ANNUITY INVESTORS(R)
LIFE INSURANCE COMPANY
February 28, 2001
Xx. Xxx Xxxxx
Vice President/Manager Institutional Sales
INVESCO Funds Group, Inc.
0000 Xxxx Xxxxx Xxxxxx
Xxxxxx, Xxxxxxxx 00000
RE: INVESCO Variable Investment Funds, Inc. - Participation Agreement
Dear Xxx,
This purpose of this letter is to confirm certain financial arrangements,
effective as of February 1, 2001, between INVESCO Funds Group, Inc. ("INVESCO"),
the distributor for the INVESCO Variable Investment Funds, Inc. (the "Company"),
and Annuity Investors Life Insurance Company ("AILIC") in connection with
AILIC's investment in the Company through seven of its funds, INVESCO VIF-Equity
Income Fund, INVESCO VIF-Total Return Fund, INVESCO VIF-Dynamics Fund, INVESCO
VIF-Health Sciences Fund, INVESC0-VIF Financial Services Fund, INVESCO-VIF Small
Company Growth Fund, and INVESCO VIF-High Yield Fund (individually, a "Fund",
collectively, the "Funds"). This supercedes the letter dated June 6, 1997, from
AILIC to INVESCO, which described the previous financial arrangements between
INVESCO and AILIC.
Administrative services to owners of variable annuity contracts offered by AILIC
which are allocated into subaccounts invested in the Company shall be the
responsibility of AILIC. AILIC, on behalf of its separate accounts, will be the
sole shareholder of record of Company shares. The Company and INVESCO recognize
that they will derive a substantial savings in administrative expense by virtue
of having a sole shareholder rather than multiple shareholders.
In consideration of the administrative savings resulting from having a sole
shareholder rather than multiple shareholders, INVESCO or its affiliates will
pay an administrative service fee to AILIC equal, on an annual basis, to 0.25%
per annum of the average aggregate net assets of the Funds attributable to
variable annuity contracts offered by AILIC (collectively, "Eligible
Contracts").
000 Xxxx Xxxxx Xxxxxx, Xxxxxxxxxx, XX 00000
Mailing Address: P.O. Box 5423, Cincinnati, OH 45201-5423
(000) 000-0000 o FAX (000) 000-0000
Such fee will be paid on a monthly basis in arrears. In no event will such fee
be paid by the Company, its shareholders, or by the contract holders, and in no
event will INVESCO have any responsibility under the Participation Agreement
dated the 1st day May, 1997 or this letter to pay any amounts to any third party
with respect to investments in the Funds by AILIC or the Eligible Contracts.
Such payments, if any, shall be the responsibility of AILIC. INVESCO's payments
to AILIC are for administrative services only and do not constitute payment in
any manner for investment advisory services.
These financial arrangements shall continue so long as AILIC holds shares of the
Company in its subaccounts and AILIC therefore continues to provide
administrative services as set forth above. Please confirm your understanding of
this arrangement by having a copy of this letter signed where indicated below by
an appropriate officer of INVESCO, and then returning the duplicate copy to me.
Very truly yours,
ANNUITY INVESTORS LIFE INSURANCE COMPANY
By: /s/ Xxx Xxxxxxxxx
-----------------
Xxx Xxxxxxxxx
Vice President
Xxxxxxx Investors Life Ins. Co.
INVESCO Funds Group, Inc.
By: /s/ Xxxxxx X. Xxxxxx
--------------------
Name: Xxxxxx X. Xxxxxx
Title: Senior Vice President and Treasurer
ANNUITY INVESTORS(R)
LIFE INSURANCE COMPANY
Schedule A
Accounts
(As amended effective May 1, 2001)
Name of Separate Account and
Date Established by Board of Directors Name of Trust and Series
-------------------------------------- ------------------------
Annuity Investors Variable Account B INVESCO Variable Investment Funds, Inc.
December 19, 1996 Equity Income Fund
Total Return Fund (Existing Contracts
Only)
High Yield Fund
Dynamics Fund
Health Sciences Fund
Financial Services Fund
Small Cap Growth Fund
ACCEPTED:
INVESCO Variable Investment Funds, Inc. INVESCO Funds Group, Inc.
By: /s/ Xxxxxx X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxx
-------------------- --------------------
Name: Xxxxxx X. Xxxxxx Name: Xxxxxx X. Xxxxxx
Title: Treasurer Title: Senior Vice President and
Date: March 19, 2001 Treasurer
Date: March 19, 2001
000 Xxxx Xxxxx Xxxxxx, Xxxxxxxxxx, XX 00000
Mailing Address: P.O. Box 5423, Cincinnati, OH 45201-5423
(000) 000-0000 o FAX (000) 000-0000
