SBG LOGO
SECURITY BENEFIT LIFE
INSURANCE COMPANY
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A MEMBER OF THE SECURITY ONE SECURITY BENEFIT PLACE
BENEFIT GROUP OF COMPANIES TOPEKA, KANSAS 66636-0001
(000) 000-0000
MARKETING ORGANIZATION AGREEMENT
COMMISSION SCHEDULE
AdvanceDesigns Variable Annuity (the "Contract")
Marketing Organization:
EFFECTIVE DATE OF COMMISSION SCHEDULE:
COMMISSIONS - This Commission Schedule is hereby made a part of and amends your
selling agreement including, but not limited to, the SBL Variable Products Sales
Agreement and/or Marketing Organization Agreement, as applicable (hereinafter
called the "Agreement"), with Security Benefit Life Insurance Company and
Security Distributors, Inc. (hereinafter jointly called "SBL"), and commissions
payable hereunder are subject to the provisions contained in the Agreement and
this Commission Schedule. Minimum Purchase Payments are as set out in the
applicable prospectus and Contract. Commissions to a Marketing Organization are
equal to a percentage of each Purchase Payment written by Marketing
Organization, as follows:
1. UP FRONT COMMISSIONS: The rate of commissions paid on Purchase Payments
made with respect to each particular Contract is based on the issue age of
the Owner (or of the Annuitant if the Contract is owned by a non-natural
person) as set forth in the tables below. You may select one of Commission
Options A through D as shown in the table below at the time of application
for each Contract. If no selection is made on the application, SBL will pay
you pursuant to Option B. You may select a different option for each
Contract but may not change the Option in effect after the Contract is
issued.
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COMMISSION OPTION OPTION A OPTION B
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OWNER ISSUE AGE 0 - 80 81 - 90 0 - 80 81 - 90
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6.50% 2.50% 5.00% 2.50%
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COMMISSION OPTION OPTION C OPTION D
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OWNER ISSUE AGE 0 - 80 81 - 90 0 - 80 81 - 90
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2.50% 2.50% 0.00% 0.00%
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* No Commission will be paid on Purchase Payments made that are less than
the minimum specified in the applicable prospectus and Contract.
2. ASSET-BASED COMMISSIONS: Under Commission Options A (for issues ages 81
- 90 only), B, C and D, SBL will pay an asset-based commission as of the end of
each calendar month. The amount of the asset-based commission under each Option
is equal to 1/12 of the applicable percentage set forth in the table below times
the aggregate Contract Value of those Contracts sold under the applicable
Commission Option for which Marketing Organization is the broker of record and,
with respect to Options A, B and C only, the initial Purchase Payment is more
than 12 months old. For Option D only, the asset-based commission will be paid
as of the end of the first calendar month of the Contract Date. On an annual
basis, the asset-based commission is equal to the amount set forth in the Table
below. No asset-based commission will be paid on Contracts that have annuitized
under a life contingent annuity option. An Annuitization Fee may be available as
discussed in paragraph 7.
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COMMISSION OPTION OPTION A OPTION B
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OWNER ISSUE AGE 0 - 80 81 - 90 0 - 80 81 - 90
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0 bps 25 bps 25 bps 25 bps
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COMMISSION OPTION OPTION C OPTION D
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OWNER ISSUE AGE 0 - 80 81 - 90 0 - 80 81 - 90
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45 bps 25 bps 65 bps 60 bps
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3. CONTINGENT DEFERRED SALES CHARGE (CDSC) RIDER: For a Contract sold with a
CDSC Rider, the commission and asset-based commission schedules set forth
above do not apply. The following commission and asset-based commission
schedules will apply in lieu of those set forth above if a CDSC Rider is in
effect. The following commission rates are applicable based upon the CDSC
Rider selected. The amount of commission and asset-based commission varies
based upon the Duration set forth below, which is measured from the
Contract Date.
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UP FRONT ASSET-BASED
CDSC RIDER DURATION COMMISSION* COMMISSION**
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0 - year 0 - 12 months 2.00% 0 bps
13 months and thereafter 0.00% 100 bps
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3 - years 0 - 12 months 3.00% 0 bps
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13 - 24 months 2.00% 25 bps
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25 - 36 months 1.00% 25 bps
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37 months and thereafter 0.00% 100 bps
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* The commission is equal to the applicable percentage of each Purchase Payment
written by Marketing Organization based upon the applicable CDSC Rider in
effect.
** The amount of the asset-based commission is equal to 1/12 of the applicable
percentage set forth in the table above times the aggregate Contract Value of
those Contracts sold under the applicable CDSC Rider for which Marketing
Organization is the broker of record.
4. TRANSFER OF SBL CONTRACT VALUES (INTERNAL EXCHANGES): SBL does not
encourage exchanges; however, there may be times that another SBL product
may better meet your client's current needs. As a result, we will
compensate you for assisting your clients in reevaluating their financial
needs and making an exchange to a Contract under the circumstances set
forth below. (Please note that purchase of a CDSC Rider is not permitted in
connection with an internal exchange.) Transfer of value from the following
SBL products is allowed, and a new commission will be payable as outlined
below:
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SOURCE OF TRANSFER VALUES COMMISSION RATE*
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VARIFLEX, SECURITY MARK, VIVA AND GEMINI Full up front commission based
on Option A or B from the
Outside the applicable CDSC period tables above
PROVIDER I, PROVIDER III, PREMIER I, PREMIER III LESS 3.0%
Contracts in their 6th year or outside of CDSC period
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VA1, VA3, VA4, SECURITY GUARDIAN, SECURITY 80 AND Full up front commission based
CONSERVATOR on Option A or B from the
tables above
Outside the applicable CDSC period
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* No commission (including asset-based commission) is paid on the transfer of
cash, loan or surrender value of a life insurance or annuity contract issued by
SBL or other members of The Security Benefit Group of Companies applied to a
Contract under this Commission Schedule, except under the circumstances set
forth above.
5. CONTRACT DATE: For the purpose of this Commission Schedule, the term
"Contract Date" shall be the date the first Purchase Payment is credited to
the Contract.
6. DEATH BENEFIT APPLIED TO ANNUITY OPTION: In the event that a beneficiary of
a Contract under this Commission Schedule applies the death benefit to one
of the annuity options under the Contract, no commission will be payable
upon such application. An Annuitization Fee may be available as discussed
in paragraph 7.
7. ANNUITIZATION: An Annuitization Fee will be paid to a Marketing
Organization who secures from the Contract Owner (or his or her
beneficiary) the proper forms and information to commence an immediate life
contingent annuity option under the Contract and significantly assists the
client and SBL in such settlement. The Annuitization Fee will be equal to
4% of the amount applied to a fixed life contingent annuity option and 2%
of the amount applied to a variable life contingent annuity option.
8. COMMISSION CHARGEBACK PROVISIONS: No Commission chargebacks are applicable
to any partial withdrawals, full surrenders or death claims except in the
event of a free look surrender or for Contracts that have selected a CDSC
Rider. In the event of a full withdrawal during the first 18 months of a
Contract with a CDSC rider, SBL will charge back 100% of commissions paid
in connection with the Contract. In the event of a partial withdrawal that
exceeds the Free Withdrawal Amount as defined in the Contract during the
first eighteen (18) months of a Contract with a CDSC Rider, SBL will charge
back 100% of commissions paid in connection with the withdrawal amount that
exceeds the Free Withdrawal Amount. SBL will also charge back 100% of
commissions in the event of a free look surrender.
9. CHANGE OF COMMISSION SCHEDULE: Notwithstanding any other provision of the
Agreement to the contrary, the following provisions shall apply. SBL
reserves the right at any time, with or without notice, to change, modify
or discontinue the commissions, asset-based commissions or any other
compensation payable under this Commission Schedule. However, any such
change will not apply to the commissions or asset based commissions
applicable to Contracts issued before the effective date of such change.
10. CHANGE OF DEALER: A Contract Owner shall have the right to designate a new
marketing organization, or terminate a marketing organization without
designating a replacement, by sending written notice of such designation or
termination to SBL. Upon written notice to SBL by the owner of the
designation of a new marketing organization, all the commissions and
asset-based commissions shall be payable to the new marketing organization.
Upon written notice to SBL by the Contract Owner of termination of
Marketing Organization, without designating a new marketing organization,
SBL shall cease paying commissions and asset based commissions to Marketing
Organization.
11. TERMINATION OF THE AGREEMENT/VESTING: In the event of termination of the
Agreement for any reason, all rights to receive commissions, asset-based
commissions or other compensation under this Commission Schedule shall be
terminated, unless each of the following requirements is met: (i) the
Agreement has been in force for at least one year; (ii) Marketing
Organization is at the time such commissions are payable properly licensed
to receive such commissions; (iii) Marketing Organization is providing
service to the Contract Owner and performing its duties in a manner
satisfactory to SBL; (iv) commissions paid to Marketing Organization in the
previous calendar year amounted to at least $500; and (v) Marketing
Organization has not been terminated, nor a new marketing organization
designated, by the Contract Owner as set forth in paragraph 10 above.
THIS COMMISSION SCHEDULE replaces any previous Commission Schedule for the
Variable Annuity Contract listed above as of the Effective Date set forth above.
SECURITY DISTRIBUTORS, INC. SECURITY BENEFIT LIFE
INSURANCE COMPANY
By: XXXXXXX X. XXXXXX By: XXXXXXX X. XXXXXX
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Title: PRESIDENT Title: PRESIDENT
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