley UIF Mid Cap Value N/A N/A 14.53% Morgan Stanley UIF U.S. Real Estate 27.37% N/A 3.46% Putnam VT Growth and Income N/A N/A 10.09% Putnam VT International Growth N/A N/A -6.32% Putnam VT Voyager N/A N/A -15.20% Van Kampen LIT Emerging Growth -11.48% N/A 31.24% (Class I) Van Kampen LIT Emerging Growth (Class II) N/A N/A N/A *Not Annualized DEATH BENEFIT COMBINATION OPTION 10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -4.68% Capital Growth* N/A N/A -5.88% Competitive Edge "Best Ideas"* N/A N/A -18.15% Dividend Growth* N/A N/A 7.85% Equity* N/A N/A -8.43% European Growth* N/A N/A -6.22% Global Dividend Growth* N/A N/A 1.94% High Yield* N/A N/A -31.78% Income Builder* N/A N/A 0.27% Information* N/A N/A -7.12% Pacific Growth* N/A N/A -29.86% Quality Income Plus* N/A N/A 8.31% S&P 500 Index* N/A N/A -10.61% Short-Term Bond* N/A N/A 3.17% Strategist* N/A N/A -1.94% Utilities* N/A N/A -0.98% AIM V.I. Capital Appreciation N/A N/A -10.66% AIM V.I. Growth N/A N/A -21.75% AIM V.I. Value N/A N/A -22.66% Alliance Growth and Income N/A N/A 16.45% Alliance Growth N/A N/A -15.14% Alliance Premier Growth N/A N/A -13.62% Morgan Stanley UIF Emerging Markets Equity -39.87% N/A -7.17% Morgan Stanley UIF Equity Growth -13.14% N/A 6.81% Morgan Stanley UIF International Magnum -13.82% N/A 1.19% Morgan Stanley UIF Mid Cap Value N/A N/A 14.40% Morgan Stanley UIF U.S. Real Estate 27.22% N/A 3.35% Putnam VT Growth and Income N/A N/A 9.98% Putnam VT International Growth N/A N/A -6.42% Putnam VT Voyager N/A N/A -15.29% Van Kampen LIT Emerging Growth -11.58% N/A 31.09% (Class I) Van Kampen LIT Emerging Growth N/A N/A N/A (Class II) *Not Annualized INCOME BENEFIT COMBINATION 2 10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -4.72% Capital Growth* N/A N/A -5.92% Competitive Edge "Best Ideas"* N/A N/A -18.19% Dividend Growth* N/A N/A 7.81% Equity* N/A N/A -8.47% European Growth* N/A N/A -6.26% Global Dividend Growth* N/A N/A 1.90% High Yield* N/A N/A -31.81% Income Builder* N/A N/A 0.23% Information* N/A N/A -7.12% Pacific Growth* N/A N/A -29.89% Quality Income Plus* N/A N/A 8.26% S&P 500 Index* N/A N/A -10.65% Short-Term Bond* N/A N/A 3.13% Strategist* N/A N/A -1.98% Utilities* N/A N/A -1.02% AIM V.I. Capital Appreciation N/A N/A -10.71% AIM V.I. Growth N/A N/A -21.80% AIM V.I. Value N/A N/A -22.70% Alliance Growth and Income N/A N/A 16.38% Alliance Growth N/A N/A -15.19% Alliance Premier Growth N/A N/A -13.67% Morgan Stanley UIF Emerging Markets Equity -39.91% N/A -7.23% Morgan Stanley UIF Equity Growth -13.20% N/A 6.75% Morgan Stanley UIF International Magnum -13.87% N/A 1.13% Morgan Stanley UIF Mid Cap Value Por N/A N/A 14.33% Morgan Stanley UIF U.S. Real Estate 27.15% N/A 3.28% Putnam VT Growth and Income N/A N/A 9.92% Putnam VT International Growth N/A N/A -6.47% Putnam VT Voyager N/A N/A -15.33% Van Kampen LIT Emerging Growth -11.63% N/A 31.01% (Class I) Van Kampen LIT Emerging Growth N/A N/A N/A Class II *Not Annualized INCOME AND DEATH BENEFIT COMBINATION 2 10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -4.85% Capital Growth* N/A N/A -6.05% Competitive Edge "Best Ideas"* N/A N/A -18.30% Dividend Growth* N/A N/A 7.66% Equity* N/A N/A -8.59% European Growth* N/A N/A -6.38% Global Dividend Growth* N/A N/A 1.76% High Yield* N/A N/A -31.90% Income Builder* N/A N/A 0.09% Information* N/A N/A -7.15% Pacific Growth* N/A N/A -29.99% Quality Income Plus* N/A N/A 8.12% S&P 500 Index* N/A N/A -10.77% Short-Term Bond* N/A N/A 2.99% Strategist* N/A N/A -2.11% Utilities* N/A N/A -1.16% AIM V.I. Capital Appreciation N/A N/A -10.87% AIM V.I. Growth N/A N/A -21.96% AIM V.I. Value N/A N/A -22.85% Alliance Growth and Income N/A N/A 16.17% Alliance Growth N/A N/A -15.35% Alliance Premier Growth N/A N/A -13.83% Morgan Stanley UIF Emerging Markets Equity -40.03% N/A -7.42% Morgan Stanley UIF Equity Growth -13.37% N/A 6.53% Morgan Stanley UIF International Magnum -14.04% N/A 0.93% Morgan Stanley UIF Mid Cap Value N/A N/A 14.10% Morgan Stanley UIF U.S. Real Estate 26.89% N/A 3.07% Putnam VT Growth and Income N/A N/A 9.72% Putnam VT International Growth N/A N/A -6.64% Putnam VT Voyager N/A N/A -15.49% Van Kampen LIT Emerging Growth -11.81% N/A 30.75% (Class I) Van Kampen LIT Emerging Growth N/A N/A N/A Class II * Not Annualized ENHANCED EARNINGS DEATH BENEFIT PLUS OPTION (OLDEST CONRACT OWNER (OR ANNUITANT IF THE CONTRACT OWNER IS A NON-NATURAL PERSON) IS AGE 66-75) 10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -4.75% Capital Growth* N/A N/A -5.95% Competitive Edge "Best Ideas* N/A N/A -18.21% Dividend Growth* N/A N/A 7.77% Equity* N/A N/A -8.50% European Growth* N/A N/A -6.29% Global Dividend Growth* N/A N/A 1.86% High Yield* N/A N/A -31.83% Income Builder* N/A N/A 0.19% Information * N/A N/A -7.13% Pacific Growth* N/A N/A -29.92% Quality Income Plus* N/A N/A 8.23% S&P 500 Index* N/A N/A -10.68% Short-Term Bond* N/A N/A 3.10% Strategist* N/A N/A -2.01% Utilities* N/A N/A -1.06% AIM V.I. Capital Appreciation N/A N/A -10.75% AIM V.I. Growth N/A N/A -21.84% AIM V.I. Value N/A N/A -22.74% Alliance Growth and Income N/A N/A 16.33% Alliance Growth N/A N/A -15.23% Alliance Premier Growth N/A N/A -13.71% Morgan Stanley UIF Emerging Markets Equity -39.94% N/A -7.27% Morgan Stanley UIF Equity Growth -13.24% N/A 6.69% Morgan Stanley UIF International Magnum -13.91% N/A 1.08% Morgan Stanley UIF Mid Cap Value N/A N/A 14.27% Morgan Stanley UIF U.S. Real Estate 27.08% N/A 3.23% Putnam VT Growth and Income N/A N/A 9.87% Putnam VT International Growth N/A N/A -6.51% Putnam VT Voyager N/A N/A -15.37% Van Kampen LIT Emerging Growth -11.68% N/A 30.95% Class I Van Kampen LIT Emerging Growth N/A N/A N/A Class II *Not Annualized ENHANCED EARNINGS DEATH BENEFIT PLUS OPTION (OLDEST CONRACT OWNER (OR ANNUITANT IF THE CONTRACT OWNER IS A NON-NATURAL PERSON) IS AGE 66-75) AND THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2) 10 Years or Since One Year 5 Year Inception Aggressive Equity* N/A N/A -5.07% Capital Growth* N/A N/A -6.27% Competitive Edge "Best Ideas"* N/A N/A -18.49% Dividend Growth* N/A N/A 7.41% Equity* N/A N/A -8.81% European Growth* N/A N/A -6.60% Global Dividend Growth* N/A N/A 1.52% High Yield* N/A N/A -32.06% Income Builder* N/A N/A -0.14% Information* N/A N/A -7.20% Pacific Growth* N/A N/A -30.15% Quality Income Plus* N/A N/A 7.86% S&P 500 Index* N/A N/A -10.98% Short-Term Bond* N/A N/A 2.75% Strategist* N/A N/A -2.34% Utilities* N/A N/A -1.39% AIM V.I. Capital Appreciation N/A N/A -11.16% AIM V.I. Growth N/A N/A -22.23% AIM V.I. Value N/A N/A -23.10% Alliance Growth and Income N/A N/A 15.79% Alliance Growth N/A N/A -15.62% Alliance Premier Growth N/A N/A -14.11% Morgan Stanley UIF Emerging Markets Equity -40.24% N/A -7.75% Morgan Stanley UIF Equity Growth -13.68% N/A 6.15% Morgan Stanley UIF International Magnum -14.35% N/A 0.57% Morgan Stanley UIF Mid Cap Value N/A N/A 13.69% Morgan Stanley UIF U.S. Real Estate 26.44% N/A 2.71% Putnam VT Growth and Income N/A N/A 9.36% Putnam VT International Growth N/A N/A -6.95% Putnam VT Voyager N/A N/A -15.76% Van Kampen LIT Emerging Growth, Class I -12.12% N/A 30.28% Van Kampen LIT Emerging Growth, Class II N/A N/A N/A *Not Annualized
ADJUSTED HISTORICAL TOTAL RETURNS We may advertise the total return for periods prior to the date that the Variable Sub-Accounts commenced operations. We will calculate such "adjusted historical total returns" using the historical performance of the underlying Portfolios and adjusting such performance to reflect the current level of charges that apply to the Variable Sub-Accounts under the Contract. Where the returns included in the following tables give effect to the Enhanced Earnings Death Benefit Plus Option, the performance figures have been adjusted to reflect the current charge for the feature as if that feature had been available throughout the periods shown. The adjusted historical total returns for the Variable Sub-Accounts for the periods ended December 31, 2000 are set out below. No adjusted historical total returns are shown for the Money Market Variable Sub-Account. The following list provides the inception date for the Portfolio corresponding to each of the Variable Sub-Accounts included in the tables. Inception Date of Variable Sub-Account Corresponding Portfolio - -------------------- ----------------------- High Yield* March 9, 1984 Equity* March 9, 1984 Quality Income Plus* March 1, 1987 Strategist* March 1, 1987 Dividend Growth* March 1, 1990 Utilities* March 1, 1990 European Growth* March 1, 1990 Capital Growth* March 1, 1991 Pacific Growth* March 1, 1991 Global Dividend Growth* February 24, 1997 Income Builder* February 24, 1997 Information November 6, 2000 Equity Growth January 2, 1997 International Magnum January 2, 1997 Emerging Markets Equity January 21, 1997 Mid-Cap Value January 2, 1997 U.S. Real Estate March 4, 1997 Competitive Edge ("Best Ideas")* May 18, 1998 S&P 500 Index* May 18, 1998 Short-Term Bond* May 2, 1999 Aggressive Equity* May 1, 1999 AIM V.I. Capital Appreciation May 5, 1993 AIM V.I. Growth May 5, 1993 AIM V.I. Value May 5, 1993 Alliance Growth** September 15, 1994 Alliance Growth and Income** January 14, 1991 Alliance Premier Growth** July 14, 1999 Putnam VT Growth and Income*** February 1, 1988 Putnam VT International Growth*** January 2, 1997 Putnam VT Voyager*** February 1, 1988 Van Kampen LIT Emerging Growth (Class I) July 3, 1995 Van Kampen LIT Emerging Growth, Class II**** July 3, 1995 * The Portfolio's Class Y shares ("12b-1 class") corresponding to these Variable Sub-Accounts were first offered on June 5, 2000. For periods prior to June 5, 2000, the performance shown is based on the historical performance of the Portfolios' Class X shares ("non-12b-1 class"), adjusted to reflect the current expenses of the Portfolios' 12b-1 class. The inception dates for the Portfolios are shown above. ** The Portfolios' Class B shares (12b-1 class") corresponding to the Alliance Growth and Alliance Growth and Income Variable Sub-Accounts were first offered on June 1, 1999. For periods prior to these dates, the performance shown is based on the historical performance of the Portfolios' Class A shares ("non-12b-1 class"), adjusted to reflect the current expenses of the Portfolios' 12b-1 class. The inception dates for the Portfolios' are as shown above. *** The Portfolios' Class IB shares ("12b-1 Class") corresponding to the Putnam VT Growth and Income, International Growth, and Voyager Variable Sub-Accounts were first offered on April 6, 1998, April 30, 1998 and April 30, 1998 respectively. For periods prior to these dates, the performance shown is based on the historical performance of the Portfolios' Class 1A shares ("non 12b-1 class"), adjusted to reflect the current expenses of the Portfolios' 12b-1 class. The inception dates for the Portfolios are as shown above. ****The Van Kampen Emerging Growth Fund (Class II) shares corresponding to this Variable Sub-Account will be first offered on May 17, 2001. For periods prior to that date, the performance shown is based on the historical performance of the Fund's Class I shares (the non-12b-1 class). The inception date for the Fund is shown above. BASE
10 Years or Since One Year 5 Year Inception* Aggressive Equity* -7.50% N/A 20.24% Capital Growth* -4.53% 15.69% 12.24% Competitive Edge "Best Ideas"* -22.96% N/A -2.08% Dividend Growth* -0.56% 11.02% 12.73% Equity* -17.94% 20.98% 20.20% European Growth* -10.65% 16.24% 15.29% Global Dividend Growth* -8.26% 8.82% 9.31% High Yield* -37.53% -6.51% 5.99% Income Builder* -5.64% N/A 5.74% Information* N/A N/A -12.24%** Pacific Growth* -38.66% -10.34% -7.81% Quality Income Plus* 5.08% 3.64% 6.66% S&P 500 Index* -14.98% N/A 4.95% Short-Term Bond* -0.08% N/A 0.32% Strategist* -4.16% 12.75% 11.47% Utilities* -2.74% 12.89% 12.25% AIM V.I. Capital Appreciation -16.41% 13.66% 15.76% AIM V.I. Growth -25.87% 14.86% 14.54% AIM V.I. Value -28.79% 11.59% 14.09% Alliance Growth and Income* 7.61% 17.71% 13.69% Alliance Growth* -23.28% 17.07% 19.71% Alliance Premier Growth* -22.20% N/A -8.43% Morgan Stanley UIF Emerging Markets Equity -44.03% N/A -5.04% Morgan Stanley UIF Equity Growth -17.24% N/A 16.10% Morgan Stanley UIF International Magnum -17.91% N/A 4.10% Morgan Stanley UIF Mid Cap Value 4.96% N/A 18.61% Morgan Stanley UIF U.S. Real Estate 23.23% N/A 5.01% Putnam VT Growth and Income* 2.17% 11.97% 12.92% Putnam VT International Growth* -15.09% N/A 16.62% Putnam VT Voyager* -21.96% 16.65% 18.56% Van Kampen LIT Emerging Growth Class II -15.73% 26.90% 27.70%
+Please refer to the table at the beginning of this section for the inception dates of the Portfolios. *The performance shown for the Portfolios' 12b-1 class is based on the performance of the non 12b-1 class, as described in the table at the beginning of this section. **Not Annualized PERFORMANCE DEATH BENEFIT
10 Years or Since One Year 5 Year Inception* Aggressive Equity* -7.63% N/A 20.08% Capital Growth* -4.66% 15.54% 12.09% Competitive Edge "Best Ideas"* -23.07% N/A -2.22% Dividend Growth* -0.70% 10.87% 12.58% Equity* -18.05% 20.82% 20.04% European Growth* -10.77% 16.08% 15.14% Global Dividend Growth* -8.39% 8.68% 9.17% High Yield* -37.62% -6.64% 5.85% Income Builder* -5.77% N/A 5.60% Information* N/A N/A -12.26%** Pacific Growth* -38.75% -10.46% -7.94% Quality Income Plus* 4.94% 3.50% 6.52% S&P 500 Index* -15.10% N/A 4.80% Short-Term Bond* -0.22% N/A 0.18% Strategist* -4.30% 12.60% 11.33% Utilities* -2.87% 12.74% 12.10% AIM V.I. Capital Appreciation -16.53% 13.51% 15.61% AIM V.I. Growth -25.97% 14.71% 14.39% AIM V.I. Value -28.89% 11.44% 13.93% Alliance Growth and Income* 7.46% 17.55% 13.54% Alliance Growth* -23.39% 16.91% 19.56% Alliance Premier Growth* -22.31% N/A -8.55% Morgan Stanley UIF Emerging Markets Equity -44.11% N/A -5.17% Morgan Stanley UIF Equity Growth -17.35% N/A 15.94% Morgan Stanley UIF International Magnum -18.02% N/A 3.96% Morgan Stanley UIF Mid Cap Value 4.81% N/A 18.45% Morgan Stanley UIF U.S. Real Estate 23.06% N/A 4.87% Putnam VT Growth and Income* 2.03% 11.82% 12.77% Putnam VT International Growth* -15.20% N/A 16.46% Putnam VT Voyager* -22.07% 16.50% 18.41% Van Kampen LIT Emerging Growth -15.85% 26.73% 27.54% Class II
+Please refer to the table at the beginning of this section for the inception dates of the Portfolios. *The performance shown for the Portfolios' 12b-1 class is based on the performance of the non 12b-1 class, as described in the table at the beginning of this section. **Not Annualized DEATH BENEFIT COMBINATION OPTION
10 Years or Since One Year 5 Year Inception* Aggressive Equity* -7.74% N/A 19.94% Capital Growth* -4.77% 15.41% 11.97% Competitive Edge "Best Ideas"* -23.16% N/A -2.33% Dividend Growth* -0.81% 10.74% 12.46% Equity* -18.15% 20.69% 19.91% European Growth* -10.88% 15.95% 15.01% Global Dividend Growth* -8.49% 8.55% 9.05% High Yield* -37.69% -6.74% 5.73% Income Builder* -5.88% N/A 5.48% Information* N/A N/A -12.27** Pacific Growth* -38.82% -10.56% -8.04% Quality Income Plus* 4.82% 3.38% 6.40% S&P 500 Index* -15.19% N/A 4.68% Short-Term Bond* -0.33% N/A 0.07% Strategist* -4.41% 12.47% 11.20% Utilities* -2.98% 12.62% 11.98% AIM V.I. Capital Appreciation -16.62% 13.38% 15.48% AIM V.I. Growth -26.06% 14.58% 14.26% AIM V.I. Value -28.97% 11.32% 13.81% Alliance Growth and Income* 7.34% 17.42% 13.42% Alliance Growth* -23.48% 16.78% 19.42% Alliance Premier Growth* -22.40% N/A -8.66% Morgan Stanley UIF Emerging Markets Equity -44.18% N/A -5.28% Morgan Stanley UIF Equity Growth -17.45% N/A 15.81% Morgan Stanley UIF International Magnum -18.12% N/A 3.84% Morgan Stanley UIF Mid Cap Value 4.69% N/A 18.31% Morgan Stanley UIF U.S. Real Estate 22.92% N/A 4.75% Putnam VT Growth and Income* 1.91% 11.69% 12.65% Putnam VT International Growth* -15.30% N/A 16.33% Putnam VT Voyager* -22.16% 16.37% 18.27% Van Kampen LIT Emerging Growth, Class II -15.94% 26.59% 27.39%
+Please refer to the table at the beginning of this section for the inception dates of the Portfolios. *The performance shown for the Portfolios' 12b-1 class is based on the performance of the non 12b-1 class, as described in the table at the beginning of this section. **Not Annualized INCOME BENEFIT COMBINATION 2
10 Years or Since One Year 5 Year Inception* Aggressive Equity* -7.80% N/A 19.87% Capital Growth* -4.83% 15.34% 11.90% Competitive Edge "Best Ideas"* -23.21% N/A -2.39% Dividend Growth* -0.87% 10.68% 12.39% Equity* -18.20% 20.61% 19.84% European Growth* -10.93% 15.88% 14.94% Global Dividend Growth* -8.55% 8.49% 8.98% High Yield* -37.73% -6.80% 5.66% Income Builder* -5.94% N/A 5.41% Information* N/A N/A -12.28%** Pacific Growth* -38.86% -10.62% -8.10% Quality Income Plus* 4.75% 3.32% 6.33% S&P 500 Index* -15.25% N/A 4.62% Short-Term Bon* -0.40% N/A 0.00% Strategist* -4.47% 12.40% 11.13% Utilities* -3.04% 12.55% 11.91% AIM V.I. Capital Appreciation -16.68% 13.31% 15.41% AIM V.I. Growth -26.10% 14.51% 14.19% AIM V.I. Value -29.02% 11.25% 13.74% Alliance Growth and Income* 7.27% 17.35% 13.35% Alliance Growth* -23.53% 16.71% 19.35% Alliance Premier Growth* -22.45% N/A -8.72% Morgan Stanley UIF Emerging Markets Equity -44.21% N/A -5.34% Morgan Stanley UIF Equity Growth -17.50% N/A 15.74% Morgan Stanley UIF International Magnum -18.17% N/A 3.77% Morgan Stanley UIF Mid Cap Value 4.63% N/A 18.24% Morgan Stanley UIF U.S. Real Estate 22.84% N/A 4.68% Putnam VT Growth and Income* 1.85% 11.62% 12.58% Putnam VT International Growth* -15.36% N/A 16.26% Putnam VT Voyager* -22.21% 16.29% 18.20% Van Kampen LIT Emerging Growth Class II -16.00% 26.51% 27.31%
+Please refer to the table at the beginning of this section for the inception dates of the Portfolios. *The performance shown for the Portfolios' 12b-1 class is based on the performance of the non 12b-1 class, as described in the table at the beginning of this section. **Not Annualized INCOME AND DEATH COMBINATION 2
10 Years or Since One Year 5 Year Inception* Aggressive Equity* -7.99% N/A 19.61% Capital Growth* -5.03% 15.10% 11.67% Competitive Edge "Best Ideas"* -23.37% N/A -2.60% Dividend Growth* -1.08% 10.45% 12.16% Equity* -18.37% 20.37% 19.59% European Growth* -11.12% 15.64% 14.71% Global Dividend Growt* -8.74% 8.26% 8.76% High Yield* -37.87% -7.00% 5.45% Income Builder* -6.14% N/A 5.19% Information* N/A N/A -12.31%** Pacific Growth* -38.99% -10.81% -8.28% Quality Income Plus* 4.53% 3.10% 6.12% S&P 500 Index* -15.43% N/A 4.39% Short-Term Bond* -0.61% N/A -0.21% Strategist* -4.67% 12.17% 10.91% Utilities* -3.25% 12.32% 11.68% AIM V.I. Capital Appreciation -16.85% 13.08% 15.18% AIM V.I. Growth -26.26% 14.27% 13.96% AIM V.I. Value -29.17% 11.02% 13.51% Alliance Growth and Income* 7.04% 17.11% 13.12% Alliance Growth* -23.69% 16.47% 19.11% Alliance Premier Growth* -22.62% N/A -8.91% Morgan Stanley UIF Emerging Markets Equity -44.33% N/A -5.54% Morgan Stanley UIF Equity Growth -17.68% N/A 15.50% Morgan Stanley UIF International Magnum -18.35% N/A 3.55% Morgan Stanley UIF Mid Cap Value 4.41% N/A 18.00% Morgan Stanley UIF U.S. Real Estate 22.59% N/A 4.46% Putnam VT Growth and Income* 1.63% 11.39% 12.35% Putnam VT International Growth* -15.54% N/A 16.02% Putnam VT Voyager* -22.38% 16.06% 17.96% Van Kampen LIT Emerging Growth, Class II -16.18% 26.25% 27.05%
+Please refer to the table at the beginning of this section for the inception dates of the Portfolios. *The performance shown for the Portfolios' 12b-1 class is based on the performance of the non 12b-1 class, as described in the table at the beginning of this section. **Not Annualized ENHANCED EARNINGS DEATH BENEFIT PLUS OPTION (OLDEST CONRACT OWNER (OR ANNUITANT IF THE CONTRACT OWNER IS A NON-NATURAL PERSON) IS AGE 66-75)
10 Years or Since One Year 5 Year Inception* Aggressive Equity* -7.85% N/A 19.80% Capital Growth* -4.88% 15.28% 11.84% Competitive Edge "Best Ideas"* -23.25% N/A -2.45% Dividend Growth* -0.93% 10.62% 12.33% Equity* -18.24% 20.55% 19.78% European Growth* -10.98% 15.82% 14.88% Global Dividend Growth* -8.60% 8.43% 8.93% High Yield* -37.76% -6.85% 5.61% Income Builder* -5.99% N/A 5.36% Information* N/A N/A -12.29%** Pacific Growth* -38.89% -10.67% -8.14% Quality Income Plus* 4.69% 3.26% 6.28% S&P 500 Index* -15.29% N/A 4.56% Short-Term Bond* -0.45% N/A -0.05% Strategist* -4.52% 12.34% 11.08% Utilities* -3.09% 12.49% 11.85% AIM V.I. Capital Appreciation -16.72% 13.25% 15.35% AIM V.I. Growth -26.14% 14.45% 14.13% AIM V.I. Value -29.05% 11.19% 13.68% Alliance Growth and Income* 7.21% 17.29% 13.29% Alliance Growth* -23.57% 16.65% 19.29% Alliance Premier Growth* -22.50% N/A -8.77% Morgan Stanley UIF Emerging Markets Equity -44.24% N/A -5.39% Morgan Stanley UIF Equity Growth -17.54% N/A 15.68% Morgan Stanley UIF International Magnum -18.22% N/A 3.72% Morgan Stanley UIF Mid Cap Value 4.57% N/A 18.18% Morgan Stanley UIF U.S. Real Estate 22.78% N/A 4.63% Putnam VT Growth and Income* 1.80% 11.57% 12.52% Putnam VT International Grow* -15.40% N/A 16.20% Putnam VT Voyager* -22.25% 16.23% 18.14% Van Kampen LIT Emerging Growth, Class II -16.04% 26.45% 27.25%
+Please refer to the table at the beginning of this section for the inception dates of the Portfolios. *The performance shown for the Portfolios' 12b-1 class is based on the performance of the non 12b-1 class, as described in the table at the beginning of this section. **Not Annualized ENHANCED EARNINGS DEATH BENEFIT PLUS OPTION (OLDEST CONRACT OWNER (OR ANNUITANT IF THE CONTRACT OWNER IS A NON-NATURAL PERSON) IS AGE 66-75) AND THE INCOME AND DEATH BENEFIT COMBINATION OPTION 2)
10 Years or Since One Year 5 Year Inception* Aggressive Equity* -8.33% N/A 19.17% Capital Growth* -5.38% 14.69% 11.27% Competitive Edge "Best Ideas"* -23.66% N/A -2.96% Dividend Growth* -1.45% 10.05% 11.76% Equity* -18.68% 19.94% 19.17% European Growth* -11.45% 15.23% 14.30% Global Dividend Growth* -9.08% 7.87% 8.37% High Yield* -38.10% -7.34% 5.07% Income Builder* -6.49% N/A 4.80% Information* N/A N/A -12.35%** Pacific Growth* -39.22% -11.14% -8.61% Quality Income Plus* 4.14% 2.73% 5.74% S&P 500 Index* -15.74% N/A 4.01% Short-Term Bond* -0.97% N/A -0.58% Strategist* -5.02% 11.76% 10.51% Utilities* -3.61% 11.91% 11.28% AIM V.I. Capital Appreciation -17.16% 12.67% 14.77% AIM V.I. Growth -26.54% 13.86% 13.55% AIM V.I. Value -29.44% 10.62% 13.10% Alliance Growth and Income* 6.65% 16.69% 12.71% Alliance Growth* -23.98% 16.05% 18.68% Alliance Premier Growt* -22.91% N/A -9.26% Morgan Stanley UIF Emerging Markets Equity -44.55% N/A -5.89% Morgan Stanley UIF Equity Growth -17.98% N/A 15.08% Morgan Stanley UIF International Magnum -18.65% N/A 3.17% Morgan Stanley UIF Mid Cap Value 4.02% N/A 17.57% Morgan Stanley UIF U.S. Real Estate 22.14% N/A 4.08% Putnam VT Growth and Income* 1.26% 10.99% 11.95% Putnam VT International Growth* -15.85% N/A 15.60% Putnam VT Voyager* -22.67% 15.64% 17.54% Van Kampen LIT Emerging Growth, Class II -16.49% 25.80% 26.60%
+Please refer to the table at the beginning of this section for the inception dates of the Portfolios. *The performance shown for the Portfolios' 12b-1 class is based on the performance of the non 12b-1 class, as described in the table at the beginning of this section. **Not Annualized CALCULATION OF ACCUMULATION UNIT VALUES The value of Accumulation Units will change each Valuation Period according to the investment performance of the Portfolio shares purchased by each Variable Sub-Account and the deduction of certain expenses and charges. A "Valuation Period" is the period from the end of one Valuation Date and continues to the end of the next Valuation Date. A Valuation Date ends at the close of regular trading on the New York Stock Exchange (currently 3:00 p.m. Central Time). The Accumulation Unit Value of a Variable Sub-Account for any Valuation Period equals the Accumulation Unit Value as of the immediately preceding Valuation Period, multiplied by the Net Investment Factor (described below) for that Variable Sub-Account for the current Valuation Period. NET INVESTMENT FACTOR The Net Investment Factor for a Valuation Period is a number representing the change, since the last Valuation Period, in the value of Variable Sub-Account assets per Accumulation Unit due to investment income, realized or unrealized capital gain or loss, deductions for taxes, if any, and deductions for the mortality and expense risk charge and administrative expense charge. We determine the Net Investment Factor for each Variable Sub-Account for any Valuation Period by dividing (A) by (B) and subtracting (C) from the result, where: (A) is the sum of: (1) the net asset value per share of the Portfolio underlying the Variable Sub-Account determined at the end of the current Valuation Period; plus, (2) the per share amount of any dividend or capital gain distributions made by the Portfolio underlying the Variable Sub-Account during the current Valuation Period; (B) is the net asset value per share of the Portfolio underlying the Variable Sub-Account determined as of the end of the immediately preceding Valuation Period; and (C) is the annualized mortality and expense risk and administrative expense charges divided by the number of days in the current calendar year and then multiplied by the number of calendar days in the current Valuation Period. CALCULATION OF VARIABLE AMOUNT INCOME PAYMENTS We calculate the amount of the first variable income payment under an Income Plan by applying the Contract Value allocated to each Variable Sub-Account less any applicable premium tax charge deducted at the time, to the income payment tables in the Contract. We divide the amount of the first variable annuity income payment by the Variable Sub-Account's then current Annuity Unit value to determine the number of annuity units ("Annuity Units") upon which later income payments will be based. To determine income payments after the first, we simply multiply the number of Annuity Units determined in this manner for each Variable Sub-Account by the then current Annuity Unit value ("Annuity Unit Value") for that Variable Sub-Account. CALCULATION OF ANNUITY UNIT VALUES Annuity Units in each Variable Sub-Account are valued separately and Annuity Unit Values will depend upon the investment experience of the particular Portfolio in which the Variable Sub-Account invests. We calculate the Annuity Unit Value for each Variable Sub-Account at the end of any Valuation Period by: o multiplying the Annuity Unit Value at the end of the immediately preceding Valuation Period by the Variable Sub-Account's Net Investment Factor (described in the preceding section) for the Period; and then o dividing the product by the sum of 1.0 plus the assumed investment rate for the Valuation Period. The assumed investment rate adjusts for the interest rate assumed in the income payment tables used to determine the dollar amount of the first variable income payment, and is at an effective annual rate which is disclosed in the Contract. We determine the amount of the first variable income payment paid under an Income Plan using the income payment tables set out in the Contracts. The Contracts include tables that differentiate on the basis of sex, except in states that require the use of unisex tables. GENERAL MATTERS INCONTESTABILITY We will not contest the Contract after we issue it. SETTLEMENTS The Contract must be returned to us prior to any settlement. We must receive due proof of the Contract owner(s) death (or Annuitant's death if there is a non-natural Contract owner) before we will settle a death claim. SAFEKEEPING OF THE VARIABLE ACCOUNT'S ASSETS We hold title to the assets of the Variable Account. We keep the assets physically segregated and separate and apart from our general corporate assets. We maintain records of all purchases and redemptions of the Portfolio shares held by each of the Variable Sub-Accounts. The Portfolios do not issue stock certificates. Therefore, we hold the Variable Account's assets in open account in lieu of stock certificates. See the Portfolios' prospectuses for a more complete description of the custodian of the Portfolios. PREMIUM TAXES Applicable premium tax rates depend on the Contract owner's state of residency and the insurance laws and our status in those states where premium taxes are incurred. Premium tax rates may be changed by legislation, administrative interpretations, or judicial acts. TAX RESERVES We do not establish capital gains tax reserves for any Variable Sub-Account nor do we deduct charges for tax reserves because we believe that capital gains attributable to the Variable Account will not be taxable. However, we reserve the right to deduct charges to establish tax reserves for potential taxes on realized or unrealized capital gains. FEDERAL TAX MATTERS THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. WE MAKE NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION INVOLVING A CONTRACT. Federal, state, local and other tax consequences of ownership or receipt of distributions under an annuity contract depend on the individual circumstances of each person. If you are concerned about any tax consequences with regard to your individual circumstances, you should consult a competent tax adviser. TAXATION OF NORTHBROOK LIFE INSURANCE COMPANY Northbrook is taxed as a life insurance company under Part I of Subchapter L of the Internal Revenue Code. Since the Variable Account is not an entity separate from Northbrook, and its operations form a part of Northbrook, it will not be taxed separately as a "Regulated Investment Company" under Subchapter M of the Code. Investment income and realized capital gains of the Variable Account are automatically applied to increase reserves under the contract. Under existing federal income tax law, Northbrook believes that the Variable Account investment income and capital gains will not be taxed to the extent that such income and gains are applied to increase the reserves under the contract. Accordingly, Northbrook does not anticipate that it will incur any federal income tax liability attributable to the Variable Account, and therefore Northbrook does not intend to make provisions for any such taxes. If Northbrook is taxed on investment income or capital gains of the Variable Account, then Northbrook may impose a charge against the Variable Account in order to make provision for such taxes. EXCEPTIONS TO THE NON-NATURAL OWNER RULE There are several exceptions to the general rule that annuity contracts held by a non-natural owner are not treated as annuity contracts for federal income tax purposes. Contracts will generally be treated as held by a natural person if the nominal owner is a trust or other entity which holds the Contract as agent for a natural person. However, this special exception will not apply in the case of an employer who is the nominal owner of an annuity contract under a non-qualified deferred compensation arrangement for its employees. Other exceptions to the non-natural owner rule are: (1) contracts acquired by an estate of a decedent by reason of the death of the decedent; (2) certain qualified contracts; (3) contracts purchased by employers upon the termination of certain qualified plans; (4) certain contracts used in connection with structured settlement agreements, and (5) contracts purchased with a single premium when the annuity starting date is no later than a year from purchase of the annuity and substantially equal periodic payments are made, not less frequently than annually, during the annuity period. IRS REQUIRED DISTRIBUTION AT DEATH RULES In order to be considered an annuity contract for federal income tax purposes, an annuity contract must provide: (1) if any owner dies on or after the annuity start date but before the entire interest in the contract has been distributed, the remaining portion of such interest must be distributed at least as rapidly as under the method of distribution being used as of the date of the owner's death; (2) if any owner dies prior to the annuity start date, the entire interest in the contract will be distributed within five years after the date of the owner's death. These requirements are satisfied if any portion of the owner's interest which is payable to (or for the benefit of) a designated beneficiary is distributed over the life of such beneficiary (or over a period not extending beyond the life expectancy of the beneficiary) and the distributions begin within one year of the owner's death. If the owner's designated beneficiary is the surviving spouse of the owner, the contract may be continued with the surviving spouse as the new owner. If the owner of the contract is a non-natural person, then the annuitant will be treated as the owner for purposes of applying the distribution at death rules. In addition, a change in the annuitant on a contract owned by a non-natural person will be treated as the death of the owner. QUALIFIED PLANS The Contract may be used with several types of qualified plans. Northbrook reserves the right to limit the availability of the contract for use with any of the qualified plans listed below. The tax rules applicable to participants in such qualified plans vary according to the type of plan and the terms and conditions of the plan itself. Adverse tax consequences may result from excess contributions, premature distributions, distributions that do not conform to specified commencement and minimum distribution rules, excess distributions and in other circumstances. Contract owners and participants under the plan and annuitants and beneficiaries under the Contract may be subject to the terms and conditions of the plan regardless of the terms of the Contract. IRAs Section 408 of the Code permits eligible individuals to contribute to an individual retirement program known as an IRA. IRAs are subject to limitations on the amount that can be contributed and on the time when distributions may commence. Certain distributions from other types of qualified plans may be "rolled over" on a tax-deferred basis into an IRA. An IRA generally may not provide life insurance, but it may provide a death benefit that equals the greater of the premiums paid and the Contract's Cash Value. The Contract provides a death benefit that in certain circumstances may exceed the greater of the payments and the Contract Value. It is possible that the death benefit could be viewed as violating the prohibition on investment in life insurance contracts with the result that the Contract would not be viewed as satisfying the requirements of an IRA. ROTH IRAs Section 408A of the Code permits eligible individuals to make nondeductible contributions to an individual retirement program known as a Roth IRA. Roth IRAs are subject to limitations on the amount that can be contributed and on the time when distributions may commence. "Qualified distributions" from Roth IRAs are not includible in gross income. "Qualified distributions" are any distributions made more than five taxable years after the taxable year of the first contribution to the Roth IRA, and which are made on or after the date the individual attains age 59 1/2, made to a beneficiary after the owner's death, attributable to the owner being disabled or for a first time home purchase (first time home purchases are subject to a lifetime limit of $10,000). "Nonqualified distributions" are treated as made from contributions first and are includible in gross income to the extent such distributions exceed the contributions made to the Roth IRA. The taxable portion of a "nonqualified distribution" may be subject to the 10% penalty tax on premature distributions. Subject to certain limitations, a traditional Individual Retirement Account or Annuity may be converted or "rolled over" to a Roth IRA. The taxable portion of a conversion or rollover distribution is includible in gross income, but is exempted from the 10% penalty tax on premature distributions. SIMPLIFIED EMPLOYEE PENSION PLANS Section 408(k) of the Code allows employers to establish simplified employee pension plans for their employees using the employees' IRAs if certain criteria are met. Under these plans the employer may, within specified limits, make deductible contributions on behalf of the employees to their individual retirement annuities. Employers intending to use the Contract in connection with such plans should seek competent advice. In particular, employers should consider that an IRA generally may not provide life insurance, but it may provide a death benefit that equals the greater of the premiums paid and the contract's cash value. The Contract provides a death benefit that in certain circumstances may exceed the greater of the payments and the Contract Value. SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE PLANS) Sections 408(p) and 401(k) of the Code allow employers with 100 or fewer employees to establish SIMPLE retirement plans for their employees. SIMPLE plans may be structured as a SIMPLE retirement account using an employee's IRA to hold the assets or as a Section 401(k) qualified cash or deferred arrangement. In general, a SIMPLE plan consists of a salary deferral program for eligible employees and matching or nonelective contributions made by employers. Employers intending to use the Contract in conjunction with SIMPLE plans should seek competent tax and legal advice. TAX SHELTERED ANNUITIES Section 403(b) of the Code permits public school employees and employees of certain types of tax-exempt organizations (specified in Section 501(c)(3) of the Code) to have their employers purchase annuity contracts for them, and subject to certain limitations, to exclude the purchase payments from the employees' gross income. An annuity contract used for a Section 403(b) plan must provide that distributions attributable to salary reduction contributions made after 12/31/88, and all earnings on salary reduction contributions, may be made only on or after the date the employee attains age 59 1/2, separates from service, dies, becomes disabled or on the account of hardship (earnings on salary reduction contributions may not be distributed for hardship). These limitations do not apply to withdrawals where Northbrook is directed to transfer some or all of the Contract Value to another 403(b) plan. CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS Sections 401(a) and 403(a) of the Code permit corporate employers to establish various types of tax favored retirement plans for employees. The Self-Employed Individuals Retirement Act of 1962, as amended, (commonly referred to as "H.R. 10" or "Keogh") permits self-employed individuals to establish tax favored retirement plans for themselves and their employees. Such retirement plans may permit the purchase of annuity contracts in order to provide benefits under the plans. STATE AND LOCAL GOVERNMENT AND TAX-EXEMPT ORGANIZATION DEFERRED COMPENSATION PLANS Section 457 of the Code permits employees of state and local governments and tax-exempt organizations to defer a portion of their compensation without paying current taxes. The employees must be participants in an eligible deferred compensation plan. To the extent the Contracts are used in connection with an eligible plan, employees are considered general creditors of the employer and the employer as owner of the contract has the sole right to the proceeds of the contract. Generally, under the non-natural owner rules, such Contracts are not treated as annuity contracts for federal income tax purposes. Under these plans, contributions made for the benefit of the employees will not be includible in the employees' gross income until distributed from the plan. However, under a Section 457 plan all the compensation deferred under the plan must remain solely the property of the employer, subject only to the claims of the employer's general creditors, until such time as made available to the employee or a beneficiary. EXPERTS - -------------------------------------------------------------------------------- The financial statements of Northbrook as of December 31, 2000 and 1999 and for each of the three years in the period ended December 31, 2000 and the related financial statement schedule that appear in this Statement of Additional Information have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing herein, and are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The financial statements of the Variable Account as of December 31, 2000 and for the periods in the two years then ended that appear in this Statement of Additional Information have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing herein, and are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. - ----------------------------------------------------------------------------- FINANCIAL STATEMENTS The financial statements of the Variable Account as of December 31, 2000 and for each of the periods in the two years then ended, the financial statements of the Northbrook as of December 31, 2000 and 1999 and for each of the three years in the period ended December 31, 2000 and related financial statement schedule and the accompanying Independent Auditors' Reports appear in the pages that follow. The financial statements and schedule of Northbrook included herein should be considered only as bearing upon the ability of Northbrook to meet its obligations under the Contracts. Financial Statements Index ----- Page ---- Independent Auditors' Report............................................... F-1 Financial Statements: Statements of Operations and Comprehensive Income for the Years Ended December 31, 2000, 1999 and 1998..................................... F-2 Statements of Financial Position December 31, 2000 and 1999........................................... F-3 Statements of Shareholder's Equity for the Years Ended December 31, 2000, 1999 and 1998..................................... F-4 Statements of Cash Flows for the Years Ended December 31, 2000, 1999 and 1998..................................... F-5 Notes to Financial Statements......................................... F-6 Schedule IV - Reinsurance for the Years Ended December 31, 2000, 1999 and 1998..................................... F-18 INDEPENDENT AUDITORS' REPORT To the Board of Directors and Shareholder of Northbrook Life Insurance Company: - -------------------------------------------------------------------------------- We have audited the accompanying Statements of Financial Position of Northbrook Life Insurance Company (the "Company", an affiliate of The Allstate Corporation) as of December 31, 2000 and 1999, and the related Statements of Operations and Comprehensive Income, Shareholder's Equity and Cash Flows for each of the three years in the period ended December 31, 2000. Our audits also included Schedule IV--Reinsurance. These financial statements and financial statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and financial statement schedule based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2000 and 1999, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2000 in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, Schedule IV--Reinsurance, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein. /s/ Deloitte & Touche LLP Chicago, Illinois February 23, 2001 F-1 NORTHBROOK LIFE INSURANCE COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31, ------------------------------ 2000 1999 1998 -------- -------- -------- ($ IN THOUSANDS) REVENUES Net investment income..................................... $6,802 $6,010 $5,691 Realized capital gains and losses......................... (230) 510 2 ------ ------ ------ INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE............ 6,572 6,520 5,693 INCOME TAX EXPENSE.......................................... 2,293 2,264 1,995 ------ ------ ------ NET INCOME.................................................. 4,279 4,256 3,698 ------ ------ ------ OTHER COMPREHENSIVE INCOME (LOSS), AFTER-TAX Change in unrealized net capital gains and losses......... 2,663 (4,802) 825 ------ ------ ------ COMPREHENSIVE INCOME (LOSS)................................. $6,942 $ (546) $4,523 ====== ====== ======
See notes to financial statements. F-2 NORTHBROOK LIFE INSURANCE COMPANY STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, ---------------------------- 2000 1999 ------------ ------------- ($ IN THOUSANDS, EXCEPT PAR VALUE DATA) ASSETS Investments Fixed income securities, at fair value (amortized cost $91,141 and $89,205)..................................... $ 93,030 $ 86,998 Short-term................................................ 3,859 3,170 ---------- ----------- Total investments......................................... 96,889 90,168 Cash........................................................ -- 21 Reinsurance recoverable from Allstate Life Insurance Company................................................... 1,975,150 2,022,502 Other assets................................................ 4,817 5,997 Separate Accounts........................................... 7,614,673 8,211,996 ---------- ----------- TOTAL ASSETS.......................................... $9,691,529 $10,330,684 ========== =========== LIABILITIES Reserve for life-contingent contract benefits............... $ 149,111 $ 150,587 Contractholder funds........................................ 1,826,062 1,871,933 Current income taxes payable................................ 2,078 2,171 Deferred income taxes....................................... 2,279 746 Payable to affiliates, net.................................. 7,123 5,990 Separate Accounts........................................... 7,614,673 8,211,996 ---------- ----------- TOTAL LIABILITIES..................................... 9,601,326 10,243,423 ---------- ----------- COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 8) SHAREHOLDER'S EQUITY Common stock, $100 par value, 25,000 shares authorized, issued and outstanding.................................... 2,500 2,500 Additional capital paid-in.................................. 56,600 56,600 Retained income............................................. 29,875 29,596 Accumulated other comprehensive income (loss): Unrealized net capital gains and losses................... 1,228 (1,435) ---------- ----------- Total accumulated other comprehensive income (loss)... 1,228 (1,435) ---------- ----------- TOTAL SHAREHOLDER'S EQUITY............................ 90,203 87,261 ---------- ----------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY............ $9,691,529 $10,330,684 ========== ===========
See notes to financial statements. F-3 NORTHBROOK LIFE INSURANCE COMPANY STATEMENTS OF SHAREHOLDER'S EQUITY
DECEMBER 31, ------------------------------ 2000 1999 1998 -------- -------- -------- ($ IN THOUSANDS) COMMON STOCK................................................ $ 2,500 $ 2,500 $ 2,500 ------- ------- ------- ADDITIONAL CAPITAL PAID-IN.................................. 56,600 56,600 56,600 ------- ------- ------- RETAINED INCOME Balance, beginning of year.................................. 29,596 25,340 21,642 Net income.................................................. 4,279 4,256 3,698 Dividends................................................... (4,000) -- -- ------- ------- ------- Balance, end of year........................................ 29,875 29,596 25,340 ------- ------- ------- ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Balance, beginning of year.................................. (1,435) 3,367 2,542 Change in unrealized net capital gains and losses........... 2,663 (4,802) 825 ------- ------- ------- Balance, end of year........................................ 1,228 (1,435) 3,367 ------- ------- ------- Total Shareholder's Equity.............................. $90,203 $87,261 $87,807 ======= ======= =======
See notes to financial statements. F-4 NORTHBROOK LIFE INSURANCE COMPANY STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, ------------------------------ 2000 1999 1998 -------- -------- -------- ($ IN THOUSANDS) CASH FLOWS FROM OPERATING ACTIVITIES Net income.................................................. $ 4,279 $ 4,256 $ 3,698 Adjustments to reconcile net income to net cash provided by operating activities Amortization and other non-cash items................... 295 559 518 Realized capital gains and losses....................... 230 (510) (2) Changes in: Life-contingent contract benefits and contractholder funds................................................ 5 (68) 273 Income taxes payable.................................. 7 355 1,866 Other operating assets and liabilities................ 1,563 924 4,126 -------- -------- -------- Net cash provided by operating activities............... 6,379 5,516 10,479 -------- -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Fixed income securities Proceeds from sales....................................... 6,780 17,992 1,922 Investment collections.................................... 2,933 6,555 10,253 Investment purchases...................................... (11,561) (32,050) (20,690) Change in short-term investments, net..................... (552) 2,008 (1,964) -------- -------- -------- Net cash used in investing activities................... (2,400) (5,495) (10,479) -------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid.............................................. (4,000) -- -- -------- -------- -------- Net cash used in financing activities................... (4,000) -- -- -------- -------- -------- NET INCREASE (DECREASE) IN CASH............................. (21) 21 -- CASH AT THE BEGINNING OF YEAR............................... 21 -- -- -------- -------- -------- CASH AT END OF YEAR......................................... $ -- $ 21 $ -- ======== ======== ========
See notes to financial statements. F-5 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS ($ IN THOUSANDS) - ------------------------------------------------------------------- 1. GENERAL BASIS OF PRESENTATION The accompanying financial statements include the accounts of Northbrook Life Insurance Company (the "Company"), a wholly owned subsidiary of Allstate Life Insurance Company ("ALIC"), which is wholly owned by Allstate Insurance Company ("AIC"), a wholly owned subsidiary of The Allstate Corporation (the "Corporation"). These financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. NATURE OF OPERATIONS The Company markets investment and life insurance products exclusively through Dean Witter Reynolds, Inc. ("Dean Witter") (see Note 4), a wholly owned subsidiary of Morgan Stanley Dean Witter & Co. Investment products include deferred annuities and immediate annuities without life contingencies. Deferred annuities include fixed rate, market value adjusted, and variable annuities. Life insurance products consist of interest-sensitive life, immediate annuities with life contingencies, and variable life insurance. In 2000, substantially all of the Company's statutory premiums and deposits were from annuities. Annuity contracts and life insurance policies issued by the Company are subject to discretionary surrender or withdrawal by customers, subject to applicable surrender charges. These policies and contracts are reinsured primarily with ALIC (see Note 3), which invests premiums and deposits to provide cash flows that will be used to fund future benefits and expenses. The Company monitors economic and regulatory developments that have the potential to impact its business. Federal legislation has allowed for banks and other financial organizations to have greater participation in the securities and insurance businesses. This legislation may present an increased level of competition for sales of the Company's products. Furthermore, the market for deferred annuities and interest-sensitive life insurance is enhanced by the tax incentives available under current law. Any legislative changes that lessen these incentives are likely to negatively impact the demand for these products. The demand for life insurance products that are used to address a customer's estate planning needs may be impacted to the extent any legislative changes occur to the current estate tax laws. Additionally, traditional demutualizations of mutual insurance companies and enacted and pending state legislation to permit mutual insurance companies to convert to a hybrid structure known as a mutual holding company could have a number of significant effects on the Company by (1) increasing industry competition through consolidation caused by mergers and acquisitions related to the new corporate form of business; and (2) increasing competition in the capital markets. The Company is authorized to sell life and investment products in all states except New York, as well as in the District of Columbia and Puerto Rico. The top geographic locations for statutory premiums and deposits for the Company were California, Florida, and Texas for the year ended December 31, 2000. No other jurisdiction accounted for more than 5% of statutory premiums and deposits. F-6 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS Fixed income securities include bonds and mortgage-backed securities. All fixed income securities are carried at fair value and may be sold prior to their contractual maturity ("available for sale"). The difference between amortized cost and fair value, net of deferred income taxes, is reflected as a component of shareholder's equity. Provisions are recognized for declines in the value of fixed income securities that are other than temporary. Such write-downs are included in realized capital gains and losses. Short-term investments are carried at cost or amortized cost, which approximates fair value. Investment income consists primarily of interest. Interest is recognized on an accrual basis. Interest income on mortgage-backed securities is determined on the effective yield method, based on the estimated principal repayments. Accrual of income is suspended for fixed income securities that are in default or when the receipt of interest payments is in doubt. Realized capital gains and losses are determined on a specific identification basis. REINSURANCE RECOVERABLE The Company has reinsurance agreements whereby substantially all premiums, contract charges, credited interest, policy benefits and certain expenses are ceded to ALIC (See Note 3). Such amounts are reflected net of such reinsurance in the statements of operations and comprehensive income. Reinsurance recoverable and the related reserve for life-contingent contract benefits and contractholder funds are reported separately in the statements of financial position. The Company continues to have primary liability as the direct insurer for risks reinsured. RECOGNITION OF INSURANCE REVENUE AND RELATED BENEFITS AND INTEREST CREDITED Interest-sensitive life contracts are insurance contracts whose terms are not fixed and guaranteed. The terms that may be changed include premiums paid by the contractholder, interest credited to the contractholder account balance and one or more amounts assessed against the contractholder. Premiums from these contracts are reported as deposits to contractholder funds. Contract charge revenue consists of fees assessed against the contractholder account balance for the cost of insurance (mortality risk), contract administration and surrender charges. Contract benefits include interest credited to contracts and claims incurred in excess of the related contractholder account balance. Contracts that do not subject the Company to significant risk arising from mortality or morbidity are referred to as investment contracts. Fixed rate annuities, market value adjusted annuities and immediate annuities without life contingencies are considered investment contracts. Deposits received for such contracts are reported as deposits to contractholder funds. Contract charge revenue for investment contracts consists of charges assessed against the contractholder account balance for contract administration and surrender charges. Contract benefits include interest credited and claims incurred in excess of the related contractholder account balance. F-7 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS Crediting rates for fixed rate annuities and interest-sensitive life contracts are adjusted periodically by the Company to reflect current market conditions. Variable annuity and variable life contracts are sold as Separate Accounts products. The assets supporting these products are legally segregated and available only to settle Separate Accounts contract obligations. Deposits received are reported as Separate Accounts liabilities. The Company's contract charge revenue for these contracts consists of charges assessed against the Separate Accounts fund balances for contract maintenance, administration, mortality, expense and surrenders. All premiums, contract charges, contract benefits and interest credited are reinsured. INCOME TAXES The income tax provision is calculated under the liability method and presented net of reinsurance. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities at the enacted tax rates. Deferred income taxes arise primarily from unrealized capital gains and losses on fixed income securities carried at fair value and differences in the tax bases of investments. SEPARATE ACCOUNTS The Company issues deferred variable annuity and variable life contracts, the assets and liabilities of which are legally segregated and recorded as assets and liabilities of the Separate Accounts. Absent any contract provision wherein the Company guarantees either a minimum return or account value upon death or annuitization, variable annuity and variable life contractholders bear the investment risk that the Separate Accounts' funds may not meet their stated investment objectives. The assets of the Separate Accounts are carried at fair value. Separate Accounts liabilities represent the contractholders' claim to the related assets and are carried at the fair value of the assets. In the event that the asset value of certain contractholder accounts are projected to be below the value guaranteed by the Company, a liability is established through a charge to earnings. Investment income and realized capital gains and losses of the Separate Accounts accrue directly to the contractholders and therefore, are not included in the Company's statements of operations and comprehensive income. As discussed earlier, revenues to the Company from the Separate Accounts are recorded as contract charges. RESERVE FOR LIFE-CONTINGENT CONTRACT BENEFITS The reserve for life-contingent contract benefits, which relates to immediate annuities with life contingencies and certain variable annuity contract guarantees, is computed on the basis of assumptions as to future investment yields, mortality, morbidity, terminations and expenses at the time the policy is issued. These assumptions include provisions for adverse deviation and generally vary by such characteristics as type of coverage, year of issue and policy duration. Detailed reserve assumptions and reserve interest rates are outlined in Note 7. CONTRACTHOLDER FUNDS Contractholder funds arise from the issuance of contracts that include an investment component, including most fixed annuities, interest-sensitive life policies and certain investment contracts. Deposits received are recorded as interest-bearing liabilities. Contractholder funds are equal to deposits received and interest credited to the benefit of the contractholder less withdrawals, mortality charges and administrative expenses. Detailed information on crediting rates and surrender and withdrawal protection on contractholder funds are outlined in Note 7. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. F-8 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 3. RELATED PARTY TRANSACTIONS REINSURANCE The Company has reinsurance agreements whereby substantially all premiums, contract charges, credited interest, policy benefits and certain expenses are ceded to ALIC and reflected net of such reinsurance in the statements of operations and comprehensive income. Reinsurance recoverable and the related reserve for life-contingent contract benefits and contracholder funds are reported separately in the statements of financial position. The Company continues to have primary liability as the direct insurer for risks reinsured. Investment income earned on the assets which support contractholder funds and the reserve for life-contingent contract benefits is not included in the Company's financial statements as those assets are owned and managed under the terms of the reinsurance agreements. The following table summarizes amounts that were ceded to ALIC under reinsurance agreements.
YEAR ENDED DECEMBER 31, 2000 1999 1998 -------- -------- -------- Premiums $ 289 $ 2,966 $ 2,528 Contract charges 124,250 118,290 102,218 Credited interest, policy benefits, and certain expenses 224,265 222,513 217,428
BUSINESS OPERATIONS The Company utilizes services provided by AIC and ALIC and business facilities owned or leased, and operated by AIC in conducting its business activities. The Company reimburses AIC and ALIC for the operating expenses incurred on behalf of the Company. The Company is charged for the cost of these operating expenses based on the level of services provided. Operating expenses, including compensation and retirement and other benefit programs, allocated to the Company were $22,026, $33,892 and $26,230 in 2000, 1999 and 1998, respectively. Of these costs, the Company retains investment related expenses. All other costs are ceded to ALIC under reinsurance agreements. 4. EXCLUSIVE DISTRIBUTION AGREEMENT The Company has a strategic alliance with Dean Witter to develop, market and distribute proprietary savings and life insurance products through Morgan Stanley Dean Witter Financial Advisors. Affiliates of Dean Witter are the investment managers for the Morgan Stanley Dean Witter Variable Investment Series and the Universal Institutional Funds, Inc., the funds in which certain assets of the Separate Accounts products are invested. Under the terms of the alliance, the Company has agreed to use Dean Witter as an exclusive distribution channel for the Company's products. In addition to the Company's products, Dean Witter markets other products that compete with those of the Company. Pursuant to the alliance agreement, Dean Witter provides approximately half of the statutory capital necessary to maintain these products on the Company's books through loans to a subsidiary of AIC. AIC unconditionally guarantees the repayment of these loans. The Company shares approximately half the net profits with Dean Witter on contracts written under the alliance. The strategic alliance is cancelable for new business by either party by giving 30 days written notice, however, the Company believes the benefits derived by Dean Witter will preserve the alliance. F-9 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 5. INVESTMENTS FAIR VALUES The amortized cost, gross unrealized gains and losses, and fair value for fixed income securities are as follows:
GROSS UNREALIZED AT DECEMBER 31, AMORTIZED ------------------- FAIR 2000 COST GAINS LOSSES VALUE ---- --------- -------- -------- -------- U.S. government and agencies $10,778 $1,193 $ -- $11,971 Municipal 1,501 26 (38) 1,489 Corporate 59,449 656 (720) 59,385 Mortgage-backed securities 19,413 958 (186) 20,185 ------- ------ ------- ------- Total fixed income securities $91,141 $2,833 $ (944) $93,030 ======= ====== ======= ======= At December 31, 1999 U.S. government and agencies $ 8,660 $ 131 $ (57) $ 8,734 Municipal 1,155 6 (108) 1,053 Corporate 61,049 26 (2,541) 58,534 Mortgage-backed securities 18,341 822 (486) 18,677 ------- ------ ------- ------- Total fixed income securities $89,205 $ 985 $(3,192) $86,998 ======= ====== ======= =======
SCHEDULED MATURITIES The scheduled maturities for fixed income securities are as follows at December 31, 2000:
AMORTIZED FAIR COST VALUE --------- -------- Due in one year or less $ 454 $ 456 Due after one year through five years 31,914 32,461 Due after five years through ten years 31,618 31,119 Due after ten years 7,742 8,809 ------- ------- 71,728 72,845 Mortgage-backed securities 19,413 20,185 ------- ------- Total $91,141 $93,030 ======= =======
Actual maturities may differ from those scheduled as a result of prepayments by the issuers. NET INVESTMENT INCOME
YEAR ENDED DECEMBER 31, 2000 1999 1998 ----------------------- -------- -------- -------- Fixed income securities $6,635 $5,881 $5,616 Short-term investments 249 261 190 ------ ------ ------ Investment income, before expense 6,884 6,142 5,806 Investment expense 82 132 115 ------ ------ ------ Net investment income $6,802 $6,010 $5,691 ====== ====== ======
F-10 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS REALIZED CAPITAL GAINS AND LOSSES, AFTER TAX
YEAR ENDED DECEMBER 31, 2000 1999 1998 ----------------------- -------- -------- -------- Fixed income securities $(230) $ 510 $ 2 ----- ----- --- Realized capital gains and losses (230) 510 2 Income taxes 80 (178) (1) ----- ----- --- Realized capital gains and losses, after tax $(150) $ 332 $ 1 ===== ===== ===
Excluding calls and prepayments, gross gains of $78 and $629 were realized on sales of fixed income securities during 2000 and 1999, respectively and gross losses of $308, $119 and $9 were realized on sales of fixed income securities during 2000, 1999 and 1998, respectively. There were no gross gains realized on sales of fixed income securities during 1998. UNREALIZED NET CAPITAL GAINS Unrealized net capital gains on fixed income securities included in shareholder's equity at December 31, 2000 are as follows:
GROSS COST/ UNREALIZED UNREALIZED AMORTIZED FAIR ------------------- NET COST VALUE GAINS LOSSES GAINS --------- -------- -------- -------- ---------- Fixed income securities $91,141 $93,030 $ 2,833 $ (944) $1,889 ======= ======= ======= ======= Deferred income taxes (661) ------ Unrealized net capital gains $1,228 ======
CHANGE IN UNREALIZED NET CAPITAL GAINS AND LOSSES
YEAR ENDED DECEMBER 31, 2000 1999 1998 ----------------------- -------- -------- -------- Fixed income securities $ 4,096 $(7,387) $ 1,269 Deferred income taxes (1,433) 2,585 (444) ------- ------- ------- Increase (decrease) in unrealized net capital gains and losses $ 2,663 $(4,802) $ 825 ======= ======= =======
SECURITIES ON DEPOSIT At December 31, 2000, fixed income securities with a carrying value of $8,939 were on deposit with regulatory authorities as required by law. F-11 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 6. FINANCIAL INSTRUMENTS In the normal course of business, the Company invests in various financial assets and incurs various financial liabilities. The fair value estimates of financial instruments presented below are not necessarily indicative of the amounts the Company might pay or receive in actual market transactions. Potential taxes and other transaction costs have not been considered in estimating fair value. The disclosures that follow do not reflect the fair value of the Company as a whole since a number of the Company's significant assets (including reinsurance recoverable) and liabilities (including interest-sensitive life insurance reserves and deferred income taxes) are not considered financial instruments and are not carried at fair value. Other assets and liabilities considered financial instruments, such as accrued investment income and cash are generally of a short-term nature. Their carrying values approximate fair value. FINANCIAL ASSETS The carrying value and fair value of financial assets at December 31, are as follows:
2000 1999 ----------------------- ----------------------- CARRYING FAIR CARRYING FAIR VALUE VALUE VALUE VALUE ---------- ---------- ---------- ---------- Fixed income securities $ 93,030 $ 93,030 $ 86,998 $ 86,998 Short-term 3,859 3,859 3,170 3,170 Separate Accounts 7,614,673 7,614,673 8,211,996 8,211,996
Fair values for fixed income securities are based on quoted market prices where available. Non-quoted securities are valued based on discounted cash flows using current interest rates for similar securities. Short-term investments are highly liquid investments with maturities of less than one year whose carrying value are deemed to approximate fair value. Separate Accounts assets are carried in the statements of financial position at fair value based on quoted market prices. FINANCIAL LIABILITIES The carrying value and fair value of financial liabilities at December 31, are as follows:
2000 1999 ----------------------- ----------------------- CARRYING FAIR CARRYING FAIR VALUE VALUE VALUE VALUE ---------- ---------- ---------- ---------- Contractholder funds on investment contracts $1,652,039 $1,644,231 $1,735,843 $1,675,910 Separate Accounts 7,614,673 7,614,673 8,211,996 8,211,996
The fair value of contractholder funds on investment contracts is based on the terms of the underlying contracts. Investment contracts with no stated maturities (single premium and flexible premium deferred annuities) are valued at the account balance less surrender charges. The fair value of immediate annuities and annuities without life contingencies with fixed terms is estimated using discounted cash flow calculations based on interest rates currently offered for contracts with similar terms and durations. Separate Accounts liabilities are carried at the fair value of the underlying assets. F-12 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS 7. RESERVE FOR LIFE-CONTINGENT CONTRACT BENEFITS AND CONTRACTHOLDER FUNDS At December 31, the Reserve for life-contingent contract benefits consists of the following:
2000 1999 -------- -------- Immediate annuities: Structured settlement annuities $108,441 $109,907 Other immediate annuities 40,670 40,680 -------- -------- Total Reserve for life-contingent contract benefits $149,111 $150,587 ======== ========
The assumptions for mortality generally utilized in calculating reserves include, the U.S. population with projected calendar year improvements and age setbacks for impaired lives for structured settlement annuities; and the 1983 group annuity mortality table for other immediate annuities. Interest rate assumptions vary from 3.5% to 10.0% for immediate annuities. Other estimation methods used include the present value of contractually fixed future benefits for structured settlement annuities and other immediate annuities. Premium deficiency reserves are established, if necessary, for the structured settlement annuity business, to the extent the unrealized gains on fixed income securities would result in a premium deficiency had those gains actually been realized. The Company did not have a premium deficiency reserve at December 31, 2000 and 1999. At December 31, Contractholder funds consists of the following:
2000 1999 ---------- ---------- Interest-sensitive life $ 171,192 $ 173,867 Fixed annuities: Immediate annuities 66,051 78,197 Deferred annuities 1,588,819 1,619,869 ---------- ---------- Total Contractholder funds $1,826,062 $1,871,933 ========== ==========
Contractholder funds are equal to deposits received and interest credited to the benefit of the contractholder less withdrawals, mortality charges and administrative expenses. Interest rates credited range from 5.8% to 6.5% for interest-sensitive life contracts; 3.5% to 10.2% for immediate annuities and 4.3% to 7.3% for deferred annuities. Withdrawal and surrender charge protection includes: i) for interest-sensitive life, either a percentage of account balance or dollar amount grading off generally over 20 years; and, ii) for deferred annuities not subject to a market value adjustment, either a declining or a level percentage charge generally over nine years or less. Approximately 44.4% of deferred annuities are subject to a market value adjustment. 8. COMMITMENTS AND CONTINGENT LIABILITIES REGULATION AND LEGAL PROCEEDINGS The Company's business is subject to the effects of a changing social, economic and regulatory environment. Recent public and regulatory initiatives have varied and have included employee benefit regulations, removal of barriers preventing banks from engaging in the securities and insurance business, tax law changes affecting the taxation of insurance companies, the tax treatment of insurance products and its impact on the relative desirability of various personal investment vehicles, and proposed legislation to prohibit the use of gender in determining insurance rates and benefits. The ultimate changes and eventual effects, if any, of these initiatives are uncertain. In the normal course of its business, the Company is involved in pending and threatened litigation and regulatory actions in which claims for monetary damages are asserted. At this time, based on their present status, it is in the opinion of management, that the ultimate liability, if any, in one or more of these actions in excess of amounts currently reserved is not expected to have a material effect on the results of operations, liquidity or financial position of the Company. F-13 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS GUARANTY FUNDS Under state insurance guaranty fund laws, insurers doing business in a state can be assessed, up to prescribed limits, for certain obligations of insolvent insurance companies to policyholders and claimants. The Company's expenses related to these funds are immaterial and are ceded to ALIC under reinsurance agreements. MARKETING AND COMPLIANCE ISSUES Companies operating in the insurance and financial services markets have come under the scrutiny of regulators with respect to market conduct and compliance issues. Under certain circumstances, companies have been held responsible for providing incomplete or misleading sales materials and for replacing existing policies with policies that were less advantageous to the policyholder. The Company monitors its sales materials and enforces compliance procedures to mitigate exposure to potential litigation. The Company is a member of the Insurance Marketplace Standards Association, an organization that advocates ethical market conduct. 9. INCOME TAXES The Company joins the Corporation and its other eligible domestic subsidiaries (the "Allstate Group") in the filing of a consolidated federal income tax return and is party to a federal income tax allocation agreement (the "Allstate Tax Sharing Agreement"). Under the Allstate Tax Sharing Agreement, the Company pays to or receives from the Corporation the amount, if any, by which the Allstate Group's federal income tax liability is affected by virtue of inclusion of the Company in the consolidated federal income tax return. The Company has also entered into a supplemental tax sharing agreement with respect to reinsurance ceded to ALIC to allocate to ALIC the tax consequences of such reinsurance. Effectively, these agreements result in the Company's annual income tax provision being computed as if the Company filed a separate return, as adjusted for the reinsurance ceded to ALIC. F-14 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS Prior to June 30, 1995, the Corporation was a subsidiary of Sears Roebuck & Co. ("Sears") and, with its eligible domestic subsidiaries, was included in the Sears consolidated federal income tax return and federal income tax allocation agreement. Effective June 30, 1995, the Corporation and Sears entered into a new tax sharing agreement, which governs their respective rights and obligations with respect to federal income taxes for all periods during which the Corporation was a subsidiary of Sears, including the treatment of audits of tax returns for such periods. The Internal Revenue Service ("IRS") has completed its review of the Allstate Group's federal income tax returns through the 1993 tax year. Any adjustments that may result from IRS examinations of tax returns are not expected to have a material impact on the financial position, liquidity or results of operations of the Company. The components of the deferred income tax assets and liabilities at December 31, are as follows:
2000 1999 -------- -------- DEFERRED ASSETS Unrealized net capital losses $ -- $ 772 ------- ------- Total deferred assets -- 772 DEFERRED LIABILITIES Difference in tax bases of investments (1,618) (1,518) Unrealized net capital gains (661) -- ------- ------- Total deferred liabilities (2,279) (1,518) ------- ------- Net deferred liability $(2,279) $ (746) ======= =======
The components of income tax expense for the year ended December 31, are as follows:
2000 1999 1998 -------- -------- -------- Current $2,193 $2,249 $1,797 Deferred 100 15 198 ------ ------ ------ Total income tax expense $2,293 $2,264 $1,995 ====== ====== ======
The Company paid income taxes of $2,286, $1,908 and $129 in 2000, 1999 and 1998, respectively. A reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations for the year ended December 31, is as follows:
2000 1999 1998 -------- -------- -------- Statutory federal income tax rate 35.0% 35.0% 35.0% Tax-exempt income (0.1) (0.1) (0.2) Other -- (0.2) 0.2 ---- ---- ---- Effective income tax rate 34.9% 34.7% 35.0% ==== ==== ====
F-15 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS Prior to January 1, 1984, the Company was entitled to exclude certain amounts from taxable income and accumulate such amounts in a "policyholder surplus" account. The balance in this account at December 31, 2000, approximately $16, will result in federal income taxes payable of $6 if distributed by the Company. No provision for taxes has been made as the Company has no plan to distribute amounts from this account. No further additions to the account have been permitted since 1983. 10. STATUTORY FINANCIAL INFORMATION The Company's statutory capital and surplus was $84,335 and $83,746 at December 31, 2000 and 1999, respectively. The Company's statutory net income was $4,893, $4,840 and $3,518 for the years ended December 31, 2000, 1999 and 1998, respectively. PERMITTED STATUTORY ACCOUNTING PRACTICES The Company prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the Arizona Department of Insurance. Prescribed statutory accounting practices include a variety of publications of the National Association of Insurance Commissioners ("NAIC"), as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. The Company does not follow any permitted statutory accounting practices that have a significant impact on statutory surplus or statutory net income. The NAIC has approved a January 1, 2001 implementation date for newly developed statutory accounting principles ("codification"). The Company's state of domicile, Arizona, has passed legislation revising various statutory accounting requirements to conform to codification. These requirements will not have a material impact on the statutory surplus of the Company. The NAIC has installed a formal maintenance process to develop and propose new guidance, as well as on- going clarification and interpretation of issues. The impact of any future changes will be recorded as they are approved by the NAIC. DIVIDENDS The ability of the Company to pay dividends is dependent on business conditions, income, cash requirements of the Company and other relevant factors. The payment of shareholder dividends by the Company without the prior approval of the state insurance regulator is limited to formula amounts based on net income and capital and surplus, determined in accordance with statutory accounting practices, as well as the timing and amount of dividends paid in the preceding twelve months. On December 28, 2000, the Company paid a cash dividend of $4.0 million to ALIC. The maximum amount of dividends that the Company can distribute during 2001 without prior approval of the Arizona Department of Insurance is $4,893. F-16 NORTHBROOK LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS RISKED-BASED CAPITAL The NAIC has a standard for assessing the solvency of insurance companies, which is referred to as risk-based capital ("RBC"). The requirement consists of a formula for determining each insurer's RBC and a model law specifying regulatory actions if an insurer's RBC falls below specified levels. The RBC formula for life insurance companies establishes capital requirements relating to insurance, business, asset and interest rate risks. At December 31, 2000, RBC for the Company was significantly above levels that would require regulatory action. 11. OTHER COMPREHENSIVE INCOME The components of other comprehensive income on a pretax and after-tax basis for the year ended December 31, are as follows:
2000 1999 1998 ------------------------------- ------------------------------- ------------------------------- PRETAX TAX AFTER-TAX PRETAX TAX AFTER-TAX PRETAX TAX AFTER-TAX -------- -------- --------- -------- -------- --------- -------- -------- --------- UNREALIZED CAPITAL GAINS AND LOSSES: - ---------------------------- Unrealized holding gains (losses) arising during the period $3,843 $(1,344) $2,499 $(6,877) $2,407 $(4,470) $1,271 $(445) $826 Less: reclassification adjustments (253) 89 (164) 510 (178) 332 2 (1) 1 ------ ------- ------ ------- ------ ------- ------ ----- ---- Unrealized net capital gains (losses) 4,096 (1,433) 2,663 (7,387) 2,585 (4,802) 1,269 (444) 825 ------ ------- ------ ------- ------ ------- ------ ----- ---- Other comprehensive income (loss) $4,096 $(1,433) $2,663 $(7,387) $2,585 $(4,802) $1,269 $(444) $825 ====== ======= ====== ======= ====== ======= ====== ===== ====
F-17 NORTHBROOK LIFE INSURANCE COMPANY SCHEDULE IV--REINSURANCE ($ IN THOUSANDS)
GROSS NET AMOUNT CEDED AMOUNT -------- -------- -------- YEAR ENDED DECEMBER 31, 2000 Life insurance in force..................................... $441,073 $441,073 $ -- ======== ======== ======== Premiums and contract charges: Life and annuities........................................ $124,621 $124,621 $ -- ======== ======== ========
GROSS NET AMOUNT CEDED AMOUNT -------- -------- -------- YEAR ENDED DECEMBER 31, 1999 Life insurance in force..................................... $474,824 $474,824 $ -- ======== ======== ======== Premiums and contract charges: Life and annuities........................................ $121,351 $121,351 $ -- ======== ======== ========
GROSS NET AMOUNT CEDED AMOUNT -------- -------- -------- YEAR ENDED DECEMBER 31, 1998 Life insurance in force..................................... $494,256 $494,256 $ -- ======== ======== ======== Premiums and contract charges: Life and annuities........................................ $104,746 $104,746 $ -- ======== ======== ========
F-18 ------------------------------------------------------------------- NORTHBROOK VARIABLE ANNUITY ACCOUNT II FINANCIAL STATEMENTS AS OF DECEMBER 31, 2000 AND FOR THE PERIODS ENDED DECEMBER 31, 2000 AND DECEMBER 31, 1999, AND INDEPENDENT AUDITORS' REPORT INDEPENDENT AUDITORS' REPORT To the Board of Directors and Shareholder of Northbrook Life Insurance Company: We have audited the accompanying statement of net assets of Northbrook Variable Annuity Account II (the "Account") as of December 31, 2000 (including the assets of each of the individual sub-accounts which comprise the Account as disclosed in Note 1), the related statements of operations for the period then ended and the statements of changes in net assets for each of the periods in the two year period then ended for each of the individual sub-accounts which comprise the Account. These financial statements are the responsibility of management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned at December 31, 2000 by correspondence with the Account's custodians. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of Northbrook Variable Annuity Account II as of December 31, 2000 (including the assets of each of the individual sub-accounts which comprise the Account), the results of operations for each of the individual sub-accounts for the period then ended and the changes in their net assets for each of the periods in the two year period then ended in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Chicago, Illinois March 16, 2001 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENT OF NET ASSETS DECEMBER 31, 2000 - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Allocation to Sub-Accounts investing in the Morgan Stanley Dean Witter Variable Investment Series: Aggressive Equity, 9,324,197 shares (cost $137,973,999) $ 133,429,256 Capital Growth, 8,376,439 shares (cost $154,649,655) 168,031,371 Competitive Edge, "Best Ideas", 6,501,703 shares (cost $69,126,775) 66,187,323 Dividend Growth, 99,725,922 shares (cost $2,021,362,239) 1,446,025,885 Equity, 42,297,703 shares (cost $1,498,425,486) 1,677,949,912 European Growth, 18,555,920 shares (cost $457,882,241) 470,763,685 Global Dividend Growth, 27,475,948 shares (cost $347,817,219) 349,768,829 High Yield, 48,733,748 shares (cost $252,940,759) 118,423,004 Income Builder, 5,232,788 shares (cost $59,586,492) 56,828,070 Information, 270,570 shares (cost $2,679,453) 2,519,002 Money Market, 329,076,061 shares (cost $329,076,061) 329,076,061 Pacific Growth, 10,506,071 shares (cost $68,708,789) 58,413,757 Quality Income Plus, 36,118,616 shares (cost $380,339,700) 369,132,239 S&P 500 Index, 16,583,164 shares (cost $198,782,618) 199,827,129 Short-Term Bond, 634,713 shares (cost $6,296,134) 6,321,744 Strategist, 38,001,657 shares (cost $565,791,144) 633,107,612 Utilities, 23,361,628 shares (cost $391,212,111) 506,480,064 Allocation to Sub-Accounts investing in The Universal Institutional Funds, Inc. (a): Emerging Markets Equity, 2,583,089 shares (cost $27,026,493) 18,314,101 Equity Growth, 6,498,999 shares (cost $121,248,987) 108,923,229 International Magnum, 1,740,292 shares (cost $21,659,380) 20,500,642 Mid Cap Value, 529,126 shares (cost $8,657,831) 7,963,341 U.S. Real Estate, 1,417,626 shares (cost $15,219,889) 16,316,872 Allocation to Sub-Accounts investing in the Van Kampen Life Investment Trust: LIT Emerging Growth, 6,758,613 shares (cost $305,440,259) 280,076,934 Allocation to Sub-Accounts investing in the AIM Variable Insurance Funds: AIM V.I. Capital Appreciation, 460,280 shares (cost $17,187,336) 14,195,037 AIM V.I. Growth, 359,847 shares (cost $11,189,259) 8,931,397 AIM V.I. Value, 1,109,110 shares (cost $35,005,920) 30,289,801 Allocation to Sub-Accounts investing in the Alliance Variable Product Series Fund: Alliance Growth, 381,478 shares (cost $10,970,733) 9,533,140 Alliance Growth & Income, 1,155,922 shares (cost $25,976,933) 26,655,557 Alliance Premier Growth, 1,152,794 shares (cost $44,487,129) 36,808,714
(a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. See notes to financial statements. 2 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENT OF NET ASSETS (CONTINUED) DECEMBER 31, 2000 - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Allocation to Sub-Accounts investing in the Putnam Variable Trust: Growth & Income, 389,078 shares (cost $9,662,848) $ 10,022,645 International Growth, 1,379,868 shares (cost $25,129,280) 24,382,273 Voyager, 530,373 shares (cost $30,071,462) 25,797,343 Allocation to Sub-Accounts investing in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares): Aggressive Equity, 934,261 shares (cost $14,251,780) 13,350,585 Capital Growth, 176,088 shares (cost $3,665,836) 3,527,050 Competitive Edge, "Best Ideas", 459,255 shares (cost $5,233,332) 4,666,032 Dividend Growth, 1,317,242 shares (cost $18,070,467) 19,086,840 Equity, 803,447 shares (cost $34,586,978) 31,864,714 European Growth, 417,351 shares (cost $10,818,291) 10,571,497 Global Dividend Growth, 173,972 shares (cost $2,137,828) 2,211,184 High Yield, 799,540 shares (cost $2,680,762) 1,942,883 Income Builder, 88,914 shares (cost $962,058) 964,721 Information, 205,693 shares (cost $2,024,764) 1,915,004 Money Market, 13,812,844 shares (cost $13,812,844) 13,812,844 Pacific Growth, 131,096 shares (cost $925,987) 728,895 Quality Income Plus, 506,767 shares (cost $5,081,703) 5,174,088 S&P 500 Index, 1,057,247 shares (cost $13,823,841) 12,729,255 Short-Term Bond, 143,718 shares (cost $1,428,531) 1,429,993 Strategist, 1,402,350 shares (cost $24,122,392) 23,349,119 Utilities, 879,210 shares (cost $19,263,900) 19,061,271 ----------------- Total Assets 7,397,381,944 LIABILITIES Payable to Northbrook Life Insurance Company: Accrued contract maintenance charges 1,601,225 ----------------- Net Assets $ 7,395,780,719 =================
See notes to financial statements. 3 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ------------------------------------------------------------------------------ Competitive Aggressive Capital Edge, Dividend Equity Growth "Best Ideas" Growth Equity -------------- ------------- -------------- -------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ 47,575 $ 29,086,812 $ 299,232 $362,534,374 $ 297,648,729 Charges from Northbrook Life Insurance Company: Mortality and expense risk (1,517,851) (2,241,359) (976,358) (19,528,740) (24,911,486) Administrative expense (111,337) (171,290) (71,998) (1,491,480) (1,885,727) ------------- ------------ ----------- ------------ ------------- Net investment income (loss) (1,581,613) 26,674,163 (749,124) 341,514,154 270,851,516 -------------- ------------ ----------- ------------ ------------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) from sales of investments: Proceeds from sales 23,121,158 28,138,618 11,603,729 529,947,039 191,449,587 Cost of investments sold 22,734,007 22,751,087 10,814,175 321,944,807 142,485,156 -------------- ------------ ----------- ------------ ------------- Net realized gains (losses) 387,151 5,387,531 789,554 208,002,232 48,964,431 -------------- ------------ ----------- ------------ ------------- Change in unrealized gains (losses) (11,134,118) (32,870,081) (14,724,894) (532,890,671) (594,936,907) -------------- ------------ ----------- ------------ ------------- Net gains (losses) on investments (10,746,967) (27,482,550) (13,935,340) (324,888,439) (545,972,476) -------------- ------------ ----------- ------------ ------------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $(12,328,580) $ (808,387) $(14,684,464) $ 16,625,715 $(275,120,960) ============== ============ ============ ============ =============
See notes to financial statements. 4 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ------------------------------------------------------------------------------- Global European Dividend High Income Growth Growth Yield Builder Information (d) -------------- -------------- -------------- -------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ 81,559,286 $ 38,418,888 $ 34,828,332 $ 3,300,354 $ - Charges from Northbrook Life Insurance Company: Mortality and expense risk (6,752,112) (5,057,987) (2,631,531) (843,085) (3,058) Administrative expense (514,410) (387,407) (200,584) (63,198) (218) ------------ ------------ ------------ ------------ ------------ Net investment income (loss) 74,292,764 32,973,494 31,996,217 2,394,071 (3,276) ------------ ------------ ------------ ------------ ------------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) from sales of investments: Proceeds from sales 269,468,966 126,228,317 97,696,615 25,465,332 121,973 Cost of investments sold 226,110,015 124,018,182 146,727,240 26,747,744 136,773 ------------ ------------ ------------ ------------ ------------ Net realized gains (losses) 43,358,951 2,210,135 (49,030,625) (1,282,412) (14,800) ------------ ------------ ------------ ------------ ------------ Change in unrealized gains (losses) (149,231,476) (57,816,199) (47,984,362) (2,694,441) (160,451) ------------ ------------ ------------ ------------ ------------ Net gains (losses) on investments (105,872,525) (55,606,064) (97,014,987) (3,976,853) (175,251) ------------ ------------ ------------ ------------ ------------ CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $(31,579,761) $(22,632,570) $(65,018,770) $ (1,582,782) $ (178,527) ============ ============ ============== ============ ============
(d) For the Period Beginning November 6, 2000 and Ended December 31, 2000 See notes to financial statements. 5 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ------------------------------------------------------------------------------- Quality Money Pacific Income S&P 500 Short-Term Market Growth Plus Index Bond -------------- --------------- -------------- -------------- -------------- NET INVESTMENT INCOME (LOSS) Dividends $ 20,547,459 $ 1,406,029 $ 25,901,025 $ 2,124,368 $ 251,924 Charges from Northbrook Life Insurance Company: Mortality and expense risk (4,612,431) (1,224,475) (4,829,415) (2,793,746) (67,831) Administrative expense (351,214) (92,705) (373,780) (204,891) (5,015) ------------ ------------- ------------ ------------ ------------ Net investment income (loss) 15,583,814 88,849 20,697,830 (874,269) 179,078 ------------ ------------- ------------ ------------ ------------ REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) from sales of investments: Proceeds from sales 924,460,138 367,859,674 119,060,101 24,211,104 3,986,498 Cost of investments sold 924,460,138 372,581,665 127,836,141 22,349,734 3,984,090 ------------ ------------- ------------ ------------ ------------ Net realized gains (losses) - (4,721,991) (8,776,040) 1,861,370 2,408 ------------ ------------- ------------ ------------ ------------ Change in unrealized gains (losses) - (25,754,810) 21,690,015 (23,889,850) 44,678 ------------ ------------- ------------ ------------ ------------ Net gains (losses) on investments - (30,476,801) 12,913,975 (22,028,480) 47,086 ------------ ------------- ------------ ------------ ------------ CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 15,583,814 $ (30,387,952) $ 33,611,805 $(22,902,749) $ 226,164 ============ ============= ============ ============ ============
See notes to financial statements. 6 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment The Universal Institutional Series Sub-Accounts Funds, Inc. Sub-Accounts (a) ------------------------------- ---------------------------------------------- Emerging Markets Equity International Strategist Utilities Equity Growth Magnum -------------- --------------- -------------- -------------- -------------- NET INVESTMENT INCOME (LOSS) Dividends $ 94,362,198 $ 42,191,530 $ 3,202,487 $ 7,112,755 $ 630,686 Charges from Northbrook Life Insurance Company: Mortality and expense risk (8,546,307) (6,756,708) (381,217) (1,418,665) (243,948) Administrative expense (652,796) (521,802) (27,571) (104,200) (17,678) ------------ ------------- ------------ ------------ ----------- Net investment income (loss) 85,163,095 34,913,020 2,793,699 5,589,890 369,060 ------------ ------------- ------------ ------------ ----------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) from sales of investments: Proceeds from sales 88,870,638 85,288,040 114,529,084 22,570,885 37,961,558 Cost of investments sold 70,820,948 58,514,330 115,643,105 20,646,110 38,203,383 ------------ ------------- ------------ ------------ ----------- Net realized gains (losses) 18,049,690 26,773,710 (1,114,021) 1,924,775 (241,825) ------------ ------------- ------------ ------------ ----------- Change in unrealized gains (losses) (101,361,897) (53,017,599) (13,971,580) (26,639,061) (2,386,683) ------------ ------------- ------------ ------------ ----------- Net gains (losses) on investments (83,312,207) (26,243,889) (15,085,601) (24,714,286) (2,628,508) ------------ ------------- ------------ ------------ ----------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,850,888 $ 8,669,131 $(12,291,902) $(19,124,396) $(2,259,448) ============ ============= ============ ============ ===========
(a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. See notes to financial statements. 7 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 - ------------------------------------------------------------------------------------------------------------------------------------ Van Kampen The Universal Institutional Life Investment AIM Variable Insurance Funds, Inc. Sub-Accounts (a) Trust Sub-Account Funds Sub-Accounts ---------------------------- ----------------- ------------------------------- Mid Cap U.S. Real LIT Emerging AIM V.I. Capital AIM V.I. Value (e) Estate Growth Appreciation (e) Growth (e) ------------- ------------- ----------------- ---------------- ------------- NET INVESTMENT INCOME (LOSS) Dividends $ 880,361 $ 362,555 $ 620,288 $ 381,821 $ 272,516 Charges from Northbrook Life Insurance Company: Mortality and expense risk (31,192) (139,563) (3,589,992) (75,582) (46,586) Administrative expense (2,197) (10,133) (261,949) (5,440) (3,421) ----------- ----------- --------------- -------------- ----------- Net investment income (loss) 846,972 212,859 (3,231,653) 300,799 222,509 ----------- ----------- --------------- -------------- ----------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) from sales of investments: Proceeds from sales 11,462,434 25,388,488 60,523,851 8,462,728 4,935,760 Cost of investments sold 11,489,190 24,789,389 53,406,221 9,246,474 5,261,069 ----------- ----------- --------------- -------------- ----------- Net realized gains (losses) (26,756) 599,099 7,117,630 (783,746) (325,309) ----------- ----------- --------------- -------------- ----------- Change in unrealized gains (losses) (694,490) 1,473,607 (73,283,344) (2,992,299) (2,257,862) ----------- ----------- --------------- -------------- ----------- Net gains (losses) on investments (721,246) 2,072,706 (66,165,714) (3,776,045) (2,583,171) ----------- ----------- --------------- -------------- ----------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 125,726 $ 2,285,565 $ (69,397,367) $ (3,475,246) $(2,360,662) =========== =========== =============== ============== ===========
(a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. (e) For the Period Beginning January 31, 2000 and Ended December 31, 2000 See notes to financial statements. 8 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 - ------------------------------------------------------------------------------------------------------------------------------------ AIM Variable Insurance Putnam Funds Variable Trust Sub-Accounts Alliance Variable Product Series Fund Sub-Accounts Sub-Accounts ------------ -------------------------------------------------- -------------- Alliance AIM V.I. Alliance Growth & Alliance Premier Growth & Value (e) Growth (e) Income (e) Growth (e) Income (e) ------------ ------------- ---------------- ----------------- -------------- NET INVESTMENT INCOME (LOSS) Dividends $ 1,304,111 $ 90,083 $ 103,200 $ 155,667 $ 293 Charges from Northbrook Life Insurance Company: Mortality and expense risk (158,818) (49,440) (97,725) (196,503) (31,299) Administrative expense (11,487) (3,615) (7,114) (14,244) (2,285) ----------- ----------- -------------- --------------- ------------ Net investment income (loss) 1,133,806 37,028 (1,639) (55,080) (33,291) ----------- ----------- -------------- --------------- ------------ REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) from sales of investments: Proceeds from sales 10,601,342 2,072,364 8,524,970 2,572,763 10,522,766 Cost of investments sold 11,141,220 2,317,782 8,486,425 2,669,150 10,484,701 ----------- ----------- -------------- --------------- ------------ Net realized gains (losses) (539,878) (245,418) 38,545 (96,387) 38,065 ----------- ----------- -------------- --------------- ------------ Change in unrealized gains (losses) (4,716,119) (1,437,593) 678,624 (7,678,415) 359,797 ----------- ----------- -------------- --------------- ------------ Net gains (losses) on investments (5,255,997) (1,683,011) 717,169 (7,774,802) 397,862 ----------- ----------- -------------- --------------- ------------ CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $(4,122,191) $(1,645,983) $ 715,530 $ (7,829,882) $ 364,571 =========== =========== ============== =============== ============
(e) For the Period Beginning January 31, 2000 and Ended December 31, 2000 See notes to financial statements. 9 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 - ------------------------------------------------------------------------------------------------------------------------------------ Putnam Variable Morgan Stanley Dean Witter Variable Investment Trust Sub-Accounts Series (Class Y Shares) Sub-Accounts ---------------------------- -------------------------------------------------- Competitive International Aggressive Capital Edge, Growth (e) Voyager (e) Equity (f) Growth (f) "Best Ideas" (f) ------------- ------------- --------------- --------------- ---------------- NET INVESTMENT INCOME (LOSS) Dividends $ 15,742 $ 7,042 $ 496 $ 99,461 $ 2,321 Charges from Northbrook Life Insurance Company: Mortality and expense risk (118,902) (140,678) (58,560) (59,229) (21,589) Administrative expense (8,768) (10,126) (3,903) (3,552) (1,442) ----------- ----------- ------------- ------------- -------------- Net investment income (loss) (111,928) (143,762) (61,967) 36,680 (20,710) ----------- ----------- ------------- ------------- -------------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) from sales of investments: Proceeds from sales 33,741,385 5,601,893 691,604 226,527 505,600 Cost of investments sold 34,091,072 5,798,454 688,205 245,073 514,368 ----------- ----------- ------------- ------------- -------------- Net realized gains (losses) (349,687) (196,561) 3,399 (18,546) (8,768) ----------- ----------- ------------- ------------- -------------- Change in unrealized gains (losses) (747,007) (4,274,119) (901,195) (138,786) (567,300) ----------- ----------- ------------- ------------- -------------- Net gains (losses) on investments (1,096,694) (4,470,680) (897,796) (157,332) (576,068) ----------- ----------- ------------- ------------- -------------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $(1,208,622) $(4,614,442) $ (959,763) $ (120,652) $ (596,778) =========== =========== ============= ============= ==============
(e) For the Period Beginning January 31, 2000 and Ended December 31, 2000 (f) For the Period Beginning May 1, 2000 and Ended December 31, 2000 See notes to financial statements. 10 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts ----------------------------------------------------------------------------------- Global Dividend European Dividend High Growth (f) Equity (f) Growth (f) Growth (f) Yield (f) -------------- --------------- -------------- -------------- -------------- NET INVESTMENT INCOME (LOSS) Dividends $ 481,819 $ 637,506 $ 218,617 $ 20,557 $ 181,215 Charges from Northbrook Life Insurance Company: Mortality and expense risk (59,906) (133,322) (49,286) (8,893) (10,953) Administrative expense (3,972) (9,156) (3,296) (601) (738) ------------ ------------- -------------- -------------- ----------- Net investment income (loss) 417,941 495,028 166,035 11,063 169,524 ------------ ------------- -------------- -------------- ----------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) from sales of investments: Proceeds from sales 589,481 951,176 1,205,945 119,306 301,713 Cost of investments sold 647,369 1,023,310 1,327,683 120,355 342,327 ------------ ------------- -------------- -------------- ----------- Net realized gains (losses) (57,888) (72,134) (121,738) (1,049) (40,614) ------------ ------------- -------------- -------------- ----------- Change in unrealized gains (losses) 1,016,373 (2,722,264) (246,794) 73,356 (737,879) ------------ --------------- -------------- -------------- ----------- Net gains (losses) on investments 958,485 (2,794,398) (368,532) 72,307 (778,493) ------------ --------------- -------------- -------------- ----------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,376,426 $ (2,299,370) $ (202,497) $ 83,370 $ (608,969) ============ =============== ============== ============== ===========
(f) For the Period Beginning May 1, 2000 and Ended December 31, 2000 See notes to financial statements. 11 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts ----------------------------------------------------------------------------------- Quality Income Money Pacific Income Builder (f) Information (f) Market (f) Growth (f) Plus (f) -------------- --------------- -------------- -------------- -------------- NET INVESTMENT INCOME (LOSS) Dividends $ 17,787 $ - $ 179,443 $ 877 $ 80,813 Charges from Northbrook Life Insurance Company: Mortality and expense risk (2,728) (2,669) (44,098) (4,429) (14,130) Administrative expense (193) (172) (3,065) (282) (1,006) ------------ ------------- ------------ ------------ ----------- Net investment income (loss) 14,866 (2,841) 132,280 (3,834) 65,677 ------------ ------------- ------------ ------------ ----------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) from sales of investments: Proceeds from sales 88,029 29,381 6,375,457 77,163 201,333 Cost of investments sold 88,966 29,373 6,375,457 82,326 199,314 ------------ ------------- ------------ ------------ ----------- Net realized gains (losses) (937) 8 - (5,163) 2,019 ------------ ------------- ------------ ------------ ----------- Change in unrealized gains (losses) 2,663 (109,760) - (197,092) 92,385 ------------ ------------- ------------ ------------ ----------- Net gains (losses) on investments 1,726 (109,752) - (202,255) 94,404 ------------ ------------- ------------ ------------ ----------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 16,592 $ (112,593) $ 132,280 $ (206,089) $ 160,081 ============ ============= ============ ============ ============
(f) For the Period Beginning May 1, 2000 and Ended December 31, 2000 See notes to financial statements. 12 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 - ------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts ----------------------------------------------------------------------------------- S&P 500 Short-Term Index (f) Bond (f) Strategist (f) Utilities (f) -------------- -------------- ---------------- --------------- NET INVESTMENT INCOME (LOSS) Dividends $ 16,188 $ 18,008 $ 454,862 $ 195,463 Charges from Northbrook Life Insurance Company: Mortality and expense risk (58,073) (4,286) (83,435) (61,586) Administrative expense (3,954) (282) (5,604) (4,069) ------------ ------------ -------------- ------------- Net investment income (loss) (45,839) 13,440 365,823 129,808 ------------ ------------ -------------- ------------- REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Realized gains (losses) from sales of investments: Proceeds from sales 920,532 99,101 1,079,619 617,486 Cost of investments sold 933,408 98,867 1,117,985 628,231 ------------ ------------ -------------- ------------- Net realized gains (losses) (12,876) 234 (38,366) (10,745) ------------ ------------ -------------- ------------- Change in unrealized gains (losses) (1,094,586) 1,462 (773,273) (202,629) ------------ ------------ -------------- ------------- Net gains (losses) on investments (1,107,462) 1,696 (811,639) (213,374) ------------ ------------ -------------- ------------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ (1,153,301) $ 15,136 $ (445,816) $ (83,566) ============ ============ ============== =============
(f) For the Period Beginning May 1, 2000 and Ended December 31, 2000 See notes to financial statements. 13 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ----------------------------------------------------------------------------------- Capital Aggressive Equity Appreciation (c) Capital Growth ------------------------------- ---------------- -------------------------------- 2000 1999 (b) 1999 2000 1999 --------------- -------------- ---------------- --------------- --------------- FROM OPERATIONS Net investment income (loss) $ (1,581,613) $ (89,491) $ 331,100 $ 26,674,163 $ 14,629,948 Net realized gains (losses) 387,151 562,424 45,003 5,387,531 5,021,860 Change in unrealized gains (losses) (11,134,118) 6,589,375 1,824,853 (32,870,081) 18,225,024 ------------- ------------ -------------- ------------- ------------- Change in net assets resulting from operations (12,328,580) 7,062,308 2,200,956 (808,387) 37,876,832 ------------- ------------ -------------- ------------- ------------- FROM CAPITAL TRANSACTIONS Deposits 37,028,311 12,119,932 1,292,309 13,443,564 9,505,220 Benefit payments (900,845) (8,280) (57,970) (1,969,294) (1,116,070) Payments on termination (6,715,026) (180,619) (647,504) (18,795,015) (12,938,058) Contract maintenance charge (56,112) (8,488) 3,365 (65,736) (54,380) Transfers among the sub-accounts and with the Fixed Account - net 78,737,903 18,649,870 (34,073,925) 18,365,722 (3,891,813) ------------- ------------ -------------- ------------- ------------- Change in net assets resulting from capital transactions 108,094,231 30,572,415 (33,483,725) 10,979,241 (8,495,101) ------------- ------------ -------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS 95,765,651 37,634,723 (31,282,769) 10,170,854 29,381,731 NET ASSETS AT BEGINNING OF PERIOD 37,634,723 - 31,282,769 157,824,145 128,442,414 ------------- ------------ -------------- ------------- ------------- NET ASSETS AT END OF PERIOD $ 133,400,374 $ 37,634,723 $ - $ 167,994,999 $ 157,824,145 ============= ============ ============== ============= =============
(b) For the Period Beginning May 3, 1999 and Ended December 31, 1999 (c) As of the close of Business on March 19, 1999, the Capital Appreciation Sub-Account merged with and into the Equity Sub-Account. See notes to financial statements 14 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts -------------------------------------------------------------------- Competitive Edge, "Best Ideas" Dividend Growth -------------------------------- ---------------------------------- 2000 1999 2000 1999 --------------- --------------- ---------------- ---------------- FROM OPERATIONS Net investment income (loss) $ (749,124) $ (357,963) $ 341,514,154 $ 314,959,411 Net realized gains (losses) 789,554 668,887 208,002,232 128,696,734 Change in unrealized gains (losses) (14,724,894) 10,507,911 (532,890,671) (523,069,735) ------------- ------------- -------------- -------------- Change in net assets resulting from operations (14,684,464) 10,818,835 16,625,715 (79,413,590) ------------- ------------- -------------- -------------- FROM CAPITAL TRANSACTIONS Deposits 12,414,281 14,308,748 39,845,901 188,251,624 Benefit payments (532,011) (385,715) (22,382,755) (22,608,692) Payments on termination (4,806,290) (3,208,126) (175,477,715) (178,336,682) Contract maintenance charge (28,565) (20,818) (630,181) (827,903) Transfers among the sub-accounts and with the Fixed Account - net 14,339,473 2,656,267 (305,079,362) (100,954,098) ------------- ------------- -------------- -------------- Change in net assets resulting from capital transactions 21,386,888 13,350,356 (463,724,112) (114,475,751) ------------- ------------- -------------- -------------- INCREASE (DECREASE) IN NET ASSETS 6,702,424 24,169,191 (447,098,397) (193,889,341) NET ASSETS AT BEGINNING OF PERIOD 59,470,572 35,301,381 1,892,811,278 2,086,700,619 ------------- ------------- -------------- -------------- NET ASSETS AT END OF PERIOD $ 66,172,996 $ 59,470,572 $1,445,712,881 $1,892,811,278 ============= ============= ============== ============== Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ---------------------------------------------------------------------- Equity ---------------------------------- 2000 1999 (c) ---------------- ---------------- FROM OPERATIONS Net investment income (loss) $ 270,851,516 $ 143,182,457 Net realized gains (losses) 48,964,431 20,788,533 Change in unrealized gains (losses) (594,936,907) 497,325,723 -------------- -------------- Change in net assets resulting from operations (275,120,960) 661,296,713 -------------- -------------- FROM CAPITAL TRANSACTIONS Deposits 100,705,202 167,149,976 Benefit payments (18,537,524) (11,678,201) Payments on termination (168,025,629) (109,621,629) Contract maintenance charge (661,389) (626,104) Transfers among the sub-accounts and with the Fixed Account - net 121,184,474 173,235,007 -------------- -------------- Change in net assets resulting from capital transactions 34,665,134 218,459,049 -------------- -------------- INCREASE (DECREASE) IN NET ASSETS (240,455,826) 879,755,762 NET ASSETS AT BEGINNING OF PERIOD 1,918,042,532 1,038,286,770 -------------- -------------- NET ASSETS AT END OF PERIOD $1,677,586,706 $1,918,042,532 ============== ==============
(c) As of the close of Business on March 19, 1999, the Capital Appreciation Sub-Account merged with and into the Equity Sub-Account. See notes to financial statements 15 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ------------------------------------------------------------------ European Growth Global Dividend Growth -------------------------------- -------------------------------- 2000 1999 2000 1999 --------------- --------------- --------------- --------------- FROM OPERATIONS Net investment income (loss) $ 74,292,764 $ 40,243,082 $ 32,973,494 $ 35,854,179 Net realized gains (losses) 43,358,951 32,543,061 2,210,135 9,001,583 Change in unrealized gains (losses) (149,231,476) 43,557,813 (57,816,199) 11,267,752 ------------- ------------- ------------- ------------- Change in net assets resulting from operations (31,579,761) 116,343,956 (22,632,570) 56,123,514 ------------- ------------- ------------- ------------- FROM CAPITAL TRANSACTIONS Deposits 24,846,114 33,605,981 6,820,575 24,612,447 Benefit payments (5,830,479) (3,672,213) (4,968,693) (5,520,386) Payments on termination (54,836,408) (44,372,248) (42,189,879) (36,599,848) Contract maintenance charge (190,290) (186,281) (153,681) (198,686) Transfers among the sub-accounts and with the Fixed Account - net 2,444,524 (38,047,377) (62,748,030) (16,822,685) ------------- ------------- ------------- ------------- Change in net assets resulting from capital transactions (33,566,539) (52,672,138) (103,239,708) (34,529,158) ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS (65,146,300) 63,671,818 (125,872,278) 21,594,356 NET ASSETS AT BEGINNING OF PERIOD 535,808,084 472,136,266 475,565,397 453,971,041 ------------- ------------- ------------- ------------- NET ASSETS AT END OF PERIOD $ 470,661,784 $ 535,808,084 $ 349,693,119 $ 475,565,397 ============= ============= ============= ============= Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ------------------------------------------------------------------ High Yield -------------------------------- 2000 1999 --------------- --------------- FROM OPERATIONS Net investment income (loss) $ 31,996,217 $ 38,967,620 Net realized gains (losses) (49,030,625) (31,301,303) Change in unrealized gains (losses) (47,984,362) (15,834,237) ------------- ------------- Change in net assets resulting from operations (65,018,770) (8,167,920) ------------- ------------- FROM CAPITAL TRANSACTIONS Deposits 5,088,118 26,101,041 Benefit payments (4,283,015) (4,009,045) Payments on termination (30,396,806) (35,111,312) Contract maintenance charge (63,055) (104,889) Transfers among the sub-accounts and with the Fixed Account - net (45,613,045) (57,088,792) ------------- ------------- Change in net assets resulting from capital transactions (75,267,803) (70,212,997) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS (140,286,573) (78,380,917) NET ASSETS AT BEGINNING OF PERIOD 258,683,943 337,064,860 ------------- ------------- NET ASSETS AT END OF PERIOD $ 118,397,370 $ 258,683,943 ============= =============
See notes to financial statements 16 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ----------------------------------------------------------------------------------------------------------------------------------- Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ------------------------------------------------------------------------------- Income Builder Information Money Market ------------------------------ ------------- -------------------------------- 2000 1999 2000 (d) 2000 1999 -------------- -------------- ------------- --------------- --------------- FROM OPERATIONS Net investment income (loss) $ 2,394,071 $ 4,500,919 $ (3,276) $ 15,583,814 $ 13,220,816 Net realized gains (losses) (1,282,412) 112,097 (14,800) - - Change in unrealized gains (losses) (2,694,441) (428,270) (160,451) - - ------------ ------------ ----------- ------------- ------------- Change in net assets resulting from operations (1,582,782) 4,184,746 (178,527) 15,583,814 13,220,816 ------------ ------------ ----------- ------------- ------------- FROM CAPITAL TRANSACTIONS Deposits 1,613,246 7,989,151 1,097,092 47,872,330 75,959,488 Benefit payments (968,748) (1,104,145) - (15,333,949) (12,372,372) Payments on termination (5,576,539) (5,408,027) (125) (100,926,101) (112,272,629) Contract maintenance charge (24,523) (31,269) (595) (109,981) (128,006) Transfers among the sub-accounts and with the Fixed Account - net (14,824,705) (11,305,739) 1,600,612 (17,688,547) 34,266,127 ------------ ------------ ----------- ------------- ------------- Change in net assets resulting from capital transactions (19,781,269) (9,860,029) 2,696,984 (86,186,248) (14,547,392) ------------ ------------ ----------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS (21,364,051) (5,675,283) 2,518,457 (70,602,434) (1,326,576) NET ASSETS AT BEGINNING OF PERIOD 78,179,820 83,855,103 - 399,607,264 400,933,840 ------------ ------------ ----------- ------------- ------------- NET ASSETS AT END OF PERIOD $ 56,815,769 $ 78,179,820 $ 2,518,457 $ 329,004,830 $ 399,607,264 ============ ============ =========== ============= =============
(d) For the Period Beginning November 6, 2000 and Ended December 31, 2000 See notes to financial statements 17 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ----------------------------------------------------------------------------------------------------------------------- Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ------------------------------------------------------------------ Pacific Growth Quality Income Plus ------------------------------- -------------------------------- 2000 1999 2000 1999 -------------- --------------- --------------- --------------- FROM OPERATIONS Net investment income (loss) $ 88,849 $ (306,851) $ 20,697,830 $ 23,233,331 Net realized gains (losses) (4,721,991) 5,666,501 (8,776,040) (2,450,149) Change in unrealized gains (losses) (25,754,810) 34,854,630 21,690,015 (47,274,110) ------------ ------------- ------------- ------------- Change in net assets resulting from operations (30,387,952) 40,214,280 33,611,805 (26,490,928) ------------ ------------- ------------- ------------- FROM CAPITAL TRANSACTIONS Deposits 6,138,915 12,935,903 7,876,912 29,984,131 Benefit payments (779,687) (522,120) (9,709,897) (7,891,742) Payments on termination (8,242,631) (5,927,181) (50,375,262) (52,572,327) Contract maintenance charge (28,669) (41,208) (154,638) (161,057) Transfers among the sub-accounts and with the Fixed Account - net (14,475,423) 12,162,641 (26,207,240) (24,709,758) ------------ ------------- ------------- ------------- Change in net assets resulting from capital transactions (17,387,495) 18,608,035 (78,570,125) (55,350,753) ------------ ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS (47,775,447) 58,822,315 (44,958,320) (81,841,681) NET ASSETS AT BEGINNING OF PERIOD 106,176,560 47,354,245 414,010,657 495,852,338 ------------ ------------- ------------- ------------- NET ASSETS AT END OF PERIOD $ 58,401,113 $ 106,176,560 $ 369,052,337 $ 414,010,657 ============ ============= ============= ============= Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ------------------------------------------------------------------ S&P 500 Index -------------------------------- 2000 1999 --------------- --------------- FROM OPERATIONS Net investment income (loss) $ (874,269) $ (1,085,100) Net realized gains (losses) 1,861,370 965,551 Change in unrealized gains (losses) (23,889,850) 20,320,510 ------------- ------------- Change in net assets resulting from operations (22,902,749) 20,200,961 ------------- ------------- FROM CAPITAL TRANSACTIONS Deposits 29,138,284 62,363,357 Benefit payments (2,917,283) (364,932) Payments on termination (17,084,143) (6,958,805) Contract maintenance charge (79,072) (52,042) Transfers among the sub-accounts and with the Fixed Account - net 36,340,948 55,622,169 ------------- ------------- Change in net assets resulting from capital transactions 45,398,734 110,609,747 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS 22,495,985 130,810,708 NET ASSETS AT BEGINNING OF PERIOD 177,287,890 46,477,182 ------------- ------------- NET ASSETS AT END OF PERIOD $ 199,783,875 $ 177,287,890 ============= =============
See notes to financial statements 18 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ----------------------------------------------------------------------------------------------------------------------- Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ------------------------------------------------------------------ Short-Term Bond Strategist ----------------------------- -------------------------------- 2000 1999 (b) 2000 1999 ------------- -------------- --------------- --------------- FROM OPERATIONS Net investment income (loss) $ 179,078 $ 40,073 $ 85,163,095 $ 5,099,380 Net realized gains (losses) 2,408 (781) 18,049,690 15,031,460 Change in unrealized gains (losses) 44,678 (19,068) (101,361,897) 68,404,657 ----------- ------------ ------------- ------------- Change in net assets resulting from operations 226,164 20,224 1,850,888 88,535,497 ----------- ------------ ------------- ------------- FROM CAPITAL TRANSACTIONS Deposits 1,300,140 930,037 27,377,665 53,336,082 Benefit payments (168,784) - (9,554,700) (7,657,772) Payments on termination (448,343) (114,564) (67,256,375) (54,083,482) Contract maintenance charge (2,476) (754) (250,462) (236,109) Transfers among the sub-accounts and with the Fixed Account - net 2,278,206 2,300,526 28,655,668 15,905,456 ----------- ------------ ------------- ------------- Change in net assets resulting from capital transactions 2,958,743 3,115,245 (21,028,204) 7,264,175 ----------- ------------ ------------- ------------- INCREASE (DECREASE) IN NET ASSETS 3,184,907 3,135,469 (19,177,316) 95,799,672 NET ASSETS AT BEGINNING OF PERIOD 3,135,469 - 652,147,887 556,348,215 ----------- ------------ ------------- ------------- NET ASSETS AT END OF PERIOD $ 6,320,376 $ 3,135,469 $ 632,970,571 $ 652,147,887 =========== ============ ============= ============= Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts ------------------------------------------------------------------ Utilities -------------------------------- 2000 1999 --------------- --------------- FROM OPERATIONS Net investment income (loss) $ 34,913,020 $ 15,985,982 Net realized gains (losses) 26,773,710 23,911,415 Change in unrealized gains (losses) (53,017,599) 14,087,560 ------------- ------------- Change in net assets resulting from operations 8,669,131 53,984,957 ------------- ------------- FROM CAPITAL TRANSACTIONS Deposits 18,520,186 39,072,264 Benefit payments (8,048,701) (8,484,832) Payments on termination (55,510,014) (50,808,054) Contract maintenance charge (212,176) (201,221) Transfers among the sub-accounts and with the Fixed Account - net 11,594,071 (10,204,178) ------------- ------------- Change in net assets resulting from capital transactions (33,656,634) (30,626,021) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS (24,987,503) 23,358,936 NET ASSETS AT BEGINNING OF PERIOD 531,357,935 507,998,999 ------------- ------------- NET ASSETS AT END OF PERIOD $ 506,370,432 $ 531,357,935 ============= =============
(b) For the Period Beginning May 3, 1999 and Ended December 31, 1999 See notes to financial statements 19 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------------------------------------------- The Universal Institutional Funds, Inc. Sub-Accounts (a) --------------------------------------------------------------- Emerging Markets Equity Equity Growth ------------------------------ ------------------------------- 2000 1999 2000 1999 -------------- -------------- --------------- -------------- FROM OPERATIONS Net investment income (loss) $ 2,793,699 $ (123,674) $ 5,589,890 $ 1,708,417 Net realized gains (losses) (1,114,021) 2,301,737 1,924,775 638,483 Change in unrealized gains (losses) (13,971,580) 5,429,367 (26,639,061) 12,913,775 ------------ ------------ ------------- ------------ Change in net assets resulting from operations (12,291,902) 7,607,430 (19,124,396) 15,260,675 ------------ ------------ ------------- ------------ FROM CAPITAL TRANSACTIONS Deposits 10,687,977 5,860,089 26,800,090 18,427,169 Benefit payments (264,494) (4,713) (1,101,811) (284,465) Payments on termination (1,504,909) (593,151) (7,282,991) (3,119,435) Contract maintenance charge (7,488) (6,183) (41,500) (21,923) Transfers among the sub-accounts and with the Fixed Account - net (59,472) 7,427,993 36,549,584 17,161,540 ------------ ------------ ------------- ------------ Change in net assets resulting from capital transactions 8,851,614 12,684,035 54,923,372 32,162,886 ------------ ------------ ------------- ------------ INCREASE (DECREASE) IN NET ASSETS (3,440,288) 20,291,465 35,798,976 47,423,561 NET ASSETS AT BEGINNING OF PERIOD 21,750,425 1,458,960 73,100,676 25,677,115 ------------ ------------ ------------- ------------ NET ASSETS AT END OF PERIOD $ 18,310,137 $ 21,750,425 $ 108,899,652 $ 73,100,676 ============ ============ ============= ============ The Universal Institutional Funds, Inc. Sub-Accounts (a) --------------------------------------------------------------- International Magnum ------------------------------ 2000 1999 -------------- -------------- FROM OPERATIONS Net investment income (loss) $ 369,060 $ 12,977 Net realized gains (losses) (241,825) 245,853 Change in unrealized gains (losses) (2,386,683) 1,391,382 ------------ ------------ Change in net assets resulting from operations (2,259,448) 1,650,212 ------------ ------------ FROM CAPITAL TRANSACTIONS Deposits 6,888,652 4,195,250 Benefit payments (218,924) (11,957) Payments on termination (1,086,218) (236,057) Contract maintenance charge (7,789) (3,349) Transfers among the sub-accounts and with the Fixed Account - net 5,829,986 2,293,294 ------------ ------------ Change in net assets resulting from capital transactions 11,405,707 6,237,181 ------------ ------------- INCREASE (DECREASE) IN NET ASSETS 9,146,259 7,887,393 NET ASSETS AT BEGINNING OF PERIOD 11,349,945 3,462,552 ------------ ------------- NET ASSETS AT END OF PERIOD $ 20,496,204 $ 11,349,945 ============ =============
(a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. See notes to financial statements 20 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------------------------------------- The Universal Institutional Funds, Inc. Sub-Accounts (a) ---------------------------------------------------------- Mid Cap Value U.S. Real Estate ------------------- ------------------------------------- 2000 (e) 2000 1999 ------------------- ------------------ ----------------- FROM OPERATIONS Net investment income (loss) $ 846,972 $ 212,859 $ 209,474 Net realized gains (losses) (26,756) 599,099 (80,917) Change in unrealized gains (losses) (694,490) 1,473,607 (365,102) ----------------- ---------------- --------------- Change in net assets resulting from operations 125,726 2,285,565 (236,545) ----------------- ---------------- --------------- FROM CAPITAL TRANSACTIONS Deposits 5,225,576 2,199,419 2,256,539 Benefit payments (4,831) (83,181) (18,349) Payments on termination (142,447) (829,831) (219,432) Contract maintenance charge (1,966) (5,703) (1,904) Transfers among the sub-accounts and with the Fixed Account - net 2,759,559 7,508,547 1,478,675 ----------------- ---------------- --------------- Change in net assets resulting from capital transactions 7,835,891 8,789,251 3,495,529 ----------------- ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS 7,961,617 11,074,816 3,258,984 NET ASSETS AT BEGINNING OF PERIOD - 5,238,524 1,979,540 ----------------- ---------------- --------------- NET ASSETS AT END OF PERIOD $ 7,961,617 $ 16,313,340 $ 5,238,524 ================= ================ =============== Van Kampen Life Investment Trust Sub-Account -------------------------------- LIT Emerging Growth -------------------------------- 2000 1999 --------------- --------------- FROM OPERATIONS Net investment income (loss) $ (3,231,653) $ (643,933) Net realized gains (losses) 7,117,630 1,246,818 Change in unrealized gains (losses) (73,283,344) 46,420,306 ------------- ------------- Change in net assets resulting from operations (69,397,367) 47,023,191 ------------- ------------- FROM CAPITAL TRANSACTIONS Deposits 98,979,814 27,759,585 Benefit payments (1,770,332) (201,304) Payments on termination (16,299,682) (3,202,433) Contract maintenance charge (113,455) (35,203) Transfers among the sub-accounts and with the Fixed Account - net 138,452,923 49,182,955 ------------- ------------- Change in net assets resulting from capital transactions 219,249,268 73,503,600 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS 149,851,901 120,526,791 NET ASSETS AT BEGINNING OF PERIOD 130,164,408 9,637,617 ------------- ------------- NET ASSETS AT END OF PERIOD $ 280,016,309 $ 130,164,408 ============= =============
(a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. (e) For the Period Beginning January 31, 2000 and Ended December 31, 2000 See notes to financial statements 21 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------------------------- AIM Variable Insurance Funds Sub-Accounts ----------------------------------------------- AIM V.I. Capital AIM V.I. AIM V.I. Appreciation Growth Value ---------------- ------------- -------------- 2000 (e) 2000 (e) 2000 (e) ---------------- ------------- -------------- FROM OPERATIONS Net investment income (loss) $ 300,799 $ 222,509 $ 1,133,806 Net realized gains (losses) (783,746) (325,309) (539,878) Change in unrealized gains (losses) (2,992,299) (2,257,862) (4,716,119) -------------- ----------- ------------ Change in net assets resulting from operations (3,475,246) (2,360,662) (4,122,191) -------------- ----------- ------------ FROM CAPITAL TRANSACTIONS Deposits 8,831,089 6,951,807 19,428,320 Benefit payments (104,263) (70,239) (110,067) Payments on termination (277,657) (100,901) (527,967) Contract maintenance charge (4,181) (2,311) (8,468) Transfers among the sub-accounts and with the Fixed Account - net 9,222,222 4,511,770 15,623,618 -------------- ----------- ------------ Change in net assets resulting from capital transactions 17,667,210 11,290,126 34,405,436 -------------- ----------- ------------ INCREASE (DECREASE) IN NET ASSETS 14,191,964 8,929,464 30,283,245 NET ASSETS AT BEGINNING OF PERIOD - - - -------------- ----------- ------------ NET ASSETS AT END OF PERIOD $ 14,191,964 $ 8,929,464 $ 30,283,245 ============== =========== ============ Alliance Variable Product Series Fund Sub-Accounts -------------------------------------------------- Alliance Alliance Growth Alliance Growth & Income Premier Growth --------------- ---------------- --------------- 2000 (e) 2000 (e) 2000 (e) --------------- ---------------- --------------- FROM OPERATIONS Net investment income (loss) $ 37,028 $ (1,639) $ (55,080) Net realized gains (losses) (245,418) 38,545 (96,387) Change in unrealized gains (losses) (1,437,593) 678,624 (7,678,415) ------------- -------------- ------------- Change in net assets resulting from operations (1,645,983) 715,530 (7,829,882) ------------- -------------- ------------- FROM CAPITAL TRANSACTIONS Deposits 6,020,329 8,503,685 19,474,950 Benefit payments (80,917) (126,654) (97,170) Payments on termination (234,818) (302,659) (766,535) Contract maintenance charge (2,835) (7,260) (11,185) Transfers among the sub-accounts and with the Fixed Account - net 5,475,300 17,867,145 26,030,568 ------------- -------------- ------------- Change in net assets resulting from capital transactions 11,177,059 25,934,257 44,630,628 ------------- -------------- ------------- INCREASE (DECREASE) IN NET ASSETS 9,531,076 26,649,787 36,800,746 NET ASSETS AT BEGINNING OF PERIOD - - - ------------- -------------- ------------- NET ASSETS AT END OF PERIOD $ 9,531,076 $ 26,649,787 $ 36,800,746 ============= ============== =============
(e) For the Period Beginning January 31, 2000 and Ended December 31, 2000 See notes to financial statements 22 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------------------------- Putnam Variable Trust Sub-Accounts ---------------------------------------------- Growth & International Income Growth Voyager -------------- -------------- -------------- 2000 (e) 2000 (e) 2000 (e) -------------- -------------- -------------- FROM OPERATIONS Net investment income (loss) $ (33,291) $ (111,928) $ (143,762) Net realized gains (losses) 38,065 (349,687) (196,561) Change in unrealized gains (losses) 359,797 (747,007) (4,274,119) ------------ ------------ ------------ Change in net assets resulting from operations 364,571 (1,208,622) (4,614,442) ------------ ------------ ------------ FROM CAPITAL TRANSACTIONS Deposits 4,011,399 12,932,128 15,917,834 Benefit payments - (66,733) - Payments on termination (197,399) (422,871) (633,137) Contract maintenance charge (2,605) (6,887) (7,325) Transfers among the sub-accounts and with the Fixed Account - net 5,844,510 13,149,980 15,128,829 ------------ ------------ ------------ Change in net assets resulting from capital transactions 9,655,905 25,585,617 30,406,201 ------------ ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 10,020,476 24,376,995 25,791,759 NET ASSETS AT BEGINNING OF PERIOD - - - ------------ ------------ ------------ NET ASSETS AT END OF PERIOD $ 10,020,476 $ 24,376,995 $ 25,791,759 ============ ============ ============ Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts ------------------------------------------------- Competitive Aggressive Capital Edge, Equity Growth "Best Ideas" ---------------- -------------- --------------- 2000 (f) 2000 (f) 2000 (f) ---------------- -------------- --------------- FROM OPERATIONS Net investment income (loss) $ (61,967) $ 36,680 $ (20,710) Net realized gains (losses) 3,399 (18,546) (8,768) Change in unrealized gains (losses) (901,195) (138,786) (567,300) -------------- ------------ ------------- Change in net assets resulting from operations (959,763) (120,652) (596,778) -------------- ------------ ------------- FROM CAPITAL TRANSACTIONS Deposits 13,046,167 1,840,288 5,131,055 Benefit payments (51,889) (7,387) (11,615) Payments on termination (57,611) (35,472) (10,508) Contract maintenance charge (2,890) (763) (1,010) Transfers among the sub-accounts and with the Fixed Account - net 1,373,681 1,850,273 153,878 -------------- ------------ ------------- Change in net assets resulting from capital transactions 14,307,458 3,646,939 5,261,800 -------------- ------------ ------------- INCREASE (DECREASE) IN NET ASSETS 13,347,695 3,526,287 4,665,022 NET ASSETS AT BEGINNING OF PERIOD - - - -------------- ------------ ------------- NET ASSETS AT END OF PERIOD $ 13,347,695 $ 3,526,287 $ 4,665,022 ============== ============ =============
(e) For the Period Beginning January 31, 2000 and Ended December 31, 2000 (f) For the Period Beginning May 1, 2000 and Ended December 31, 2000 See notes to financial statements 23 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts ----------------------------------------------------------------------------------- Global Dividend European Dividend High Income Growth Equity Growth Growth Yield Builder -------------- ------------- -------------- ------------- ------------- ----------- 2000 (f) 2000 (f) 2000 (f) 2000 (f) 2000 (f) 2000 (f) -------------- ------------- -------------- ------------- ------------- ----------- FROM OPERATIONS Net investment income (loss) $ 417,941 $ 495,028 $ 166,035 $ 11,063 $ 169,524 $ 14,866 Net realized gains (losses) (57,888) (72,134) (121,738) (1,049) (40,614) (937) Change in unrealized gains (losses) 1,016,373 (2,722,264) (246,794) 73,356 (737,879) 2,663 ------------ ----------- ------------ ----------- ----------- --------- Change in net assets resulting from operations 1,376,426 (2,299,370) (202,497) 83,370 (608,969) 16,592 ------------ ----------- ------------ ----------- ----------- --------- FROM CAPITAL TRANSACTIONS Deposits 17,370,177 31,964,349 10,744,322 2,118,591 2,468,796 914,037 Benefit payments (11,393) (37,877) (68,776) - - - Payments on termination (110,205) (193,229) (74,892) (27,365) (9,079) (2,112) Contract maintenance charge (4,132) (6,897) (2,288) (479) (421) (209) Transfers among the sub-accounts and with the Fixed Account - net 461,836 2,430,841 173,340 36,588 92,135 36,204 ------------ ----------- ------------ ----------- ----------- --------- Change in net assets resulting from capital transactions 17,706,283 34,157,187 10,771,706 2,127,335 2,551,431 947,920 ------------ ----------- ------------ ----------- ----------- --------- INCREASE (DECREASE) IN NET ASSETS 19,082,709 31,857,817 10,569,209 2,210,705 1,942,462 964,512 NET ASSETS AT BEGINNING OF PERIOD - - - - - - ------------ ----------- ------------ ----------- ----------- --------- NET ASSETS AT END OF PERIOD $ 19,082,709 $31,857,817 $ 10,569,209 $ 2,210,705 $ 1,942,462 $ 964,512 ============ =========== ============ =========== =========== =========
(f) For the Period Beginning May 1, 2000 and Ended December 31, 2000 See notes to financial statements 24 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts ----------------------------------------------------------------------------------- Quality Money Pacific Income S&P 500 Short-Term Information Market Growth Plus Index Bond ------------- -------------- ----------- ------------- -------------- ------------- 2000 (f) 2000 (f) 2000 (f) 2000 (f) 2000 (f) 2000 (f) ------------- -------------- ----------- ------------- -------------- ------------- FROM OPERATIONS Net investment income (loss) $ (2,841) $ 132,280 $ (3,834) $ 65,677 $ (45,839) $ 13,440 Net realized gains (losses) 8 - (5,163) 2,019 (12,876) 234 Change in unrealized gains (losses) (109,760) - (197,092) 92,385 (1,094,586) 1,462 ----------- ------------ --------- ----------- ------------ ----------- Change in net assets resulting from operations (112,593) 132,280 (206,089) 160,081 (1,153,301) 15,136 ----------- ------------ --------- ----------- ------------ ----------- FROM CAPITAL TRANSACTIONS Deposits 2,037,542 20,255,548 921,823 4,616,633 13,059,493 1,236,517 Benefit payments - - - - (72,473) - Payments on termination (1,735) (225,866) (359) (18,951) (76,724) (3,902) Contract maintenance charge (415) (2,990) (158) (1,120) (2,755) (310) Transfers among the sub-accounts and with the Fixed Account - net (8,210) (6,349,118) 13,520 416,325 972,260 182,242 ----------- ------------ --------- ----------- ------------ ----------- Change in net assets resulting from capital transactions 2,027,182 13,677,574 934,826 5,012,887 13,879,801 1,414,547 ----------- ------------ --------- ----------- ------------ ----------- INCREASE (DECREASE) IN NET ASSETS 1,914,589 13,809,854 728,737 5,172,968 12,726,500 1,429,683 NET ASSETS AT BEGINNING OF PERIOD - - - - - - ----------- ------------ --------- ----------- ------------ ----------- NET ASSETS AT END OF PERIOD $ 1,914,589 $ 13,809,854 $ 728,737 $ 5,172,968 $ 12,726,500 $ 1,429,683 =========== ============ ========= =========== ============ ===========
(f) For the Period Beginning May 1, 2000 and Ended December 31, 2000 See notes to financial statements 25 NORTHBROOK VARIABLE ANNUITY ACCOUNT II
STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, - ------------------------------------------------------------------------------- Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts ------------------------------- Strategist Utilities -------------- -------------- 2000 (f) 2000 (f) -------------- -------------- FROM OPERATIONS Net investment income (loss) $ 365,823 $ 129,808 Net realized gains (losses) (38,366) (10,745) Change in unrealized gains (losses) (773,273) (202,629) ------------ ------------ Change in net assets resulting from operations (445,816) (83,566) ------------ ------------ FROM CAPITAL TRANSACTIONS Deposits 22,556,091 18,280,101 Benefit payments (7,531) (7,416) Payments on termination (87,319) (88,324) Contract maintenance charge (5,054) (4,126) Transfers among the sub-accounts and with the Fixed Account - net 1,333,694 960,476 ------------ ------------ Change in net assets resulting from capital transactions 23,789,881 19,140,711 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS 23,344,065 19,057,145 NET ASSETS AT BEGINNING OF PERIOD - - ------------ ------------ NET ASSETS AT END OF PERIOD $ 23,344,065 $ 19,057,145 ============ ============
(f) For the Period Beginning May 1, 2000 and Ended December 31, 2000 See notes to financial statements 26 NORTHBROOK VARIABLE ANNUITY ACCOUNT II NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 1. ORGANIZATION Northbrook Variable Annuity Account II (the "Account"), a unit investment trust registered with the Securities and Exchange Commission under the Investment Company Act of 1940, is a Separate Account of Northbrook Life Insurance Company ("Northbrook Life"). The assets of the Account are legally segregated from those of Northbrook Life. Northbrook Life is wholly owned by Allstate Life Insurance Company, a wholly owned subsidiary of Allstate Insurance Company, which is wholly owned by The Allstate Corporation. Northbrook Life issues five variable annuity contracts: the Morgan Stanley Dean Witter Variable Annuity II, the Morgan Stanley Dean Witter Variable Annuity II AssetManager, the Preferred Client Variable Annuity, the Morgan Stanley Dean Witter Variable Annuity 3, and the Morgan Stanley Dean Witter Variable Annuity 3 AssetManager (collectively the "Contracts"). The deposits of the Contracts are invested at the direction of the contractholders in the sub-accounts that comprise the Account. Absent any contract provisions wherein Northbrook Life contractually guarantees either a minimum return or account value upon death or annuitization, variable annuity contractholders bear the investment risk that the sub-accounts may not meet their stated investment objectives. The sub-accounts invest in the following underlying mutual fund portfolios (collectively the "Funds"): MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES Aggressive Equity Information Capital Growth Money Market Competitive Edge, "Best Ideas" Pacific Growth Dividend Growth Quality Income Plus Equity S&P 500 Index European Growth Short-Term Bond Global Dividend Growth Strategist High Yield Utilities Income Builder THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (PREVIOUSLY KNOWN AS MORGAN STANLEY DEAN WITTER UNIVERSAL FUNDS, INC.) Emerging Markets Equity Mid Cap Value Equity Growth U.S. Real Estate International Magnum VAN KAMPEN LIFE INVESTMENT TRUST LIT Emerging Growth AIM VARIABLE INSURANCE FUNDS AIM V.I. Capital Appreciation AIM V.I. Value AIM V.I. Growth ALLIANCE VARIABLE PRODUCT SERIES FUND Alliance Growth Alliance Premier Growth Alliance Growth & Income PUTNAM VARIABLE TRUST Growth & Income Voyager International Growth 27 NOTES TO FINANCIAL STATEMENTS (CONTINUED) - -------------------------------------------------------------------------------- 1. ORGANIZATION (CONTINUED) MORGAN STANLEY DEAN WITTER VARIABLE INVESTMENT SERIES (CLASS Y SHARES) Aggressive Equity Information Capital Growth Money Market Competitive Edge, "Best Ideas" Pacific Growth Dividend Growth Quality Income Plus Equity S&P 500 Index European Growth Short-Term Bond Global Dividend Growth Strategist High Yield Utilities Income Builder Northbrook Life provides insurance and administrative services to the contractholders for a fee. Northbrook Life also maintains a fixed account ("Fixed Account"), to which contractholders may direct their deposits and receive a fixed rate of return. Northbrook Life has sole discretion to invest the assets of the Fixed Account, subject to applicable law. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES VALUATION OF INVESTMENTS - Investments consist of shares of the Funds and are stated at fair value based on quoted market prices. INVESTMENT INCOME - Investment income consists of dividends declared by the Funds and is recognized on the ex-dividend date. REALIZED GAINS AND LOSSES - Realized gains and losses represent the difference between the proceeds from sales of shares of the Funds by the Account and the cost of such shares, which is determined on a weighted average basis. Transactions are recorded on a trade date basis. FEDERAL INCOME TAXES - The Account intends to qualify as a segregated asset account as defined in the Internal Revenue Code ("Code"). As such, the operations of the Account are included in the tax return of Northbrook Life. Northbrook Life is taxed as a life insurance company under the Code. No federal income taxes are allocable to the Account as the Account did not generate taxable income. USE OF ESTIMATES - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 28 NOTES TO FINANCIAL STATEMENTS (CONTINUED) - -------------------------------------------------------------------------------- 3. EXPENSES MORTALITY AND EXPENSE RISK CHARGE - Northbrook Life assumes mortality and expense risks related to the operations of the Account and deducts charges daily based on the average daily net assets of the Account. The mortality and expense risk charge covers insurance benefits available with the contract and certain expenses of the contract. It also covers the risk that the current charges will not be sufficient in the future to cover the cost of administering the contract. Northbrook Life guarantees that the amount of this charge will not increase over the life of the contract. At the contractholder's discretion, additional options may be purchased for an additional charge. ADMINISTRATIVE EXPENSE CHARGE - Northbrook Life deducts an administrative expense charge daily at a rate equal to .10% per annum of the average daily net assets of the Contracts. CONTRACT MAINTENANCE CHARGE - Northbrook Life deducts an annual contract maintenance charge of $30 on each Morgan Stanley Dean Witter Variable Annuity II and $35 on each Morgan Stanley Dean Witter Variable Annuity II AssetManager, Morgan Stanley Dean Witter Variable Annuity 3, and Morgan Stanley Dean Witter Variable Annuity 3 AssetManager contract anniversary and guarantees that this charge will not increase over the life of the contract. If certain conditions are met, this charge will be waived for Morgan Stanley Dean Witter Variable Annuity II AssetManager, Morgan Stanley Dean Witter Variable Annuity 3, and Morgan Stanley Dean Witter Variable Annuity 3 AssetManager contracts. 29 4. UNITS ISSUED AND REDEEMED (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II --------------------------------------------------------------------- Unit activity during 2000: -------------------------------------------- Units Outstanding Units Units Units Outstanding December 31, 1999 Issued Redeemed December 31, 2000 ------------------- ------------ ------------ ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 924,675 6,341,267 (4,164,785) 3,101,157 Capital Growth 3,251,167 1,049,440 (1,279,525) 3,021,082 Competitive Edge, "Best Ideas" 1,766,647 1,564,045 (924,813) 2,405,879 Dividend Growth 31,771,950 2,953,392 (12,277,622) 22,447,720 Equity 13,033,466 2,612,030 (3,382,699) 12,262,797 European Growth 7,442,535 4,593,090 (5,728,147) 6,307,478 Global Dividend Growth 15,377,323 1,179,563 (5,492,334) 11,064,552 High Yield 6,186,696 1,271,037 (3,345,585) 4,112,148 Income Builder 2,557,977 700,855 (1,390,310) 1,868,522 Information - 91,116 (27,576) 63,540 Money Market 17,541,394 77,631,812 (82,072,695) 13,100,511 Pacific Growth 7,412,176 31,249,411 (32,944,342) 5,717,245 Quality Income Plus 16,872,144 2,640,795 (6,588,948) 12,923,991 S&P 500 Index 4,729,418 3,252,229 (2,296,188) 5,685,459 Short-Term Bond 127,159 372,957 (252,926) 247,190 Strategist 13,273,409 1,527,664 (3,280,494) 11,520,579 Utilities 11,688,649 1,316,557 (3,115,661) 9,889,545 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 609,573 16,737,934 (16,850,589) 496,918 Equity Growth 1,653,843 2,769,272 (1,838,283) 2,584,832 International Magnum 281,569 5,407,715 (5,167,722) 521,562 Mid Cap Value - 1,743,809 (1,613,795) 130,014 U.S. Real Estate 230,000 4,268,590 (3,989,429) 509,161 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 1,761,875 5,314,069 (3,678,654) 3,397,290 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 1,741,481 (1,410,724) 330,757 AIM V.I. Growth - 1,133,808 (934,691) 199,117 AIM V.I. Value - 2,296,760 (1,638,647) 658,113 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 736,739 (479,977) 256,762 Alliance Growth & Income - 1,890,009 (1,179,222) 710,787 Alliance Premier Growth - 1,564,834 (474,431) 1,090,403 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 2,025,969 (1,731,711) 294,258 International Growth - 4,794,979 (4,217,824) 577,155 Voyager - 1,159,172 (564,466) 594,706 Accumulated Unit Value December 31, 2000 ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity $ 14.04 Capital Growth 31.30 Competitive Edge, "Best Ideas" 9.93 Dividend Growth 36.76 Equity 67.70 European Growth 40.73 Global Dividend Growth 18.49 High Yield 16.06 Income Builder 12.85 Information 9.29 Money Market 14.08 Pacific Growth 5.76 Quality Income Plus 19.95 S&P 500 Index 11.80 Short-Term Bond 10.51 Strategist 31.23 Utilities 33.42 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 8.22 Equity Growth 12.11 International Magnum 10.45 Mid Cap Value 10.24 U.S. Real Estate 11.23 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 21.45 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 8.32 AIM V.I. Growth 7.34 AIM V.I. Value 8.00 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 8.14 Alliance Growth & Income 10.76 Alliance Premier Growth 7.86 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 10.80 International Growth 9.08 Voyager 8.13
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 30 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II with Longevity Reward Rider -------------------------------------------------------------------------- Unit activity during 2000: ---------------------------------------- Units Outstanding Units Units Units Outstanding December 31, 1999 Issued Redeemed December 31, 2000 ------------------ -------- ---------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity - 92,041 (19,621) 72,420 Capital Growth - 153,394 (13,781) 139,613 Competitive Edge, "Best Ideas" - 37,003 (110) 36,893 Dividend Growth - 1,089,897 (93,278) 996,619 Equity - 1,328,473 (39,392) 1,289,081 European Growth - 456,654 (22,360) 434,294 Global Dividend Growth - 267,973 (47,593) 220,380 High Yield - 105,732 (11,417) 94,315 Income Builder - 12,953 (3,403) 9,550 Money Market - 275,657 (90,315) 185,342 Pacific Growth - 64,420 (21,942) 42,478 Quality Income Plus - 391,866 (17,793) 374,073 S&P 500 Index - 73,288 (2,662) 70,626 Strategist - 1,094,172 (84,319) 1,009,853 Utilities - 810,548 (29,532) 781,016 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 4,827 - 4,827 Equity Growth - 19,684 (3,668) 16,016 International Magnum - 1,690 - 1,690 Mid Cap Value - 2,770 (35) 2,735 U.S. Real Estate - 10,052 (711) 9,341 Investments in the Van Kampen Life Investment Trust Sub--Account: LIT Emerging Growth - 115,897 (20,193) 95,704 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 18,081 (5) 18,076 AIM V.I. Growth - 37,734 (4,285) 33,449 AIM V.I. Value - 36,117 (2,925) 33,192 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 18,304 (33) 18,271 Alliance Growth & Income - 6,267 - 6,267 Alliance Premier Growth - 14,145 (7) 14,138 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 84 (5) 79 International Growth - 24,612 - 24,612 Voyager - 27,825 (2,363) 25,462 Accumulated Unit Value December 31, 2000 ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity $ 9.69 Capital Growth 9.72 Competitive Edge, "Best Ideas" 8.43 Dividend Growth 10.70 Equity 9.54 European Growth 9.21 Global Dividend Growth 9.95 High Yield 6.96 Income Builder 10.05 Money Market 10.28 Pacific Growth 7.28 Quality Income Plus 10.77 S&P 500 Index 8.97 Strategist 9.94 Utilities 10.14 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 6.39 Equity Growth 8.34 International Magnum 9.06 Mid Cap Value 10.24 U.S. Real Estate 11.51 Investments in the Van Kampen Life Investment Trust Sub--Account: LIT Emerging Growth 8.13 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 8.29 AIM V.I. Growth 7.40 AIM V.I. Value 8.32 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 8.00 Alliance Growth & Income 10.25 Alliance Premier Growth 7.98 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 10.57 International Growth 9.02 Voyager 8.12
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 31 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II with Longevity Reward Rider and Enhanced Death Benefit Option, Performance Death Benefit Option or Performance Income Benefit Option ------------------------------------------------------------------------------------------- Unit activity during 2000: ------------------------------------- Units Outstanding Units Units Units Outstanding December 31, 1999 Issued Redeemed December 31, 2000 ------------------- -------- ---------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity - 45,427 (13,089) 32,338 Capital Growth - 24,368 - 24,368 Competitive Edge, "Best Ideas" - 5,747 (1) 5,746 Dividend Growth - 291,638 (17,484) 274,154 Equity - 355,627 (32,484) 323,143 European Growth - 121,384 (3,045) 118,339 Global Dividend Growth - 101,777 (5,960) 95,817 High Yield - 29,698 (5,190) 24,508 Income Builder - 1,972 (6) 1,966 Money Market - 95,063 (87,020) 8,043 Pacific Growth - 9,443 (366) 9,077 Quality Income Plus - 115,005 (6,506) 108,499 S&P 500 Index - 41,078 (21) 41,057 Strategist - 331,663 (5,009) 326,654 Utilities - 228,033 (1,722) 226,311 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 12 - 12 Equity Growth - 29,047 (11,559) 17,488 International Magnum - 5,300 (1,628) 3,672 U.S. Real Estate - 458 (6) 452 Investments in the Van Kampen Life Investment Trust Sub--Account: LIT Emerging Growth - 56,049 (6,526) 49,523 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 4,938 (1) 4,937 AIM V.I. Growth - 5,870 (1) 5,869 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 6,858 (1) 6,857 Alliance Growth & Income - 10,486 - 10,486 Alliance Premier Growth - 5,141 (2) 5,139 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 5,419 - 5,419 International Growth - 3,997 - 3,997 Voyager - 3,406 (2) 3,404 Accumulated Unit Value December 31, 2000 ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity $ 9.69 Capital Growth 9.71 Competitive Edge, "Best Ideas" 8.43 Dividend Growth 10.69 Equity 9.54 European Growth 9.20 Global Dividend Growth 9.94 High Yield 6.95 Income Builder 10.04 Money Market 10.27 Pacific Growth 7.27 Quality Income Plus 10.77 S&P 500 Index 8.96 Strategist 9.93 Utilities 10.13 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 6.38 Equity Growth 8.33 International Magnum 9.05 U.S. Real Estate 11.50 Investments in the Van Kampen Life Investment Trust Sub--Account: LIT Emerging Growth 8.13 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 8.28 AIM V.I. Growth 7.40 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 8.00 Alliance Growth & Income 10.24 Alliance Premier Growth 7.98 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 10.56 International Growth 9.01 Voyager 8.11
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 32 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II with Enhanced Death Benefit Option, Performance Death Benefit Option or Performance Income Benefit Option ----------------------------------------------------------------------------------- Unit activity during 2000: -------------------------------------------- Units Outstanding Units Units Units Outstanding December 31, 1999 Issued Redeemed December 31, 2000 ------------------- ----------- ------------ ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 1,122,012 3,803,892 (912,137) 4,013,767 Capital Growth 1,636,053 694,543 (448,216) 1,882,380 Competitive Edge, "Best Ideas" 2,481,411 1,139,678 (642,496) 2,978,593 Dividend Growth 20,053,835 1,948,755 (7,371,661) 14,630,929 Equity 10,374,793 2,343,359 (2,142,932) 10,575,220 European Growth 4,444,148 2,794,872 (2,937,427) 4,301,593 Global Dividend Growth 8,775,455 723,111 (2,588,881) 6,909,685 High Yield 4,203,079 586,990 (1,940,134) 2,849,935 Income Builder 3,113,231 150,686 (1,034,507) 2,229,410 Information - 120,446 (8,160) 112,286 Money Market 10,276,270 36,502,067 (38,497,409) 8,280,928 Pacific Growth 4,058,485 27,612,644 (28,279,905) 3,391,224 Quality Income Plus 5,167,349 869,181 (1,594,859) 4,441,671 S&P 500 Index 6,209,831 3,140,780 (1,814,805) 7,535,806 Short-Term Bond 121,549 310,081 (187,647) 243,983 Strategist 6,559,093 1,350,609 (1,189,912) 6,719,790 Utilities 4,016,659 939,883 (780,555) 4,175,987 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 689,216 1,362,196 (1,166,683) 884,729 Equity Growth 2,952,648 2,752,957 (1,503,676) 4,201,929 International Magnum 416,818 491,043 (194,122) 713,739 Mid Cap Value - 133,783 (14,692) 119,091 U.S. Real Estate 194,964 474,767 (142,836) 526,895 Investments in the Van Kampen Life Investment Trust Sub--Account: LIT Emerging Growth 2,522,689 5,349,894 (2,468,519) 5,404,064 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 530,729 (127,710) 403,019 AIM V.I. Growth - 262,938 (40,849) 222,089 AIM V.I. Value - 984,704 (116,938) 867,766 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 291,472 (38,453) 253,019 Alliance Growth & Income - 915,704 (159,048) 756,656 Alliance Premier Growth - 1,468,491 (98,297) 1,370,194 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 220,718 - 220,718 International Growth - 620,887 (58,420) 562,467 Voyager - 912,659 (125,900) 786,759 Accumulated Unit Value December 31, 2000 ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity $ 14.01 Capital Growth 31.09 Competitive Edge, "Best Ideas" 9.89 Dividend Growth 36.52 Equity 67.25 European Growth 40.46 Global Dividend Growth 18.37 High Yield 15.95 Income Builder 12.78 Information 9.29 Money Market 13.99 Pacific Growth 5.72 Quality Income Plus 19.82 S&P 500 Index 11.76 Short--Term Bond 10.49 Strategist 31.02 Utilities 33.19 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 8.19 Equity Growth 12.06 International Magnum 10.41 Mid Cap Value 10.23 U.S. Real Estate 11.20 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 21.37 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 8.32 AIM V.I. Growth 7.34 AIM V.I. Value 7.99 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 8.14 Alliance Growth & Income 10.75 Alliance Premier Growth 7.85 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 10.79 International Growth 9.08 Voyager 8.12
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 33 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II with Longevity Reward Rider and Performance Benefit Combination Option or Death Benefit Combination Option ------------------------------------------------------------------------------ Unit activity during 2000: -------------------------------------- Units Outstanding Units Units Units Outstanding December 31, 1999 Issued Redeemed December 31, 2000 ------------------- ------- -------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity - 3,933 (143) 3,790 Capital Growth - 1,919 (345) 1,574 Dividend Growth - 52,339 (2,086) 50,253 Equity - 56,197 (684) 55,513 European Growth - 25,192 (1,738) 23,454 Global Dividend Growth - 16,360 (2,411) 13,949 High Yield - 4,694 (15) 4,679 Money Market - 2,561 (439) 2,122 Pacific Growth - 1,279 (628) 651 Quality Income Plus - 9,270 (201) 9,069 S&P 500 Index - 9,550 (5) 9,545 Strategist - 55,837 (3,590) 52,247 Utilities - 30,894 (368) 30,526 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Equity Growth - 12,028 (92) 11,936 International Magnum - 1,098 - 1,098 Mid Cap Value - 361 - 361 Investments in the Van Kampen Life Investment Trust Sub--Account: LIT Emerging Growth - 14,769 (100) 14,669 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Value - 101 - 101 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Premier Growth - 1,955 (1) 1,954 Investments in the Putnam Variable Trust Sub-Accounts: Voyager - 482 - 482 Accumulated Unit Value December 31, 2000 ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity $ 9.68 Capital Growth 9.71 Dividend Growth 10.69 Equity 9.53 European Growth 9.20 Global Dividend Growth 9.94 High Yield 6.95 Money Market 10.27 Pacific Growth 7.27 Quality Income Plus 10.76 S&P 500 Index 8.96 Strategist 9.93 Utilities 10.13 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Equity Growth 8.33 International Magnum 9.04 Mid Cap Value 10.22 Investments in the Van Kampen Life Investment Trust Sub--Account: LIT Emerging Growth 8.12 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Value 8.31 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Premier Growth 7.97 Investments in the Putnam Variable Trust Sub-Accounts: Voyager 8.11
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 34 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II with Death Benefit Combination Option or Performance Benefit Combination Option --------------------------------------------------------------------------------------- Unit activity during 2000: -------------------------------------------- Units Outstanding Units Units Units Outstanding December 31, 1999 Issued Redeemed December 31, 2000 ----------------- ---------- --------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 458,487 1,621,998 (329,064) 1,751,421 Capital Growth 128,657 234,510 (50,275) 312,892 Competitive Edge, "Best Ideas" 489,657 446,713 (125,833) 810,537 Dividend Growth 1,434,477 736,620 (682,198) 1,488,899 Equity 950,293 715,671 (269,166) 1,396,798 European Growth 392,050 373,168 (130,075) 635,143 Global Dividend Growth 488,336 303,250 (180,211) 611,375 High Yield 290,136 144,534 (163,230) 271,440 Income Builder 270,771 87,029 (129,242) 228,558 Information - 36,992 (21) 36,971 Money Market 1,263,421 3,903,594 (4,081,597) 1,085,418 Pacific Growth 390,608 716,997 (533,639) 573,966 Quality Income Plus 328,139 198,858 (138,552) 388,445 S&P 500 Index 1,877,442 1,367,163 (623,521) 2,621,084 Short--Term Bond 34,942 67,468 (33,811) 68,599 Strategist 1,004,838 577,758 (247,702) 1,334,894 Utilities 340,744 322,154 (104,032) 558,866 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 210,592 439,572 (200,659) 449,505 Equity Growth 495,861 578,929 (158,881) 915,909 International Magnum 172,588 241,300 (54,679) 359,209 Mid Cap Value - 70,125 (2,321) 67,804 U.S. Real Estate 93,827 100,877 (29,697) 165,007 Investments in the Van Kampen Life Investment Trust Sub--Account: LIT Emerging Growth 818,855 1,726,136 (386,499) 2,158,492 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 267,819 (15,096) 252,723 AIM V.I. Growth - 117,145 (4,520) 112,625 AIM V.I. Value - 543,811 (33,365) 510,446 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 152,519 (7,384) 145,135 Alliance Growth & Income - 282,835 - 282,835 Alliance Premier Growth - 528,775 (23,450) 505,325 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 86,919 - 86,919 International Growth - 446,227 (16,182) 430,045 Voyager - 403,670 (42,449) 361,221 Accumulated Unit Value December 31, 2000 ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity $ 13.98 Capital Growth 30.57 Competitive Edge, "Best Ideas" 9.86 Dividend Growth 35.88 Equity 66.07 European Growth 39.79 Global Dividend Growth 18.19 High Yield 15.66 Income Builder 12.72 Information 9.29 Money Market 13.74 Pacific Growth 5.67 Quality Income Plus 19.47 S&P 500 Index 11.73 Short--Term Bond 10.47 Strategist 30.47 Utilities 32.61 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 8.17 Equity Growth 12.02 International Magnum 10.38 Mid Cap Value 10.23 U.S. Real Estate 11.16 Investments in the Van Kampen Life Investment Trust Sub--Account: LIT Emerging Growth 21.30 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 8.31 AIM V.I. Growth 7.33 AIM V.I. Value 7.99 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 8.13 Alliance Growth & Income 10.75 Alliance Premier Growth 7.85 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 10.78 International Growth 9.07 Voyager 8.11
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 35 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II with Longevity Reward Rider, Enhanced Earnings Death Benefit and Enhanced Death Benefit Option, Performance Income Benefit Option or Performance Death Benefit Option --------------------------------------------------------------------------- Unit activity during 2000: ----------------------------------------- Units Outstanding Units Units Units Outstanding December 31, 1999 Issued Redeemed December 31, 2000 ------------------- ------- ---------- ------------------ Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Dividend Growth - 18,163 (4) 18,159 Equity - 31,703 - 31,703 European Growth - 23,608 - 23,608 Global Dividend Growth - 11,559 - 11,559 High Yield - 5,111 (1) 5,110 Strategist - 20,036 (5) 20,031 Accumulated Unit Value December 31, 2000 ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Dividend Growth $ 10.50 Equity 10.13 European Growth 10.40 Global Dividend Growth 10.32 High Yield 9.54 Strategist 10.07
Units relating to accrued contract maintenance charges are included in units redeemed. 36 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II with Enhanced Earnings Death Benefit and Enhanced Death Benefit Option, Performance Income Benefit Option or Performance Death Benefit Option ------------------------------------------------------------------------------------------------ Unit activity during 2000: --------------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Dividend Growth - 24,796 (19,608) Equity - 36,047 (31,693) Global Dividend Growth - 12,606 (11,546) High Yield - 7,164 (5,111) Income Builder - 9,383 (10) Quality Income Plus - 14,091 (7) Strategist - 31,311 (20,039) Utilities - 6,967 (2) Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Equity Growth - 1,183 - U.S. Real Estate - 5,552 (47) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 463 - Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Dividend Growth 5,188 $ 10.50 Equity 4,354 10.13 Global Dividend Growth 1,060 10.32 High Yield 2,053 9.54 Income Builder 9,373 10.28 Quality Income Plus 14,084 10.02 Strategist 11,272 10.07 Utilities 6,965 10.14 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Equity Growth 1,183 9.83 U.S. Real Estate 5,505 10.03 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 463 9.84
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 37 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II with Longevity Reward Rider, Enhanced Earnings Death Benefit, and Income and Death Benefit Combination Rider II, Death Benefit Combination Option, or Performance Combination Benefit Option ----------------------------------------------------------------------------- Unit activity during 2000: -------------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Dividend Growth - 11,927 (3) Equity - 3,680 - European Growth - 9,466 - Global Dividend Growth - 8,932 - High Yield - 3,187 - Income Builder - 3,463 (3) Pacific Growth - 348 - Strategist - 1,637 (1) Utilities - 1,819 (1) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 3,527 - Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Premier Growth - 576 - Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Dividend Growth 11,924 $ 10.49 Equity 3,680 10.13 European Growth 9,466 10.40 Global Dividend Growth 8,932 10.32 High Yield 3,187 9.54 Income Builder 3,460 10.28 Pacific Growth 348 9.50 Strategist 1,636 10.07 Utilities 1,818 10.14 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 3,527 9.84 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Premier Growth 576 9.81
Units relating to accrued contract maintenance charges are included in units redeemed. 38 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II with Income and Death Benefit Combination Rider II ------------------------------------------------------------------------------------------------- Unit activity during 2000: -------------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity - 2,136 (1) Capital Growth - 280 - Dividend Growth - 17,415 (4) Equity - 45,152 (309) European Growth - 8,533 - Global Dividend Growth - 5,147 - High Yield - 3,235 (1) Money Market - 4,301 (112) Quality Income Plus - 6,006 (3) S&P 500 Index - 19,737 (9) Strategist - 314 - Utilities - 1,268 - Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Equity Growth - 721 - Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 6,591 - Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Premier Growth - 661 - Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 2,135 $ 9.21 Capital Growth 280 9.87 Dividend Growth 17,411 10.42 Equity 44,843 9.27 European Growth 8,533 10.33 Global Dividend Growth 5,147 10.28 High Yield 3,234 8.36 Money Market 4,189 10.07 Quality Income Plus 6,003 10.40 S&P 500 Index 19,728 9.21 Strategist 314 9.57 Utilities 1,268 10.02 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Equity Growth 721 8.58 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 6,591 8.11 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Premier Growth 661 8.83
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 39 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II with Enhanced Earnings Death Benefit and Income and Death Benefit Combination Rider II ----------------------------------------------------------------------------------- Unit activity during 2000: ------------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Dividend Growth - 3,475 - High Yield - 98 - Quality Income Plus - 2,757 (2) Strategist - 3,348 (1) Utilities - 6,317 (2) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Dividend Growth 3,475 $ 10.49 High Yield 98 9.54 Quality Income Plus 2,755 10.02 Strategist 3,347 10.07 Utilities 6,315 10.14
Units relating to accrued contract maintenance charges are included in units redeemed. 40 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II AssetManager ----------------------------------------------------------- Unit activity during 2000: --------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 11,455 103,217 (16,122) Capital Growth 27,471 47,495 (10,495) Competitive Edge, "Best Ideas" 59,367 110,705 (32,272) Dividend Growth 441,792 330,306 (185,441) Equity 277,235 344,474 (86,840) European Growth 84,846 107,925 (30,211) Global Dividend Growth 80,482 30,782 (31,269) High Yield 183,538 78,174 (136,802) Income Builder 38,046 17,953 (9,138) Information - 54,117 (12) Money Market 326,539 430,710 (489,481) Pacific Growth 16,849 18,340 (9,205) Quality Income Plus 353,126 179,209 (99,929) S&P 500 Index 167,065 211,991 (51,034) Short-Term Bond 11,170 11,617 (14,019) Strategist 198,638 176,730 (50,650) Utilities 137,439 140,984 (41,304) Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 8,933 27,024 (7,572) Equity Growth 48,641 82,939 (8,543) International Magnum 25,209 50,764 (7,809) U.S. Real Estate 13,344 19,112 (4,669) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 90,139 181,308 (26,098) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 98,550 $ 13.98 Capital Growth 64,471 12.70 Competitive Edge, "Best Ideas" 137,800 9.72 Dividend Growth 586,657 10.06 Equity 534,869 13.83 European Growth 162,560 10.72 Global Dividend Growth 79,995 10.71 High Yield 124,910 5.74 Income Builder 46,861 10.06 Information 54,105 9.29 Money Market 267,768 10.93 Pacific Growth 25,984 11.77 Quality Income Plus 432,406 10.67 S&P 500 Index 328,022 10.96 Short-Term Bond 8,768 10.47 Strategist 324,718 11.95 Utilities 237,119 12.27 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 28,385 9.36 Equity Growth 123,037 11.78 International Magnum 68,164 9.31 U.S. Real Estate 27,787 11.25 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 245,349 18.70
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 41 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II AssetManager with Enhanced Death Benefit Option, Performance Death Benefit Option or Performance Income Benefit Option ----------------------------------------------------------------------------------------------- Unit activity during 2000: ---------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 40,515 160,807 (31,530) Capital Growth 30,798 63,396 (22,568) Competitive Edge, "Best Ideas" 72,820 141,468 (27,304) Dividend Growth 662,841 283,180 (269,991) Equity 471,331 374,551 (126,474) European Growth 194,903 1,330,291 (1,213,378) Global Dividend Growth 128,434 53,084 (29,521) High Yield 123,235 72,395 (98,477) Income Builder 52,500 19,066 (27,211) Money Market 436,501 5,219,455 (5,148,551) Pacific Growth 38,449 2,310,180 (2,295,476) Quality Income Plus 249,824 104,021 (112,968) S&P 500 Index 349,707 226,980 (115,013) Short-Term Bond 11,485 9,657 (3,780) Strategist 162,824 147,664 (54,697) Utilities 165,102 90,031 (36,026) Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 16,698 14,266 (7,719) Equity Growth 104,259 98,166 (42,010) International Magnum 30,807 38,686 (14,106) U.S. Real Estate 33,042 14,335 (10,774) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 108,684 421,544 (314,354) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ------------------ ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 169,792 $ 13.95 Capital Growth 71,626 12.66 Competitive Edge, "Best Ideas" 186,984 9.69 Dividend Growth 676,030 10.03 Equity 719,408 13.79 European Growth 311,816 10.69 Global Dividend Growth 151,997 10.67 High Yield 97,153 5.73 Income Builder 44,355 10.03 Money Market 507,405 10.90 Pacific Growth 53,153 11.73 Quality Income Plus 240,877 10.63 S&P 500 Index 461,674 10.92 Short-Term Bond 17,362 10.45 Strategist 255,791 11.91 Utilities 219,107 12.23 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 23,245 9.33 Equity Growth 160,415 11.75 International Magnum 55,387 9.28 U.S. Real Estate 36,603 11.21 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 215,874 18.64
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 42 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity II AssetManager with Performance Benefit Combination Option or Death Benefit Combination Option -------------------------------------------------------------------------- Unit activity during 2000: ---------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------ ------------ ------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 44,292 261,031 (36,377) Capital Growth 27,483 112,149 (11,989) Competitive Edge, Best Ideas 23,894 121,152 (13,304) Dividend Growth 256,374 398,660 (136,020) Equity 323,544 438,050 (112,197) European Growth 75,890 234,683 (20,639) Global Dividend Growth 62,965 43,352 (12,494) High Yield 38,054 47,583 (17,645) Income Builder 20,223 7,260 (2,601) Information - 4,195 - Money Market 123,921 732,371 (575,394) Pacific Growth 73,243 65,992 (19,835) Quality Income Plus 172,419 156,062 (52,245) S&P 500 Index 168,103 168,225 (42,689) Short-Term Bond 5,436 12,633 (4,707) Strategist 68,969 158,771 (9,697) Utilities 100,464 143,131 (26,144) Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 51,240 92,115 (30,324) Equity Growth 16,474 129,432 (16,593) International Magnum 21,796 43,414 (9,856) U.S. Real Estate 30,211 55,211 (18,081) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 129,629 337,238 (78,670) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ------------------ ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 268,946 $ 13.92 Capital Growth 127,643 12.62 Competitive Edge, Best Ideas 131,742 9.66 Dividend Growth 519,014 10.00 Equity 649,397 13.75 European Growth 289,934 10.66 Global Dividend Growth 93,823 10.64 High Yield 67,992 5.71 Income Builder 24,882 10.00 Information 4,195 9.29 Money Market 280,898 10.87 Pacific Growth 119,400 11.70 Quality Income Plus 276,236 10.60 S&P 500 Index 293,639 10.89 Short-Term Bond 13,362 10.43 Strategist 218,043 11.88 Utilities 217,451 12.20 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 113,031 9.30 Equity Growth 129,313 11.71 International Magnum 55,354 9.25 U.S. Real Estate 67,341 11.18 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 388,197 18.59
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 43 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity 3 -------------------------------------------------------------- Unit activity during 2000: -------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 70,355 (9,045) Equity Growth - 195,008 (12,835) International Magnum - 41,655 - Mid Cap Value - 57,281 (3,230) U.S. Real Estate - 21,807 (906) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 495,445 (23,341) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 99,637 (8,820) AIM V.I. Growth - 112,909 (1,985) AIM V.I. Value - 312,033 - Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 122,226 (2,250) Alliance Growth & Income - 109,440 (6,732) Alliance Premier Growth - 312,880 (8,302) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 73,374 - International Growth - 194,668 (7,102) Voyager - 216,014 (4,578) Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity - 215,518 (17,167) Capital Growth - 65,559 (1,210) Competitive Edge, "Best Ideas" - 85,892 (2,859) Dividend Growth - 256,863 (5,012) Equity - 681,963 (6,684) European Growth - 235,980 (11,289) Global Dividend Growth - 37,669 (3,745) High Yield - 36,379 (2,566) Income Builder - 31,077 (3,644) Information - 27,658 (77) Money Market - 478,735 (206,566) Pacific Growth - 8,832 (1,305) Quality Income Plus - 177,762 (1,338) S&P 500 Index - 312,738 (11,108) Short-Term Bond - 22,751 (143) Strategist - 437,224 (11,156) Utilities - 342,061 (4,308) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 61,310 $ 6.39 Equity Growth 182,173 8.34 International Magnum 41,655 9.05 Mid Cap Value 54,051 10.23 U.S. Real Estate 20,901 11.50 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 472,104 8.13 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 90,817 8.28 AIM V.I. Growth 110,924 7.40 AIM V.I. Value 312,033 8.32 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 119,976 8.00 Alliance Growth & Income 102,708 10.24 Alliance Premier Growth 304,578 7.98 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 73,374 10.56 International Growth 187,566 9.02 Voyager 211,436 8.12 Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity 198,351 9.68 Capital Growth 64,349 9.70 Competitive Edge, "Best Ideas" 83,033 8.41 Dividend Growth 251,851 10.68 Equity 675,279 9.53 European Growth 224,691 9.19 Global Dividend Growth 33,924 9.93 High Yield 33,813 6.94 Income Builder 27,433 10.03 Information 27,581 9.29 Money Market 272,169 10.26 Pacific Growth 7,527 7.27 Quality Income Plus 176,424 10.75 S&P 500 Index 301,630 8.96 Short-Term Bond 22,608 10.30 Strategist 426,068 9.92 Utilities 337,753 10.13
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 44 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity 3 with Performance Death Benefit Option ----------------------------------------------------------------------------------- Unit activity during 2000: ---------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------ ------------ ------------ Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 45,452 (13,690) Equity Growth - 451,234 (9,863) International Magnum - 43,773 (5,658) Mid Cap Value - 89,498 (680) U.S. Real Estate - 30,053 (4,529) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 821,294 (32,513) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 262,592 (7,022) AIM V.I. Growth - 216,997 (3,809) AIM V.I. Value - 482,717 (8,921) Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 134,618 (1,737) Alliance Growth & Income - 172,651 (25,831) Alliance Premier Growth - 424,668 (20,885) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 73,293 - International Growth - 271,699 (4,540) Voyager - 318,320 (10,628) Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity - 396,938 (13,525) Capital Growth - 122,872 (8,800) Competitive Edge, "Best Ideas" - 185,390 (4,358) Dividend Growth - 451,170 (12,452) Equity - 1,099,472 (64,331) European Growth - 303,478 (18,650) Global Dividend Growth - 76,151 (2,225) High Yield - 51,886 (11,493) Income Builder - 19,855 (2,760) Information - 57,590 (12) Money Market - 616,365 (283,068) Pacific Growth - 13,136 (509) Quality Income Plus - 116,117 (9,488) S&P 500 Index - 441,133 (16,668) Short-Term Bond - 33,699 (1,359) Strategist - 483,829 (9,393) Utilities - 396,056 (18,081) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 31,762 $ 6.38 Equity Growth 441,371 8.33 International Magnum 38,115 9.05 Mid Cap Value 88,818 10.22 U.S. Real Estate 25,524 11.49 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 788,781 8.12 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 255,570 8.28 AIM V.I. Growth 213,188 7.39 AIM V.I. Value 473,796 8.32 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 132,881 7.99 Alliance Growth & Income 146,820 10.23 Alliance Premier Growth 403,783 7.97 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 73,293 10.56 International Growth 267,159 9.01 Voyager 307,692 8.11 Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity 383,413 9.67 Capital Growth 114,072 9.69 Competitive Edge, "Best Ideas" 181,032 8.41 Dividend Growth 438,718 10.68 Equity 1,035,141 9.52 European Growth 284,828 9.18 Global Dividend Growth 73,926 9.92 High Yield 40,393 6.94 Income Builder 17,095 10.02 Information 57,578 9.29 Money Market 333,297 10.25 Pacific Growth 12,627 7.27 Quality Income Plus 106,629 10.74 S&P 500 Index 424,465 8.95 Short-Term Bond 32,340 10.30 Strategist 474,436 9.91 Utilities 377,975 10.12
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 45 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity 3 with Death Benefit Combination Option ----------------------------------------------------------------------------------- Unit activity during 2000: ---------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 83,855 (5,727) Equity Growth - 332,911 (31,363) International Magnum - 73,831 - Mid Cap Value - 98,553 (82) U.S. Real Estate - 23,928 (210) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 683,232 (19,532) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 154,655 (8,419) AIM V.I. Growth - 132,495 (1,504) AIM V.I. Value - 358,488 (13,283) Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 134,032 (7,812) Alliance Growth & Income - 139,161 - Alliance Premier Growth - 388,853 (15,658) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 60,394 (547) International Growth - 182,723 (2,071) Voyager - 299,575 (6,777) Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity - 265,175 (8,734) Capital Growth - 56,059 (1,575) Competitive Edge, "Best Ideas" - 112,649 (1,764) Dividend Growth - 304,912 (25,422) Equity - 711,536 (18,636) European Growth - 286,818 (64,597) Global Dividend Growth - 37,805 (3,680) High Yield - 149,310 (9,490) Income Builder - 36,830 (116) Information - 26,114 (6) Money Market - 443,522 (120,832) Pacific Growth - 29,046 (624) Quality Income Plus - 84,408 (433) S&P 500 Index - 295,044 (11,591) Short-Term Bond - 21,845 (26) Strategist - 481,319 (24,794) Utilities - 361,745 (4,011) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 78,128 $ 6.38 Equity Growth 301,548 8.32 International Magnum 73,831 9.04 Mid Cap Value 98,471 10.22 U.S. Real Estate 23,718 11.49 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 663,700 8.12 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 146,236 8.27 AIM V.I. Growth 130,991 7.39 AIM V.I. Value 345,205 8.31 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 126,220 7.99 Alliance Growth & Income 139,161 10.23 Alliance Premier Growth 373,195 7.97 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 59,847 10.55 International Growth 180,652 9.00 Voyager 292,798 8.11 Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity 256,441 9.66 Capital Growth 54,484 9.69 Competitive Edge, "Best Ideas" 110,885 8.40 Dividend Growth 279,490 10.67 Equity 692,900 9.52 European Growth 222,221 9.18 Global Dividend Growth 34,125 9.92 High Yield 139,820 6.94 Income Builder 36,714 10.02 Information 26,108 9.29 Money Market 322,690 10.25 Pacific Growth 28,422 7.26 Quality Income Plus 83,975 10.73 S&P 500 Index 283,453 8.95 Short-Term Bond 21,819 10.29 Strategist 456,525 9.91 Utilities 357,734 10.12
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 46 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity 3 with Income Benefit Combination Option ------------------------------------------------------------------------------------ Unit activity during 2000: ------------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ----------------- ------------ ------------ Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 14,060 (4,931) Equity Growth - 29,299 (1,274) International Magnum - 7,192 (455) Mid Cap Value - 13,264 (111) U.S. Real Estate - 5,630 (1,155) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 205,879 (9,622) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 6,586 (375) AIM V.I. Growth - 9,431 (122) AIM V.I. Value - 84,006 (2,911) Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 9,111 (355) Alliance Growth & Income - 7,310 - Alliance Premier Growth - 30,846 (291) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 10,484 - International Growth - 25,658 (2,589) Voyager - 99,425 (4,881) Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity - 44,816 (2,062) Capital Growth - 6,320 (439) Competitive Edge, "Best Ideas" - 29,532 (118) Dividend Growth - 22,635 (942) Equity - 90,809 (4,897) European Growth - 36,834 (3,204) Global Dividend Growth - 1,774 (1,049) High Yield - 6,402 (2) Information - 3,567 (1,572) Money Market - 100,189 (57,564) Pacific Growth - 2,612 (211) Quality Income Plus - 11,912 (2) S&P 500 Index - 19,876 (1,313) Short-Term Bond - 4,834 (2) Strategist - 19,619 (1,103) Utilities - 17,781 (3,709) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 9,129 $ 6.38 Equity Growth 28,025 8.32 International Magnum 6,737 9.04 Mid Cap Value 13,153 10.21 U.S. Real Estate 4,475 11.48 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 196,257 8.12 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 6,211 8.27 AIM V.I. Growth 9,309 7.39 AIM V.I. Value 81,095 8.31 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 8,756 7.99 Alliance Growth & Income 7,310 10.22 Alliance Premier Growth 30,555 7.96 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 10,484 10.55 International Growth 23,069 9.00 Voyager 94,544 8.10 Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity 42,754 9.66 Capital Growth 5,881 9.68 Competitive Edge, "Best Ideas" 29,414 8.40 Dividend Growth 21,693 10.67 Equity 85,912 9.51 European Growth 33,630 9.17 Global Dividend Growth 725 9.91 High Yield 6,400 6.93 Information 1,995 9.29 Money Market 42,625 10.24 Pacific Growth 2,401 7.26 Quality Income Plus 11,910 10.73 S&P 500 Index 18,563 8.94 Short-Term Bond 4,832 10.29 Strategist 18,516 9.91 Utilities 14,072 10.11
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 47 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity 3 with Income and Death Benefit Combination Option ---------------------------------------------------------------------------------------------- Unit activity during 2000: -------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 101,725 (18,362) Equity Growth - 299,598 (9,849) International Magnum - 67,972 (3,606) Mid Cap Value - 179,679 (9,870) U.S. Real Estate - 24,723 (416) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 1,160,768 (35,343) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 159,468 (10,146) AIM V.I. Growth - 157,297 (14,706) AIM V.I. Value - 346,373 (19,193) Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 97,138 (1,878) Alliance Growth & Income - 291,984 (7,159) Alliance Premier Growth - 458,139 (19,918) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 87,345 - International Growth - 294,114 (2,530) Voyager - 421,342 (12,310) Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity - 488,918 (19,431) Capital Growth - 110,628 (2,162) Competitive Edge, "Best Ideas" - 149,237 (11,060) Dividend Growth - 296,303 (24,393) Equity - 793,423 (18,936) European Growth - 374,889 (7,893) Global Dividend Growth - 77,812 (1,401) High Yield - 60,034 (5,844) Income Builder - 12,117 (1,549) Information - 91,709 (1,341) Money Market - 584,722 (253,586) Pacific Growth - 44,613 (167) Quality Income Plus - 74,075 (2,438) S&P 500 Index - 385,096 (35,357) Short-Term Bond - 45,611 (1,470) Strategist - 951,045 (23,405) Utilities - 270,764 (7,944) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 83,363 $ 6.37 Equity Growth 289,749 8.31 International Magnum 64,366 9.03 Mid Cap Value 169,809 10.20 U.S. Real Estate 24,307 11.47 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 1,125,425 8.11 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 149,322 8.26 AIM V.I. Growth 142,591 7.38 AIM V.I. Value 327,180 8.30 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 95,260 7.98 Alliance Growth & Income 284,825 10.21 Alliance Premier Growth 438,221 7.96 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 87,345 10.53 International Growth 291,584 8.99 Voyager 409,032 8.09 Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity 469,487 9.65 Capital Growth 108,466 9.67 Competitive Edge, "Best Ideas" 138,177 8.39 Dividend Growth 271,910 10.65 Equity 774,487 9.50 European Growth 366,996 9.16 Global Dividend Growth 76,411 9.90 High Yield 54,190 6.92 Income Builder 10,568 10.00 Information 90,368 9.29 Money Market 331,136 10.23 Pacific Growth 44,446 7.25 Quality Income Plus 71,637 10.72 S&P 500 Index 349,739 8.93 Short-Term Bond 44,141 10.27 Strategist 927,640 9.89 Utilities 262,820 10.10
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 48 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity 3 AssetManager ---------------------------------------------------------- Unit activity during 2000: -------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 697 - Equity Growth - 7,709 (768) International Magnum - 1,848 (739) Mid Cap Value - 11,438 (153) U.S. Real Estate - 5,280 (44) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 27,426 (2,923) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 8,464 (1) AIM V.I. Growth - 5,182 (1) AIM V.I. Value - 32,287 (5,338) Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 4,858 (1) Alliance Growth & Income - 23,886 (5,547) Alliance Premier Growth - 21,107 (9) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 5,756 - International Growth - 17,699 (627) Voyager - 31,848 (5,556) Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity - 14,524 (945) Capital Growth - 7,609 (19) Competitive Edge, "Best Ideas" - 1,875 (1) Dividend Growth - 14,103 (3) Equity - 21,974 (70) European Growth - 5,902 (6) Global Dividend Growth - 1,196 - High Yield - 203 - Information - 1,812 - Money Market - 40,553 (20,929) Quality Income Plus - 16,337 (3) S&P 500 Index - 31,386 (6,110) Short-Term Bond - 3,045 - Strategist - 30,734 (805) Utilities - 11,854 (7) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 697 $ 7.22 Equity Growth 6,941 8.25 International Magnum 1,109 9.68 Mid Cap Value 11,285 9.58 U.S. Real Estate 5,236 10.18 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 24,503 7.72 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 8,463 7.68 AIM V.I. Growth 5,181 7.61 AIM V.I. Value 26,949 8.50 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 4,857 8.23 Alliance Growth & Income 18,339 9.93 Alliance Premier Growth 21,098 8.01 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 5,756 10.26 International Growth 17,072 9.51 Voyager 26,292 8.24 Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity 13,579 8.97 Capital Growth 7,590 9.41 Competitive Edge, "Best Ideas" 1,874 8.51 Dividend Growth 14,100 10.68 Equity 21,904 8.91 European Growth 5,896 10.04 Global Dividend Growth 1,196 10.44 High Yield 203 7.31 Information 1,812 9.29 Money Market 19,624 10.13 Quality Income Plus 16,334 10.46 S&P 500 Index 25,276 8.89 Short-Term Bond 3,045 10.15 Strategist 29,929 9.45 Utilities 11,847 9.33
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 49 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity 3 AssetManager with Performance Death Benefit Option ---------------------------------------------------------- Unit activity during 2000: --------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 1,849 - Equity Growth - 11,596 (3) International Magnum - 1,976 - Mid Cap Value - 6,402 (2) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 31,293 (700) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Growth - 3,651 (1) AIM V.I. Value - 12,015 - Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 5,172 (1) Alliance Growth & Income - 3,262 - Alliance Premier Growth - 8,550 (3) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 1,806 - International Growth - 3,681 - Voyager - 12,002 (7) Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity - 9,125 (20) Capital Growth - 2,875 (825) Competitive Edge, "Best Ideas" - 1,689 - Dividend Growth - 8,706 (2) Equity - 43,821 (885) European Growth - 6,366 (854) High Yield - 1,730 - Information - 625 (1) Money Market - 8,736 - Pacific Growth - 1,338 - S&P 500 Index - 9,951 (918) Short-Term Bond - 2,119 - Strategist - 6,603 (825) Utilities - 10,539 (838) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 1,849 $ 7.22 Equity Growth 11,593 8.25 International Magnum 1,976 9.67 Mid Cap Value 6,400 9.57 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 30,593 7.72 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Growth 3,650 7.61 AIM V.I. Value 12,015 8.50 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 5,171 8.22 Alliance Growth & Income 3,262 9.93 Alliance Premier Growth 8,547 8.01 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 1,806 10.26 International Growth 3,681 9.50 Voyager 11,995 8.23 Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity 9,105 8.97 Capital Growth 2,050 9.40 Competitive Edge, "Best Ideas" 1,689 8.51 Dividend Growth 8,704 10.68 Equity 42,936 8.91 European Growth 5,512 10.03 High Yield 1,730 7.30 Information 624 9.29 Money Market 8,736 10.13 Pacific Growth 1,338 7.87 S&P 500 Index 9,033 8.89 Short-Term Bond 2,119 10.14 Strategist 5,778 9.45 Utilities 9,701 9.33
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 50 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity 3 AssetManager with Death Benefit Combination Option ----------------------------------------------------------- Unit activity during 2000: ------------------------------ Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 849 - Equity Growth - 3,318 (361) International Magnum - 807 - Mid Cap Value - 824 (1) U.S. Real Estate - 916 (8) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 18,589 (1,765) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 31,897 (7) AIM V.I. Growth - 1,381 - AIM V.I. Value - 10,781 (3,867) Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 296 - Alliance Growth & Income - 7,060 - Alliance Premier Growth - 35,707 (14) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 10,733 - International Growth - 31,510 - Voyager - 3,191 (2) Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity - 3,633 (1,686) Capital Growth - 6,555 (64) Competitive Edge, "Best Ideas" - 1,095 - Dividend Growth - 1,400 (8) Equity - 22,921 (5,791) European Growth - 5,026 (1,637) Global Dividend Growth - 2,431 (1) High Yield - 1,725 (10) Income Builder - 1,548 - Money Market - 16,713 (2,333) Pacific Growth - 389 - Quality Income Plus - 2,839 (138) S&P 500 Index - 4,323 (9) Strategist - 16,598 (2,665) Utilities - 10,051 (2,925) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 849 $ 7.22 Equity Growth 2,957 8.24 International Magnum 807 9.67 Mid Cap Value 823 9.57 U.S. Real Estate 908 10.17 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 16,824 7.71 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 31,890 7.67 AIM V.I. Growth 1,381 7.60 AIM V.I. Value 6,914 8.50 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 296 8.22 Alliance Growth & Income 7,060 9.92 Alliance Premier Growth 35,693 8.01 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 10,733 10.25 International Growth 31,510 9.50 Voyager 3,189 8.23 Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity 1,947 8.97 Capital Growth 6,491 9.40 Competitive Edge, "Best Ideas" 1,095 8.50 Dividend Growth 1,392 10.67 Equity 17,130 8.90 European Growth 3,389 10.03 Global Dividend Growth 2,430 10.43 High Yield 1,715 7.30 Income Builder 1,548 10.01 Money Market 14,380 10.13 Pacific Growth 389 7.87 Quality Income Plus 2,701 10.45 S&P 500 Index 4,314 8.89 Strategist 13,933 9.45 Utilities 7,126 9.32
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 51 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity 3 AssetManager with Income Benefit Combination Option ----------------------------------------------------------- Unit activity during 2000: --------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 1,500 - Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 8,701 - Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Growth - 1,410 (1) AIM V.I. Value - 2,074 - Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 2,441 - Alliance Growth & Income - 636 - Alliance Premier Growth - 4,401 (1) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 2,256 - International Growth - 2,085 - Voyager - 1,932 (1) Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity - 856 (2) Dividend Growth - 1,300 - Equity - 1,291 (1) European Growth - 102 - High Yield - 143 - Pacific Growth - 1,879 (1) Quality Income Plus - 2,958 - S&P 500 Index - 636 - Strategist - 2,007 (1) Utilities - 3,126 (2) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 1,500 $ 7.22 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 8,701 7.71 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Growth 1,409 7.60 AIM V.I. Value 2,074 8.50 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 2,441 8.22 Alliance Growth & Income 636 9.92 Alliance Premier Growth 4,400 8.01 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 2,256 10.25 International Growth 2,085 9.50 Voyager 1,931 8.23 Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity 854 8.96 Dividend Growth 1,300 10.67 Equity 1,290 8.90 European Growth 102 10.03 High Yield 143 7.30 Pacific Growth 1,878 7.87 Quality Income Plus 2,958 10.45 S&P 500 Index 636 8.89 Strategist 2,006 9.45 Utilities 3,124 9.32
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 52 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Variable Annuity 3 AssetManager with Income and Death Benefit Combination Option ------------------------------------------------------------ Unit activity during 2000: -------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 957 - Equity Growth - 6,591 (2) International Magnum - 4,040 - Mid Cap Value - 14,053 (7,657) U.S. Real Estate - 857 (7) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 40,969 (6,575) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 13,794 (6,930) AIM V.I. Value - 12,582 (3,582) Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth & Income - 4,299 (1,435) Alliance Premier Growth - 16,389 (7,064) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 4,928 (2,356) International Growth - 5,835 (959) Voyager - 1,886 (1) Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity - 8,774 (959) Capital Growth - 1,105 - Competitive Edge, "Best Ideas" - 17,289 (9,433) Dividend Growth - 501,004 (1,575) Equity - 6,508 (3) European Growth - 5,366 (2,585) High Yield - 4,882 (3,460) Income Builder - 2,912 (1) Information - 73 - Money Market - 3,380 (8) Pacific Growth - 2,017 (1,033) Quality Income Plus - 10,005 (12) S&P 500 Index - 5,537 (1) Short-Term Bond - 8,300 (34) Strategist - 4,200 (1) Utilities - 550,775 (3,613) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 957 $ 7.21 Equity Growth 6,589 8.24 International Magnum 4,040 9.66 Mid Cap Value 6,396 9.56 U.S. Real Estate 850 10.16 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 34,394 7.71 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 6,864 7.67 AIM V.I. Value 9,000 8.49 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth & Income 2,864 9.92 Alliance Premier Growth 9,325 8.00 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 2,572 10.24 International Growth 4,876 9.49 Voyager 1,885 8.23 Investments in the Morgan Stanley Dean Witter Variable Investment Series (Class Y Shares) Sub-Accounts: Aggressive Equity 7,815 8.96 Capital Growth 1,105 9.39 Competitive Edge, "Best Ideas" 7,856 8.50 Dividend Growth 499,429 10.67 Equity 6,505 8.90 European Growth 2,781 10.02 High Yield 1,422 7.30 Income Builder 2,911 10.00 Information 73 9.28 Money Market 3,372 10.12 Pacific Growth 984 7.86 Quality Income Plus 9,993 10.45 S&P 500 Index 5,536 8.88 Short-Term Bond 8,266 10.13 Strategist 4,199 9.44 Utilities 547,162 9.32
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 53 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Preferred Client Variable Annuity ------------------------------------------------------------ Unit activity during 2000: --------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity - 10,449 (26) Capital Growth - 31,812 (1,259) Competitive Edge, "Best Ideas" - 2,666 (1) Dividend Growth - 29,130 (26,851) Equity - 52,752 (1,980) European Growth - 22,291 (112) Global Dividend Growth - 2,768 - High Yield - 3,974 - Money Market - 40,082 (22,477) Pacific Growth - 3,042 - Quality Income Plus - 1,057 (1) S&P 500 Index - 1,369 - Short-term Bond - 3,068 (1) Strategist - 18,492 (213) Utilities - 6,093 (2) Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Equity Growth - 6,580 (26) Mid Cap Value - 5,849 (2) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 72,443 (27,337) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 4,661 (1) AIM V.I. Growth - 1,324 (1) AIM V.I. Value - 19,411 (564) Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth & Income - 18,108 - Alliance Premier Growth - 14,992 (424) Investments in the Putnam Variable Trust Sub-Accounts: International Growth - 52,946 - Voyager - 23,494 (665) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 10,423 $ 10.08 Capital Growth 30,553 10.64 Competitive Edge, "Best Ideas" 2,665 8.62 Dividend Growth 2,279 11.13 Equity 50,772 9.09 European Growth 22,179 9.93 Global Dividend Growth 2,768 10.65 High Yield 3,974 6.69 Money Market 17,605 10.49 Pacific Growth 3,042 6.80 Quality Income Plus 1,056 11.06 S&P 500 Index 1,369 9.48 Short-term Bond 3,067 10.51 Strategist 18,279 10.41 Utilities 6,091 10.00 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Equity Growth 6,554 8.98 Mid Cap Value 5,847 11.57 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 45,106 8.92 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 4,660 9.01 AIM V.I. Growth 1,323 8.23 AIM V.I. Value 18,847 8.69 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth & Income 18,108 11.74 Alliance Premier Growth 14,568 8.71 Investments in the Putnam Variable Trust Sub-Accounts: International Growth 52,946 9.44 Voyager 22,829 8.54
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 54 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Preferred Client Variable Annuity with Performance Death Benefit Option or Performance Income Benefit Option --------------------------------------------------------------------- Unit activity during 2000: -------------------------------- Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity - 53,707 (21,986) Capital Growth - 1,598 - Competitive Edge, "Best Ideas" - 25 - Dividend Growth - 16,096 (6,477) Equity - 299,409 (269,460) European Growth - 31,757 (16,809) Global Dividend Growth - 9,711 (8,739) Pacific Growth - 6,961 (632) Quality Income Plus - 395 - S&P 500 Index - 976 (1) Strategist - 11,768 (4) Utilities - 3,118 (1) Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 27 - Equity Growth - 3,143 (1) International Magnum - 3,440 - Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 97,688 (52,975) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 104 - AIM V.I. Growth - 5,968 (4,923) AIM V.I. Value - 12,128 - Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth & Income - 375 - Alliance Premier Growth - 7,285 (3) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 1,093 - International Growth - 15,806 (11,415) Voyager - 11,544 (7) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 31,721 $ 10.07 Capital Growth 1,598 10.62 Competitive Edge, "Best Ideas" 25 8.61 Dividend Growth 9,619 11.12 Equity 29,949 9.08 European Growth 14,948 9.92 Global Dividend Growth 972 10.63 Pacific Growth 6,329 6.80 Quality Income Plus 395 11.05 S&P 500 Index 975 9.47 Strategist 11,764 10.39 Utilities 3,117 9.99 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 27 6.17 Equity Growth 3,142 8.97 International Magnum 3,440 9.33 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 44,713 8.91 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 104 9.00 AIM V.I. Growth 1,045 8.22 AIM V.I. Value 12,128 8.68 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth & Income 375 11.73 Alliance Premier Growth 7,282 8.70 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 1,093 11.08 International Growth 4,391 9.42 Voyager 11,537 8.53
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 55 4. UNITS ISSUED AND REDEEMED (CONTINUED) (Units in whole amounts)
Morgan Stanley Dean Witter Preferred Client Variable Annuity with Performance Benefit Combination Option or Death Benefit Combination Option ----------------------------------------------------------------------------- Unit activity during 2000: ------------------------------ Units Outstanding Units Units December 31, 1999 Issued Redeemed ------------------- ------------ ------------ Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity - 19,602 (746) Capital Growth - 6,749 - Competitive Edge, "Best Ideas" - 2,908 - Dividend Growth - 15,278 (7,431) Equity - 32,395 - European Growth - 15,791 - Global Dividend Growth - 1,561 - Pacific Growth - 2,566 - Quality Income Plus - 1,309 (1) S&P 500 Index - 25,914 (4,143) Strategist - 13,694 (2,702) Utilities - 6,335 (2,866) Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity - 2,212 - Equity Growth - 609 - International Magnum - 6,184 (2,953) Mid Cap Value - 3,997 (1) Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth - 54,739 (3,614) Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation - 3,020 - AIM V.I. Growth - 15,519 (4) AIM V.I. Value - 20,724 - Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth - 4,003 (1) Alliance Growth & Income - 16,648 (3,666) Alliance Premier Growth - 16,648 (6) Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income - 4,699 (4,212) International Growth - 22,787 - Voyager - 13,026 (4,144) Unit activity during 2000: -------------------------- Accumulated Units Outstanding Unit Value December 31, 2000 December 31, 2000 ----------------- ----------------- Investments in the Morgan Stanley Dean Witter Variable Investment Series Sub-Accounts: Aggressive Equity 18,856 $ 10.06 Capital Growth 6,749 10.61 Competitive Edge, "Best Ideas" 2,908 8.60 Dividend Growth 7,847 11.11 Equity 32,395 9.07 European Growth 15,791 9.91 Global Dividend Growth 1,561 10.62 Pacific Growth 2,566 6.79 Quality Income Plus 1,308 11.04 S&P 500 Index 21,771 9.46 Strategist 10,992 10.38 Utilities 3,469 9.98 Investments in The Universal Institutional Funds, Inc. (a) Sub-Accounts: Emerging Markets Equity 2,212 6.16 Equity Growth 609 8.96 International Magnum 3,231 9.32 Mid Cap Value 3,996 11.54 Investments in the Van Kampen Life Investment Trust Sub-Account: LIT Emerging Growth 51,125 8.90 Investments in the AIM Variable Insurance Funds Sub-Accounts: AIM V.I. Capital Appreciation 3,020 8.99 AIM V.I. Growth 15,515 8.21 AIM V.I. Value 20,724 8.67 Investments in the Alliance Variable Product Series Fund Sub-Accounts: Alliance Growth 4,002 8.54 Alliance Growth & Income 12,982 11.72 Alliance Premier Growth 16,642 8.69 Investments in the Putnam Variable Trust Sub-Accounts: Growth & Income 487 11.06 International Growth 22,787 9.41 Voyager 8,882 8.52
Units relating to accrued contract maintenance charges are included in units redeemed. (a) Previously known as Morgan Stanley Dean Witter Universal Funds, Inc. 56 PART C OTHER INFORMATION 24. FINANCIAL STATEMENTS AND EXHIBITS (a) FINANCIAL STATEMENTS Northbrook Life Insurance Company Financial Statements and Northbrook Variable Annuity Account II Financial Statements are included in the Part B of this Registration Statement. (b) EXHIBITS (1) Resolution of the Board of Directors of Northbrook Life Insurance Company authorizing establishment of the Variable Annuity Account II (Previously filed in Post-Effective Amendment No. 13 to this Registration Statement (File No. 033-35412) dated December 31, 1996). (2) Not applicable. (3)(a) Form of Underwriting Agreement (Previously filed in Post-Effective Amendment No. 13 to this Registration Statement (File No. 033-35412) Dated December 31, 1996). (b) Form of General Agency Agreement (Previously filed in Post-Effective Amendment No. 13 to this Registration Statement (File No. 033-35412) dated December 31, 1996). (4)(a) Form of Contract, Riders and Amendments for the Morgan Stanley Dean Witter Variable Annuity II (Previously filed in Post-Effective Amendment Nos. 13, 14, 20, 23 and 25 to this Registration Statement (File No. 033-35412) dated December 31, 1996, February 28, 1997, March 3, 1999, and February 15, 2000). (b) Form of Contract and Certificate Amendments for the Morgan Stanley Dean Witter Variable Annuity II Asset Manager (Previously filed in Post-Effective Amendment Nos. 19, and 20 to this Registration Statement (File No. 033-35412) dated June 5, 1998 and March 3, 1999 respectively). (c) Form of Contract and Amendments for the Morgan Stanley Variable Annuity 3 (Previously filed in Post-Effective Amendment No. 24 to this Registration Statement (File No. 033-35412) dated March 2, 2000). (d) Income Benefit Combination Rider 2 (VA II) (Previously filed in Post-Effective Amendment No. 28 to this Registration Statement (File No. 033-35412) dated August 25, 2000). (e) Income and Death Benefit Combination Rider 2 (VA II) (Previously filed in Post-Effective Amendment No. 28 to this Registration Statement (File No. 033-35412) dated August 25, 2000). (f) Enhanced Earnings Death Benefit Rider (VA II) (Previously filed in Post-Effective Amendment No. 31 to this Registration Statement (File No. 033-35412) dated November 8, 2000). (g) Enhanced Earnings Death Benefit Plus Rider (Variable Annuity 3)(Previously filed in Post-Effective Amendment No. 32 to this Registration statement (File No. 033-35412) dated March 16, 2001. (5)(a) Form of Application for the Morgan Stanley Dean Witter Variable Annuity II (Previously filed in Post-Effective Amendment No. 13 to this Registration Statement (File No. 033-35412) dated December 31, 1996). (b) Form of Application for the Morgan Stanley Dean Witter Variable Annuity II Asset Manager (Previously filed in Post-Effective Amendment No. 19 to this Registration Statement (File No. 033-35412) dated June 5, 1998). (c) Form of Application for the Morgan Stanley Variable Annuity 3 (Previously filed in Post-Effective Amendment No. 26 to this Registration Statement (File No. 033-35412) dated May 2, 2000). (6)(a) Amended and Restated Articles of Incorporation and Articles of Redomestication of Northbrook Life Insurance Company (Incorporated herein by reference to Depositor's Form 10-K dated March 30, 1999). (b) Amended and Restated By-laws of Northbrook Life Insurance Company (Incorporated herein by reference to Depositor's Form 10-K dated March 30, 1999). (7) Not applicable. (8) Forms of Participation Agreements: (8)(a) Morgan Stanley Dean Witter Variable Investment Series (Previously filed in Post-Effective Amendment No. 12 to this Registration Statement (File No. 033-35412) dated April 29, 1996). (b) Morgan Stanley Dean Witter Universal Funds, Inc. (Incorporated herein by reference to Post-Effective Amendment No. 1 to Registrant's Registration Statement (File No. 333-93871) dated January 28, 2000). (c) AIM Variable Insurance Funds (Incorporated herein by reference to Post-Effective Amendment No. 1 to Registrant's Registration Statement (File No. 333-93871) dated January 28, 2000). (d) Alliance Variable Products Series Fund (Incorporated herein by reference to Post-Effective Amendment No. 1 to Registrant's Registration Statement (File No. 333-93871) dated January 28, 2000). (e) Putnam Variable Trust (Incorporated herein by reference to Post-Effective Amendment No. 1 to Registrant's Registration Statement (File No. 333-93871) dated January 28, 2000). (f) Van Kampen Life Investment Trust (Incorporated herein by reference to Post-Effective Amendment No. 1 to Registrant's Registration Statement (File No. 333-93871) dated January 28, 2000). (9)(a) Opinion and Consent of Michael J. Velotta, Vice President, Secretary and General Counsel of Northbrook Life Insurance Company (Previously filed in Post-Effective Amendment No. 26 to this Registration Statement (File No. 033-35412) dated May 2, 2000). (b) Opinion and Consent of Michael J. Velotta, Vice President, Secretary and General Counsel of Northbrook Life Insurance Company (Previously filed in Post-Effective Amendment No. 28 to this Registration Statement (File No. 033-35412) dated August 25, 2000). (c) Opinion and Consent of Michael J. Velotta, Vice President, Secretary and General Counsel of Northbrook Life Insurance Company (Previously filed in Post-Effective Amendment No. 30 to this Registration Statement (File No. 033-35412) dated November 3, 2000). (d) Opinion and Consent of Michael J. Velotta, Vice President, Secretary and General Counsel of Northbrook Life Insurance Company (Previously filed in Post-Effective Amendment No. 31 to this Registration Statement (File No. 033-35412) dated November 8, 2000). (10)(a) Independent Auditors' Consent filed herewith. (b) Consent of Foley & Lardner filed herewith. (11) Not applicable. (12) Not applicable. (13) Performance Data Calculations (a) Morgan Stanley Dean Witter Variable Annuity II (Previously filed in Post-Effective amendment No. 17 to this Registration Statement (File No. 033-3542) dated March 5, 1998). (b) Morgan Stanley Variable Annuity 3 (Previously filed in Post-Effective Amendment No. 26 to this Registration Statement (File No. 033-35412) dated May 2, 2000). (c) Morgan Stanley Dean Witter Variable Annuity II, Variable Annuity II Asset Manager and Variable Annuity 3. (14) Not applicable. (99)(a) Powers of Attorney for Thomas J. Wilson, II, Michael J. Velotta, and Samuel H. Pilch (Previously filed in Registrant's Post-Effective Amendment No. 26 to Form N-4 Registration Statement (File No. 033-35412) dated May 2, 2000). (b) Powers of Attorney for Margaret G. Dyer, Marla G. Friedman, John C. Lounds, J. Kevin McCarthy, and Steven C. Verney filed herewith. 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR, NORTHBROOK LIFE INSURANCE COMPANY
NAME AND PRINCIPAL POSITION AND OFFICE WITH BUSINESS ADDRESS DEPOSITOR OF THE ACCOUNT Thomas J. Wilson, II Director, President and Chief Executive Officer (Principal Executive Officer) Michael J. Velotta Director, Vice President, Secretary and General Counsel Margaret G. Dyer Director John C. Lounds Director J. Kevin McCarthy Director Steven C. Verney Director and Vice President (Principal Financial Officer) John R. Hunter Vice President Kevin R. Slawin Vice President Timothy N. Vander Pas Assistant Vice President Sarah R. Donahue Assistant Vice President Casey J. Sylla Chief Investment Officer Marla G. Friedman Director and Vice President Karen C. Gardner Vice President Samuel H. Pilch Vice Presidnet and Controller (Principal Accounting Officer) James P. Zils Treasurer Ronald A. Johnson Assistant Vice President Barry S. Paul Assistant Vice President and Assistant Treasurer Patricia W. Wilson Assistant Vice President, Assistant Secretary and Assistant Treasurer Joanne M. Derrig Assistant Secretary, Assistant General Counsel and Chief Compliance Officer Susan L. Lees Assistant Secretary Carol S. Watson Assistant Secretary Paul N. Kierig Assistant Secretary Mary J. McGinn Assistant Secretary Errol Cramer Corporate Actuary
The principal business address of Ms. Watson is 2940 South 84th Street, Lincoln, Nebraska, 68506. The principal address of the other foregoing officers and directors is 3100 Sanders Road, Northbrook, Illinois 60062. 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT Incorporated herein by reference to Annual Report on Form 10-K, filed by the Allstate Corporation on March 26, 2001 (File No. 1-11840). 27. NUMBER OF CONTRACT OWNERS (a) Variable Annuity II. As of January 31, 2001 there were 82,317 non-qualified contracts and 18,854 qualified contracts. (b) Variable Annuity II Asset Manager. As of January 31, 2001 there were 1,842 non-qualified contracts and 716 qualified contracts. (c) Variable Annuity III. As of January 31, 2001 there were 3,708 non-qualified contracts and 1,942 qualified contracts. 28. INDEMNIFICATION The General Agency Agreement (Exhibit 3(b)) contains a provision in which Northbrook Life agrees to indemnify Morgan Stanley DW Inc. as Underwriter for certain damages and expenses that may be caused by actions, statements or omissions by Northbrook Life. The Agreement to Purchase Shares contains a similar provision in paragraph 16 of Exhibit 12. Insofar as indemnification for liability arising out of the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than payment by the registrant of expenses incurred by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of is counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. 29. PRINCIPAL UNDERWRITERS (a) Registrant's principal underwriter, Morgan Stanley DW Inc., is the principal underwriter for the following affiliated investment companies: Northbrook Variable Annuity Account Northbrook Life Variable Life Separate Account A Allstate Life of New York Variable Annuity Account Allstate Life of New York Variable Annuity Account II (b) The directors and principal officers of the principal underwriter are:
Name and Principal Business Positions and Officers Address* of Each Such Person with Principal Underwriter Bruce F. Alonso Director, Executive Vice President John H. Schaefer President, Director, Chief Operating Officer Donald G. Kempf, Jr. Director John J. Mack Director Stephen S. Crawford Director Robert G. Scott Director Philip J. Purcell Director, Chairman and Chief Executive Officer James F. Higgins Director Stephen R. Miller Director, Executive Vice President Mitchell M. Merin Director Michael H. Stone Executive Vice President, General Counsel and Secretary Lee Horwitz Senior Vice President and Controller Joseph G. Siniscalchi Director, Executive Vice President Thomas O'Connell Executive Vice President Frederick J. Frohne Executive Vice President Ronald T. Carman Senior Vice President, Associate General Counsel and Assistant Secretary Joyce L. Kramer Senior Vice President, Deputy General Counsel and Assistant Secretary Alexander C. Frank Senior Vice President and Treasurer Charles F. Vadala, Jr. Senior Vice President and Chief Financial Officer Michael T. Cunningham Senior Vice President Lorena J. Kern Senior Vice President Debra M. Aaron Vice President Darlene R. Lockhart Vice President Harvey B. Mogenson Vice President Kevin Mooney Vice President Saul Rosen Vice President Frank G. Skubic Vice President Eileen S. Wallace Vice President Sabrina Hurley Assistant Secretary
* The principal business address of the above-named individuals is Two World Trade Center, New York, New York 10048. (c) Compensation of Morgan Stanley DW Inc. The following commissions and other compensation were received by each principal underwriter, directly or indirectly, from the Registrant during the Registrant's last fiscal year.
Name of Principal Net Underwriting Compensation on Brokerage Compensation Underwriter Discounts and Redemption Commissions Commissions - ----------------- ---------------- -------------- ----------- ----------- Morgan Stanley DW Inc. N/A N/A N/A 37,298,111.57
30. LOCATION OF ACCOUNTS AND RECORDS The Depositor, Northbrook Life Insurance Company, is located at 3100 Sanders Road, Northbrook, Illinois 60062. The Distributor, Morgan Stanley DW Inc., is located at Two World Trade Center, New York, New York 10048. Each company maintains those accounts and records required to be maintained pursuant to Section 31(a)of the Investment Company Act and the rules promulgated thereunder. 31. MANAGEMENT SERVICES None 32. UNDERTAKINGS The Registrant undertakes to file a post-effective amendment to the Registration Statement as frequently as is necessary to ensure that the audited financial statements in the Registration Statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted. Registrant furthermore agrees to include either, as part of any prospectus or application to purchase a contract offered by the prospectus, a toll-free number that an applicant can call to request a Statement of Additional Information or a post card or similar written communication that the applicant can remove to send for a Statement of Additional Information. Finally, the Registrant agrees to deliver any Statement of Additional Information and any Financial Statements required to be made available under this Form N-4 promptly upon written or oral request. REPRESENTATIONS PURSUANT TO SECTION 403(B) OF THE INTERNAL REVENUE CODE The Company represents that it is relying upon a November 28, 1988 Securities and Exchange Commission no-action letter issued to the American Council of Life Insurance and that the provisions of paragraphs 1-4 of the no-action letter have been complied with. REPRESENTATION REGARDING CONTRACT EXPENSES Northbrook Life Insurance Company represents that the fees and charges deducted under the Contracts described in this Registration Statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Northbrook Life Insurance Compay under the Contracts. Northbrook Life Insurance Company bases its representation on its assessment of all of the facts and circumstances, including such relevant factors as: the nature and extent of such services, expenses and risks; the need for Northbrook Life Insurance Company to earn a profit; the degree to which the Contracts include innovative features; and the regulatory standards for exemptive relief under the Investment Company Act of 1940 used prior to October 1996, including the range of industry practice. This representation applies to all Contracts sold pursuant to the Registraiton Statement, including those sold on the terms specifically described in the prospectus(es) contained herein, or any variations therein, based on supplements, endorsements, or riders to any Contracts or prospectus(es), or otherwise. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant, Northbrook Variable Annuity Account II, certifies that it meets the requirements of Securities Act Rule 485(b) for effectiveness of this amended Registration Statement and has caused this amended Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, all in the Township of Northfield, State of Illinois, on the 25th day of April, 2001. NORTHBROOK VARIABLE ANNUITY ACCOUNT II (REGISTRANT) BY: NORTHBROOK LIFE INSURANCE COMPANY (DEPOSITOR) By:/s/MICHAEL J. VELOTTA Michael J. Velotta Vice President, Secretary and General Counsel As required by the Securities Act of 1933, this amended Registration Statement has been duly signed below by the following Directors and Officers of Northbrook Life Insurance Company on the 25th day of April, 2001. */THOMAS J. WILSON, II President, Chief Executive Officer Thomas J. Wilson, II and Director, (Principal Executive Officer) /s/MICHAEL J. VELOTTA Vice President, Secretary, Michael J. Velotta General Counsel and Director */MARGARET G. DYER Director Margaret C. Dyer */MARLA G. FRIEDMAN Director and Vice President Marla G. Friedman */JOHN C. LOUNDS Director John C. Lounds */J. KEVIN MCCARTHY Director J. Kevin McCarthy */STEVEN C. VERNEY Director and Vice President Steven C. Verney (Principal Financial Officer) */SAMUEL H. PILCH Vice President and Controller Samuel H. Pilch (Principal Accounting Officer) */By Michael J. Velotta, pursuant to Powers of Attorney previously filed or filed herewith. EXHIBIT INDEX Exhibit Description (10)(a) Independent Auditors' Consent. (10)(b) Consent of Foley & Lardner. (13)(c) Performance Data Calculations Morgan Stanley Dean Witter Variable Annuity II, Variable Annuity II Asset Manager and Variable Annuity 3. (99)(b) Powers of Attorney for Margaret G. Dyer, Marla G. Friedman, John C. Lounds, J. Kevin McCarthy and Steven C. Verney. EX-10 2 consentsex10.txt CONSENTS (10)(a) Independent Auditors' Consent. INDEPENDENT AUDITORS' CONSENT We consent to the use in this Post-Effective Amendment No. 33 to Registration Statement No. 033-35412 of Northbrook Variable Annuity Account II of Northbrook Life Insurance Company on Form N-4 of our report dated February 23, 2001 relating to the financial statements and the related financial statement schedule of Northbrook Life Insurance Company, and our report dated March 16, 2001 relating to the financial statements of Northbrook Variable Annuity Account II, appearing in the Statements of Additional Information (which are incorporated by reference in the Prospectuses of Northbrook Variable Annuity Account II), which are part of such Registration Statement, and to the references to us under the heading "Experts" in such Statements of Additional Information. /s/ Deloitte & Touche LLP Chicago, Illinois April 24, 2001 (10)(b) Consent of Foley & Lardner. CONSENT OF FOLEY & LARDNER We hereby consent to the reference to our firm under the caption "Legal Matters" in the prospectuses contained in Post-Effective Amendment No. 33 to the Form N-4 Registration Statement of Northbrook Variable Annuity Account II (File No. 033-35412). /s/ Foley & Lardner FOLEY & LARDNER Washington, D.C. April 19, 2001 EX-13 3 va2amexh13.txt PERFORMANCE NLIC VA2
Alliance Premier Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.620928 86.05165 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 85.99705 859.9705 0.912 FORMULA: 1000*(1+T)= 859.9705 = 808.9704751 T = -20.75% R = -19.10% Alliance Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.829645 84.53339 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.47879 844.7879 0.912 FORMULA: 1000*(1+T)= 844.7879 = 793.7879048 T = -22.38% R = -20.62% Alliance Growth and Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.620221 116.00631 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 115.95171 1159.5171 0.912 FORMULA: 1000*(1+T)= 1159.5171 = 1108.517066 T = 11.96% R = 10.85% Aim Cap App 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.235577 89.00299 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 88.94839 889.4839 0.912 FORMULA: 1000*(1+T)= 889.4839 = 838.4839468 T = -17.57% R = -16.15% Aim Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.301283 81.29233 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 81.23773 812.3773 0.912 FORMULA: 1000*(1+T)= 812.3773 = 761.3773349 T = -25.85% R = -23.86% Aim Value 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.979377 77.04530 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 76.99070 769.9070 0.912 FORMULA: 1000*(1+T)= 769.9070 = 718.907004 T = -30.37% R = -28.11% Putnam International Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 10.726387 93.22804 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 93.17344 931.7344 0.912 FORMULA: 1000*(1+T)= 931.7344 = 880.7343662 T = -13.00% R = -11.93% Putnam Voyager 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.849412 84.39237 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.33777 843.3777 0.912 FORMULA: 1000*(1+T)= 843.3777 = 792.3777322 T = -22.53% R = -20.76% Putnam Growth & Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 9.127054 109.56438 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 109.50978 1095.0978 0.912 FORMULA: 1000*(1+T)= 1095.0978 = 1044.097786 T = 4.85% R = 4.41% MSDW Mid Cap 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.878588 112.63052 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 112.57592 1125.7592 0.912 FORMULA: 1000*(1+T)= 1125.7592 = 1074.759219 T = 8.23% R = 7.48% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.772660 92.82758 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.77298 927.7298
Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr Fund Date AUV AUV AUV Alliance Premier Growth 01/31/00 11.620928 N/A N/A Alliance Growth 01/31/00 11.829645 N/A N/A Alliance Growth and Income 01/31/00 8.620221 N/A N/A Aim Cap App 01/31/00 11.235577 N/A N/A Aim Growth 01/31/00 12.301283 N/A N/A Aim Value 01/31/00 12.979377 N/A N/A Putnam International Growth 01/31/00 10.726387 N/A N/A Putnam Voyager 01/31/00 11.849412 N/A N/A Putnam Growth & Income 01/31/00 9.127054 N/A N/A MSDW Mid Cap 01/31/00 8.878588 N/A N/A Information Portfolio 11/06/00 10.77266 N/A N/A One Yr YTD Today's Inception Fund AUV AUV AUV Total Alliance Premier Growth N/A 10 10 -13.95% Alliance Growth N/A 10 10 -15.47% Alliance Growth and Income N/A 10 10 16.01% Aim Cap App N/A 10 10 -11.00% Aim Growth N/A 10 10 -18.71% Aim Value N/A 10 10 -22.95% Putnam International Growth N/A 10 10 -6.77% Putnam Voyager N/A 10 10 -15.61% Putnam Growth & Income N/A 10 10 9.56% MSDW Mid Cap N/A 10 10 12.63% Information Portfolio N/A 10 10 -7.17% Ten Years Five Years Fund Average Total Average Total Alliance Premier Growth -15.18% N/A N/A N/A N/A Alliance Growth -16.82% N/A N/A N/A N/A Alliance Growth and Income 17.67% N/A N/A N/A N/A Aim Cap App -11.99% N/A N/A N/A N/A Aim Growth -20.31% N/A N/A N/A N/A Aim Value -24.86% N/A N/A N/A N/A Putnam International Growth -7.40% N/A N/A N/A N/A Putnam Voyager -16.97% N/A N/A N/A N/A Putnam Growth & Income 10.53% N/A N/A N/A N/A MSDW Mid Cap 13.93% N/A N/A N/A N/A Information Portfolio -40.10% N/A N/A N/A N/A One Year YTD Fund Average Alliance Premier Growth N/A 0.00% Alliance Growth N/A 0.00% Alliance Growth and Income N/A 0.00% Aim Cap App N/A 0.00% Aim Growth N/A 0.00% Aim Value N/A 0.00% Putnam International Growth N/A 0.00% Putnam Voyager N/A 0.00% Putnam Growth & Income N/A 0.00% MSDW Mid Cap N/A 0.00% Information Portfolio N/A 0.00%
Alliance Premier Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.261011 81.55934 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 81.50474 815.0474 1.000 FORMULA: 1000*(1+T)= 815.0474 - (0.85 * 1000 * 0.05) = 772.5474 T = -22.75% R = -22.75% Alliance Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.424197 80.48810 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 80.43350 804.3350 1.000 FORMULA: 1000*(1+T)= 804.3350 - (0.85 * 1000 * 0.05) = 761.8350 T = -23.82% R = -23.82% Alliance Growth and Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 8.994728 111.17624 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 111.12164 1111.2164 1.000 FORMULA: 1000*(1+T)= 1111.2164 - (0.85 * 1000 * 0.05) = 1068.7164 T = 6.87% R = 6.87% Aim Cap App 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.452445 87.31760 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 87.26300 872.6300 1.000 FORMULA: 1000*(1+T)= 872.6300 - (0.85 * 1000 * 0.05) = 830.1300 T = -16.99% R = -16.99% Aim Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.832911 77.92464 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 77.87004 778.7004 1.000 FORMULA: 1000*(1+T)= 778.7004 - (0.85 * 1000 * 0.05) = 736.2004 T = -26.38% R = -26.38% Aim Value 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 13.329585 75.02109 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 74.96649 749.6649 1.000 FORMULA: 1000*(1+T)= 749.6649 - (0.85 * 1000 * 0.05) = 707.1649 T = -29.28% R = -29.28% Putnam International Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.282311 88.63432 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 88.57972 885.7972 1.000 FORMULA: 1000*(1+T)= 885.7972 - (0.85 * 1000 * 0.05) = 843.2972 T = -15.67% R = -15.67% Putnam Voyager 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.224795 81.80096 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 81.74636 817.4636 1.000 FORMULA: 1000*(1+T)= 817.4636 - (0.85 * 1000 * 0.05) = 774.9636 T = -22.50% R = -22.50% Putnam Growth & Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.453753 105.77810 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 105.72350 1057.2350 1.000 FORMULA: 1000*(1+T)= 1057.2350 - (0.85 * 1000 * 0.05) = 1014.7350 T = 1.47% R = 1.47% MSDW Mid Cap 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.212837 108.54420 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 108.48960 1084.8960 1.000 FORMULA: 1000*(1+T)= 1084.8960 - (0.85 * 1000 * 0.05) = 1042.3960 T = 4.24% R = 4.24% Information Portfolio 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-00 1000.00 10.000000 100.00000 FEE 00-Jan-00 0.546 #VALUE! #VALUE! RESULTING VALUE 00-Jan-00 #VALUE! #VALUE! #VALUE! 1.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05) = #VALUE! T = N/A R = N/A Alliance Premier Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 12.140952 0.04497 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Alliance Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.658310 214.67013 FEE 29-Dec-96 0.546 5.908236 0.09241 FEE 29-Dec-97 0.546 7.287428 0.07492 FEE 29-Dec-98 0.546 9.369989 0.05827 FEE 29-Dec-99 0.546 12.218406 0.04469 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 214.34523 2143.4523 5.000 FORMULA: 1000*(1+T)= 2143.4523 - (0.85 * 1000 * 0.02) = 2126.452324 T = 16.29% R = 112.65% Alliance Growth and Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.532441 220.63166 FEE 29-Dec-96 0.546 5.572329 0.09798 FEE 29-Dec-97 0.546 6.803484 0.08025 FEE 29-Dec-98 0.546 8.196952 0.06661 FEE 29-Dec-99 0.546 8.892509 0.06140 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 220.27082 2202.7082 5.000 FORMULA: 1000*(1+T)= 2202.7082 - (0.85 * 1000 * 0.02) = 2185.708168 T = 16.93% R = 118.57% Aim Cap App 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.391473 185.47807 FEE 29-Dec-96 0.546 6.220013 0.08778 FEE 29-Dec-97 0.546 6.677320 0.08177 FEE 29-Dec-98 0.546 7.879238 0.06930 FEE 29-Dec-99 0.546 11.322969 0.04822 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 185.13640 1851.3640 5.000 FORMULA: 1000*(1+T)= 1851.3640 - (0.85 * 1000 * 0.02) = 1834.364017 T = 12.90% R = 83.44% Aim Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.118676 195.36302 FEE 29-Dec-96 0.546 5.976136 0.09136 FEE 29-Dec-97 0.546 7.198023 0.07585 FEE 29-Dec-98 0.546 9.625045 0.05673 FEE 29-Dec-99 0.546 12.745733 0.04284 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 195.04164 1950.4164 5.000 FORMULA: 1000*(1+T)= 1950.4164 - (0.85 * 1000 * 0.02) = 1933.416372 T = 14.09% R = 93.34% Aim Value 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.904796 169.35386 FEE 29-Dec-96 0.546 6.687819 0.08164 FEE 29-Dec-97 0.546 7.945530 0.06872 FEE 29-Dec-98 0.546 10.465161 0.05217 FEE 29-Dec-99 0.546 13.217154 0.04131 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 169.05542 1690.5542 5.000 FORMULA: 1000*(1+T)= 1690.5542 - (0.85 * 1000 * 0.02) = 1673.554189 T = 10.85% R = 67.36% Putnam International Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.147380 0.08882 FEE 29-Dec-98 0.546 7.183460 0.07601 FEE 29-Dec-99 0.546 11.074787 0.04930 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.739820 210.97848 FEE 29-Dec-96 0.546 5.249853 0.10400 FEE 29-Dec-97 0.546 6.294054 0.08675 FEE 29-Dec-98 0.546 7.762076 0.07034 FEE 29-Dec-99 0.546 12.072643 0.04523 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 210.61756 2106.1756 5.000 FORMULA: 1000*(1+T)= 2106.1756 - (0.85 * 1000 * 0.02) = 2089.175563 T = 15.88% R = 108.92% Putnam Growth & Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.806609 172.21755 FEE 29-Dec-96 0.546 7.038225 0.07758 FEE 29-Dec-97 0.546 8.273094 0.06600 FEE 29-Dec-98 0.546 9.601307 0.05687 FEE 29-Dec-99 0.546 9.408848 0.05803 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 171.90448 1719.0448 5.000 FORMULA: 1000*(1+T)= 1719.0448 - (0.85 * 1000 * 0.02) = 1702.04483 T = 11.22% R = 70.20% MSDW Mid Cap 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.837965 0.07985 FEE 29-Dec-98 0.546 7.534077 0.07247 FEE 29-Dec-99 0.546 9.119472 0.05987 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Information Portfolio 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 #VALUE! #VALUE! FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 1.941975 514.93969 FEE 31-Dec-91 0.546 2.776168 0.19667 FEE 31-Dec-92 0.546 2.997995 0.18212 FEE 31-Dec-93 0.546 3.482247 0.15680 FEE 31-Dec-94 0.546 3.442872 0.15859 FEE 31-Dec-95 0.546 4.739256 0.11521 FEE 31-Dec-96 0.546 5.238945 0.10422 FEE 31-Dec-97 0.546 6.485833 0.08418 FEE 31-Dec-98 0.546 7.893909 0.06917 FEE 31-Dec-99 0.546 12.224795 0.04466 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 513.77347 5137.7347 10.000 FORMULA: 1000*(1+T)= 5137.7347 - (0.85 * 1000 * 0) = 5137.734667 T = 17.78% R = 413.77% Putnam Growth & Income 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 3.159472 316.50858 FEE 31-Dec-91 0.546 3.680510 0.14835 FEE 31-Dec-92 0.546 3.952763 0.13813 FEE 31-Dec-93 0.546 4.419694 0.12354 FEE 31-Dec-94 0.546 4.339884 0.12581 FEE 31-Dec-95 0.546 5.805919 0.09404 FEE 31-Dec-96 0.546 6.926558 0.07883 FEE 31-Dec-97 0.546 8.414741 0.06489 FEE 31-Dec-98 0.546 9.507643 0.05743 FEE 31-Dec-99 0.546 9.453753 0.05775 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 315.56522 3155.6522 10.000 FORMULA: 1000*(1+T)= 3155.6522 - (0.85 * 1000 * 0) = 3155.652157 T = 12.18% R = 215.57% Alliance Premier Growth 14-Jul-99 TO NO. YEARS 1.462 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jul-99 1000.00 10.943090 91.38187 1 FEE 14-Jul-00 0.546 13.248159 0.04121 0.06 2 FEE 29-Dec-00 0.546 10.000000 0.05460 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 91.28605 912.8605 1.462 FORMULA: 1000*(1+T)= 912.8605 = 870.3605419 T = -9.06% R = -12.96% Alliance Growth 15-Sep-94 TO NO. YEARS 6.289 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 15-Sep-94 1000.00 3.356002 297.97360 1 FEE 15-Sep-95 0.546 4.491447 0.12156 0.06 2 FEE 15-Sep-96 0.546 5.195190 0.10510 0.05 3 FEE 15-Sep-97 0.546 7.041523 0.07754 0.05 4 15-Sep-98 0.546 7.374623 0.07404 0.04 5 15-Sep-99 0.546 10.146372 0.05381 0.03 6 15-Sep-00 0.546 11.982168 0.04557 0.02 7 29-Dec-00 0.546 10.000000 0.05460 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 297.44138 2974.4138 6.289 FORMULA: 1000*(1+T)= 2974.4138 = 2974.413814 T = 18.93% R = 197.44% Alliance Growth and Income 14-Jan-91 TO NO. YEARS 9.958 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jan-91 1000.00 2.965683 337.19045 1 FEE 14-Jan-92 0.546 3.010596 0.18136 0.06 2 FEE 14-Jan-93 0.546 3.184784 0.17144 0.05 3 FEE 14-Jan-94 0.546 3.486597 0.15660 0.05 4 14-Jan-95 0.546 3.404887 0.16036 0.04 5 14-Jan-96 0.546 4.393638 0.12427 0.03 6 14-Jan-97 0.546 5.641275 0.09679 0.02 7 14-Jan-98 0.546 6.793972 0.08037 0 8 14-Jan-99 0.546 8.110510 0.06732 0 9 14-Jan-00 0.546 8.994728 0.06070 0 10 29-Dec-00 0.546 10.000000 0.05460 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 336.03665 3360.3665 9.958 FORMULA: 1000*(1+T)= 3360.3665 = 3360.36653 T = 12.94% R = 236.04% Aim Cap App 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.423578 292.09207 1 FEE 05-May-94 0.546 4.012475 0.13608 0.06 2 FEE 05-May-95 0.546 4.446283 0.12280 0.05 3 FEE 05-May-96 0.546 5.979451 0.09131 0.05 4 05-May-97 0.546 6.230849 0.08763 0.04 5 05-May-98 0.546 7.817013 0.06985 0.03 6 05-May-99 0.546 8.280678 0.06594 0.02 7 05-May-00 0.546 11.720984 0.04658 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 291.41729 2914.1729 7.652 FORMULA: 1000*(1+T)= 2914.1729 = 2914.17291 T = 15.00% R = 191.42% Aim Growth 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.714097 269.24445 1 FEE 05-May-94 0.546 3.878509 0.14078 0.06 2 FEE 05-May-95 0.546 4.309186 0.12671 0.05 3 FEE 05-May-96 0.546 5.408023 0.10096 0.05 4 05-May-97 0.546 6.327498 0.08629 0.04 5 05-May-98 0.546 8.468829 0.06447 0.03 6 05-May-99 0.546 10.304574 0.05299 0.02 7 05-May-00 0.546 13.293659 0.04107 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 268.57659 2685.7659 7.652 FORMULA: 1000*(1+T)= 2685.7659 = 2685.765859 T = 13.78% R = 168.58% Aim Value 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.828699 261.18533 1 FEE 05-May-94 0.546 4.421029 0.12350 0.06 2 FEE 05-May-95 0.546 4.968028 0.10990 0.05 3 FEE 05-May-96 0.546 5.948410 0.09179 0.05 4 05-May-97 0.546 7.113639 0.07675 0.04 5 05-May-98 0.546 9.096635 0.06002 0.03 6 05-May-99 0.546 11.363579 0.04805 0.02 7 05-May-00 0.546 13.456362 0.04058 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 260.58013 2605.8013 7.652 FORMULA: 1000*(1+T)= 2605.8013 = 2605.801343 T = 13.33% R = 160.58% Putnam International Growth 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.451497 183.43585 1 FEE 02-Jan-98 0.546 6.227220 0.08768 0.06 2 FEE 02-Jan-99 0.546 7.193314 0.07590 0.05 3 FEE 02-Jan-00 0.546 11.469553 0.04760 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 183.17006 1831.7006 3.989 FORMULA: 1000*(1+T)= 1831.7006 = 1797.700649 T = 15.84% R = 79.77% Putnam Voyager 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 1.548593 645.74746 1 FEE 01-Feb-89 0.546 1.657781 0.32936 0.06 2 FEE 01-Feb-90 0.546 1.797869 0.30369 0.05 3 FEE 01-Feb-91 0.546 2.067708 0.26406 0.05 4 01-Feb-92 0.546 2.777240 0.19660 0.04 5 01-Feb-93 0.546 3.018780 0.18087 0.03 6 01-Feb-94 0.546 3.550075 0.15380 0.02 7 01-Feb-95 0.546 3.470380 0.15733 0 8 01-Feb-96 0.546 4.815570 0.11338 0 9 01-Feb-97 0.546 5.464003 0.09993 0 10 01-Feb-98 0.546 6.460649 0.08451 0 11 01-Feb-99 0.546 8.242916 0.06624 0 12 01-Feb-00 0.546 12.112735 0.04508 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 643.69802 6436.9802 12.909 FORMULA: 1000*(1+T)= 6436.9802 = 6436.980204 T = 15.52% R = 543.70% Putnam Growth & Income 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 2.267559 441.00286 1 FEE 01-Feb-89 0.546 2.804699 0.19467 0.06 2 FEE 01-Feb-90 0.546 3.038075 0.17972 0.05 3 FEE 01-Feb-91 0.546 3.272509 0.16684 0.05 4 01-Feb-92 0.546 3.690525 0.14795 0.04 5 01-Feb-93 0.546 3.999744 0.13651 0.03 6 01-Feb-94 0.546 4.535671 0.12038 0.02 7 01-Feb-95 0.546 4.439673 0.12298 0 8 01-Feb-96 0.546 5.946075 0.09183 0 9 01-Feb-97 0.546 7.206578 0.07576 0 10 01-Feb-98 0.546 8.428935 0.06478 0 11 01-Feb-99 0.546 9.553544 0.05715 0 12 01-Feb-00 0.546 9.126550 0.05983 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 439.52986 4395.2986 12.909 FORMULA: 1000*(1+T)= 4395.2986 = 4395.298617 T = 12.15% R = 339.53% MSDW Mid Cap 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.103105 195.95913 1 FEE 02-Jan-98 0.546 7.016367 0.07782 0.06 2 FEE 02-Jan-99 0.546 7.758247 0.07038 0.05 3 FEE 02-Jan-00 0.546 9.212837 0.05927 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 195.69707 1956.9707 3.989 FORMULA: 1000*(1+T)= 1956.9707 = 1922.970669 T = 17.81% R = 92.30% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.772660 92.82758 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.77298 927.7298 0.145 FORMULA: 1000*(1+T)= 927.7298 = 876.729839 T = -59.61% R = -12.33%
Alliance Premier Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.604770 86.17146 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 86.11686 861.1686 0.912 FORMULA: 1000*(1+T)= 861.1686 = 810.1686225 T = -20.62% R = -18.98% Alliance Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.813199 84.65108 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.59648 845.9648 0.912 FORMULA: 1000*(1+T)= 845.9648 = 794.9647546 T = -22.25% R = -20.50% Alliance Growth and Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.608252 116.16760 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 116.11300 1161.1300 0.912 FORMULA: 1000*(1+T)= 1161.1300 = 1110.130029 T = 12.14% R = 11.01% Aim Cap App 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.219942 89.12702 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 89.07242 890.7242 0.912 FORMULA: 1000*(1+T)= 890.7242 = 839.7242044 T = -17.44% R = -16.03% Aim Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.284155 81.40568 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 81.35108 813.5108 0.912 FORMULA: 1000*(1+T)= 813.5108 = 762.5108073 T = -25.73% R = -23.75% Aim Value 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.961312 77.15268 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 77.09808 770.9808 0.912 FORMULA: 1000*(1+T)= 770.9808 = 719.9808331 T = -30.26% R = -28.00% Putnam International Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 10.711470 93.35787 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 93.30327 933.0327 0.912 FORMULA: 1000*(1+T)= 933.0327 = 882.0326778 T = -12.86% R = -11.80% Putnam Voyager 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.832934 84.50989 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.45529 844.5529 0.912 FORMULA: 1000*(1+T)= 844.5529 = 793.5529416 T = -22.40% R = -20.64% Putnam Growth & Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 9.114386 109.71666 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 109.66206 1096.6206 0.912 FORMULA: 1000*(1+T)= 1096.6206 = 1045.620611 T = 5.01% R = 4.56% MSDW Mid Cap 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.866231 112.78750 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 112.73290 1127.3290 0.912 FORMULA: 1000*(1+T)= 1127.3290 = 1076.328967 T = 8.40% R = 7.63% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.770265 92.84823 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.79363 927.9363 0.145 FORMULA: 1000*(1+T)= 927.9363 = 876.9362611 T = -59.55% R = -12.31%
Non-Standardized Calculations Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr One Yr YTD Today's Inception Fund Date AUV AUV AUV AUV AUV AUV Total Alliance Premier Growth 01/31/00 11.60477 N/A N/A N/A 10 10 -13.83% Alliance Growth 01/31/00 11.813199 N/A N/A N/A 10 10 -15.35% Alliance Growth and Income 01/31/00 8.608252 N/A N/A N/A 10 10 16.17% Aim Cap App 01/31/00 11.219942 N/A N/A N/A 10 10 -10.87% Aim Growth 01/31/00 12.284155 N/A N/A N/A 10 10 -18.59% Aim Value 01/31/00 12.961312 N/A N/A N/A 10 10 -22.85% Putnam International Growth 01/31/00 10.71147 N/A N/A N/A 10 10 -6.64% Putnam Voyager 01/31/00 11.832934 N/A N/A N/A 10 10 -15.49% Putnam Growth & Income 01/31/00 9.114386 N/A N/A N/A 10 10 9.72% MSDW Mid Cap 01/31/00 8.866231 N/A N/A N/A 10 10 12.79% Information Portfolio 11/06/00 10.770265 N/A N/A N/A 10 10 -7.15% Ten Years Five Years One Year YTD Fund Average Total Average Total Average Alliance Premier Growth -15.05% N/A N/A N/A N/A N/A 0.00% Alliance Growth -16.69% N/A N/A N/A N/A N/A 0.00% Alliance Growth and Income 17.85% N/A N/A N/A N/A N/A 0.00% Aim Cap App -11.85% N/A N/A N/A N/A N/A 0.00% Aim Growth -20.19% N/A N/A N/A N/A N/A 0.00% Aim Value -24.75% N/A N/A N/A N/A N/A 0.00% Putnam International Growth -7.26% N/A N/A N/A N/A N/A 0.00% Putnam Voyager -16.85% N/A N/A N/A N/A N/A 0.00% Putnam Growth & Income 10.70% N/A N/A N/A N/A N/A 0.00% MSDW Mid Cap 14.10% N/A N/A N/A N/A N/A 0.00% Information Portfolio -40.01% N/A N/A N/A N/A N/A 0.00%
Alliance Premier Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.242293 81.68404 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 81.62944 816.2944 1.000 FORMULA: 1000*(1+T)= 816.2944 - (0.85 * 1000 * 0.05) = 773.7944 T = -22.62% R = -22.62% Alliance Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.405240 80.61110 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 80.55650 805.5650 1.000 FORMULA: 1000*(1+T)= 805.5650 - (0.85 * 1000 * 0.05) = 763.0650 T = -23.69% R = -23.69% Alliance Growth and Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 8.981027 111.34584 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 111.29124 1112.9124 1.000 FORMULA: 1000*(1+T)= 1112.9124 - (0.85 * 1000 * 0.05) = 1070.4124 T = 7.04% R = 7.04% Aim Cap App 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.435028 87.45059 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 87.39599 873.9599 1.000 FORMULA: 1000*(1+T)= 873.9599 - (0.85 * 1000 * 0.05) = 831.4599 T = -16.85% R = -16.85% Aim Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.813384 78.04340 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 77.98880 779.8880 1.000 FORMULA: 1000*(1+T)= 779.8880 - (0.85 * 1000 * 0.05) = 737.3880 T = -26.26% R = -26.26% Aim Value 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 13.309306 75.13540 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 75.08080 750.8080 1.000 FORMULA: 1000*(1+T)= 750.8080 - (0.85 * 1000 * 0.05) = 708.3080 T = -29.17% R = -29.17% Putnam International Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.265160 88.76927 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 88.71467 887.1467 1.000 FORMULA: 1000*(1+T)= 887.1467 - (0.85 * 1000 * 0.05) = 844.6467 T = -15.54% R = -15.54% Putnam Voyager 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.206209 81.92552 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 81.87092 818.7092 1.000 FORMULA: 1000*(1+T)= 818.7092 - (0.85 * 1000 * 0.05) = 776.2092 T = -22.38% R = -22.38% Putnam Growth & Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.439406 105.93887 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 105.88427 1058.8427 1.000 FORMULA: 1000*(1+T)= 1058.8427 - (0.85 * 1000 * 0.05) = 1016.3427 T = 1.63% R = 1.63% MSDW Mid Cap 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.198780 108.71007 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 108.65547 1086.5547 1.000 FORMULA: 1000*(1+T)= 1086.5547 - (0.85 * 1000 * 0.05) = 1044.0547 T = 4.41% R = 4.41% Information Portfolio 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-00 1000.00 10.000000 100.00000 FEE 00-Jan-00 0.546 #VALUE! #VALUE! RESULTING VALUE 00-Jan-00 #VALUE! #VALUE! #VALUE! 1.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05) = #VALUE! T = N/A R = N/A Alliance Premier Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 12.122316 0.04504 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Alliance Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.622808 216.31874 FEE 29-Dec-96 0.546 5.872185 0.09298 FEE 29-Dec-97 0.546 7.254044 0.07527 FEE 29-Dec-98 0.546 9.341328 0.05845 FEE 29-Dec-99 0.546 12.199661 0.04476 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 215.99269 2159.9269 5.000 FORMULA: 1000*(1+T)= 2159.9269 - (0.85 * 1000 * 0.02) = 2142.926852 T = 16.47% R = 114.29% Alliance Growth and Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.497919 222.32504 FEE 29-Dec-96 0.546 5.538333 0.09859 FEE 29-Dec-97 0.546 6.772322 0.08062 FEE 29-Dec-98 0.546 8.171893 0.06681 FEE 29-Dec-99 0.546 8.878890 0.06149 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 221.96292 2219.6292 5.000 FORMULA: 1000*(1+T)= 2219.6292 - (0.85 * 1000 * 0.02) = 2202.629187 T = 17.11% R = 120.26% Aim Cap App 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.350412 186.90149 FEE 29-Dec-96 0.546 6.182081 0.08832 FEE 29-Dec-97 0.546 6.646754 0.08215 FEE 29-Dec-98 0.546 7.855160 0.06951 FEE 29-Dec-99 0.546 11.305656 0.04829 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 186.55863 1865.5863 5.000 FORMULA: 1000*(1+T)= 1865.5863 - (0.85 * 1000 * 0.02) = 1848.586267 T = 13.08% R = 84.86% Aim Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.079714 196.86148 FEE 29-Dec-96 0.546 5.939736 0.09192 FEE 29-Dec-97 0.546 7.165097 0.07620 FEE 29-Dec-98 0.546 9.595657 0.05690 FEE 29-Dec-99 0.546 12.726232 0.04290 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 196.53895 1965.3895 5.000 FORMULA: 1000*(1+T)= 1965.3895 - (0.85 * 1000 * 0.02) = 1948.389466 T = 14.27% R = 94.84% Aim Value 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.859830 170.65341 FEE 29-Dec-96 0.546 6.647028 0.08214 FEE 29-Dec-97 0.546 7.909147 0.06903 FEE 29-Dec-98 0.546 10.433184 0.05233 FEE 29-Dec-99 0.546 13.196936 0.04137 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 170.35393 1703.5393 5.000 FORMULA: 1000*(1+T)= 1703.5393 - (0.85 * 1000 * 0.02) = 1686.539326 T = 11.02% R = 68.65% Putnam International Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.119292 0.08923 FEE 29-Dec-98 0.546 7.161565 0.07624 FEE 29-Dec-99 0.546 11.057860 0.04938 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.703760 212.59588 FEE 29-Dec-96 0.546 5.217843 0.10464 FEE 29-Dec-97 0.546 6.265289 0.08715 FEE 29-Dec-98 0.546 7.738412 0.07056 FEE 29-Dec-99 0.546 12.054187 0.04530 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 212.23364 2122.3364 5.000 FORMULA: 1000*(1+T)= 2122.3364 - (0.85 * 1000 * 0.02) = 2105.336404 T = 16.06% R = 110.53% Putnam Growth & Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.762391 173.53907 FEE 29-Dec-96 0.546 6.995261 0.07805 FEE 29-Dec-97 0.546 8.235241 0.06630 FEE 29-Dec-98 0.546 9.571997 0.05704 FEE 29-Dec-99 0.546 9.394491 0.05812 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 173.22496 1732.2496 5.000 FORMULA: 1000*(1+T)= 1732.2496 - (0.85 * 1000 * 0.02) = 1715.249605 T = 11.39% R = 71.52% MSDW Mid Cap 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.806640 0.08022 FEE 29-Dec-98 0.546 7.511041 0.07269 FEE 29-Dec-99 0.546 9.105482 0.05996 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Information Portfolio 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 #VALUE! #VALUE! FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 1.912538 522.86543 FEE 31-Dec-91 0.546 2.738264 0.19940 FEE 31-Dec-92 0.546 2.961594 0.18436 FEE 31-Dec-93 0.546 3.445230 0.15848 FEE 31-Dec-94 0.546 3.411489 0.16005 FEE 31-Dec-95 0.546 4.703240 0.11609 FEE 31-Dec-96 0.546 5.207088 0.10486 FEE 31-Dec-97 0.546 6.456245 0.08457 FEE 31-Dec-98 0.546 7.869908 0.06938 FEE 31-Dec-99 0.546 12.206209 0.04473 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 521.68892 5216.8892 10.000 FORMULA: 1000*(1+T)= 5216.8892 - (0.85 * 1000 * 0) = 5216.88918 T = 17.96% R = 421.69% Putnam Growth & Income 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 3.111567 321.38148 FEE 31-Dec-91 0.546 3.630241 0.15040 FEE 31-Dec-92 0.546 3.904743 0.13983 FEE 31-Dec-93 0.546 4.372682 0.12487 FEE 31-Dec-94 0.546 4.300303 0.12697 FEE 31-Dec-95 0.546 5.761754 0.09476 FEE 31-Dec-96 0.546 6.884391 0.07931 FEE 31-Dec-97 0.546 8.376309 0.06518 FEE 31-Dec-98 0.546 9.478699 0.05760 FEE 31-Dec-99 0.546 9.439406 0.05784 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 320.43011 3204.3011 10.000 FORMULA: 1000*(1+T)= 3204.3011 - (0.85 * 1000 * 0) = 3204.301085 T = 12.35% R = 220.43% Alliance Premier Growth 14-Jul-99 TO NO. YEARS 1.462 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jul-99 1000.00 10.918611 91.58674 1 FEE 14-Jul-00 0.546 13.238840 0.04124 0.06 2 FEE 29-Dec-00 0.546 10.000000 0.05460 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 91.49090 914.9090 1.462 FORMULA: 1000*(1+T)= 914.9090 = 872.4089892 T = -8.91% R = -12.76% Alliance Growth 15-Sep-94 TO NO. YEARS 6.289 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 15-Sep-94 1000.00 3.324003 300.84209 1 FEE 15-Sep-95 0.546 4.454991 0.12256 0.06 2 FEE 15-Sep-96 0.546 5.161229 0.10579 0.05 3 FEE 15-Sep-97 0.546 7.006182 0.07793 0.05 4 15-Sep-98 0.546 7.348841 0.07430 0.04 5 15-Sep-99 0.546 10.126356 0.05392 0.03 6 15-Sep-00 0.546 11.976900 0.04559 0.02 7 29-Dec-00 0.546 10.000000 0.05460 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 300.30740 3003.0740 6.289 FORMULA: 1000*(1+T)= 3003.0740 = 3003.074041 T = 19.11% R = 200.31% Alliance Growth and Income 14-Jan-91 TO NO. YEARS 9.958 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jan-91 1000.00 2.921044 342.34335 1 FEE 14-Jan-92 0.546 2.969632 0.18386 0.06 2 FEE 14-Jan-93 0.546 3.146232 0.17354 0.05 3 FEE 14-Jan-94 0.546 3.449625 0.15828 0.05 4 14-Jan-95 0.546 3.373935 0.16183 0.04 5 14-Jan-96 0.546 4.360466 0.12522 0.03 6 14-Jan-97 0.546 5.607232 0.09737 0.02 7 14-Jan-98 0.546 6.763308 0.08073 0 8 14-Jan-99 0.546 8.086257 0.06752 0 9 14-Jan-00 0.546 8.981027 0.06079 0 10 29-Dec-00 0.546 10.000000 0.05460 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 341.17961 3411.7961 9.958 FORMULA: 1000*(1+T)= 3411.7961 = 3411.796082 T = 13.12% R = 241.18% Aim Cap App 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.383756 295.52958 1 FEE 05-May-94 0.546 3.971880 0.13747 0.06 2 FEE 05-May-95 0.546 4.408024 0.12387 0.05 3 FEE 05-May-96 0.546 5.937082 0.09196 0.05 4 05-May-97 0.546 6.196151 0.08812 0.04 5 05-May-98 0.546 7.785365 0.07013 0.03 6 05-May-99 0.546 8.259784 0.06610 0.02 7 05-May-00 0.546 11.709320 0.04663 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 294.85070 2948.5070 7.652 FORMULA: 1000*(1+T)= 2948.5070 = 2948.507036 T = 15.18% R = 194.85% Aim Growth 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.670894 272.41321 1 FEE 05-May-94 0.546 3.839257 0.14222 0.06 2 FEE 05-May-95 0.546 4.272118 0.12781 0.05 3 FEE 05-May-96 0.546 5.369741 0.10168 0.05 4 05-May-97 0.546 6.292302 0.08677 0.04 5 05-May-98 0.546 8.434566 0.06473 0.03 6 05-May-99 0.546 10.278574 0.05312 0.02 7 05-May-00 0.546 13.280423 0.04111 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 271.74116 2717.4116 7.652 FORMULA: 1000*(1+T)= 2717.4116 = 2717.41164 T = 13.96% R = 171.74% Aim Value 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.784171 264.25867 1 FEE 05-May-94 0.546 4.376291 0.12476 0.06 2 FEE 05-May-95 0.546 4.925282 0.11086 0.05 3 FEE 05-May-96 0.546 5.906270 0.09244 0.05 4 05-May-97 0.546 7.074015 0.07718 0.04 5 05-May-98 0.546 9.059800 0.06027 0.03 6 05-May-99 0.546 11.334886 0.04817 0.02 7 05-May-00 0.546 13.442973 0.04062 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 263.64977 2636.4977 7.652 FORMULA: 1000*(1+T)= 2636.4977 = 2636.497713 T = 13.51% R = 163.65% Putnam International Growth 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.418392 184.55660 1 FEE 02-Jan-98 0.546 6.198870 0.08808 0.06 2 FEE 02-Jan-99 0.546 7.171450 0.07614 0.05 3 FEE 02-Jan-00 0.546 11.452164 0.04768 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 184.29011 1842.9011 3.989 FORMULA: 1000*(1+T)= 1842.9011 = 1808.901067 T = 16.02% R = 80.89% Putnam Voyager 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 1.518350 658.60967 1 FEE 01-Feb-89 0.546 1.627887 0.33540 0.06 2 FEE 01-Feb-90 0.546 1.768153 0.30880 0.05 3 FEE 01-Feb-91 0.546 2.036640 0.26809 0.05 4 01-Feb-92 0.546 2.739677 0.19929 0.04 5 01-Feb-93 0.546 2.982524 0.18307 0.03 6 01-Feb-94 0.546 3.512809 0.15543 0.02 7 01-Feb-95 0.546 3.439204 0.15876 0 8 01-Feb-96 0.546 4.779613 0.11424 0 9 01-Feb-97 0.546 5.431484 0.10053 0 10 01-Feb-98 0.546 6.432010 0.08489 0 11 01-Feb-99 0.546 8.218954 0.06643 0 12 01-Feb-00 0.546 12.095940 0.04514 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 656.53502 6565.3502 12.909 FORMULA: 1000*(1+T)= 6565.3502 = 6565.350176 T = 15.69% R = 556.54% Putnam Growth & Income 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 2.223262 449.78954 1 FEE 01-Feb-89 0.546 2.754103 0.19825 0.06 2 FEE 01-Feb-90 0.546 2.987841 0.18274 0.05 3 FEE 01-Feb-91 0.546 3.223322 0.16939 0.05 4 01-Feb-92 0.546 3.640592 0.14998 0.04 5 01-Feb-93 0.546 3.951681 0.13817 0.03 6 01-Feb-94 0.546 4.488025 0.12166 0.02 7 01-Feb-95 0.546 4.399767 0.12410 0 8 01-Feb-96 0.546 5.901634 0.09252 0 9 01-Feb-97 0.546 7.163636 0.07622 0 10 01-Feb-98 0.546 8.391524 0.06507 0 11 01-Feb-99 0.546 9.525738 0.05732 0 12 01-Feb-00 0.546 9.113921 0.05991 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 448.29964 4482.9964 12.909 FORMULA: 1000*(1+T)= 4482.9964 = 4482.996361 T = 12.32% R = 348.30% MSDW Mid Cap 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.072058 197.15863 1 FEE 02-Jan-98 0.546 6.984340 0.07817 0.06 2 FEE 02-Jan-99 0.546 7.734621 0.07059 0.05 3 FEE 02-Jan-00 0.546 9.198780 0.05936 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 196.89591 1968.9591 3.989 FORMULA: 1000*(1+T)= 1968.9591 = 1934.959064 T = 18.00% R = 93.50% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.770265 92.84823 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.79363 927.9363 0.145 FORMULA: 1000*(1+T)= 927.9363 = 876.9362611 T = -59.55% R = -12.31%
Alliance Premier Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.583304 86.33115 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 86.27655 862.7655 0.912 FORMULA: 1000*(1+T)= 862.7655 = 811.7655387 T = -20.45% R = -18.82% Alliance Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.791325 84.80811 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.75351 847.5351 0.912 FORMULA: 1000*(1+T)= 847.5351 = 796.5351105 T = -22.08% R = -20.35% Alliance Growth and Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.592350 116.38260 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 116.32800 1163.2800 0.912 FORMULA: 1000*(1+T)= 1163.2800 = 1112.279961 T = 12.38% R = 11.23% Aim Cap App 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.199175 89.29229 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 89.23769 892.3769 0.912 FORMULA: 1000*(1+T)= 892.3769 = 841.3769162 T = -17.26% R = -15.86% Aim Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.261396 81.55678 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 81.50218 815.0218 0.912 FORMULA: 1000*(1+T)= 815.0218 = 764.0218195 T = -25.56% R = -23.60% Aim Value 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.937292 77.29593 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 77.24133 772.4133 0.912 FORMULA: 1000*(1+T)= 772.4133 = 721.413287 T = -30.10% R = -27.86% Putnam International Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 10.691632 93.53109 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 93.47649 934.7649 0.912 FORMULA: 1000*(1+T)= 934.7649 = 883.7649048 T = -12.67% R = -11.62% Putnam Voyager 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.811017 84.66671 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.61211 846.1211 0.912 FORMULA: 1000*(1+T)= 846.1211 = 795.1211414 T = -22.23% R = -20.49% Putnam Growth & Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 9.097547 109.91974 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 109.86514 1098.6514 0.912 FORMULA: 1000*(1+T)= 1098.6514 = 1047.651399 T = 5.24% R = 4.77% MSDW Mid Cap 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.849834 112.99647 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 112.94187 1129.4187 0.912 FORMULA: 1000*(1+T)= 1129.4187 = 1078.418698 T = 8.63% R = 7.84% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.767088 92.87562 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.82102 928.2102
Non-Standardized Calculations Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr One Yr YTD Today's Inception Fund Date AUV AUV AUV AUV AUV AUV Total Alliance Premier Growth 01/31/00 11.583304 N/A N/A N/A 10 10 -13.67% Alliance Growth 01/31/00 11.791325 N/A N/A N/A 10 10 -15.19% Alliance Growth and Income 01/31/00 8.59235 N/A N/A N/A 10 10 16.38% Aim Cap App 01/31/00 11.199175 N/A N/A N/A 10 10 -10.71% Aim Growth 01/31/00 12.261396 N/A N/A N/A 10 10 -18.44% Aim Value 01/31/00 12.937292 N/A N/A N/A 10 10 -22.70% Putnam International Growth 01/31/00 10.691632 N/A N/A N/A 10 10 -6.47% Putnam Voyager 01/31/00 11.811017 N/A N/A N/A 10 10 -15.33% Putnam Growth & Income 01/31/00 9.097547 N/A N/A N/A 10 10 9.92% MSDW Mid Cap 01/31/00 8.849834 N/A N/A N/A 10 10 13.00% Information Portfolio 11/06/00 10.767088 N/A N/A N/A 10 10 -7.12% Ten Years Five Years One Year YTD Fund Average Total Average Total Average Alliance Premier Growth -14.88% N/A N/A N/A N/A N/A 0.00% Alliance Growth -16.52% N/A N/A N/A N/A N/A 0.00% Alliance Growth and Income 18.09% N/A N/A N/A N/A N/A 0.00% Aim Cap App -11.67% N/A N/A N/A N/A N/A 0.00% Aim Growth -20.03% N/A N/A N/A N/A N/A 0.00% Aim Value -24.59% N/A N/A N/A N/A N/A 0.00% Putnam International Growth -7.07% N/A N/A N/A N/A N/A 0.00% Putnam Voyager -16.68% N/A N/A N/A N/A N/A 0.00% Putnam Growth & Income 10.92% N/A N/A N/A N/A N/A 0.00% MSDW Mid Cap 14.33% N/A N/A N/A N/A N/A 0.00% Information Portfolio -39.89% N/A N/A N/A N/A N/A 0.00%
Alliance Premier Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.217429 81.85028 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 81.79568 817.9568 1.000 FORMULA: 1000*(1+T)= 817.9568 - (0.85 * 1000 * 0.05) = 775.4568 T = -22.45% R = -22.45% Alliance Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.380031 80.77524 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 80.72064 807.2064 1.000 FORMULA: 1000*(1+T)= 807.2064 - (0.85 * 1000 * 0.05) = 764.7064 T = -23.53% R = -23.53% Alliance Growth and Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 8.962827 111.57194 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 111.51734 1115.1734 1.000 FORMULA: 1000*(1+T)= 1115.1734 - (0.85 * 1000 * 0.05) = 1072.6734 T = 7.27% R = 7.27% Aim Cap App 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.411891 87.62790 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 87.57330 875.7330 1.000 FORMULA: 1000*(1+T)= 875.7330 - (0.85 * 1000 * 0.05) = 833.2330 T = -16.68% R = -16.68% Aim Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.787433 78.20178 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 78.14718 781.4718 1.000 FORMULA: 1000*(1+T)= 781.4718 - (0.85 * 1000 * 0.05) = 738.9718 T = -26.10% R = -26.10% Aim Value 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 13.282348 75.28789 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 75.23329 752.3329 1.000 FORMULA: 1000*(1+T)= 752.3329 - (0.85 * 1000 * 0.05) = 709.8329 T = -29.02% R = -29.02% Putnam International Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.242350 88.94937 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 88.89477 888.9477 1.000 FORMULA: 1000*(1+T)= 888.9477 - (0.85 * 1000 * 0.05) = 846.4477 T = -15.36% R = -15.36% Putnam Voyager 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.181496 82.09172 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 82.03712 820.3712 1.000 FORMULA: 1000*(1+T)= 820.3712 - (0.85 * 1000 * 0.05) = 777.8712 T = -22.21% R = -22.21% Putnam Growth & Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.420332 106.15337 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 106.09877 1060.9877 1.000 FORMULA: 1000*(1+T)= 1060.9877 - (0.85 * 1000 * 0.05) = 1018.4877 T = 1.85% R = 1.85% MSDW Mid Cap 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.180128 108.93094 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 108.87634 1088.7634 1.000 FORMULA: 1000*(1+T)= 1088.7634 - (0.85 * 1000 * 0.05) = 1046.2634 T = 4.63% R = 4.63% Information Portfolio 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-00 1000.00 10.000000 100.00000 FEE 00-Jan-00 0.546 #VALUE! #VALUE! RESULTING VALUE 00-Jan-00 #VALUE! #VALUE! #VALUE! 1.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05) = #VALUE! T = N/A R = N/A Alliance Premier Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 12.097561 0.04513 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Alliance Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.575964 218.53319 FEE 29-Dec-96 0.546 5.824521 0.09374 FEE 29-Dec-97 0.546 7.209814 0.07573 FEE 29-Dec-98 0.546 9.303294 0.05869 FEE 29-Dec-99 0.546 12.174736 0.04485 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 218.20558 2182.0558 5.000 FORMULA: 1000*(1+T)= 2182.0558 - (0.85 * 1000 * 0.02) = 2165.055802 T = 16.71% R = 116.51% Alliance Growth and Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.452349 224.60054 FEE 29-Dec-96 0.546 5.493409 0.09939 FEE 29-Dec-97 0.546 6.731076 0.08112 FEE 29-Dec-98 0.546 8.138661 0.06709 FEE 29-Dec-99 0.546 8.860798 0.06162 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 224.23673 2242.3673 5.000 FORMULA: 1000*(1+T)= 2242.3673 - (0.85 * 1000 * 0.02) = 2225.367272 T = 17.35% R = 122.54% Aim Cap App 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.296280 188.81177 FEE 29-Dec-96 0.546 6.131993 0.08904 FEE 29-Dec-97 0.546 6.606323 0.08265 FEE 29-Dec-98 0.546 7.823270 0.06979 FEE 29-Dec-99 0.546 11.282655 0.04839 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 188.46730 1884.6730 5.000 FORMULA: 1000*(1+T)= 1884.6730 - (0.85 * 1000 * 0.02) = 1867.672958 T = 13.31% R = 86.77% Aim Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.028281 198.87512 FEE 29-Dec-96 0.546 5.891557 0.09267 FEE 29-Dec-97 0.546 7.121470 0.07667 FEE 29-Dec-98 0.546 9.556660 0.05713 FEE 29-Dec-99 0.546 12.700316 0.04299 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 198.55105 1985.5105 5.000 FORMULA: 1000*(1+T)= 1985.5105 - (0.85 * 1000 * 0.02) = 1968.51054 T = 14.51% R = 96.85% Aim Value 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.800508 172.39869 FEE 29-Dec-96 0.546 6.593149 0.08281 FEE 29-Dec-97 0.546 7.861019 0.06946 FEE 29-Dec-98 0.546 10.390780 0.05255 FEE 29-Dec-99 0.546 13.170059 0.04146 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 172.09782 1720.9782 5.000 FORMULA: 1000*(1+T)= 1720.9782 - (0.85 * 1000 * 0.02) = 1703.978192 T = 11.25% R = 70.40% Putnam International Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.082097 0.08977 FEE 29-Dec-98 0.546 7.132527 0.07655 FEE 29-Dec-99 0.546 11.035348 0.04948 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.656156 214.76944 FEE 29-Dec-96 0.546 5.175507 0.10550 FEE 29-Dec-97 0.546 6.227180 0.08768 FEE 29-Dec-98 0.546 7.707000 0.07084 FEE 29-Dec-99 0.546 12.029649 0.04539 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 214.40543 2144.0543 5.000 FORMULA: 1000*(1+T)= 2144.0543 - (0.85 * 1000 * 0.02) = 2127.054268 T = 16.29% R = 112.71% Putnam Growth & Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.704078 175.31317 FEE 29-Dec-96 0.546 6.938486 0.07869 FEE 29-Dec-97 0.546 8.185118 0.06671 FEE 29-Dec-98 0.546 9.533113 0.05727 FEE 29-Dec-99 0.546 9.375404 0.05824 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 174.99766 1749.9766 5.000 FORMULA: 1000*(1+T)= 1749.9766 - (0.85 * 1000 * 0.02) = 1732.976612 T = 11.62% R = 73.30% MSDW Mid Cap 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.765169 0.08071 FEE 29-Dec-98 0.546 7.480481 0.07299 FEE 29-Dec-99 0.546 9.086918 0.06009 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Information Portfolio 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 #VALUE! #VALUE! FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 1.874047 533.60455 FEE 31-Dec-91 0.546 2.688621 0.20308 FEE 31-Dec-92 0.546 2.913820 0.18738 FEE 31-Dec-93 0.546 3.396566 0.16075 FEE 31-Dec-94 0.546 3.370141 0.16201 FEE 31-Dec-95 0.546 4.655693 0.11728 FEE 31-Dec-96 0.546 5.164955 0.10571 FEE 31-Dec-97 0.546 6.417044 0.08509 FEE 31-Dec-98 0.546 7.838050 0.06966 FEE 31-Dec-99 0.546 12.181496 0.04482 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 532.41417 5324.1417 10.000 FORMULA: 1000*(1+T)= 5324.1417 - (0.85 * 1000 * 0) = 5324.141678 T = 18.20% R = 432.41% Putnam Growth & Income 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 3.048941 327.98273 FEE 31-Dec-91 0.546 3.564423 0.15318 FEE 31-Dec-92 0.546 3.841755 0.14212 FEE 31-Dec-93 0.546 4.310916 0.12666 FEE 31-Dec-94 0.546 4.248189 0.12853 FEE 31-Dec-95 0.546 5.703511 0.09573 FEE 31-Dec-96 0.546 6.828668 0.07996 FEE 31-Dec-97 0.546 8.325420 0.06558 FEE 31-Dec-98 0.546 9.440299 0.05784 FEE 31-Dec-99 0.546 9.420332 0.05796 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 327.02058 3270.2058 10.000 FORMULA: 1000*(1+T)= 3270.2058 - (0.85 * 1000 * 0) = 3270.205821 T = 12.58% R = 227.02% Alliance Premier Growth 14-Jul-99 TO NO. YEARS 1.462 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jul-99 1000.00 10.886113 91.86015 1 FEE 14-Jul-00 0.546 13.226452 0.04128 0.06 2 FEE 29-Dec-00 0.546 10.000000 0.05460 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 91.76427 917.6427 1.462 FORMULA: 1000*(1+T)= 917.6427 = 875.1427156 T = -8.72% R = -12.49% Alliance Growth 15-Sep-94 TO NO. YEARS 6.289 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 15-Sep-94 1000.00 3.281875 304.70387 1 FEE 15-Sep-95 0.546 4.406914 0.12390 0.06 2 FEE 15-Sep-96 0.546 5.116348 0.10672 0.05 3 FEE 15-Sep-97 0.546 6.959387 0.07846 0.05 4 15-Sep-98 0.546 7.314642 0.07464 0.04 5 15-Sep-99 0.546 10.099758 0.05406 0.03 6 15-Sep-00 0.546 11.969890 0.04561 0.02 7 29-Dec-00 0.546 10.000000 0.05460 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 304.16588 3041.6588 6.289 FORMULA: 1000*(1+T)= 3041.6588 = 3041.658778 T = 19.35% R = 204.17% Alliance Growth and Income 14-Jan-91 TO NO. YEARS 9.958 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jan-91 1000.00 2.862656 349.32594 1 FEE 14-Jan-92 0.546 2.915960 0.18725 0.06 2 FEE 14-Jan-93 0.546 3.095627 0.17638 0.05 3 FEE 14-Jan-94 0.546 3.401004 0.16054 0.05 4 14-Jan-95 0.546 3.333157 0.16381 0.04 5 14-Jan-96 0.546 4.316674 0.12649 0.03 6 14-Jan-97 0.546 5.562247 0.09816 0.02 7 14-Jan-98 0.546 6.722716 0.08122 0 8 14-Jan-99 0.546 8.054091 0.06779 0 9 14-Jan-00 0.546 8.962827 0.06092 0 10 29-Dec-00 0.546 10.000000 0.05460 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 348.14879 3481.4879 9.958 FORMULA: 1000*(1+T)= 3481.4879 = 3481.487928 T = 13.35% R = 248.15% Aim Cap App 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.331526 300.16275 1 FEE 05-May-94 0.546 3.918514 0.13934 0.06 2 FEE 05-May-95 0.546 4.357654 0.12530 0.05 3 FEE 05-May-96 0.546 5.881191 0.09284 0.05 4 05-May-97 0.546 6.150297 0.08878 0.04 5 05-May-98 0.546 7.743473 0.07051 0.03 6 05-May-99 0.546 8.232064 0.06633 0.02 7 05-May-00 0.546 11.693826 0.04669 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 299.47837 2994.7837 7.652 FORMULA: 1000*(1+T)= 2994.7837 = 2994.783701 T = 15.41% R = 199.48% Aim Growth 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.614170 276.68870 1 FEE 05-May-94 0.546 3.787630 0.14415 0.06 2 FEE 05-May-95 0.546 4.223252 0.12928 0.05 3 FEE 05-May-96 0.546 5.319142 0.10265 0.05 4 05-May-97 0.546 6.245692 0.08742 0.04 5 05-May-98 0.546 8.389149 0.06508 0.03 6 05-May-99 0.546 10.244045 0.05330 0.02 7 05-May-00 0.546 13.262818 0.04117 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 276.01104 2760.1104 7.652 FORMULA: 1000*(1+T)= 2760.1104 = 2760.110431 T = 14.19% R = 176.01% Aim Value 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.725702 268.40579 1 FEE 05-May-94 0.546 4.317452 0.12646 0.06 2 FEE 05-May-95 0.546 4.868962 0.11214 0.05 3 FEE 05-May-96 0.546 5.850649 0.09332 0.05 4 05-May-97 0.546 7.021641 0.07776 0.04 5 05-May-98 0.546 9.011036 0.06059 0.03 6 05-May-99 0.546 11.296809 0.04833 0.02 7 05-May-00 0.546 13.425149 0.04067 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 267.79191 2677.9191 7.652 FORMULA: 1000*(1+T)= 2677.9191 = 2677.919136 T = 13.74% R = 167.79% Putnam International Growth 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.374629 186.05935 1 FEE 02-Jan-98 0.546 6.161328 0.08862 0.06 2 FEE 02-Jan-99 0.546 7.142451 0.07644 0.05 3 FEE 02-Jan-00 0.546 11.429038 0.04777 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 185.79192 1857.9192 3.989 FORMULA: 1000*(1+T)= 1857.9192 = 1823.919194 T = 16.26% R = 82.39% Putnam Voyager 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 1.479000 676.13252 1 FEE 01-Feb-89 0.546 1.588926 0.34363 0.06 2 FEE 01-Feb-90 0.546 1.729360 0.31572 0.05 3 FEE 01-Feb-91 0.546 1.996007 0.27355 0.05 4 01-Feb-92 0.546 2.690474 0.20294 0.04 5 01-Feb-93 0.546 2.934939 0.18603 0.03 6 01-Feb-94 0.546 3.463805 0.15763 0.02 7 01-Feb-95 0.546 3.398130 0.16068 0 8 01-Feb-96 0.546 4.732137 0.11538 0 9 01-Feb-97 0.546 5.388465 0.10133 0 10 01-Feb-98 0.546 6.394060 0.08539 0 11 01-Feb-99 0.546 8.187142 0.06669 0 12 01-Feb-00 0.546 12.073601 0.04522 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 674.02373 6740.2373 12.909 FORMULA: 1000*(1+T)= 6740.2373 = 6740.237311 T = 15.93% R = 574.02% Putnam Growth & Income 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 2.165640 461.75726 1 FEE 01-Feb-89 0.546 2.688191 0.20311 0.06 2 FEE 01-Feb-90 0.546 2.922278 0.18684 0.05 3 FEE 01-Feb-91 0.546 3.159013 0.17284 0.05 4 01-Feb-92 0.546 3.575201 0.15272 0.04 5 01-Feb-93 0.546 3.888631 0.14041 0.03 6 01-Feb-94 0.546 4.425421 0.12338 0.02 7 01-Feb-95 0.546 4.347223 0.12560 0 8 01-Feb-96 0.546 5.843012 0.09344 0 9 01-Feb-97 0.546 7.106882 0.07683 0 10 01-Feb-98 0.546 8.341981 0.06545 0 11 01-Feb-99 0.546 9.488841 0.05754 0 12 01-Feb-00 0.546 9.097133 0.06002 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 460.24449 4602.4449 12.909 FORMULA: 1000*(1+T)= 4602.4449 = 4602.444859 T = 12.55% R = 360.24% MSDW Mid Cap 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.031029 198.76649 1 FEE 02-Jan-98 0.546 6.941940 0.07865 0.06 2 FEE 02-Jan-99 0.546 7.703280 0.07088 0.05 3 FEE 02-Jan-00 0.546 9.180128 0.05948 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 198.50289 1985.0289 3.989 FORMULA: 1000*(1+T)= 1985.0289 = 1951.028873 T = 18.24% R = 95.10% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.767088 92.87562 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.82102 928.2102 0.145 FORMULA: 1000*(1+T)= 928.2102 = 877.2102245 T = -59.46% R = -12.28%
Alliance Premier Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.572600 86.41101 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 86.35641 863.5641 0.912 FORMULA: 1000*(1+T)= 863.5641 = 812.5640531 T = -20.36% R = -18.74% Alliance Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.780439 84.88648 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.83188 848.3188 0.912 FORMULA: 1000*(1+T)= 848.3188 = 797.3188004 T = -22.00% R = -20.27% Alliance Growth and Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.584425 116.49004 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 116.43544 1164.3544 0.912 FORMULA: 1000*(1+T)= 1164.3544 = 1113.354386 T = 12.50% R = 11.34% Aim Cap App 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.188813 89.37499 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 89.32039 893.2039 0.912 FORMULA: 1000*(1+T)= 893.2039 = 842.2038553 T = -17.17% R = -15.78% Aim Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.250054 81.63229 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 81.57769 815.7769 0.912 FORMULA: 1000*(1+T)= 815.7769 = 764.7769321 T = -25.48% R = -23.52% Aim Value 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.925330 77.36746 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 77.31286 773.1286 0.912 FORMULA: 1000*(1+T)= 773.1286 = 722.1286373 T = -30.03% R = -27.79% Putnam International Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 10.681759 93.61754 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 93.56294 935.6294 0.912 FORMULA: 1000*(1+T)= 935.6294 = 884.6293996 T = -12.58% R = -11.54% Putnam Voyager 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.800085 84.74515 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.69055 846.9055 0.912 FORMULA: 1000*(1+T)= 846.9055 = 795.9055226 T = -22.15% R = -20.41% Putnam Growth & Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 9.089144 110.02136 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 109.96676 1099.6676 0.912 FORMULA: 1000*(1+T)= 1099.6676 = 1048.667617 T = 5.35% R = 4.87% MSDW Mid Cap 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.841660 113.10093 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 113.04633 1130.4633 0.912 FORMULA: 1000*(1+T)= 1130.4633 = 1079.463335 T = 8.75% R = 7.95% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.765499 92.88933 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.83473 928.3473 0.145 FORMULA: 1000*(1+T)= 928.3473 = 877.34731 T = -59.41% R = -12.27%
Non-Standardized Calculations Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr One Yr YTD Today's Inception Fund Date AUV AUV AUV AUV AUV AUV Total Alliance Premier Growth 01/31/00 11.5726 N/A N/A N/A 10 10 -13.59% Alliance Growth 01/31/00 11.780439 N/A N/A N/A 10 10 -15.11% Alliance Growth and Income 01/31/00 8.584425 N/A N/A N/A 10 10 16.49% Aim Cap App 01/31/00 11.188813 N/A N/A N/A 10 10 -10.63% Aim Growth 01/31/00 12.250054 N/A N/A N/A 10 10 -18.37% Aim Value 01/31/00 12.92533 N/A N/A N/A 10 10 -22.63% Putnam International Growth 01/31/00 10.681759 N/A N/A N/A 10 10 -6.38% Putnam Voyager 01/31/00 11.800085 N/A N/A N/A 10 10 -15.25% Putnam Growth & Income 01/31/00 9.089144 N/A N/A N/A 10 10 10.02% MSDW Mid Cap 01/31/00 8.84166 N/A N/A N/A 10 10 13.10% Information Portfolio 11/06/00 10.765499 N/A N/A N/A 10 10 -7.11% Ten Years Five Years One Year YTD Fund Average Total Average Total Average Alliance Premier Growth -14.79% N/A N/A N/A N/A N/A 0.00% Alliance Growth -16.44% N/A N/A N/A N/A N/A 0.00% Alliance Growth and Income 18.21% N/A N/A N/A N/A N/A 0.00% Aim Cap App -11.58% N/A N/A N/A N/A N/A 0.00% Aim Growth -19.94% N/A N/A N/A N/A N/A 0.00% Aim Value -24.52% N/A N/A N/A N/A N/A 0.00% Putnam International Growth -6.97% N/A N/A N/A N/A N/A 0.00% Putnam Voyager -16.59% N/A N/A N/A N/A N/A 0.00% Putnam Growth & Income 11.04% N/A N/A N/A N/A N/A 0.00% MSDW Mid Cap 14.45% N/A N/A N/A N/A N/A 0.00% Information Portfolio -39.83% N/A N/A N/A N/A N/A 0.00%
Alliance Premier Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.205032 81.93342 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 81.87882 818.7882 1.000 FORMULA: 1000*(1+T)= 818.7882 - (0.85 * 1000 * 0.05) = 776.2882 T = -22.37% R = -22.37% Alliance Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.367486 80.85718 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 80.80258 808.0258 1.000 FORMULA: 1000*(1+T)= 808.0258 - (0.85 * 1000 * 0.05) = 765.5258 T = -23.45% R = -23.45% Alliance Growth and Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 8.953757 111.68496 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 111.63036 1116.3036 1.000 FORMULA: 1000*(1+T)= 1116.3036 - (0.85 * 1000 * 0.05) = 1073.8036 T = 7.38% R = 7.38% Aim Cap App 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.400354 87.71657 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 87.66197 876.6197 1.000 FORMULA: 1000*(1+T)= 876.6197 - (0.85 * 1000 * 0.05) = 834.1197 T = -16.59% R = -16.59% Aim Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.774506 78.28091 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 78.22631 782.2631 1.000 FORMULA: 1000*(1+T)= 782.2631 - (0.85 * 1000 * 0.05) = 739.7631 T = -26.02% R = -26.02% Aim Value 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 13.268923 75.36407 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 75.30947 753.0947 1.000 FORMULA: 1000*(1+T)= 753.0947 - (0.85 * 1000 * 0.05) = 710.5947 T = -28.94% R = -28.94% Putnam International Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.231000 89.03927 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 88.98467 889.8467 1.000 FORMULA: 1000*(1+T)= 889.8467 - (0.85 * 1000 * 0.05) = 847.3467 T = -15.27% R = -15.27% Putnam Voyager 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.169171 82.17487 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 82.12027 821.2027 1.000 FORMULA: 1000*(1+T)= 821.2027 - (0.85 * 1000 * 0.05) = 778.7027 T = -22.13% R = -22.13% Putnam Growth & Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.410820 106.26067 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 106.20607 1062.0607 1.000 FORMULA: 1000*(1+T)= 1062.0607 - (0.85 * 1000 * 0.05) = 1019.5607 T = 1.96% R = 1.96% MSDW Mid Cap 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.170832 109.04136 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 108.98676 1089.8676 1.000 FORMULA: 1000*(1+T)= 1089.8676 - (0.85 * 1000 * 0.05) = 1047.3676 T = 4.74% R = 4.74% Information Portfolio 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-00 1000.00 10.000000 100.00000 FEE 00-Jan-00 0.546 #VALUE! #VALUE! RESULTING VALUE 00-Jan-00 #VALUE! #VALUE! #VALUE! 1.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.05) = #VALUE! T = N/A R = N/A Alliance Premier Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 12.085219 0.04518 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Alliance Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.552777 219.64616 FEE 29-Dec-96 0.546 5.800891 0.09412 FEE 29-Dec-97 0.546 7.187868 0.07596 FEE 29-Dec-98 0.546 9.284388 0.05881 FEE 29-Dec-99 0.546 12.162332 0.04489 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 219.31778 2193.1778 5.000 FORMULA: 1000*(1+T)= 2193.1778 - (0.85 * 1000 * 0.02) = 2176.177773 T = 16.83% R = 117.62% Alliance Growth and Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.429797 225.74398 FEE 29-Dec-96 0.546 5.471131 0.09980 FEE 29-Dec-97 0.546 6.710591 0.08136 FEE 29-Dec-98 0.546 8.122133 0.06722 FEE 29-Dec-99 0.546 8.851782 0.06168 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 225.37931 2253.7931 5.000 FORMULA: 1000*(1+T)= 2253.7931 - (0.85 * 1000 * 0.02) = 2236.793121 T = 17.47% R = 123.68% Aim Cap App 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.269415 189.77439 FEE 29-Dec-96 0.546 6.107104 0.08940 FEE 29-Dec-97 0.546 6.586197 0.08290 FEE 29-Dec-98 0.546 7.807377 0.06993 FEE 29-Dec-99 0.546 11.271186 0.04844 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 189.42911 1894.2911 5.000 FORMULA: 1000*(1+T)= 1894.2911 - (0.85 * 1000 * 0.02) = 1877.29106 T = 13.42% R = 87.73% Aim Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.002807 199.88778 FEE 29-Dec-96 0.546 5.867673 0.09305 FEE 29-Dec-97 0.546 7.099809 0.07690 FEE 29-Dec-98 0.546 9.537268 0.05725 FEE 29-Dec-99 0.546 12.687407 0.04303 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 199.56294 1995.6294 5.000 FORMULA: 1000*(1+T)= 1995.6294 - (0.85 * 1000 * 0.02) = 1978.629434 T = 14.62% R = 97.86% Aim Value 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.771118 173.27665 FEE 29-Dec-96 0.546 6.566419 0.08315 FEE 29-Dec-97 0.546 7.837086 0.06967 FEE 29-Dec-98 0.546 10.369688 0.05265 FEE 29-Dec-99 0.546 13.156675 0.04150 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 172.97508 1729.7508 5.000 FORMULA: 1000*(1+T)= 1729.7508 - (0.85 * 1000 * 0.02) = 1712.750787 T = 11.36% R = 71.28% Putnam International Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.063616 0.09005 FEE 29-Dec-98 0.546 7.118075 0.07671 FEE 29-Dec-99 0.546 11.024146 0.04953 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.632563 215.86323 FEE 29-Dec-96 0.546 5.154490 0.10593 FEE 29-Dec-97 0.546 6.208232 0.08795 FEE 29-Dec-98 0.546 7.691365 0.07099 FEE 29-Dec-99 0.546 12.017411 0.04543 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 215.49833 2154.9833 5.000 FORMULA: 1000*(1+T)= 2154.9833 - (0.85 * 1000 * 0.02) = 2137.983297 T = 16.41% R = 113.80% Putnam Growth & Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.675177 176.20596 FEE 29-Dec-96 0.546 6.910312 0.07901 FEE 29-Dec-97 0.546 8.160218 0.06691 FEE 29-Dec-98 0.546 9.513759 0.05739 FEE 29-Dec-99 0.546 9.365885 0.05830 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 175.88975 1758.8975 5.000 FORMULA: 1000*(1+T)= 1758.8975 - (0.85 * 1000 * 0.02) = 1741.897484 T = 11.74% R = 74.19% MSDW Mid Cap 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.744566 0.08095 FEE 29-Dec-98 0.546 7.465279 0.07314 FEE 29-Dec-99 0.546 9.077665 0.06015 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Information Portfolio 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 #VALUE! #VALUE! FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 1.855126 539.04694 FEE 31-Dec-91 0.546 2.664176 0.20494 FEE 31-Dec-92 0.546 2.890265 0.18891 FEE 31-Dec-93 0.546 3.372528 0.16190 FEE 31-Dec-94 0.546 3.349691 0.16300 FEE 31-Dec-95 0.546 4.632128 0.11787 FEE 31-Dec-96 0.546 5.144037 0.10614 FEE 31-Dec-97 0.546 6.397554 0.08535 FEE 31-Dec-98 0.546 7.822192 0.06980 FEE 31-Dec-99 0.546 12.169171 0.04487 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 537.84957 5378.4957 10.000 FORMULA: 1000*(1+T)= 5378.4957 - (0.85 * 1000 * 0) = 5378.495668 T = 18.32% R = 437.85% Putnam Growth & Income 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 3.018146 331.32923 FEE 31-Dec-91 0.546 3.532004 0.15459 FEE 31-Dec-92 0.546 3.810678 0.14328 FEE 31-Dec-93 0.546 4.280386 0.12756 FEE 31-Dec-94 0.546 4.222400 0.12931 FEE 31-Dec-95 0.546 5.674645 0.09622 FEE 31-Dec-96 0.546 6.801016 0.08028 FEE 31-Dec-97 0.546 8.300138 0.06578 FEE 31-Dec-98 0.546 9.421186 0.05795 FEE 31-Dec-99 0.546 9.410820 0.05802 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 330.36164 3303.6164 10.000 FORMULA: 1000*(1+T)= 3303.6164 - (0.85 * 1000 * 0) = 3303.616418 T = 12.69% R = 230.36% Alliance Premier Growth 14-Jul-99 TO NO. YEARS 1.462 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jul-99 1000.00 10.869927 91.99694 1 FEE 14-Jul-00 0.546 13.220270 0.04130 0.06 2 FEE 29-Dec-00 0.546 10.000000 0.05460 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 91.90104 919.0104 1.462 FORMULA: 1000*(1+T)= 919.0104 = 876.5103776 T = -8.62% R = -12.35% Alliance Growth 15-Sep-94 TO NO. YEARS 6.289 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 15-Sep-94 1000.00 3.261058 306.64895 1 FEE 15-Sep-95 0.546 4.383129 0.12457 0.06 2 FEE 15-Sep-96 0.546 5.094108 0.10718 0.05 3 FEE 15-Sep-97 0.546 6.936180 0.07872 0.05 4 15-Sep-98 0.546 7.297650 0.07482 0.04 5 15-Sep-99 0.546 10.086531 0.05413 0.03 6 15-Sep-00 0.546 11.966395 0.04563 0.02 7 29-Dec-00 0.546 10.000000 0.05460 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 306.10930 3061.0930 6.289 FORMULA: 1000*(1+T)= 3061.0930 = 3061.092996 T = 19.47% R = 206.11% Alliance Growth and Income 14-Jan-91 TO NO. YEARS 9.958 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jan-91 1000.00 2.833960 352.86313 1 FEE 14-Jan-92 0.546 2.889545 0.18896 0.06 2 FEE 14-Jan-93 0.546 3.070688 0.17781 0.05 3 FEE 14-Jan-94 0.546 3.377007 0.16168 0.05 4 14-Jan-95 0.546 3.313001 0.16481 0.04 5 14-Jan-96 0.546 4.295001 0.12712 0.03 6 14-Jan-97 0.546 5.539937 0.09856 0.02 7 14-Jan-98 0.546 6.702555 0.08146 0 8 14-Jan-99 0.546 8.038095 0.06793 0 9 14-Jan-00 0.546 8.953757 0.06098 0 10 29-Dec-00 0.546 10.000000 0.05460 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 351.67923 3516.7923 9.958 FORMULA: 1000*(1+T)= 3516.7923 = 3516.792275 T = 13.46% R = 251.68% Aim Cap App 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.305695 302.50825 1 FEE 05-May-94 0.546 3.892095 0.14028 0.06 2 FEE 05-May-95 0.546 4.332672 0.12602 0.05 3 FEE 05-May-96 0.546 5.853451 0.09328 0.05 4 05-May-97 0.546 6.127505 0.08911 0.04 5 05-May-98 0.546 7.722614 0.07070 0.03 6 05-May-99 0.546 8.218250 0.06644 0.02 7 05-May-00 0.546 11.686084 0.04672 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 301.82110 3018.2110 7.652 FORMULA: 1000*(1+T)= 3018.2110 = 3018.210976 T = 15.53% R = 201.82% Aim Growth 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.586203 278.84646 1 FEE 05-May-94 0.546 3.762137 0.14513 0.06 2 FEE 05-May-95 0.546 4.199081 0.13003 0.05 3 FEE 05-May-96 0.546 5.294082 0.10313 0.05 4 05-May-97 0.546 6.222569 0.08775 0.04 5 05-May-98 0.546 8.366582 0.06526 0.03 6 05-May-99 0.546 10.226871 0.05339 0.02 7 05-May-00 0.546 13.254042 0.04119 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 278.16598 2781.6598 7.652 FORMULA: 1000*(1+T)= 2781.6598 = 2781.659756 T = 14.30% R = 178.17% Aim Value 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.696870 270.49910 1 FEE 05-May-94 0.546 4.288399 0.12732 0.06 2 FEE 05-May-95 0.546 4.841086 0.11278 0.05 3 FEE 05-May-96 0.546 5.823072 0.09376 0.05 4 05-May-97 0.546 6.995645 0.07805 0.04 5 05-May-98 0.546 8.986782 0.06076 0.03 6 05-May-99 0.546 11.277859 0.04841 0.02 7 05-May-00 0.546 13.416272 0.04070 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 269.88271 2698.8271 7.652 FORMULA: 1000*(1+T)= 2698.8271 = 2698.827133 T = 13.85% R = 169.88% Putnam International Growth 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.352926 186.81372 1 FEE 02-Jan-98 0.546 6.142674 0.08889 0.06 2 FEE 02-Jan-99 0.546 7.128019 0.07660 0.05 3 FEE 02-Jan-00 0.546 11.417531 0.04782 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 186.54581 1865.4581 3.989 FORMULA: 1000*(1+T)= 1865.4581 = 1831.458098 T = 16.38% R = 83.15% Putnam Voyager 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 1.459743 685.05209 1 FEE 01-Feb-89 0.546 1.569832 0.34781 0.06 2 FEE 01-Feb-90 0.546 1.710308 0.31924 0.05 3 FEE 01-Feb-91 0.546 1.976028 0.27631 0.05 4 01-Feb-92 0.546 2.666239 0.20478 0.04 5 01-Feb-93 0.546 2.911470 0.18753 0.03 6 01-Feb-94 0.546 3.439600 0.15874 0.02 7 01-Feb-95 0.546 3.377807 0.16164 0 8 01-Feb-96 0.546 4.708603 0.11596 0 9 01-Feb-97 0.546 5.367102 0.10173 0 10 01-Feb-98 0.546 6.375191 0.08564 0 11 01-Feb-99 0.546 8.171305 0.06682 0 12 01-Feb-00 0.546 12.062459 0.04526 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 682.92602 6829.2602 12.909 FORMULA: 1000*(1+T)= 6829.2602 = 6829.260176 T = 16.05% R = 582.93% Putnam Growth & Income 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 2.137432 467.85114 1 FEE 01-Feb-89 0.546 2.655870 0.20558 0.06 2 FEE 01-Feb-90 0.546 2.890084 0.18892 0.05 3 FEE 01-Feb-91 0.546 3.127383 0.17459 0.05 4 01-Feb-92 0.546 3.542987 0.15411 0.04 5 01-Feb-93 0.546 3.857515 0.14154 0.03 6 01-Feb-94 0.546 4.394470 0.12425 0.02 7 01-Feb-95 0.546 4.321218 0.12635 0 8 01-Feb-96 0.546 5.813956 0.09391 0 9 01-Feb-97 0.546 7.078715 0.07713 0 10 01-Feb-98 0.546 8.317365 0.06565 0 11 01-Feb-99 0.546 9.470472 0.05765 0 12 01-Feb-00 0.546 9.088756 0.06007 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 466.32678 4663.2678 12.909 FORMULA: 1000*(1+T)= 4663.2678 = 4663.267829 T = 12.67% R = 366.33% MSDW Mid Cap 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.010671 199.57407 1 FEE 02-Jan-98 0.546 6.920876 0.07889 0.06 2 FEE 02-Jan-99 0.546 7.687688 0.07102 0.05 3 FEE 02-Jan-00 0.546 9.170832 0.05954 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 199.31002 1993.1002 3.989 FORMULA: 1000*(1+T)= 1993.1002 = 1959.10018 T = 18.36% R = 95.91% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.765499 92.88933 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.83473 928.3473 0.145 FORMULA: 1000*(1+T)= 928.3473 = 877.34731 T = -59.41% R = -12.27%
NLIC VA2 AssetManager
NLIC Asset Manager Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITSEND VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.000000 100.00000 1 FEE 29-Dec-00 0.546 9.288555 0.05878 0.01 2 FEE N/A 0 N/A 0.00000 0 3 FEE N/A 0 N/A 0.00000 0 4 N/A 0 N/A 0.00000 0 5 N/A 0 N/A 0.00000 0 6 N/A 0 N/A 0.00000 0 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 9.288555 99.94122 928.3095 0.145 FORMULA: 1000*(1+T)= 928.3095 = 919.8095 T = -43.79% R = -8.02% Non-Standardized Calculations Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr Fund Date AUV AUV AUV Information Portfolio 11/06/00 10 N/A N/A Information Portfolio Three Two One Yr YTD AUV AUV AUV AUV N/A N/A N/A 10 Information Portfolio 3 Months Today's Inception AUV AUV Total Average N/A 9.288555 -7.11% -39.85% Information Portfolio Ten Years Five Years Total Average Total Average N/A N/A N/A N/A Information Portfolio Three Years Two Years Total Average Total Average N/A N/A N/A N/A Information Portfolio One Year YTD Three Months N/A -7.11% N/A NLIC Asset Manager Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITSEND VALUE 0 INIT DEPOSIT 06-Nov-00 1000.00 10.000000 100.00000 1 FEE 29-Dec-00 0.546 9.288555 0.05878 2 FEE N/A 0 N/A 0.00000 3 FEE N/A 0 N/A 0.00000 4 N/A 0 N/A 0.00000 5 N/A 0 N/A 0.00000 6 N/A 0 N/A 0.00000 7 N/A 0 N/A 0.00000 8 N/A 0 N/A 0.00000 9 N/A 0 N/A 0.00000 10 N/A 0 N/A 0.00000 11 N/A 0 N/A 0.00000 12 N/A 0 N/A 0.00000 13 N/A 0 N/A 0.00000 14 FEE N/A 0 N/A 0.00000 15 FEE N/A 0 N/A 0.00000 RESULTING VALUE 29-Dec-00 9.288555 99.94122 928.3095 0.145 FORMULA: 1000*(1+T)= 928.3095 = 919.8095 T = -43.79% R = -8.02% NLIC Asset Manager Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITSEND VALUE 0 INIT DEPOSIT 06-Nov-00 1000.00 10.000000 100.00000 1 FEE 29-Dec-00 0.546 9.286804 0.05879 2 FEE N/A 0 N/A 0.00000 3 FEE N/A 0 N/A 0.00000 4 N/A 0 N/A 0.00000 5 N/A 0 N/A 0.00000 6 N/A 0 N/A 0.00000 7 N/A 0 N/A 0.00000 8 N/A 0 N/A 0.00000 9 N/A 0 N/A 0.00000 10 N/A 0 N/A 0.00000 11 N/A 0 N/A 0.00000 12 N/A 0 N/A 0.00000 13 N/A 0 N/A 0.00000 14 FEE N/A 0 N/A 0.00000 15 FEE N/A 0 N/A 0.00000 RESULTING VALUE 29-Dec-00 9.286804 99.94121 928.1344 0.145 FORMULA: 1000*(1+T)= 928.1344 = 919.6344 T = -43.86% R = -8.04% Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr Fund Date AUV AUV AUV Information Portfolio 11/06/00 10 N/A N/A Information Portfolio Three Two One Yr YTD AUV AUV AUV AUV N/A N/A N/A 10 Information Portfolio 3 Months Today's Inception AUV AUV Total Average N/A 9.286804 -7.13% -39.92% Information Portfolio Ten Years Five Years Total Average Total Average N/A N/A N/A N/A Information Portfolio Three Years Two Years Total Average Total Average N/A N/A N/A N/A Information Portfolio One Year YTD Three Months N/A -7.13% N/A NLIC Asset Manager Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.000000 100.00000 1 FEE 29-Dec-00 0.546 9.286804 0.05879 0.01 2 FEE N/A 0 N/A 0.00000 0 3 FEE N/A 0 N/A 0.00000 0 4 N/A 0 N/A 0.00000 0 5 N/A 0 N/A 0.00000 0 6 N/A 0 N/A 0.00000 0 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 9.286804 99.94121 928.1344 0.145 FORMULA: 1000*(1+T)= 928.1344 = 919.6344 T = -43.86% R = -8.04% NLIC Asset Manager Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITSEND VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.000000 100.00000 1 FEE 29-Dec-00 0.546 9.285322 0.05880 0.01 2 FEE N/A 0 N/A 0.00000 0 3 FEE N/A 0 N/A 0.00000 0 4 N/A 0 N/A 0.00000 0 5 N/A 0 N/A 0.00000 0 6 N/A 0 N/A 0.00000 0 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 9.285322 99.94120 927.9862 0.145 FORMULA: 1000*(1+T)= 927.9862 = 919.4862 T = -43.92% R = -8.05% Non-Standardized Calculations Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr Fund Date AUV AUV AUV Information Portfolio 11/06/00 10 N/A N/A Information Portfolio Three Two One Yr YTD AUV AUV AUV AUV N/A N/A N/A 10 Information Portfolio 3 Months Today's Inception AUV AUV Total Average N/A 9.285322 -7.15% -39.99% Information Portfolio Ten Years Five Years Total Average Total Average N/A N/A N/A N/A Information Portfolio Three Years Two Years Total Average Total Average N/A N/A N/A N/A Information Portfolio One Year YTD Three Months N/A -7.15% N/A NLIC Asset Manager Information Portfolio 06-Nov-00 TO NO. YEARS 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITS END VALUE 0 INIT DEPOSIT 06-Nov-00 10.000000 100.00000 1 FEE 29-Dec-00 9.285322 0.05880 2 FEE N/A N/A 0.00000 3 FEE N/A N/A 0.00000 4 N/A N/A 0.00000 5 N/A N/A 0.00000 6 N/A N/A 0.00000 7 N/A N/A 0.00000 8 N/A N/A 0.00000 9 N/A N/A 0.00000 10 N/A N/A 0.00000 11 N/A N/A 0.00000 12 N/A N/A 0.00000 13 N/A N/A 0.00000 14 FEE N/A N/A 0.00000 15 FEE N/A N/A 0.00000 RESULTING VALUE 29-Dec-00 9.285322 99.94120 927.9862 FORMULA: 927.9862 1000*(1+T)= 919.4862 = T = -43.92% R = -8.05%
NLIC VA3
Alliance Premier Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.551251 86.57071 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 86.51611 865.1611 0.912 FORMULA: 1000*(1+T)= 865.1611 = 814.1610996 T = -20.19% R = -18.58% Alliance Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.758696 85.04344 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.98884 849.8884 0.912 FORMULA: 1000*(1+T)= 849.8884 = 798.8884359 T = -21.83% R = -20.11% Alliance Growth and Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.568598 116.70521 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 116.65061 1166.5061 0.912 FORMULA: 1000*(1+T)= 1166.5061 = 1115.506066 T = 12.74% R = 11.55% Aim Cap App 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.168164 89.54023 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 89.48563 894.8563 0.912 FORMULA: 1000*(1+T)= 894.8563 = 843.856324 T = -16.99% R = -15.61% Aim Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.748734 78.43916 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 78.38456 783.8456 0.912 FORMULA: 1000*(1+T)= 783.8456 = 732.845611 T = -28.89% R = -26.72% Aim Value 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.901464 77.51058 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 77.45598 774.5598 0.912 FORMULA: 1000*(1+T)= 774.5598 = 723.559833 T = -29.88% R = -27.64% Putnam International Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 10.662043 93.79066 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 93.73606 937.3606 0.912 FORMULA: 1000*(1+T)= 937.3606 = 886.3605532 T = -12.39% R = -11.36% Putnam Voyager 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.778304 84.90187 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.84727 848.4727 0.912 FORMULA: 1000*(1+T)= 848.4727 = 797.4726703 T = -21.98% R = -20.25% Putnam Growth & Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 9.072414 110.22425 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 110.16965 1101.6965 0.912 FORMULA: 1000*(1+T)= 1101.6965 = 1050.696468 T = 5.57% R = 5.07% MSDW Mid Cap 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.825358 113.30985 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 113.25525 1132.5525 0.912 FORMULA: 1000*(1+T)= 1132.5525 = 1081.55251 T = 8.98% R = 8.16% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.762338 92.91661 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.86201 928.6201 0.145 FORMULA: 1000*(1+T)= 928.6201 = 877.6201347 T = -59.33% R = -12.24%
Non-Standardized Calculations Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr Fund ................................ Date AUV AUV Alliance Premier Growth ............. 01/31/00 11.551251 N/A N/A Alliance Growth ..................... 01/31/00 11.758696 N/A N/A Alliance Growth and Income .......... 01/31/00 8.568598 N/A N/A Aim Cap App ......................... 01/31/00 11.168164 N/A N/A Aim Growth .......................... 01/31/00 12.748734 N/A N/A Aim Value ........................... 01/31/00 12.901464 N/A N/A Putnam International Growth 01/31/00 10.662043 N/A N/A Putnam Voyager ...................... 01/31/00 11.778304 N/A N/A Putnam Growth & Income .............. 01/31/00 9.072414 N/A N/A MSDW Mid Cap ........................ 01/31/00 8.825358 N/A N/A Information Portfolio ............... 11/06/00 10.762338 N/A N/A One Yr YTD Today's Fund ................................ AUV AUV AUV AUV Total Alliance Premier Growth ............. N/A 10 10 -13.43% -14.62% N/A Alliance Growth ..................... N/A 10 10 -14.96% -16.27% N/A Alliance Growth and Income .......... N/A 10 10 16.71% 18.45% N/A Aim Cap App ......................... N/A 10 10 -10.46% -11.41% N/A Aim Growth .......................... N/A 10 10 -21.56% -23.37% N/A Aim Value ........................... N/A 10 10 -22.49% -24.36% N/A Putnam International Growth N/A 10 10 -6.21% -6.79% N/A Putnam Voyager ...................... N/A 10 10 -15.10% -16.42% N/A Putnam Growth & Income .............. N/A 10 10 10.22% 11.26% N/A MSDW Mid Cap ........................ N/A 10 10 13.31% 14.68% N/A Information Portfolio ............... N/A 10 10 -7.08% -39.71% N/A Inception Ten Years Five Years One Year Fund ................................ Average Total Average Total Alliance Premier Growth ............. N/A N/A N/A N/A Alliance Growth ..................... N/A N/A N/A N/A Alliance Growth and Income .......... N/A N/A N/A N/A Aim Cap App ......................... N/A N/A N/A N/A Aim Growth .......................... N/A N/A N/A N/A Aim Value ........................... N/A N/A N/A N/A Putnam International Growth N/A N/A N/A N/A Putnam Voyager ...................... N/A N/A N/A N/A Putnam Growth & Income .............. N/A N/A N/A N/A MSDW Mid Cap ........................ N/A N/A N/A N/A Information Portfolio ............... N/A N/A N/A N/A YTD Fund ................................ Average Alliance Premier Growth ............. 0.00% Alliance Growth ..................... 0.00% Alliance Growth and Income .......... 0.00% Aim Cap App ......................... 0.00% Aim Growth .......................... 0.00% Aim Value ........................... 0.00% Putnam International Growth 0.00% Putnam Voyager ...................... 0.00% Putnam Growth & Income .............. 0.00% MSDW Mid Cap ........................ 0.00% Information Portfolio ............... 0.00%
Alliance Premier Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.180311 82.09971 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 82.04511 820.4511 1.000 FORMULA: 1000*(1+T)= 820.4511 - (0.85 * 1000 * 0.05) = 777.9511 T = -22.20% R = -22.20% Alliance Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.342435 81.02129 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 80.96669 809.6669 1.000 FORMULA: 1000*(1+T)= 809.6669 - (0.85 * 1000 * 0.05) = 767.1669 T = -23.28% R = -23.28% Alliance Growth and Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 8.935649 111.91129 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 111.85669 1118.5669 1.000 FORMULA: 1000*(1+T)= 1118.5669 - (0.85 * 1000 * 0.05) = 1076.0669 T = 7.61% R = 7.61% Aim Cap App 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.377353 87.89391 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 87.83931 878.3931 1.000 FORMULA: 1000*(1+T)= 878.3931 - (0.85 * 1000 * 0.05) = 835.8931 T = -16.41% R = -16.41% Aim Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.748734 78.43916 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 78.38456 783.8456 1.000 FORMULA: 1000*(1+T)= 783.8456 - (0.85 * 1000 * 0.05) = 741.3456 T = -25.87% R = -25.87% Aim Value 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 13.242146 75.51646 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 75.46186 754.6186 1.000 FORMULA: 1000*(1+T)= 754.6186 - (0.85 * 1000 * 0.05) = 712.1186 T = -28.79% R = -28.79% Putnam International Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.208337 89.21930 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 89.16470 891.6470 1.000 FORMULA: 1000*(1+T)= 891.6470 - (0.85 * 1000 * 0.05) = 849.1470 T = -15.09% R = -15.09% Putnam Voyager 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.144617 82.34101 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 82.28641 822.8641 1.000 FORMULA: 1000*(1+T)= 822.8641 - (0.85 * 1000 * 0.05) = 780.3641 T = -21.96% R = -21.96% Putnam Growth & Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.391874 106.47502 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 106.42042 1064.2042 1.000 FORMULA: 1000*(1+T)= 1064.2042 - (0.85 * 1000 * 0.05) = 1021.7042 T = 2.17% R = 2.17% MSDW Mid Cap 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.152293 109.26224 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 109.20764 1092.0764 1.000 FORMULA: 1000*(1+T)= 1092.0764 - (0.85 * 1000 * 0.05) = 1049.5764 T = 4.96% R = 4.96% Alliance Premier Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 12.060607 0.04527 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Alliance Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.506805 221.88668 FEE 29-Dec-96 0.546 5.753970 0.09489 FEE 29-Dec-97 0.546 7.144195 0.07643 FEE 29-Dec-98 0.546 9.246714 0.05905 FEE 29-Dec-99 0.546 12.137562 0.04498 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 221.55673 2215.5673 5.000 FORMULA: 1000*(1+T)= 2215.5673 - (0.85 * 1000 * 0.02) = 2198.567312 T = 17.07% R = 119.86% Alliance Growth and Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.385068 228.04663 FEE 29-Dec-96 0.546 5.426876 0.10061 FEE 29-Dec-97 0.546 6.669816 0.08186 FEE 29-Dec-98 0.546 8.089171 0.06750 FEE 29-Dec-99 0.546 8.833783 0.06181 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 227.68026 2276.8026 5.000 FORMULA: 1000*(1+T)= 2276.8026 - (0.85 * 1000 * 0.02) = 2259.802571 T = 17.71% R = 125.98% Aim Cap App 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.216219 191.70974 FEE 29-Dec-96 0.546 6.057722 0.09013 FEE 29-Dec-97 0.546 6.546221 0.08341 FEE 29-Dec-98 0.546 7.775761 0.07022 FEE 29-Dec-99 0.546 11.248322 0.04854 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 191.36284 1913.6284 5.000 FORMULA: 1000*(1+T)= 1913.6284 - (0.85 * 1000 * 0.02) = 1896.628437 T = 13.66% R = 89.66% Aim Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.952300 201.92638 FEE 29-Dec-96 0.546 5.820232 0.09381 FEE 29-Dec-97 0.546 7.056696 0.07737 FEE 29-Dec-98 0.546 9.498610 0.05748 FEE 29-Dec-99 0.546 12.661670 0.04312 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 201.59999 2015.9999 5.000 FORMULA: 1000*(1+T)= 2015.9999 - (0.85 * 1000 * 0.02) = 1998.999893 T = 14.86% R = 99.90% Aim Value 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.712873 175.04328 FEE 29-Dec-96 0.546 6.513318 0.08383 FEE 29-Dec-97 0.546 7.789522 0.07009 FEE 29-Dec-98 0.546 10.327676 0.05287 FEE 29-Dec-99 0.546 13.129979 0.04158 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 174.74030 1747.4030 5.000 FORMULA: 1000*(1+T)= 1747.4030 - (0.85 * 1000 * 0.02) = 1730.403008 T = 11.59% R = 73.04% Putnam International Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.026893 0.09059 FEE 29-Dec-98 0.546 7.089310 0.07702 FEE 29-Dec-99 0.546 11.001779 0.04963 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.585835 218.06280 FEE 29-Dec-96 0.546 5.112807 0.10679 FEE 29-Dec-97 0.546 6.170599 0.08848 FEE 29-Dec-98 0.546 7.660255 0.07128 FEE 29-Dec-99 0.546 11.993031 0.04553 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 217.69612 2176.9612 5.000 FORMULA: 1000*(1+T)= 2176.9612 - (0.85 * 1000 * 0.02) = 2159.961173 T = 16.65% R = 116.00% Putnam Growth & Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.617922 178.00176 FEE 29-Dec-96 0.546 6.854413 0.07966 FEE 29-Dec-97 0.546 8.110717 0.06732 FEE 29-Dec-98 0.546 9.475241 0.05762 FEE 29-Dec-99 0.546 9.346925 0.05841 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 177.68415 1776.8415 5.000 FORMULA: 1000*(1+T)= 1776.8415 - (0.85 * 1000 * 0.02) = 1759.841455 T = 11.97% R = 75.98% MSDW Mid Cap 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.703594 0.08145 FEE 29-Dec-98 0.546 7.435005 0.07344 FEE 29-Dec-99 0.546 9.059215 0.06027 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 1.817897 550.08617 FEE 31-Dec-91 0.546 2.616004 0.20872 FEE 31-Dec-92 0.546 2.843765 0.19200 FEE 31-Dec-93 0.546 3.325013 0.16421 FEE 31-Dec-94 0.546 3.309216 0.16499 FEE 31-Dec-95 0.546 4.585456 0.11907 FEE 31-Dec-96 0.546 5.102552 0.10701 FEE 31-Dec-97 0.546 6.358843 0.08586 FEE 31-Dec-98 0.546 7.790638 0.07008 FEE 31-Dec-99 0.546 12.144617 0.04496 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 548.87467 5488.7467 10.000 FORMULA: 1000*(1+T)= 5488.7467 - (0.85 * 1000 * 0) = 5488.746687 T = 18.56% R = 448.87% Putnam Growth & Income 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 2.957585 338.11370 FEE 31-Dec-91 0.546 3.468157 0.15743 FEE 31-Dec-92 0.546 3.749394 0.14562 FEE 31-Dec-93 0.546 4.220102 0.12938 FEE 31-Dec-94 0.546 4.171384 0.13089 FEE 31-Dec-95 0.546 5.617457 0.09720 FEE 31-Dec-96 0.546 6.746152 0.08094 FEE 31-Dec-97 0.546 8.249880 0.06618 FEE 31-Dec-98 0.546 9.383148 0.05819 FEE 31-Dec-99 0.546 9.391874 0.05814 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 337.13513 3371.3513 10.000 FORMULA: 1000*(1+T)= 3371.3513 - (0.85 * 1000 * 0) = 3371.351295 T = 12.92% R = 237.14% Alliance Premier Growth 14-Jul-99 TO NO. YEARS 1.462 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jul-99 1000.00 10.837667 92.27078 1 FEE 14-Jul-00 0.546 13.207926 0.04134 0.06 2 FEE 29-Dec-00 0.546 10.000000 0.05460 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.17484 921.7484 1.462 FORMULA: 1000*(1+T)= 921.7484 = 879.2484234 T = -8.43% R = -12.08% Alliance Growth 15-Sep-94 TO NO. YEARS 6.289 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 15-Sep-94 1000.00 3.219870 310.57154 1 FEE 15-Sep-95 0.546 4.335994 0.12592 0.06 2 FEE 15-Sep-96 0.546 5.049968 0.10812 0.05 3 FEE 15-Sep-97 0.546 6.890014 0.07925 0.05 4 15-Sep-98 0.546 7.263805 0.07517 0.04 5 15-Sep-99 0.546 10.060123 0.05427 0.03 6 15-Sep-00 0.546 11.959417 0.04565 0.02 7 29-Dec-00 0.546 10.000000 0.05460 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 310.02856 3100.2856 6.289 FORMULA: 1000*(1+T)= 3100.2856 = 3100.285622 T = 19.71% R = 210.03% Alliance Growth and Income 14-Jan-91 TO NO. YEARS 9.958 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jan-91 1000.00 2.777490 360.03730 1 FEE 14-Jan-92 0.546 2.837482 0.19242 0.06 2 FEE 14-Jan-93 0.546 3.021453 0.18071 0.05 3 FEE 14-Jan-94 0.546 3.329561 0.16399 0.05 4 14-Jan-95 0.546 3.273087 0.16681 0.04 5 14-Jan-96 0.546 4.252010 0.12841 0.03 6 14-Jan-97 0.546 5.495613 0.09935 0.02 7 14-Jan-98 0.546 6.662421 0.08195 0 8 14-Jan-99 0.546 8.006184 0.06820 0 9 14-Jan-00 0.546 8.935649 0.06110 0 10 29-Dec-00 0.546 10.000000 0.05460 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 358.83975 3588.3975 9.958 FORMULA: 1000*(1+T)= 3588.3975 = 3588.397525 T = 13.69% R = 258.84% Aim Cap App 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.254777 307.24071 1 FEE 05-May-94 0.546 3.839922 0.14219 0.06 2 FEE 05-May-95 0.546 4.283271 0.12747 0.05 3 FEE 05-May-96 0.546 5.798463 0.09416 0.05 4 05-May-97 0.546 6.082254 0.08977 0.04 5 05-May-98 0.546 7.681161 0.07108 0.03 6 05-May-99 0.546 8.190746 0.06666 0.02 7 05-May-00 0.546 11.670660 0.04678 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 306.54799 3065.4799 7.652 FORMULA: 1000*(1+T)= 3065.4799 = 3065.479882 T = 15.76% R = 206.55% Aim Growth 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.530941 283.21062 1 FEE 05-May-94 0.546 3.711693 0.14710 0.06 2 FEE 05-May-95 0.546 4.151195 0.13153 0.05 3 FEE 05-May-96 0.546 5.244357 0.10411 0.05 4 05-May-97 0.546 6.176609 0.08840 0.04 5 05-May-98 0.546 8.321646 0.06561 0.03 6 05-May-99 0.546 10.192618 0.05357 0.02 7 05-May-00 0.546 14.351918 0.03804 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 282.52766 2825.2766 7.652 FORMULA: 1000*(1+T)= 2825.2766 = 2825.27658 T = 14.54% R = 182.53% Aim Value 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.639910 274.73207 1 FEE 05-May-94 0.546 4.230896 0.12905 0.06 2 FEE 05-May-95 0.546 4.785895 0.11409 0.05 3 FEE 05-May-96 0.546 5.768390 0.09465 0.05 4 05-May-97 0.546 6.943980 0.07863 0.04 5 05-May-98 0.546 8.938538 0.06108 0.03 6 05-May-99 0.546 11.240098 0.04858 0.02 7 05-May-00 0.546 14.374979 0.03798 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 274.11341 2741.1341 7.652 FORMULA: 1000*(1+T)= 2741.1341 = 2741.13406 T = 14.09% R = 174.11% Putnam International Growth 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.309838 188.32966 1 FEE 02-Jan-98 0.546 6.105608 0.08943 0.06 2 FEE 02-Jan-99 0.546 7.099292 0.07691 0.05 3 FEE 02-Jan-00 0.546 11.394554 0.04792 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 188.06081 1880.6081 3.989 FORMULA: 1000*(1+T)= 1880.6081 = 1846.608101 T = 16.62% R = 84.66% Putnam Voyager 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 1.422019 703.22548 1 FEE 01-Feb-89 0.546 1.532371 0.35631 0.06 2 FEE 01-Feb-90 0.546 1.672894 0.32638 0.05 3 FEE 01-Feb-91 0.546 1.936722 0.28192 0.05 4 01-Feb-92 0.546 2.618480 0.20852 0.04 5 01-Feb-93 0.546 2.865138 0.19057 0.03 6 01-Feb-94 0.546 3.391742 0.16098 0.02 7 01-Feb-95 0.546 3.337591 0.16359 0 8 01-Feb-96 0.546 4.661987 0.11712 0 9 01-Feb-97 0.546 5.324735 0.10254 0 10 01-Feb-98 0.546 6.337703 0.08615 0 11 01-Feb-99 0.546 8.139785 0.06708 0 12 01-Feb-00 0.546 12.040259 0.04535 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 701.06438 7010.6438 12.909 FORMULA: 1000*(1+T)= 7010.6438 = 7010.64384 T = 16.28% R = 601.06% Putnam Growth & Income 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 2.082211 480.25872 1 FEE 01-Feb-89 0.546 2.592511 0.21061 0.06 2 FEE 01-Feb-90 0.546 2.826858 0.19315 0.05 3 FEE 01-Feb-91 0.546 3.065174 0.17813 0.05 4 01-Feb-92 0.546 3.479542 0.15692 0.04 5 01-Feb-93 0.546 3.796151 0.14383 0.03 6 01-Feb-94 0.546 4.333348 0.12600 0.02 7 01-Feb-95 0.546 4.269767 0.12788 0 8 01-Feb-96 0.546 5.756385 0.09485 0 9 01-Feb-97 0.546 7.022819 0.07775 0 10 01-Feb-98 0.546 8.268424 0.06603 0 11 01-Feb-99 0.546 9.433913 0.05788 0 12 01-Feb-00 0.546 9.072077 0.06018 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 478.71093 4787.1093 12.909 FORMULA: 1000*(1+T)= 4787.1093 = 4787.109253 T = 12.90% R = 378.71% MSDW Mid Cap 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 4.970257 201.19684 1 FEE 02-Jan-98 0.546 6.878984 0.07937 0.06 2 FEE 02-Jan-99 0.546 7.656639 0.07131 0.05 3 FEE 02-Jan-00 0.546 9.152293 0.05966 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 200.93190 2009.3190 3.989 FORMULA: 1000*(1+T)= 2009.3190 = 1975.318995 T = 18.61% R = 97.53% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.762338 92.91661 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.86201 928.6201 0.145 FORMULA: 1000*(1+T)= 928.6201 = 877.6201347 T = -59.33% R = -12.24%
Alliance Premier Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.565113 86.46695 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 86.41235 864.1235 0.912 FORMULA: 1000*(1+T)= 864.1235 = 813.1234589 T = -20.30% R = -18.69% Alliance Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.772820 84.94142 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.88682 848.8682 0.912 FORMULA: 1000*(1+T)= 848.8682 = 797.8681591 T = -21.94% R = -20.21% Alliance Growth and Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.578882 116.56531 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 116.51071 1165.1071 0.912 FORMULA: 1000*(1+T)= 1165.1071 = 1114.107054 T = 12.58% R = 11.41% Aim Cap App 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.181575 89.43284 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 89.37824 893.7824 0.912 FORMULA: 1000*(1+T)= 893.7824 = 842.7823929 T = -17.11% R = -15.72% Aim Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.765479 78.33627 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 78.28167 782.8167 0.912 FORMULA: 1000*(1+T)= 782.8167 = 731.8166925 T = -29.00% R = -26.82% Aim Value 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.916965 77.41757 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 77.36297 773.6297 0.912 FORMULA: 1000*(1+T)= 773.6297 = 722.6296674 T = -29.98% R = -27.74% Putnam International Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 10.674847 93.67816 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 93.62356 936.2356 0.912 FORMULA: 1000*(1+T)= 936.2356 = 885.2355764 T = -12.52% R = -11.48% Putnam Voyager 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.792453 84.80000 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.74540 847.4540 0.912 FORMULA: 1000*(1+T)= 847.4540 = 796.4539878 T = -22.09% R = -20.35% Putnam Growth & Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 9.083286 110.09232 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 110.03772 1100.3772 0.912 FORMULA: 1000*(1+T)= 1100.3772 = 1049.377168 T = 5.43% R = 4.94% MSDW Mid Cap 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.835954 113.17397 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 113.11937 1131.1937 0.912 FORMULA: 1000*(1+T)= 1131.1937 = 1080.193708 T = 8.83% R = 8.02% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.764394 92.89887 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.84427 928.4427 0.145 FORMULA: 1000*(1+T)= 928.4427 = 877.4426639 T = -59.38% R = -12.26%
Non-Standardized Calculations Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr Fund ................................ Date AUV AUV Alliance Premier Growth ............. 01/31/00 11.565113 N/A N/A Alliance Growth ..................... 01/31/00 11.77282 N/A N/A Alliance Growth and Income .......... 01/31/00 8.578882 N/A N/A Aim Cap App ......................... 01/31/00 11.181575 N/A N/A Aim Growth .......................... 01/31/00 12.765479 N/A N/A Aim Value ........................... 01/31/00 12.916965 N/A N/A Putnam International Growth 01/31/00 10.674847 N/A N/A Putnam Voyager ...................... 01/31/00 11.792453 N/A N/A Putnam Growth & Income .............. 01/31/00 9.083286 N/A N/A MSDW Mid Cap ........................ 01/31/00 8.835954 N/A N/A Information Portfolio ............... 11/06/00 10.764394 N/A N/A One Yr YTD Today's Fund ................................ AUV AUV AUV AUV Total Alliance Premier Growth ............. N/A 10 10 -13.53% -14.73% N/A Alliance Growth ..................... N/A 10 10 -15.06% -16.38% N/A Alliance Growth and Income .......... N/A 10 10 16.57% 18.29% N/A Aim Cap App ......................... N/A 10 10 -10.57% -11.52% N/A Aim Growth .......................... N/A 10 10 -21.66% -23.48% N/A Aim Value ........................... N/A 10 10 -22.58% -24.46% N/A Putnam International Growth N/A 10 10 -6.32% -6.91% N/A Putnam Voyager ...................... N/A 10 10 -15.20% -16.53% N/A Putnam Growth & Income .............. N/A 10 10 10.09% 11.11% N/A MSDW Mid Cap ........................ N/A 10 10 13.17% 14.53% N/A Information Portfolio ............... N/A 10 10 -7.10% -39.79% N/A Inception Ten Years Five Years One Year Fund ................................ Average Total Average Total Alliance Premier Growth ............. N/A N/A N/A N/A Alliance Growth ..................... N/A N/A N/A N/A Alliance Growth and Income .......... N/A N/A N/A N/A Aim Cap App ......................... N/A N/A N/A N/A Aim Growth .......................... N/A N/A N/A N/A Aim Value ........................... N/A N/A N/A N/A Putnam International Growth N/A N/A N/A N/A Putnam Voyager ...................... N/A N/A N/A N/A Putnam Growth & Income .............. N/A N/A N/A N/A MSDW Mid Cap ........................ N/A N/A N/A N/A Information Portfolio ............... N/A N/A N/A N/A Inception YTD Fund ................................ Average Alliance Premier Growth ............. 0.00% Alliance Growth ..................... 0.00% Alliance Growth and Income .......... 0.00% Aim Cap App ......................... 0.00% Aim Growth .......................... 0.00% Aim Value ........................... 0.00% Putnam International Growth 01/31/00 0.00% Putnam Voyager ...................... 0.00% Putnam Growth & Income .............. 0.00% MSDW Mid Cap ........................ 0.00% Information Portfolio ............... 0.00%
Alliance Premier Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.196363 81.99166 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 81.93706 819.3706 1.000 FORMULA: 1000*(1+T)= 819.3706 - (0.85 * 1000 * 0.05) = 776.8706 T = -22.31% R = -22.31% Alliance Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.358707 80.91461 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 80.86001 808.6001 1.000 FORMULA: 1000*(1+T)= 808.6001 - (0.85 * 1000 * 0.05) = 766.1001 T = -23.39% R = -23.39% Alliance Growth and Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 8.947415 111.76412 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 111.70952 1117.0952 1.000 FORMULA: 1000*(1+T)= 1117.0952 - (0.85 * 1000 * 0.05) = 1074.5952 T = 7.46% R = 7.46% Aim Cap App 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.392289 87.77867 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 87.72407 877.2407 1.000 FORMULA: 1000*(1+T)= 877.2407 - (0.85 * 1000 * 0.05) = 834.7407 T = -16.53% R = -16.53% Aim Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.765479 78.33627 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 78.28167 782.8167 1.000 FORMULA: 1000*(1+T)= 782.8167 - (0.85 * 1000 * 0.05) = 740.3167 T = -25.97% R = -25.97% Aim Value 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 13.259538 75.41741 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 75.36281 753.6281 1.000 FORMULA: 1000*(1+T)= 753.6281 - (0.85 * 1000 * 0.05) = 711.1281 T = -28.89% R = -28.89% Putnam International Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.223054 89.10231 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 89.04771 890.4771 1.000 FORMULA: 1000*(1+T)= 890.4771 - (0.85 * 1000 * 0.05) = 847.9771 T = -15.20% R = -15.20% Putnam Voyager 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.160567 82.23301 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 82.17841 821.7841 1.000 FORMULA: 1000*(1+T)= 821.7841 - (0.85 * 1000 * 0.05) = 779.2841 T = -22.07% R = -22.07% Putnam Growth & Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.404186 106.33563 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 106.28103 1062.8103 1.000 FORMULA: 1000*(1+T)= 1062.8103 - (0.85 * 1000 * 0.05) = 1020.3103 T = 2.03% R = 2.03% MSDW Mid Cap 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.164342 109.11858 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 109.06398 1090.6398 1.000 FORMULA: 1000*(1+T)= 1090.6398 - (0.85 * 1000 * 0.05) = 1048.1398 T = 4.81% R = 4.81% Alliance Premier Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 12.076588 0.04521 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Alliance Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.536619 220.42847 FEE 29-Dec-96 0.546 5.784418 0.09439 FEE 29-Dec-97 0.546 7.172541 0.07612 FEE 29-Dec-98 0.546 9.271173 0.05889 FEE 29-Dec-99 0.546 12.153651 0.04492 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 220.09954 2200.9954 5.000 FORMULA: 1000*(1+T)= 2200.9954 - (0.85 * 1000 * 0.02) = 2183.995411 T = 16.91% R = 118.40% Alliance Growth and Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.414064 226.54860 FEE 29-Dec-96 0.546 5.455570 0.10008 FEE 29-Dec-97 0.546 6.696275 0.08154 FEE 29-Dec-98 0.546 8.110567 0.06732 FEE 29-Dec-99 0.546 8.845479 0.06173 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 226.18333 2261.8333 5.000 FORMULA: 1000*(1+T)= 2261.8333 - (0.85 * 1000 * 0.02) = 2244.833305 T = 17.55% R = 124.48% Aim Cap App 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.250715 190.45025 FEE 29-Dec-96 0.546 6.089765 0.08966 FEE 29-Dec-97 0.546 6.572167 0.08308 FEE 29-Dec-98 0.546 7.796289 0.07003 FEE 29-Dec-99 0.546 11.263169 0.04848 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 190.10441 1901.0441 5.000 FORMULA: 1000*(1+T)= 1901.0441 - (0.85 * 1000 * 0.02) = 1884.044068 T = 13.51% R = 88.40% Aim Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.985055 200.59959 FEE 29-Dec-96 0.546 5.851011 0.09332 FEE 29-Dec-97 0.546 7.084680 0.07707 FEE 29-Dec-98 0.546 9.523710 0.05733 FEE 29-Dec-99 0.546 12.678392 0.04307 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 200.27421 2002.7421 5.000 FORMULA: 1000*(1+T)= 2002.7421 - (0.85 * 1000 * 0.02) = 1985.742113 T = 14.71% R = 98.57% Aim Value 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.750674 173.89266 FEE 29-Dec-96 0.546 6.547785 0.08339 FEE 29-Dec-97 0.546 7.820401 0.06982 FEE 29-Dec-98 0.546 10.354956 0.05273 FEE 29-Dec-99 0.546 13.147319 0.04153 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 173.59060 1735.9060 5.000 FORMULA: 1000*(1+T)= 1735.9060 - (0.85 * 1000 * 0.02) = 1718.905981 T = 11.44% R = 71.89% Putnam International Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.050724 0.09024 FEE 29-Dec-98 0.546 7.107986 0.07682 FEE 29-Dec-99 0.546 11.016304 0.04956 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.616141 216.63116 FEE 29-Dec-96 0.546 5.139852 0.10623 FEE 29-Dec-97 0.546 6.195027 0.08814 FEE 29-Dec-98 0.546 7.680453 0.07109 FEE 29-Dec-99 0.546 12.008868 0.04547 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 216.26564 2162.6564 5.000 FORMULA: 1000*(1+T)= 2162.6564 - (0.85 * 1000 * 0.02) = 2145.656445 T = 16.50% R = 114.57% Putnam Growth & Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.655054 176.83297 FEE 29-Dec-96 0.546 6.890679 0.07924 FEE 29-Dec-97 0.546 8.142844 0.06705 FEE 29-Dec-98 0.546 9.500257 0.05747 FEE 29-Dec-99 0.546 9.359246 0.05834 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 176.51627 1765.1627 5.000 FORMULA: 1000*(1+T)= 1765.1627 - (0.85 * 1000 * 0.02) = 1748.162706 T = 11.82% R = 74.82% MSDW Mid Cap 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.730189 0.08113 FEE 29-Dec-98 0.546 7.454671 0.07324 FEE 29-Dec-99 0.546 9.071206 0.06019 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 1.841987 542.89200 FEE 31-Dec-91 0.546 2.647183 0.20626 FEE 31-Dec-92 0.546 2.873875 0.18999 FEE 31-Dec-93 0.546 3.355802 0.16270 FEE 31-Dec-94 0.546 3.335454 0.16370 FEE 31-Dec-95 0.546 4.615726 0.11829 FEE 31-Dec-96 0.546 5.129469 0.10644 FEE 31-Dec-97 0.546 6.383971 0.08553 FEE 31-Dec-98 0.546 7.811125 0.06990 FEE 31-Dec-99 0.546 12.160567 0.04490 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 541.68969 5416.8969 10.000 FORMULA: 1000*(1+T)= 5416.8969 - (0.85 * 1000 * 0) = 5416.896918 T = 18.41% R = 441.69% Putnam Growth & Income 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 2.996800 333.68927 FEE 31-Dec-91 0.546 3.509514 0.15558 FEE 31-Dec-92 0.546 3.789100 0.14410 FEE 31-Dec-93 0.546 4.259164 0.12819 FEE 31-Dec-94 0.546 4.204457 0.12986 FEE 31-Dec-95 0.546 5.654546 0.09656 FEE 31-Dec-96 0.546 6.781747 0.08051 FEE 31-Dec-97 0.546 8.282499 0.06592 FEE 31-Dec-98 0.546 9.407852 0.05804 FEE 31-Dec-99 0.546 9.404186 0.05806 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 332.71785 3327.1785 10.000 FORMULA: 1000*(1+T)= 3327.1785 - (0.85 * 1000 * 0) = 3327.178498 T = 12.77% R = 232.72% Alliance Premier Growth 14-Jul-99 TO NO. YEARS 1.462 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jul-99 1000.00 10.858621 92.09273 1 FEE 14-Jul-00 0.546 13.215942 0.04131 0.06 2 FEE 29-Dec-00 0.546 10.000000 0.05460 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 91.99681 919.9681 1.462 FORMULA: 1000*(1+T)= 919.9681 = 877.4681148 T = -8.55% R = -12.25% Alliance Growth 15-Sep-94 TO NO. YEARS 6.289 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 15-Sep-94 1000.00 3.246569 308.01748 1 FEE 15-Sep-95 0.546 4.366557 0.12504 0.06 2 FEE 15-Sep-96 0.546 5.078608 0.10751 0.05 3 FEE 15-Sep-97 0.546 6.919975 0.07890 0.05 4 15-Sep-98 0.546 7.285776 0.07494 0.04 5 15-Sep-99 0.546 10.077273 0.05418 0.03 6 15-Sep-00 0.546 11.963946 0.04564 0.02 7 29-Dec-00 0.546 10.000000 0.05460 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 307.47667 3074.7667 6.289 FORMULA: 1000*(1+T)= 3074.7667 = 3074.766673 T = 19.56% R = 207.48% Alliance Growth and Income 14-Jan-91 TO NO. YEARS 9.958 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jan-91 1000.00 2.814035 355.36161 1 FEE 14-Jan-92 0.546 2.871184 0.19017 0.06 2 FEE 14-Jan-93 0.546 3.053336 0.17882 0.05 3 FEE 14-Jan-94 0.546 3.360297 0.16249 0.05 4 14-Jan-95 0.546 3.298954 0.16551 0.04 5 14-Jan-96 0.546 4.279880 0.12757 0.03 6 14-Jan-97 0.546 5.524352 0.09884 0.02 7 14-Jan-98 0.546 6.688465 0.08163 0 8 14-Jan-99 0.546 8.026898 0.06802 0 9 14-Jan-00 0.546 8.947415 0.06102 0 10 29-Dec-00 0.546 10.000000 0.05460 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 354.17294 3541.7294 9.958 FORMULA: 1000*(1+T)= 3541.7294 = 3541.729418 T = 13.54% R = 254.17% Aim Cap App 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.287770 304.15753 1 FEE 05-May-94 0.546 3.873736 0.14095 0.06 2 FEE 05-May-95 0.546 4.315302 0.12653 0.05 3 FEE 05-May-96 0.546 5.834128 0.09359 0.05 4 05-May-97 0.546 6.111617 0.08934 0.04 5 05-May-98 0.546 7.708072 0.07083 0.03 6 05-May-99 0.546 8.208607 0.06652 0.02 7 05-May-00 0.546 11.680676 0.04674 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 303.46843 3034.6843 7.652 FORMULA: 1000*(1+T)= 3034.6843 = 3034.68434 T = 15.61% R = 203.47% Aim Growth 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.566744 280.36775 1 FEE 05-May-94 0.546 3.744395 0.14582 0.06 2 FEE 05-May-95 0.546 4.182243 0.13055 0.05 3 FEE 05-May-96 0.546 5.276606 0.10348 0.05 4 05-May-97 0.546 6.206431 0.08797 0.04 5 05-May-98 0.546 8.350815 0.06538 0.03 6 05-May-99 0.546 10.214865 0.05345 0.02 7 05-May-00 0.546 14.366066 0.03801 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 279.68849 2796.8849 7.652 FORMULA: 1000*(1+T)= 2796.8849 = 2796.884934 T = 14.39% R = 179.69% Aim Value 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.676831 271.97334 1 FEE 05-May-94 0.546 4.268175 0.12792 0.06 2 FEE 05-May-95 0.546 4.821703 0.11324 0.05 3 FEE 05-May-96 0.546 5.803881 0.09407 0.05 4 05-May-97 0.546 6.977513 0.07825 0.04 5 05-May-98 0.546 8.969858 0.06087 0.03 6 05-May-99 0.546 11.264622 0.04847 0.02 7 05-May-00 0.546 14.389144 0.03795 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 271.35796 2713.5796 7.652 FORMULA: 1000*(1+T)= 2713.5796 = 2713.579639 T = 13.93% R = 171.36% Putnam International Growth 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.337777 187.34391 1 FEE 02-Jan-98 0.546 6.129662 0.08908 0.06 2 FEE 02-Jan-99 0.546 7.117943 0.07671 0.05 3 FEE 02-Jan-00 0.546 11.409475 0.04785 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 187.07567 1870.7567 3.989 FORMULA: 1000*(1+T)= 1870.7567 = 1836.756698 T = 16.46% R = 83.68% Putnam Voyager 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 1.446406 691.36881 1 FEE 01-Feb-89 0.546 1.556605 0.35076 0.06 2 FEE 01-Feb-90 0.546 1.697098 0.32173 0.05 3 FEE 01-Feb-91 0.546 1.962156 0.27827 0.05 4 01-Feb-92 0.546 2.649393 0.20608 0.04 5 01-Feb-93 0.546 2.895140 0.18859 0.03 6 01-Feb-94 0.546 3.422754 0.15952 0.02 7 01-Feb-95 0.546 3.363664 0.16232 0 8 01-Feb-96 0.546 4.692223 0.11636 0 9 01-Feb-97 0.546 5.352228 0.10201 0 10 01-Feb-98 0.546 6.362038 0.08582 0 11 01-Feb-99 0.546 8.160249 0.06691 0 12 01-Feb-00 0.546 12.054680 0.04529 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 689.23054 6892.3054 12.909 FORMULA: 1000*(1+T)= 6892.3054 = 6892.305373 T = 16.13% R = 589.23% Putnam Growth & Income 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 2.117929 472.15936 1 FEE 01-Feb-89 0.546 2.633509 0.20733 0.06 2 FEE 01-Feb-90 0.546 2.867783 0.19039 0.05 3 FEE 01-Feb-91 0.546 3.105455 0.17582 0.05 4 01-Feb-92 0.546 3.520638 0.15509 0.04 5 01-Feb-93 0.546 3.835909 0.14234 0.03 6 01-Feb-94 0.546 4.372959 0.12486 0.02 7 01-Feb-95 0.546 4.303125 0.12688 0 8 01-Feb-96 0.546 5.793724 0.09424 0 9 01-Feb-97 0.546 7.059083 0.07735 0 10 01-Feb-98 0.546 8.300194 0.06578 0 11 01-Feb-99 0.546 9.457659 0.05773 0 12 01-Feb-00 0.546 9.082916 0.06011 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 470.62684 4706.2684 12.909 FORMULA: 1000*(1+T)= 4706.2684 = 4706.268409 T = 12.75% R = 370.63% MSDW Mid Cap 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 4.996483 200.14078 1 FEE 02-Jan-98 0.546 6.906177 0.07906 0.06 2 FEE 02-Jan-99 0.546 7.676808 0.07112 0.05 3 FEE 02-Jan-00 0.546 9.164342 0.05958 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 199.87642 1998.7642 3.989 FORMULA: 1000*(1+T)= 1998.7642 = 1964.764173 T = 18.45% R = 96.48% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.764394 92.89887 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.84427 928.4427 0.145 FORMULA: 1000*(1+T)= 928.4427 = 877.4426639 T = -59.38% R = -12.26%
Alliance Premier Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.576875 86.37910 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 86.32450 863.2450 0.912 FORMULA: 1000*(1+T)= 863.2450 = 812.2449626 T = -20.39% R = -18.78% Alliance Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.784799 84.85507 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.80047 848.0047 0.912 FORMULA: 1000*(1+T)= 848.0047 = 797.0047475 T = -22.03% R = -20.30% Alliance Growth and Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.587585 116.44717 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 116.39257 1163.9257 0.912 FORMULA: 1000*(1+T)= 1163.9257 = 1112.925734 T = 12.45% R = 11.29% Aim Cap App 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.192959 89.34188 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 89.28728 892.8728 0.912 FORMULA: 1000*(1+T)= 892.8728 = 841.8728002 T = -17.20% R = -15.81% Aim Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.779686 78.24918 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 78.19458 781.9458 0.912 FORMULA: 1000*(1+T)= 781.9458 = 730.945839 T = -29.09% R = -26.91% Aim Value 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.930122 77.33879 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 77.28419 772.8419 0.912 FORMULA: 1000*(1+T)= 772.8419 = 721.8419077 T = -30.06% R = -27.82% Putnam International Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 10.685707 93.58295 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 93.52835 935.2835 0.912 FORMULA: 1000*(1+T)= 935.2835 = 884.2835151 T = -12.62% R = -11.57% Putnam Voyager 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.804460 84.71374 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.65914 846.5914 0.912 FORMULA: 1000*(1+T)= 846.5914 = 795.5914379 T = -22.18% R = -20.44% Putnam Growth & Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 9.092503 109.98072 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 109.92612 1099.2612 0.912 FORMULA: 1000*(1+T)= 1099.2612 = 1048.261171 T = 5.31% R = 4.83% MSDW Mid Cap 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.844926 113.05917 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 113.00457 1130.0457 0.912 FORMULA: 1000*(1+T)= 1130.0457 = 1079.045709 T = 8.70% R = 7.90% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.766134 92.88385 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.82925 928.2925 0.145 FORMULA: 1000*(1+T)= 928.2925 = 877.2925227 T = -59.43% R = -12.27%
Non-Standardized Calculations Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr Fund ................................ Date AUV AUV Alliance Premier Growth ............. 01/31/00 11.576875 N/A N/A Alliance Growth ..................... 01/31/00 11.784799 N/A N/A Alliance Growth and Income .......... 01/31/00 8.587585 N/A N/A Aim Cap App ......................... 01/31/00 11.192959 N/A N/A Aim Growth .......................... 01/31/00 12.779686 N/A N/A Aim Value ........................... 01/31/00 12.930122 N/A N/A Putnam International Growth 01/31/00 10.685707 N/A N/A Putnam Voyager ...................... 01/31/00 11.80446 N/A N/A Putnam Growth & Income .............. 01/31/00 9.092503 N/A N/A MSDW Mid Cap ........................ 01/31/00 8.844926 N/A N/A Information Portfolio ............... 11/06/00 10.766134 N/A N/A One Yr YTD Today's Fund ................................ AUV AUV AUV AUV Total Alliance Premier Growth ............. N/A 10 10 -13.62% -14.83% N/A Alliance Growth ..................... N/A 10 10 -15.14% -16.47% N/A Alliance Growth and Income .......... N/A 10 10 16.45% 18.16% N/A Aim Cap App ......................... N/A 10 10 -10.66% -11.62% N/A Aim Growth .......................... N/A 10 10 -21.75% -23.57% N/A Aim Value ........................... N/A 10 10 -22.66% -24.55% N/A Putnam International Growth N/A 10 10 -6.42% -7.01% N/A Putnam Voyager ...................... N/A 10 10 -15.29% -16.63% N/A Putnam Growth & Income .............. N/A 10 10 9.98% 10.99% N/A MSDW Mid Cap ........................ N/A 10 10 13.06% 14.40% N/A Information Portfolio ............... N/A 10 10 -7.12% -39.85% N/A Inception Ten Years Five Years One Year Fund ................................ Average Total Average Total Alliance Premier Growth ............. N/A N/A N/A N/A Alliance Growth ..................... N/A N/A N/A N/A Alliance Growth and Income .......... N/A N/A N/A N/A Aim Cap App ......................... N/A N/A N/A N/A Aim Growth .......................... N/A N/A N/A N/A Aim Value ........................... N/A N/A N/A N/A Putnam International Growth N/A N/A N/A N/A Putnam Voyager ...................... N/A N/A N/A N/A Putnam Growth & Income .............. N/A N/A N/A N/A MSDW Mid Cap ........................ N/A N/A N/A N/A Information Portfolio ............... N/A N/A N/A N/A YTD Fund ................................ Average Alliance Premier Growth ............. 0.00% Alliance Growth ..................... 0.00% Alliance Growth and Income .......... 0.00% Aim Cap App ......................... 0.00% Aim Growth .......................... 0.00% Aim Value ........................... 0.00% Putnam International Growth 0.00% Putnam Voyager ...................... 0.00% Putnam Growth & Income .............. 0.00% MSDW Mid Cap ........................ 0.00% Information Portfolio ............... 0.00%
Alliance Premier Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.209983 81.90020 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 81.84560 818.4560 1.000 FORMULA: 1000*(1+T)= 818.4560 - (0.85 * 1000 * 0.05) = 775.9560 T = -22.40% R = -22.40% Alliance Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.372509 80.82435 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 80.76975 807.6975 1.000 FORMULA: 1000*(1+T)= 807.6975 - (0.85 * 1000 * 0.05) = 765.1975 T = -23.48% R = -23.48% Alliance Growth and Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 8.957374 111.63986 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 111.58526 1115.8526 1.000 FORMULA: 1000*(1+T)= 1115.8526 - (0.85 * 1000 * 0.05) = 1073.3526 T = 7.34% R = 7.34% Aim Cap App 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.404967 87.68110 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 87.62650 876.2650 1.000 FORMULA: 1000*(1+T)= 876.2650 - (0.85 * 1000 * 0.05) = 833.7650 T = -16.62% R = -16.62% Aim Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.779686 78.24918 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 78.19458 781.9458 1.000 FORMULA: 1000*(1+T)= 781.9458 - (0.85 * 1000 * 0.05) = 739.4458 T = -26.06% R = -26.06% Aim Value 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 13.274303 75.33352 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 75.27892 752.7892 1.000 FORMULA: 1000*(1+T)= 752.7892 - (0.85 * 1000 * 0.05) = 710.2892 T = -28.97% R = -28.97% Putnam International Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.235537 89.00331 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 88.94871 889.4871 1.000 FORMULA: 1000*(1+T)= 889.4871 - (0.85 * 1000 * 0.05) = 846.9871 T = -15.30% R = -15.30% Putnam Voyager 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.174103 82.14158 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 82.08698 820.8698 1.000 FORMULA: 1000*(1+T)= 820.8698 - (0.85 * 1000 * 0.05) = 778.3698 T = -22.16% R = -22.16% Putnam Growth & Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.414622 106.21775 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 106.16315 1061.6315 1.000 FORMULA: 1000*(1+T)= 1061.6315 - (0.85 * 1000 * 0.05) = 1019.1315 T = 1.91% R = 1.91% MSDW Mid Cap 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.174546 108.99722 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 108.94262 1089.4262 1.000 FORMULA: 1000*(1+T)= 1089.4262 - (0.85 * 1000 * 0.05) = 1046.9262 T = 4.69% R = 4.69% Alliance Premier Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 12.090149 0.04516 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Alliance Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.562045 219.19994 FEE 29-Dec-96 0.546 5.810341 0.09397 FEE 29-Dec-97 0.546 7.196650 0.07587 FEE 29-Dec-98 0.546 9.291955 0.05876 FEE 29-Dec-99 0.546 12.167298 0.04487 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 218.87187 2188.7187 5.000 FORMULA: 1000*(1+T)= 2188.7187 - (0.85 * 1000 * 0.02) = 2171.718682 T = 16.78% R = 117.17% Alliance Growth and Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.438806 225.28581 FEE 29-Dec-96 0.546 5.480026 0.09963 FEE 29-Dec-97 0.546 6.718768 0.08126 FEE 29-Dec-98 0.546 8.128725 0.06717 FEE 29-Dec-99 0.546 8.855377 0.06166 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 224.92148 2249.2148 5.000 FORMULA: 1000*(1+T)= 2249.2148 - (0.85 * 1000 * 0.02) = 2232.214827 T = 17.42% R = 123.22% Aim Cap App 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.280126 189.38942 FEE 29-Dec-96 0.546 6.117025 0.08926 FEE 29-Dec-97 0.546 6.594234 0.08280 FEE 29-Dec-98 0.546 7.813727 0.06988 FEE 29-Dec-99 0.546 11.275772 0.04842 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 189.04446 1890.4446 5.000 FORMULA: 1000*(1+T)= 1890.4446 - (0.85 * 1000 * 0.02) = 1873.444618 T = 13.38% R = 87.34% Aim Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.012987 199.48187 FEE 29-Dec-96 0.546 5.877219 0.09290 FEE 29-Dec-97 0.546 7.108464 0.07681 FEE 29-Dec-98 0.546 9.545017 0.05720 FEE 29-Dec-99 0.546 12.692580 0.04302 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 199.15733 1991.5733 5.000 FORMULA: 1000*(1+T)= 1991.5733 - (0.85 * 1000 * 0.02) = 1974.57335 T = 14.58% R = 97.46% Aim Value 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.782864 172.92470 FEE 29-Dec-96 0.546 6.577098 0.08302 FEE 29-Dec-97 0.546 7.846658 0.06958 FEE 29-Dec-98 0.546 10.378133 0.05261 FEE 29-Dec-99 0.546 13.162039 0.04148 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 172.62340 1726.2340 5.000 FORMULA: 1000*(1+T)= 1726.2340 - (0.85 * 1000 * 0.02) = 1709.234035 T = 11.32% R = 70.92% Putnam International Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.071003 0.08994 FEE 29-Dec-98 0.546 7.123852 0.07664 FEE 29-Dec-99 0.546 11.028623 0.04951 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.641985 215.42508 FEE 29-Dec-96 0.546 5.162881 0.10575 FEE 29-Dec-97 0.546 6.215806 0.08784 FEE 29-Dec-98 0.546 7.697616 0.07093 FEE 29-Dec-99 0.546 12.022308 0.04542 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 215.06054 2150.6054 5.000 FORMULA: 1000*(1+T)= 2150.6054 - (0.85 * 1000 * 0.02) = 2133.6054 T = 16.37% R = 113.36% Putnam Growth & Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.686728 175.84804 FEE 29-Dec-96 0.546 6.921573 0.07888 FEE 29-Dec-97 0.546 8.170165 0.06683 FEE 29-Dec-98 0.546 9.521497 0.05734 FEE 29-Dec-99 0.546 9.369689 0.05827 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 175.53212 1755.3212 5.000 FORMULA: 1000*(1+T)= 1755.3212 - (0.85 * 1000 * 0.02) = 1738.321155 T = 11.69% R = 73.83% MSDW Mid Cap 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.752798 0.08086 FEE 29-Dec-98 0.546 7.471355 0.07308 FEE 29-Dec-99 0.546 9.081362 0.06012 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 1.862668 536.86433 FEE 31-Dec-91 0.546 2.673918 0.20419 FEE 31-Dec-92 0.546 2.899647 0.18830 FEE 31-Dec-93 0.546 3.382100 0.16144 FEE 31-Dec-94 0.546 3.357857 0.16260 FEE 31-Dec-95 0.546 4.641539 0.11763 FEE 31-Dec-96 0.546 5.152389 0.10597 FEE 31-Dec-97 0.546 6.405345 0.08524 FEE 31-Dec-98 0.546 7.828532 0.06974 FEE 31-Dec-99 0.546 12.174103 0.04485 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 535.66975 5356.6975 10.000 FORMULA: 1000*(1+T)= 5356.6975 - (0.85 * 1000 * 0) = 5356.697513 T = 18.27% R = 435.67% Putnam Growth & Income 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 3.030418 329.98748 FEE 31-Dec-91 0.546 3.544935 0.15402 FEE 31-Dec-92 0.546 3.823071 0.14282 FEE 31-Dec-93 0.546 4.292570 0.12720 FEE 31-Dec-94 0.546 4.232699 0.12900 FEE 31-Dec-95 0.546 5.686182 0.09602 FEE 31-Dec-96 0.546 6.812069 0.08015 FEE 31-Dec-97 0.546 8.310238 0.06570 FEE 31-Dec-98 0.546 9.428828 0.05791 FEE 31-Dec-99 0.546 9.414622 0.05799 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 329.02207 3290.2207 10.000 FORMULA: 1000*(1+T)= 3290.2207 - (0.85 * 1000 * 0) = 3290.220697 T = 12.65% R = 229.02% Alliance Premier Growth 14-Jul-99 TO NO. YEARS 1.462 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jul-99 1000.00 10.876395 91.94223 1 FEE 14-Jul-00 0.546 13.222737 0.04129 0.06 2 FEE 29-Dec-00 0.546 10.000000 0.05460 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 91.84634 918.4634 1.462 FORMULA: 1000*(1+T)= 918.4634 = 875.9633651 T = -8.66% R = -12.40% Alliance Growth 15-Sep-94 TO NO. YEARS 6.289 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 15-Sep-94 1000.00 3.269374 305.86895 1 FEE 15-Sep-95 0.546 4.392634 0.12430 0.06 2 FEE 15-Sep-96 0.546 5.103008 0.10700 0.05 3 FEE 15-Sep-97 0.546 6.945463 0.07861 0.05 4 15-Sep-98 0.546 7.304451 0.07475 0.04 5 15-Sep-99 0.546 10.091833 0.05410 0.03 6 15-Sep-00 0.546 11.967798 0.04562 0.02 7 29-Dec-00 0.546 10.000000 0.05460 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 305.32997 3053.2997 6.289 FORMULA: 1000*(1+T)= 3053.2997 = 3053.299706 T = 19.42% R = 205.33% Alliance Growth and Income 14-Jan-91 TO NO. YEARS 9.958 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jan-91 1000.00 2.845403 351.44407 1 FEE 14-Jan-92 0.546 2.900081 0.18827 0.06 2 FEE 14-Jan-93 0.546 3.080638 0.17724 0.05 3 FEE 14-Jan-94 0.546 3.386583 0.16122 0.05 4 14-Jan-95 0.546 3.321049 0.16441 0.04 5 14-Jan-96 0.546 4.303659 0.12687 0.03 6 14-Jan-97 0.546 5.548846 0.09840 0.02 7 14-Jan-98 0.546 6.710604 0.08136 0 8 14-Jan-99 0.546 8.044476 0.06787 0 9 14-Jan-00 0.546 8.957374 0.06096 0 10 29-Dec-00 0.546 10.000000 0.05460 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 350.26287 3502.6287 9.958 FORMULA: 1000*(1+T)= 3502.6287 = 3502.628697 T = 13.42% R = 250.26% Aim Cap App 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.315989 301.56915 1 FEE 05-May-94 0.546 3.902624 0.13991 0.06 2 FEE 05-May-95 0.546 4.342627 0.12573 0.05 3 FEE 05-May-96 0.546 5.864502 0.09310 0.05 4 05-May-97 0.546 6.136593 0.08897 0.04 5 05-May-98 0.546 7.730948 0.07063 0.03 6 05-May-99 0.546 8.223768 0.06639 0.02 7 05-May-00 0.546 11.689175 0.04671 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 300.88311 3008.8311 7.652 FORMULA: 1000*(1+T)= 3008.8311 = 3008.831135 T = 15.48% R = 200.88% Aim Growth 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.597371 277.98078 1 FEE 05-May-94 0.546 3.772319 0.14474 0.06 2 FEE 05-May-95 0.546 4.208747 0.12973 0.05 3 FEE 05-May-96 0.546 5.304098 0.10294 0.05 4 05-May-97 0.546 6.231805 0.08762 0.04 5 05-May-98 0.546 8.375595 0.06519 0.03 6 05-May-99 0.546 10.233741 0.05335 0.02 7 05-May-00 0.546 14.378065 0.03797 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 277.30464 2773.0464 7.652 FORMULA: 1000*(1+T)= 2773.0464 = 2773.046414 T = 14.26% R = 177.30% Aim Value 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.708365 269.66062 1 FEE 05-May-94 0.546 4.299995 0.12698 0.06 2 FEE 05-May-95 0.546 4.852226 0.11253 0.05 3 FEE 05-May-96 0.546 5.834096 0.09359 0.05 4 05-May-97 0.546 7.006034 0.07793 0.04 5 05-May-98 0.546 8.996480 0.06069 0.03 6 05-May-99 0.546 11.285450 0.04838 0.02 7 05-May-00 0.546 14.401169 0.03791 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 269.04801 2690.4801 7.652 FORMULA: 1000*(1+T)= 2690.4801 = 2690.480106 T = 13.81% R = 169.05% Putnam International Growth 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.361592 186.51177 1 FEE 02-Jan-98 0.546 6.150131 0.08878 0.06 2 FEE 02-Jan-99 0.546 7.133788 0.07654 0.05 3 FEE 02-Jan-00 0.546 11.422131 0.04780 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 186.24405 1862.4405 3.989 FORMULA: 1000*(1+T)= 1862.4405 = 1828.440497 T = 16.33% R = 82.84% Putnam Voyager 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 1.467420 681.46815 1 FEE 01-Feb-89 0.546 1.577446 0.34613 0.06 2 FEE 01-Feb-90 0.546 1.717900 0.31783 0.05 3 FEE 01-Feb-91 0.546 1.983995 0.27520 0.05 4 01-Feb-92 0.546 2.675899 0.20404 0.04 5 01-Feb-93 0.546 2.920816 0.18693 0.03 6 01-Feb-94 0.546 3.449239 0.15830 0.02 7 01-Feb-95 0.546 3.385923 0.16126 0 8 01-Feb-96 0.546 4.718000 0.11573 0 9 01-Feb-97 0.546 5.375632 0.10157 0 10 01-Feb-98 0.546 6.382734 0.08554 0 11 01-Feb-99 0.546 8.177637 0.06677 0 12 01-Feb-00 0.546 12.066918 0.04525 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 679.34901 6793.4901 12.909 FORMULA: 1000*(1+T)= 6793.4901 = 6793.490095 T = 16.00% R = 579.35% Putnam Growth & Income 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 2.148661 465.40613 1 FEE 01-Feb-89 0.546 2.668743 0.20459 0.06 2 FEE 01-Feb-90 0.546 2.902901 0.18809 0.05 3 FEE 01-Feb-91 0.546 3.139986 0.17389 0.05 4 01-Feb-92 0.546 3.555837 0.15355 0.04 5 01-Feb-93 0.546 3.869927 0.14109 0.03 6 01-Feb-94 0.546 4.406824 0.12390 0.02 7 01-Feb-95 0.546 4.331605 0.12605 0 8 01-Feb-96 0.546 5.825571 0.09372 0 9 01-Feb-97 0.546 7.089972 0.07701 0 10 01-Feb-98 0.546 8.327201 0.06557 0 11 01-Feb-99 0.546 9.477815 0.05761 0 12 01-Feb-00 0.546 9.092105 0.06005 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 463.88641 4638.8641 12.909 FORMULA: 1000*(1+T)= 4638.8641 = 4638.864144 T = 12.62% R = 363.89% MSDW Mid Cap 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.018802 199.25074 1 FEE 02-Jan-98 0.546 6.929292 0.07880 0.06 2 FEE 02-Jan-99 0.546 7.693920 0.07097 0.05 3 FEE 02-Jan-00 0.546 9.174546 0.05951 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 198.98686 1989.8686 3.989 FORMULA: 1000*(1+T)= 1989.8686 = 1955.86864 T = 18.31% R = 95.59% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.766134 92.88385 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.82925 928.2925 0.145 FORMULA: 1000*(1+T)= 928.2925 = 877.2925227 T = -59.43% R = -12.27%
Alliance Premier Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.583304 86.33115 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 86.27655 862.7655 0.912 FORMULA: 1000*(1+T)= 862.7655 = 811.7655387 T = -20.45% R = -18.82% Alliance Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.791325 84.80811 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.75351 847.5351 0.912 FORMULA: 1000*(1+T)= 847.5351 = 796.5351105 T = -22.08% R = -20.35% Alliance Growth and Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.592350 116.38260 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 116.32800 1163.2800 0.912 FORMULA: 1000*(1+T)= 1163.2800 = 1112.279961 T = 12.38% R = 11.23% Aim Cap App 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.199175 89.29229 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 89.23769 892.3769 0.912 FORMULA: 1000*(1+T)= 892.3769 = 841.3769162 T = -17.26% R = -15.86% Aim Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.787433 78.20178 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 78.14718 781.4718 0.912 FORMULA: 1000*(1+T)= 781.4718 = 730.4717826 T = -29.14% R = -26.95% Aim Value 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 12.937292 77.29593 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 77.24133 772.4133 0.912 FORMULA: 1000*(1+T)= 772.4133 = 721.413287 T = -30.10% R = -27.86% Putnam International Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 10.691632 93.53109 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 93.47649 934.7649 0.912 FORMULA: 1000*(1+T)= 934.7649 = 883.7649048 T = -12.67% R = -11.62% Putnam Voyager 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 11.811017 84.66671 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.61211 846.1211 0.912 FORMULA: 1000*(1+T)= 846.1211 = 795.1211414 T = -22.23% R = -20.49% Putnam Growth & Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 9.097547 109.91974 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 109.86514 1098.6514 0.912 FORMULA: 1000*(1+T)= 1098.6514 = 1047.651399 T = 5.24% R = 4.77% MSDW Mid Cap 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 31-Jan-00 1000.00 8.849834 112.99647 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 112.94187 1129.4187 0.912 FORMULA: 1000*(1+T)= 1129.4187 = 1078.418698 T = 8.63% R = 7.84% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.767089 92.87561 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.82101 928.2101 0.145 FORMULA: 1000*(1+T)= 928.2101 = 877.2101383 T = -59.46% R = -12.28%
Non-Standardized Calculations Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr Fund ................................ Date AUV AUV Alliance Premier Growth ............. 01/31/00 11.583304 N/A N/A Alliance Growth ..................... 01/31/00 11.791325 N/A N/A Alliance Growth and Income .......... 01/31/00 8.59235 N/A N/A Aim Cap App ......................... 01/31/00 11.199175 N/A N/A Aim Growth .......................... 01/31/00 12.787433 N/A N/A Aim Value ........................... 01/31/00 12.937292 N/A N/A Putnam International Growth 01/31/00 10.691632 N/A N/A Putnam Voyager ...................... 01/31/00 11.811017 N/A N/A Putnam Growth & Income .............. 01/31/00 9.097547 N/A N/A MSDW Mid Cap ........................ 01/31/00 8.849834 N/A N/A Information Portfolio ............... 11/06/00 10.767089 N/A N/A One Yr YTD Today's Fund ................................ AUV AUV AUV AUV Total Alliance Premier Growth ............. N/A 10 10 -13.67% -14.88% N/A Alliance Growth ..................... N/A 10 10 -15.19% -16.52% N/A Alliance Growth and Income .......... N/A 10 10 16.38% 18.09% N/A Aim Cap App ......................... N/A 10 10 -10.71% -11.67% N/A Aim Growth .......................... N/A 10 10 -21.80% -23.62% N/A Aim Value ........................... N/A 10 10 -22.70% -24.59% N/A Putnam International Growth N/A 10 10 -6.47% -7.07% N/A Putnam Voyager ...................... N/A 10 10 -15.33% -16.68% N/A Putnam Growth & Income .............. N/A 10 10 9.92% 10.92% N/A MSDW Mid Cap ........................ N/A 10 10 13.00% 14.33% N/A Information Portfolio ............... N/A 10 10 -7.12% -39.89% N/A Inception Ten Years Five Years One Year Fund ................................ Average Total Average Total Alliance Premier Growth ............. N/A N/A N/A N/A Alliance Growth ..................... N/A N/A N/A N/A Alliance Growth and Income .......... N/A N/A N/A N/A Aim Cap App ......................... N/A N/A N/A N/A Aim Growth .......................... N/A N/A N/A N/A Aim Value ........................... N/A N/A N/A N/A Putnam International Growth N/A N/A N/A N/A Putnam Voyager ...................... N/A N/A N/A N/A Putnam Growth & Income .............. N/A N/A N/A N/A MSDW Mid Cap ........................ N/A N/A N/A N/A Information Portfolio ............... N/A N/A N/A N/A YTD Fund ................................ Average Alliance Premier Growth ............. 0.00% Alliance Growth ..................... 0.00% Alliance Growth and Income .......... 0.00% Aim Cap App ......................... 0.00% Aim Growth .......................... 0.00% Aim Value ........................... 0.00% Putnam International Growth 0.00% Putnam Voyager ...................... 0.00% Putnam Growth & Income .............. 0.00% MSDW Mid Cap ........................ 0.00% Information Portfolio ............... 0.00%
Alliance Premier Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.217429 81.85028 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 81.79568 817.9568 1.000 FORMULA: 1000*(1+T)= 817.9568 - (0.85 * 1000 * 0.05) = 775.4568 T = -22.45% R = -22.45% Alliance Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.380031 80.77524 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 80.72064 807.2064 1.000 FORMULA: 1000*(1+T)= 807.2064 - (0.85 * 1000 * 0.05) = 764.7064 T = -23.53% R = -23.53% Alliance Growth and Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 8.962827 111.57194 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 111.51734 1115.1734 1.000 FORMULA: 1000*(1+T)= 1115.1734 - (0.85 * 1000 * 0.05) = 1072.6734 T = 7.27% R = 7.27% Aim Cap App 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.411891 87.62790 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 87.57330 875.7330 1.000 FORMULA: 1000*(1+T)= 875.7330 - (0.85 * 1000 * 0.05) = 833.2330 T = -16.68% R = -16.68% Aim Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.787433 78.20178 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 78.14718 781.4718 1.000 FORMULA: 1000*(1+T)= 781.4718 - (0.85 * 1000 * 0.05) = 738.9718 T = -26.10% R = -26.10% Aim Value 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 13.282348 75.28789 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 75.23329 752.3329 1.000 FORMULA: 1000*(1+T)= 752.3329 - (0.85 * 1000 * 0.05) = 709.8329 T = -29.02% R = -29.02% Putnam International Growth 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.242350 88.94937 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 88.89477 888.9477 1.000 FORMULA: 1000*(1+T)= 888.9477 - (0.85 * 1000 * 0.05) = 846.4477 T = -15.36% R = -15.36% Putnam Voyager 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 12.181496 82.09172 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 82.03712 820.3712 1.000 FORMULA: 1000*(1+T)= 820.3712 - (0.85 * 1000 * 0.05) = 777.8712 T = -22.21% R = -22.21% Putnam Growth & Income 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.420332 106.15337 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 106.09877 1060.9877 1.000 FORMULA: 1000*(1+T)= 1060.9877 - (0.85 * 1000 * 0.05) = 1018.4877 T = 1.85% R = 1.85% MSDW Mid Cap 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 9.180128 108.93094 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 108.87634 1088.7634 1.000 FORMULA: 1000*(1+T)= 1088.7634 - (0.85 * 1000 * 0.05) = 1046.2634 T = 4.63% R = 4.63% Alliance Premier Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 #VALUE! #VALUE! FEE 29-Dec-98 0.546 #VALUE! #VALUE! FEE 29-Dec-99 0.546 12.097561 0.04513 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Alliance Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.575964 218.53319 FEE 29-Dec-96 0.546 5.824521 0.09374 FEE 29-Dec-97 0.546 7.209814 0.07573 FEE 29-Dec-98 0.546 9.303294 0.05869 FEE 29-Dec-99 0.546 12.174736 0.04485 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 218.20558 2182.0558 5.000 FORMULA: 1000*(1+T)= 2182.0558 - (0.85 * 1000 * 0.02) = 2165.055802 T = 16.71% R = 116.51% Alliance Growth and Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.452349 224.60054 FEE 29-Dec-96 0.546 5.493409 0.09939 FEE 29-Dec-97 0.546 6.731076 0.08112 FEE 29-Dec-98 0.546 8.138661 0.06709 FEE 29-Dec-99 0.546 8.860798 0.06162 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 224.23673 2242.3673 5.000 FORMULA: 1000*(1+T)= 2242.3673 - (0.85 * 1000 * 0.02) = 2225.367272 T = 17.35% R = 122.54% Aim Cap App 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.296280 188.81177 FEE 29-Dec-96 0.546 6.131993 0.08904 FEE 29-Dec-97 0.546 6.606323 0.08265 FEE 29-Dec-98 0.546 7.823270 0.06979 FEE 29-Dec-99 0.546 11.282655 0.04839 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 188.46730 1884.6730 5.000 FORMULA: 1000*(1+T)= 1884.6730 - (0.85 * 1000 * 0.02) = 1867.672958 T = 13.31% R = 86.77% Aim Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.028281 198.87512 FEE 29-Dec-96 0.546 5.891557 0.09267 FEE 29-Dec-97 0.546 7.121470 0.07667 FEE 29-Dec-98 0.546 9.556660 0.05713 FEE 29-Dec-99 0.546 12.700316 0.04299 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 198.55105 1985.5105 5.000 FORMULA: 1000*(1+T)= 1985.5105 - (0.85 * 1000 * 0.02) = 1968.51054 T = 14.51% R = 96.85% Aim Value 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.800508 172.39869 FEE 29-Dec-96 0.546 6.593149 0.08281 FEE 29-Dec-97 0.546 7.861019 0.06946 FEE 29-Dec-98 0.546 10.390780 0.05255 FEE 29-Dec-99 0.546 13.170059 0.04146 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 172.09782 1720.9782 5.000 FORMULA: 1000*(1+T)= 1720.9782 - (0.85 * 1000 * 0.02) = 1703.978192 T = 11.25% R = 70.40% Putnam International Growth 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.082097 0.08977 FEE 29-Dec-98 0.546 7.132527 0.07655 FEE 29-Dec-99 0.546 11.035348 0.04948 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 4.656156 214.76944 FEE 29-Dec-96 0.546 5.175507 0.10550 FEE 29-Dec-97 0.546 6.227180 0.08768 FEE 29-Dec-98 0.546 7.707000 0.07084 FEE 29-Dec-99 0.546 12.029649 0.04539 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 214.40543 2144.0543 5.000 FORMULA: 1000*(1+T)= 2144.0543 - (0.85 * 1000 * 0.02) = 2127.054268 T = 16.29% R = 112.71% Putnam Growth & Income 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 5.704078 175.31317 FEE 29-Dec-96 0.546 6.938486 0.07869 FEE 29-Dec-97 0.546 8.185118 0.06671 FEE 29-Dec-98 0.546 9.533113 0.05727 FEE 29-Dec-99 0.546 9.375404 0.05824 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 174.99766 1749.9766 5.000 FORMULA: 1000*(1+T)= 1749.9766 - (0.85 * 1000 * 0.02) = 1732.976612 T = 11.62% R = 73.30% MSDW Mid Cap 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 #VALUE! #VALUE! FEE 29-Dec-96 0.546 #VALUE! #VALUE! FEE 29-Dec-97 0.546 6.765169 0.08071 FEE 29-Dec-98 0.546 7.480481 0.07299 FEE 29-Dec-99 0.546 9.086918 0.06009 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 #VALUE! #VALUE! 5.000 FORMULA: 1000*(1+T)= #VALUE! - (0.85 * 1000 * 0.02) = #VALUE! T = N/A R = N/A Putnam Voyager 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 1.874047 533.60455 FEE 31-Dec-91 0.546 2.688621 0.20308 FEE 31-Dec-92 0.546 2.913820 0.18738 FEE 31-Dec-93 0.546 3.396566 0.16075 FEE 31-Dec-94 0.546 3.370141 0.16201 FEE 31-Dec-95 0.546 4.655693 0.11728 FEE 31-Dec-96 0.546 5.164955 0.10571 FEE 31-Dec-97 0.546 6.417044 0.08509 FEE 31-Dec-98 0.546 7.838050 0.06966 FEE 31-Dec-99 0.546 12.181496 0.04482 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 532.41417 5324.1417 10.000 FORMULA: 1000*(1+T)= 5324.1417 - (0.85 * 1000 * 0) = 5324.141678 T = 18.20% R = 432.41% Putnam Growth & Income 29-Dec-90 TO NO. YEARS 10.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-90 1000.00 3.048941 327.98273 FEE 31-Dec-91 0.546 3.564423 0.15318 FEE 31-Dec-92 0.546 3.841755 0.14212 FEE 31-Dec-93 0.546 4.310916 0.12666 FEE 31-Dec-94 0.546 4.248189 0.12853 FEE 31-Dec-95 0.546 5.703511 0.09573 FEE 31-Dec-96 0.546 6.828668 0.07996 FEE 31-Dec-97 0.546 8.325420 0.06558 FEE 31-Dec-98 0.546 9.440299 0.05784 FEE 31-Dec-99 0.546 9.420332 0.05796 FEE 31-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 31-Dec-00 10.000000 327.02058 3270.2058 10.000 FORMULA: 1000*(1+T)= 3270.2058 - (0.85 * 1000 * 0) = 3270.205821 T = 12.58% R = 227.02% Alliance Premier Growth 14-Jul-99 TO NO. YEARS 1.462 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jul-99 1000.00 10.886113 91.86015 1 FEE 14-Jul-00 0.546 13.226452 0.04128 0.06 2 FEE 29-Dec-00 0.546 10.000000 0.05460 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 91.76427 917.6427 1.462 FORMULA: 1000*(1+T)= 917.6427 = 875.1427156 T = -8.72% R = -12.49% Alliance Growth 15-Sep-94 TO NO. YEARS 6.289 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 15-Sep-94 1000.00 3.281875 304.70387 1 FEE 15-Sep-95 0.546 4.406914 0.12390 0.06 2 FEE 15-Sep-96 0.546 5.116348 0.10672 0.05 3 FEE 15-Sep-97 0.546 6.959387 0.07846 0.05 4 15-Sep-98 0.546 7.314642 0.07464 0.04 5 15-Sep-99 0.546 10.099758 0.05406 0.03 6 15-Sep-00 0.546 11.969890 0.04561 0.02 7 29-Dec-00 0.546 10.000000 0.05460 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 304.16588 3041.6588 6.289 FORMULA: 1000*(1+T)= 3041.6588 = 3041.658778 T = 19.35% R = 204.17% Alliance Growth and Income 14-Jan-91 TO NO. YEARS 9.958 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 14-Jan-91 1000.00 2.862656 349.32594 1 FEE 14-Jan-92 0.546 2.915960 0.18725 0.06 2 FEE 14-Jan-93 0.546 3.095627 0.17638 0.05 3 FEE 14-Jan-94 0.546 3.401004 0.16054 0.05 4 14-Jan-95 0.546 3.333157 0.16381 0.04 5 14-Jan-96 0.546 4.316674 0.12649 0.03 6 14-Jan-97 0.546 5.562247 0.09816 0.02 7 14-Jan-98 0.546 6.722716 0.08122 0 8 14-Jan-99 0.546 8.054091 0.06779 0 9 14-Jan-00 0.546 8.962827 0.06092 0 10 29-Dec-00 0.546 10.000000 0.05460 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 348.14879 3481.4879 9.958 FORMULA: 1000*(1+T)= 3481.4879 = 3481.487928 T = 13.35% R = 248.15% Aim Cap App 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.331526 300.16275 1 FEE 05-May-94 0.546 3.918514 0.13934 0.06 2 FEE 05-May-95 0.546 4.357654 0.12530 0.05 3 FEE 05-May-96 0.546 5.881191 0.09284 0.05 4 05-May-97 0.546 6.150297 0.08878 0.04 5 05-May-98 0.546 7.743473 0.07051 0.03 6 05-May-99 0.546 8.232064 0.06633 0.02 7 05-May-00 0.546 11.693826 0.04669 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 299.47837 2994.7837 7.652 FORMULA: 1000*(1+T)= 2994.7837 = 2994.783701 T = 15.41% R = 199.48% Aim Growth 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.614170 276.68870 1 FEE 05-May-94 0.546 3.787630 0.14415 0.06 2 FEE 05-May-95 0.546 4.223252 0.12928 0.05 3 FEE 05-May-96 0.546 5.319142 0.10265 0.05 4 05-May-97 0.546 6.245692 0.08742 0.04 5 05-May-98 0.546 8.389149 0.06508 0.03 6 05-May-99 0.546 10.244045 0.05330 0.02 7 05-May-00 0.546 14.384605 0.03796 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 276.01425 2760.1425 7.652 FORMULA: 1000*(1+T)= 2760.1425 = 2760.142536 T = 14.19% R = 176.01% Aim Value 05-May-93 TO NO. YEARS 7.652 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 05-May-93 1000.00 3.725702 268.40579 1 FEE 05-May-94 0.546 4.317452 0.12646 0.06 2 FEE 05-May-95 0.546 4.868962 0.11214 0.05 3 FEE 05-May-96 0.546 5.850649 0.09332 0.05 4 05-May-97 0.546 7.021641 0.07776 0.04 5 05-May-98 0.546 9.011036 0.06059 0.03 6 05-May-99 0.546 11.296809 0.04833 0.02 7 05-May-00 0.546 14.407717 0.03790 0 8 29-Dec-00 0.546 10.000000 0.05460 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 267.79469 2677.9469 7.652 FORMULA: 1000*(1+T)= 2677.9469 = 2677.946871 T = 13.74% R = 167.79% Putnam International Growth 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.374629 186.05935 1 FEE 02-Jan-98 0.546 6.161328 0.08862 0.06 2 FEE 02-Jan-99 0.546 7.142451 0.07644 0.05 3 FEE 02-Jan-00 0.546 11.429038 0.04777 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 185.79192 1857.9192 3.989 FORMULA: 1000*(1+T)= 1857.9192 = 1823.919194 T = 16.26% R = 82.39% Putnam Voyager 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 1.479000 676.13252 1 FEE 01-Feb-89 0.546 1.588926 0.34363 0.06 2 FEE 01-Feb-90 0.546 1.729360 0.31572 0.05 3 FEE 01-Feb-91 0.546 1.996007 0.27355 0.05 4 01-Feb-92 0.546 2.690474 0.20294 0.04 5 01-Feb-93 0.546 2.934939 0.18603 0.03 6 01-Feb-94 0.546 3.463805 0.15763 0.02 7 01-Feb-95 0.546 3.398130 0.16068 0 8 01-Feb-96 0.546 4.732137 0.11538 0 9 01-Feb-97 0.546 5.388465 0.10133 0 10 01-Feb-98 0.546 6.394060 0.08539 0 11 01-Feb-99 0.546 8.187142 0.06669 0 12 01-Feb-00 0.546 12.073601 0.04522 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 674.02373 6740.2373 12.909 FORMULA: 1000*(1+T)= 6740.2373 = 6740.237311 T = 15.93% R = 574.02% Putnam Growth & Income 01-Feb-88 TO NO. YEARS 12.909 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 01-Feb-88 1000.00 2.165640 461.75726 1 FEE 01-Feb-89 0.546 2.688191 0.20311 0.06 2 FEE 01-Feb-90 0.546 2.922278 0.18684 0.05 3 FEE 01-Feb-91 0.546 3.159013 0.17284 0.05 4 01-Feb-92 0.546 3.575201 0.15272 0.04 5 01-Feb-93 0.546 3.888631 0.14041 0.03 6 01-Feb-94 0.546 4.425421 0.12338 0.02 7 01-Feb-95 0.546 4.347223 0.12560 0 8 01-Feb-96 0.546 5.843012 0.09344 0 9 01-Feb-97 0.546 7.106882 0.07683 0 10 01-Feb-98 0.546 8.341981 0.06545 0 11 01-Feb-99 0.546 9.488841 0.05754 0 12 01-Feb-00 0.546 9.097133 0.06002 0 13 29-Dec-00 0.546 10.000000 0.05460 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 460.24449 4602.4449 12.909 FORMULA: 1000*(1+T)= 4602.4449 = 4602.444859 T = 12.55% R = 360.24% MSDW Mid Cap 02-Jan-97 TO NO. YEARS 3.989 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 02-Jan-97 1000.00 5.031029 198.76649 1 FEE 02-Jan-98 0.546 6.941940 0.07865 0.06 2 FEE 02-Jan-99 0.546 7.703280 0.07088 0.05 3 FEE 02-Jan-00 0.546 9.180128 0.05948 0.05 4 29-Dec-00 0.546 10.000000 0.05460 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 198.50289 1985.0289 3.989 FORMULA: 1000*(1+T)= 1985.0289 = 1951.028873 T = 18.24% R = 95.10% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 06-Nov-00 1000.00 10.767089 92.87561 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.82101 928.2101 0.145 FORMULA: 1000*(1+T)= 928.2101 = 877.2101383 T = -59.46% R = -12.28%
Alliance Premier Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT31-Jan-00 1000.00 11.604770 86.17146 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 86.11686 861.1686 0.912 FORMULA: 1000*(1+T)= 861.1686 = 810.1686225 T = -20.62% R = -18.98% Alliance Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT31-Jan-00 1000.00 11.813199 84.65108 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.59648 845.9648 0.912 FORMULA: 1000*(1+T)= 845.9648 = 794.9647546 T = -22.25% R = -20.50% Alliance Growth and Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT31-Jan-00 1000.00 8.608252 116.16760 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 116.113001161.1300 0.912 FORMULA: 1000*(1+T)=1161.1300 = 1110.130029 T = 12.14% R = 11.01% Aim Cap App 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT31-Jan-00 1000.00 11.219942 89.12702 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 89.07242 890.7242 0.912 FORMULA: 1000*(1+T)= 890.7242 = 839.7242044 T = -17.44% R = -16.03% Aim Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT31-Jan-00 1000.00 12.813384 78.04340 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 77.98880 779.8880 0.912 FORMULA: 1000*(1+T)= 779.8880 = 728.8879587 T = -29.31% R = -27.11% Aim Value 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT31-Jan-00 1000.00 12.961312 77.15268 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 77.09808 770.9808 0.912 FORMULA: 1000*(1+T)= 770.9808 = 719.9808331 T = -30.26% R = -28.00% Putnam International Growth 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT31-Jan-00 1000.00 10.711470 93.35787 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 93.30327 933.0327 0.912 FORMULA: 1000*(1+T)= 933.0327 = 882.0326778 T = -12.86% R = -11.80% Putnam Voyager 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT31-Jan-00 1000.00 11.832934 84.50989 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 84.45529 844.5529 0.912 FORMULA: 1000*(1+T)= 844.5529 = 793.5529416 T = -22.40% R = -20.64% Putnam Growth & Income 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT31-Jan-00 1000.00 9.114386 109.71666 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 109.662061096.6206 0.912 FORMULA: 1000*(1+T)=1096.6206 = 1045.620611 T = 5.01% R = 4.56% MSDW Mid Cap 31-Jan-00 TO NO. YEARS 0.912 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT31-Jan-00 1000.00 8.866231 112.78750 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 112.732901127.3290 0.912 FORMULA: 1000*(1+T)=1127.3290 = 1076.328967 T = 8.40% R = 7.63% Information Portfolio 06-Nov-00 TO NO. YEARS 0.145 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUENO. UNITSEND VALUESURRENDER CHARGES 0 INIT DEPOSIT06-Nov-00 1000.00 10.770266 92.84822 1 FEE 29-Dec-00 0.546 10.000000 0.05460 0.06 2 FEE N/A 0 N/A 0.00000 0.05 3 FEE N/A 0 N/A 0.00000 0.05 4 N/A 0 N/A 0.00000 0.04 5 N/A 0 N/A 0.00000 0.03 6 N/A 0 N/A 0.00000 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 92.79362 927.9362 0.145 FORMULA: 1000*(1+T)= 927.9362 = 876.9361749 T = -59.55% R = -12.31% NLIC VAII EMERGING GROWTH 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.289959 88.57428 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 88.51968 885.1968 1.000 FORMULA: 1000*(1+T)= 885.1968 - (0.85 * 1000 * 0.05) = 842.6968 T = -15.73% R = -15.73% NLIC VAII EMERGING GROWTH 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 3.018462 331.29455 FEE 29-Dec-96 0.546 3.463651 0.15764 FEE 29-Dec-97 0.546 3.963515 0.13776 FEE 29-Dec-98 0.546 5.508291 0.09912 FEE 29-Dec-99 0.546 11.134487 0.04904 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 330.79639 3307.9639 5.000 FORMULA: 1000*(1+T)= 3307.9639 - (0.85 * 1000 * 0.02) = 3290.963929 T = 26.90% R = 229.10% NLIC VAII EMERGING GROWTH 03-Jul-95 TO NO. YEARS 5.492 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 03-Jul-95 1000.00 2.594901 385.37116 1 FEE 03-Jul-96 0.546 3.514691 0.15535 0.06 2 FEE 03-Jul-97 0.546 3.841017 0.14215 0.05 3 FEE 03-Jul-98 0.546 5.031862 0.10851 0.05 4 03-Jul-99 0.546 6.953163 0.07853 0.04 5 03-Jul-00 0.546 12.709321 0.04296 0.03 6 29-Dec-00 0.546 10.000000 0.05460 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 384.78906 3847.8906 5.492 FORMULA: 1000*(1+T)= 3847.8906 = 3830.890644 T = 27.70% R = 283.09% NLIC VAII EMERGING GROWTH 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.317358 88.35985 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 88.30525 883.0525 1.000 FORMULA: 1000*(1+T)= 883.0525 - (0.85 * 1000 * 0.05) = 840.5525 T = -15.94% R = -15.94% NLIC VAII EMERGING GROWTH 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 3.055419 327.28735 FEE 29-Dec-96 0.546 3.497578 0.15611 FEE 29-Dec-97 0.546 3.992546 0.13675 FEE 29-Dec-98 0.546 5.535157 0.09864 FEE 29-Dec-99 0.546 11.161656 0.04892 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 326.79233 3267.9233 5.000 FORMULA: 1000*(1+T)= 3267.9233 - (0.85 * 1000 * 0.02) = 3250.923315 T = 26.59% R = 225.09% NLIC VAII EMERGING GROWTH 03-Jul-95 TO NO. YEARS 5.492 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 03-Jul-95 1000.00 2.629812 380.25532 1 FEE 03-Jul-96 0.546 3.553302 0.15366 0.06 2 FEE 03-Jul-97 0.546 3.873770 0.14095 0.05 3 FEE 03-Jul-98 0.546 5.062468 0.10785 0.05 4 03-Jul-99 0.546 6.978479 0.07824 0.04 5 03-Jul-00 0.546 12.724504 0.04291 0.03 6 29-Dec-00 0.546 10.000000 0.05460 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 379.67711 3796.7711 5.492 FORMULA: 1000*(1+T)= 3796.7711 = 3779.771084 T = 27.39% R = 277.98% NLIC VAII EMERGING GROWTH 12/31/99 NO. 1.000 TO 12/29/0TRANSACDATE $ VALUUNIT VNO.EUNITEND VALUE INIT DE31-Dec1000.011.34788.12757 FEE 29-Dec0.546 10.0000.05460 RESULTING29-Dec-00 10.00088.07880.7297 1.000 FORMULA: 1000*(880.729- (0.85 * 1000 * 0.05) = 838.2297 T = -16.18% R = -16.18% NLIC VAII EMERGING GROWTH 29-Dec-95 TO NO. 5.000 29-Dec-00 TRANSACDATE $ VALUUNIT VNO.EUNITEND VALUE INIT DE29-Dec1000.03.0960322.99043 FEE 29-Dec0.546 3.53470.15446 FEE 29-Dec0.546 4.02430.13568 FEE 29-Dec0.546 5.56440.09812 FEE 29-Dec0.546 11.1910.04879 FEE 29-Dec0.546 10.0000.05460 RESULTING29-Dec-00 10.000322.43224.9878 5.000 FORMULA: 1000*(3224.98-8(0.85 * 1000 * 0.02) = 3207.987758 T = 26.25% R = 220.80% NLIC VAII EMERGING GROWTH 03-Jul-95 TO NO. 5.492 29-Dec-00 TRANSACDATE $ VALUUNIT VNO.EUENDSVASURRENDER CHARGES 0 INIT DE03-Jul1000.02.6682374.77705 1 FEE 03-Jul0.546 3.59570.15185 0.06 2 FEE 03-Jul0.546 3.90960.13965 0.05 3 FEE 03-Jul0.546 5.09590.10714 0.05 4 03-Jul0.546 7.00600.07793 0.04 5 03-Jul0.546 12.7410.04285 0.03 6 29-Dec0.546 10.0000.05460 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING29-Dec-00 10.000374.23742.0302 5.492 FORMULA: 1000*(3742.0302 = 3725.030224 T = 27.05% R = 272.50% NLIC VAII EMERGING GROWTH 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.324225 88.30626 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 88.25166 882.5166 1.000 FORMULA: 1000*(1+T)= 882.5166 - (0.85 * 1000 * 0.05) = 840.0166 T = -16.00% R = -16.00% NLIC VAII EMERGING GROWTH 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 3.064742 326.29174 FEE 29-Dec-96 0.546 3.506116 0.15573 FEE 29-Dec-97 0.546 3.999849 0.13651 FEE 29-Dec-98 0.546 5.541904 0.09852 FEE 29-Dec-99 0.546 11.168465 0.04889 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 325.79750 3257.9750 5.000 FORMULA: 1000*(1+T)= 3257.9750 - (0.85 * 1000 * 0.02) = 3240.974973 T = 26.51% R = 224.10% NLIC VAII EMERGING GROWTH 03-Jul-95 TO NO. YEARS 5.492 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 03-Jul-95 1000.00 2.638620 378.98599 1 FEE 03-Jul-96 0.546 3.563033 0.15324 0.06 2 FEE 03-Jul-97 0.546 3.882017 0.14065 0.05 3 FEE 03-Jul-98 0.546 5.070162 0.10769 0.05 4 03-Jul-99 0.546 6.984833 0.07817 0.04 5 03-Jul-00 0.546 12.728307 0.04290 0.03 6 29-Dec-00 0.546 10.000000 0.05460 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 378.40874 3784.0874 5.492 FORMULA: 1000*(1+T)= 3784.0874 = 3767.087416 T = 27.31% R = 276.71% NLIC VAII EMERGING GROWTH 12/31/99 NO. YEARS 1.000 TO 12/29/00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 31-Dec-99 1000.00 11.304781 88.45815 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 88.40355 884.0355 1.000 FORMULA: 1000*(1+T)= 884.0355 - (0.85 * 1000 * 0.05) = 841.5355 T = -15.85% R = -15.85% NLIC VAII EMERGING GROWTH 29-Dec-95 TO NO. YEARS 5.000 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE INIT DEPOSIT 29-Dec-95 1000.00 3.038411 329.11940 FEE 29-Dec-96 0.546 3.481964 0.15681 FEE 29-Dec-97 0.546 3.979194 0.13721 FEE 29-Dec-98 0.546 5.522812 0.09886 FEE 29-Dec-99 0.546 11.149184 0.04897 FEE 29-Dec-00 0.546 10.000000 0.05460 RESULTING VALUE 29-Dec-00 10.000000 328.62294 3286.2294 5.000 FORMULA: 1000*(1+T)= 3286.2294 - (0.85 * 1000 * 0.02) = 3269.229416 T = 26.73% R = 226.92% NLIC VAII EMERGING GROWTH 03-Jul-95 TO NO. YEARS 5.492 29-Dec-00 TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES 0 INIT DEPOSIT 03-Jul-95 1000.00 2.613744 382.59294 1 FEE 03-Jul-96 0.546 3.535528 0.15443 0.06 2 FEE 03-Jul-97 0.546 3.858705 0.14150 0.05 3 FEE 03-Jul-98 0.546 5.048402 0.10815 0.05 4 03-Jul-99 0.546 6.966856 0.07837 0.04 5 03-Jul-00 0.546 12.717541 0.04293 0.03 6 29-Dec-00 0.546 10.000000 0.05460 0.02 7 N/A 0 N/A 0.00000 0 8 N/A 0 N/A 0.00000 0 9 N/A 0 N/A 0.00000 0 10 N/A 0 N/A 0.00000 0 11 N/A 0 N/A 0.00000 0 12 N/A 0 N/A 0.00000 0 13 N/A 0 N/A 0.00000 0 14 FEE N/A 0 N/A 0.00000 0 15 FEE N/A 0 N/A 0.00000 0 RESULTING VALUE 29-Dec-00 10.000000 382.01295 3820.1295 5.492 FORMULA: 1000*(1+T)= 3820.1295 = 3803.129519 T = 27.54% R = 280.31%
Non-Standardized Calculations Dates: Current: 12/29/00 3 Months Ago: 09/29/00 End of Last Year: 12/31/99 One Yr Ago: 12/31/99 Two Yrs Ago: 12/31/98 Non-Standardized Performance Three Yrs Ago: 12/31/97 Five Yrs Ago: 12/29/95 Ten Yrs Ago: 12/31/90 Inception Inception Ten Yr Five Yr Fund ............................................... Date AUV AUV Alliance Premier Growth ............................ 01/31/00 11.60477 N/A N/A Alliance Growth .................................... 01/31/00 11.813199 N/A N/A Alliance Growth and Income ......................... 01/31/00 8.608252 N/A N/A Aim Cap App ........................................ 01/31/00 11.219942 N/A N/A Aim Growth ......................................... 01/31/00 12.813384 N/A N/A Aim Value .......................................... 01/31/00 12.961312 N/A N/A Putnam International Growth ........................ 01/31/00 10.71147 N/A N/A Putnam Voyager ..................................... 01/31/00 11.832934 N/A N/A Putnam Growth & Income ............................. 01/31/00 9.114386 N/A N/A MSDW Mid Cap ....................................... 01/31/00 8.866231 N/A N/A Information Portfolio .............................. 11/06/00 10.770266 N/A N/A One Yr YTD Today's Fund ............................................... AUV AUV AUV AUV Total Alliance Premier Growth ............................ N/A 10 10 -13.83% -15.05% N/A Alliance Growth .................................... N/A 10 10 -15.35% -16.69% N/A Alliance Growth and Income ......................... N/A 10 10 16.17% 17.85% N/A Aim Cap App ........................................ N/A 10 10 -10.87% -11.85% N/A Aim Growth ......................................... N/A 10 10 -21.96% -23.79% N/A Aim Value .......................................... N/A 10 10 -22.85% -24.75% N/A Putnam International Growth ........................ N/A 10 10 -6.64% -7.26% N/A Putnam Voyager ..................................... N/A 10 10 -15.49% -16.85% N/A Putnam Growth & Income ............................. N/A 10 10 9.72% 10.70% N/A MSDW Mid Cap ....................................... N/A 10 10 12.79% 14.10% N/A Information Portfolio .............................. N/A 10 10 -7.15% -40.01% N/A Inception Ten Years Five Years One Year Fund ............................................... Average Total Average Total Alliance Premier Growth ............................ N/A N/A N/A N/A Alliance Growth .................................... N/A N/A N/A N/A Alliance Growth and Income ......................... N/A N/A N/A N/A Aim Cap App ........................................ N/A N/A N/A N/A Aim Growth ......................................... N/A N/A N/A N/A Aim Value .......................................... N/A N/A N/A N/A Putnam International Growth ........................ N/A N/A N/A N/A Putnam Voyager ..................................... N/A N/A N/A N/A Putnam Growth & Income ............................. N/A N/A N/A N/A MSDW Mid Cap ....................................... N/A N/A N/A N/A Information Portfolio .............................. N/A N/A N/A N/A YTD Fund ............................................... Average Alliance Premier Growth ............................ 0.00% Alliance Growth .................................... 0.00% Alliance Growth and Income ......................... 0.00% Aim Cap App ........................................ 0.00% Aim Growth ......................................... 0.00% Aim Value .......................................... 0.00% Putnam International Growth ........................ 0.00% Putnam Voyager ..................................... 0.00% Putnam Growth & Income ............................. 0.00% MSDW Mid Cap ....................................... 0.00% Information Portfolio .............................. 0.00%
EX-99 4 powersex99.txt POWERS POWER OF ATTORNEY WITH RESPECT TO NORTHBROOK VARIABLE ANNUITY ACCOUNT II (REGISTRANT) AND NORTHBROOK LIFE INSURANCE COMPANY (DEPOSITOR) Know all men by these presents that the undersigned director of Northbrook Life Insurance Company constitutes and appoints Thomas J. Wilson, II, and Michael J. Velotta, and each of them (with full power to each of them to act alone) as his true and lawful attorney-in-fact and agent, with full power of substitution, for him in any and all capacities, to sign any registration statements of Northbrook Life Insurance Company and its Northbrook Variable Annuity Account II and any amendments thereto, and to file the same, with exhibits and other documents in connection therewith, with the Securities and Exchange Commission or any other regulatory authority as may be necessary or desirable, hereby ratifying and confirming all that each of said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof. April 5, 2001 /s/ STEVEN C. VERNEY - ---------------------------------- Steven C. Verney Director & Vice President (Principal Financial Officer) POWER OF ATTORNEY WITH RESPECT TO NORTHBROOK VARIABLE ANNUITY ACCOUNT II (REGISTRANT) AND NORTHBROOK LIFE INSURANCE COMPANY (DEPOSITOR) Know all men by these presents that the undersigned director of Northbrook Life Insurance Company constitutes and appoints Thomas J. Wilson, II, and Michael J. Velotta, and each of them (with full power to each of them to act alone) as his true and lawful attorney-in-fact and agent, with full power of substitution, for him in any and all capacities, to sign any registration statements of Northbrook Life Insurance Company and its Northbrook Variable Annuity Account II and any amendments thereto, and to file the same, with exhibits and other documents in connection therewith, with the Securities and Exchange Commission or any other regulatory authority as may be necessary or desirable, hereby ratifying and confirming all that each of said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof. April 5, 2001 /s/ J. KEVIN MCCARTHY - ----------------------------------- J. Kevin McCarthy Director POWER OF ATTORNEY WITH RESPECT TO NORTHBROOK VARIABLE ANNUITY ACCOUNT II (REGISTRANT) AND NORTHBROOK LIFE INSURANCE COMPANY (DEPOSITOR) Know all men by these presents that the undersigned director of Northbrook Life Insurance Company constitutes and appoints Thomas J. Wilson, II, and Michael J. Velotta, and each of them (with full power to each of them to act alone) as his true and lawful attorney-in-fact and agent, with full power of substitution, for him in any and all capacities, to sign any registration statements of Northbrook Life Insurance Company and its Northbrook Variable Annuity Account II and any amendments thereto, and to file the same, with exhibits and other documents in connection therewith, with the Securities and Exchange Commission or any other regulatory authority as may be necessary or desirable, hereby ratifying and confirming all that each of said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof. April 5, 2001 /s/ JOHN C. LOUNDS - ------------------------------ John C. Lounds Director POWER OF ATTORNEY WITH RESPECT TO NORTHBROOK VARIABLE ANNUITY ACCOUNT II (REGISTRANT) AND NORTHBROOK LIFE INSURANCE COMPANY (DEPOSITOR) Know all men by these presents that the undersigned director of Northbrook Life Insurance Company constitutes and appoints Thomas J. Wilson, II, and Michael J. Velotta, and each of them (with full power to each of them to act alone) as her true and lawful attorney-in-fact and agent, with full power of substitution, for her in any and all capacities, to sign any registration statements of Northbrook Life Insurance Company and its Northbrook Variable Annuity Account II and any amendments thereto, and to file the same, with exhibits and other documents in connection therewith, with the Securities and Exchange Commission or any other regulatory authority as may be necessary or desirable, hereby ratifying and confirming all that each of said attorney-in-fact and agent, or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof. April 5, 2001 /s/ MARLA G. FRIEDMAN - ------------------------------------- Marla G. Friedman Director and Vice President POWER OF ATTORNEY WITH RESPECT TO NORTHBROOK VARIABLE ANNUITY ACCOUNT II (REGISTRANT) AND NORTHBROOK LIFE INSURANCE COMPANY (DEPOSITOR) Know all men by these presents that the undersigned director of Northbrook Life Insurance Company constitutes and appoints Thomas J. Wilson, II, and Michael J. Velotta, and each of them (with full power to each of them to act alone) as her true and lawful attorney-in-fact and agent, with full power of substitution, for her in any and all capacities, to sign any registration statements of Northbrook Life Insurance Company and its Northbrook Variable Annuity Account II and any amendments thereto, and to file the same, with exhibits and other documents in connection therewith, with the Securities and Exchange Commission or any other regulatory authority as may be necessary or desirable, hereby ratifying and confirming all that each of said attorney-in-fact and agent, or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof. April 5, 2001 /s/ MARGARET G. DYER - ---------------------------------- Margaret G. Dyer Director -----END PRIVACY-ENHANCED MESSAGE-----