[SBL LOGO] SECURITY BENEFIT LIFE
INSURANCE COMPANY
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A MEMBER OF THE SECURITY ONE SECURITY BENEFIT PLACE
BENEFIT GROUP XX XXXXXXXXX XXXXXX, XXXXXX 00000-0000
(000) 000-0000
MARKETING ORGANIZATION AGREEMENT
COMMISSION SCHEDULE
NEA Valuebuilder Retirement Income Director
Variable Annuity (the "Contract")
Marketing Organization:
(Broker/Dealer)
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 forth 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 A. You may select a different option for each Contract
but may not change the Option in effect after the Contract is issued.
Advancing of commissions on 1035 exchanges and annualizing of commissions
for recurring deposits are not available with regard to sales of this
Contract.
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COMMISSION OPTION OPTION A OPTION B OPTION C OPTION D
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OWNER ISSUE AGE 0-80 0-80 0-80 0-80
8.00% 6.00% 4.00% 2.00%
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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, or for
Purchase Payments made on a Contract for which the issue age of the Owner
and/or Annuitant is older than age 80.
2. ASSET-BASED COMMISSIONS: Under Commission Options 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 for
which the initial Purchase Payment is more than 12 months old. 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 4.
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COMMISSION OPTION OPTION A OPTION B OPTION C OPTION D
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OWNER ISSUE AGE 0-80 0-80 0-80 0-80
00 bps 25 bps 50 bps 75 bps
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3. 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 4.
4. 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.
5. COMMISSION CHARGEBACK PROVISIONS: No Commission charge backs are applicable
to any partial withdrawals, full surrenders or death claims except in the
event of a free look surrender. SBL will charge back 100% of commissions in
the event of a free look surrender.
6. 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.
7. 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 Contract 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.
8. 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 7 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: /s/ Xxxxxxx Xxxxxx By: /s/ Xxxxxxx Xxxxxx
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Title: President Title: Vice President
8859 (R3-31-04) 00-00000-00
