EXHIBIT (i)(2)(b)
ADDENDUM NO. I
TO
SERVICE AND EXPENSE AGREEMENT
between
AMERICAN HOME ASSURANCE COMPANY
AMERICAN INTERNATIONAL INSURANCE COMPANY
BIRMINGHAM FIRE INSURANCE COMPANY OF PENNSYLVANIA
COMMERCE AND INDUSTRY INSURANCE COMPANY
NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.
THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA
TRANSATLANTIC REINSURANCE COMPANY
and
AMERICAN INTERNATIONAL GROUP, INC.
The Service and Expense Agreement made February 1, 1974 between American
Home Assurance Company, American International Insurance Company, Birmingham
Fire Insurance Company of Pennsylvania, Commerce and Industry Insurance
Company, National Union Fire Insurance Company of Pittsburgh, Pa., The
Insurance Company of the State of Pennsylvania, Transatlantic Reinsurance
Company and American International Group, Inc. is hereby amended in the
following respects:
1. Paragraph 1(a) is hereby amended to read in its entirety as follows:
"(a) Electronic data processing, advertising, marketing and public relations,
Treasurer's Department, accounting, actuarial, tax and audit services, Law
Department, Investment Department, claims, underwriting and production
services, engineering, methods and procedures services, systems and planning,
corporate insurance including placement, reporting of claims and administration
of coverages for all desired forms of property and casualty and architectural
and decorating services, the cost of which shall be allocated on the basis of
time studies;".
2. Paragraph 1(g) is hereby amended to read in its entirety as follows:
"(g) A Personnel Department, the recruiting costs of which shall be allocated
by a weighted average based upon the number of employees hired and the amounts
expended in searching, and the administrative costs of which shall be allocated
in. proportion to the number of employees on the payroll;".
3. Paragraph 5 is hereby amended to read in its entirety as follows:
"5. There shall be quarterly xxxxxxxx by AIG to the Companies for all the
services and functions hereinabove specified. The Companies shall pay monthly
to AIG an installment advance on the current quarter's billing equal to
approximately one-third of the quarter's total billing determined on the basis
of previous xxxxxxxx. The amount of the quarterly billing, less installment
payments shall be payable upon receipt of billing by the Companies."
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IN WITNESS WHEREOF, the parties hereto have caused this Addendum to be
executed in New York, New York by their duly authorized representatives this
21st day of May, 1975.
AMERICAN HOME ASSURANCE COMPANY by: /s/
---------------------------------
Vice President
AMERICAN INTERNATIONAL INSURANCE
COMPANY by: /s/
---------------------------------
Vice President
BIRMINGHAM FIRE INSURANCE COMPANY
OF PENNSYLVANIA by: /s/
---------------------------------
Vice President
COMMERCE AND INDUSTRY INSURANCE by: /s/
COMPANY ---------------------------------
Vice President
NATIONAL UNION FIRE INSURANCE
COMPANY OF PITTSBURGH, PA. by: /s/
---------------------------------
Vice President
THE INSURANCE COMPANY OF THE
STATE OF PENNSYLVANIA by: /s/
---------------------------------
Vice President
TRANSATLANTIC REINSURANCE COMPANY by: /s/
---------------------------------
Vice President
AMERICAN INTERNATIONAL GROUP, INC. by: /s/
---------------------------------
Vice President & Comptroller
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