EXHIBIT (8)(r)
[ON ANNUITY INVESTORS LETTERHEAD]
June __, 1997
Xxxxx X. Xxxxxxxxx
Vice President/Assistant General Counsel
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 between
INVESCO Funds Group, Inc. ("INVESCO"), the distributor for the INVESCO Variable
Investment Funds, Inc. (the "Company"), and Annuity Investors Life Insurance
Company ("Annuity") in connection with Annuity's investment in the Company
through three of its portfolios, INVESCO VIF-Industrial Income Portfolio,
INVESCO VIF-Total Return Portfolio and INVESCO VIF-High Yield Portfolio
(individually, a "Portfolio", collectively, the "Portfolios").
Administrative services to owners of variable annuity contracts offered by
Annuity which are allocated into subaccounts invested in the Company shall be
the responsibility of Annuity. Annuity on behalf of its separate accounts will
be the sole shareholder of record of Company shares. The Fund 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 Annuity equal, on an annual basis, to 0.20%
per annum of the average aggregate net assets of the INVESCO VIF-Industrial
Income and INVESCO VIF-Total Return Portfolios, and a service fee equal, on an
annual basis, equal to 0.15% per annum of the average aggregate net assets of
the INVESCO VIF-High Yield Portfolio, in each case on average aggregate net
assets attributable to variable annuity contracts offered by Annuity
(collectively, "Eligible Contracts").
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 May 30, 1997 or this letter to pay any amounts to any third party with
respect to Annuity' or the Eligible Contracts' investments in the Portfolios.
Such payments, if any, shall be the responsibility of Annuity. INVESCO's
payments to Annuity are for administrative services only and do not constitute
payment in any manner for investment advisory services.
INVESCO shall have no obligation to make the above payments until such time as
the average net assets of a Portfolio reach $30 million. Beginning at such time,
INVESCO will make payments on the average aggregate net assets attributable to
the Eligible Contracts that hold investments in such Portfolio.
These financial arrangements shall continue so long as Annuity holds shares of
the Fund in its subaccounts and Annuity 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 return this duplicate copy to me.
Very truly yours,
[Annuity Investors Signator]
[Title]
INVESCO Funds Group, Inc.
BY:
Name: Xxxxxx X. Xxxxxx
Title: Senior Vice President and Treasurer
