FIRST AMENDMENT
TO
GENERAL AGENT SALES AGREEMENT
FIRST AMENDMENT TO GENERAL AGENT SALES AGREEMENT, dated as of _________
__, 2006, by and between MONY LIFE INSURANCE COMPANY OF AMERICA, an Arizona life
insurance company, ("MONY America") and AXA NETWORK, LLC and the additional
affiliated entities of AXA Network, LLC executing this Agreement below
(collectively, the "General Agent").
MONY America and General Agent hereby modify and amend the General
Agent Sales Distribution Agreement dated as of June 6, 2005 between them (the
"Sales Agreement") as follows:
1. Section 5.5 of the Sales Agreement is restated in its entirety as
follows:
ss.5.5 Replacements. The General Agent shall not, and shall not permit
any Agent to, encourage any customer to surrender or replace a life insurance
policy or annuity contract issued by MONY America or any affiliate thereof in
order to purchase a Contract or, conversely, to surrender or exchange a Contract
in order to purchase another life insurance policy or annuity contract issued by
MONY America or any affiliate thereof, except to the extent such surrenders or
exchanges are permitted pursuant to and made in accordance with MONY America's
Policies and Procedures. No compensation will be paid on Replacement Contracts
(as hereinafter defined) sold hereunder, except as expressly provided in
Schedule 5 of Exhibit A. As used herein, a "Replacement Contract" means any
permanent or term life insurance policy or annuity contract sold pursuant to
this Agreement prior to or following the lapse, surrender, policy change or
exchange of any other policy or annuity on the same insured issued by MONY
America or any affiliate thereof or any policy which is continued in force using
the non-forfeiture benefits of the policy or by use of dividends for payment of
premiums. The conversion of a term policy to a permanent policy is not a
Replacement Contract for the purposes of this Section.
2. Section 5.8 of the Sales Agreement is restated in its entirety as
follows:
ss.5.8 Delivery of Contracts. The General Agent will deliver Contracts,
in accordance with MONY America's Policies and Procedures, to the persons named
thereon as the owners of such Contracts as soon as reasonably possible, but in
no event more than then (10) days after receipt from MONY America. Any
compensation paid will be recovered in full if all delivery requirements are not
received at MONY America's administrative office by the due date. The General
Agent will advise the owner of a newly issued variable Contract that MONY
America cannot honor investment instructions from the owner unless a signed
application or receipt has
previously been received from the owner or the instructions are signed by the
owner and accompanied by a signature guaranty in a form acceptable to MONY
America.
3. Section 5.9 of the Sales Agreement is restated in its entirety as
follows:
ss.5.9 Refunds of Premiums. In the event that MONY America rejects an
Application or a customer exercises his or her free look right under a Contract
in a timely manner, MONY America will refund any Premium paid less any loan and
accrued loan interest, received by MONY America on account of such Application
or Contract to the person designated in the Application as the Contract owner.
In states that permit a return of the Policy Account Value, MONY America will
refund the Policy Account Value plus any monthly deductions plus any charges
deducted from premium less any loan and accrued loan interest on account of such
Application or Contract to the person designated in the Application as the
Contract owner.
4. The following compensation schedule is added to Schedule 1 of
Exhibit A of the Sales Agreement, effective as of the date hereof, for sales of
MONY America IL Legacy variable life insurance.
Type of Premium Percentage
--------------- ----------
MLOA IL Legacy
First policy year up to Target(1) 125.0%
Excess Premiums (Policy Year 1) 4.0%
Renewals
Policy Years 2-10 2.8%
Policy Years 11+ 2.0%
Asset Based Trailer(2)
Policy Years 1-5 0.0%
Policy Years 6-10 0.15% (annualized rate)
Policy Years 11+ 0.05% (annualized rate)
5. The compensation schedule in Schedule 1 of Exhibit A of the Sales
Agreement for new sales of MONY America Group UL is restated in its entirety,
effective as of the date hereof, as follows:
---------------------------
(1) In the event the face amount of any Incentive Life Legacy policy in
increased after issuance, the first-year compensation rate will apply to the
portion of the requested face amount increase which exceeds the highest
historical face amount. The Policy Year for the increase begins on the day the
face amount increase is effective (i.e., the first day of the first month
following the approval of the face amount increase). Each eligible face amount
increase adds a separate commissionable layer to the policy. First Year and
renewal compensation is paid on the portion of the premium attributed to the
face amount increase as set forth above. The rate we pay on a face amount
increase is the rate that is in effect on the date the face amount increase is
effective.
(2) Based on the unloaned policy account value.
2
Type of Premium Percentage
--------------- ----------
Group UL
First Seven Policy Years up to Target 20.0%
Excess Premiums (Policy Years 1 -7) 1.4%
Renewal Policy Years 8+ 4.8%
6. Schedule 5 attached hereto is added to Exhibit A of the Sales
Agreement with respect to compensation on replacements.
Except as modified and amended hereby, the Sales Agreement is in full
force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective duly authorized officers.
MONY LIFE INSURANCE COMPANY AXA NETWORK, LLC
OF AMERICA AXA NETWORK OF CONNECTICUT,
MAINE AND NEW YORK, LLC
By: ______________________________ AXA NETWORK INSURANCE
Xxxxxxx X. Xxxxx AGENCY OF MASSACHUSETTS, LLC
Vice Chairman and AXA NETWORK OF PUERTO RICO, INC.
Chief Financial Officer AXA NETWORK INSURANCE AGENCY
OF TEXAS, INC.
By: ___________________________
Xxxxxx Xxxxx
Chairman of the Board
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EXHIBIT A
SCHEDULE 5
EFFECTIVE AS OF ______________ 1, 2006 date here and below needs to be same as
page 1
General Agent Compensation on Replacements
This Schedule 5 of Exhibit A is effective as of __________ 1, 2006 and is
attached to and made part of the General Agent Sales Agreement dated January 1,
2000 by and between MONY America Life Insurance Company and AXA Network, LLC.
Compensation to the General Agent in connection with the sale and
servicing of Replacement Contracts will be calculated on a policy by policy,
contract by contract and certificate by certificate basis as a percentage of the
premiums or consideration received by MONY America in respect of such policy,
contract or certificate as more particularly set forth in the following table.
As used herein, "Replacement Value" means (a) if a permanent product is replaced
by another permanent product, the amount due and payable to or for the benefit
of the named insured under the terms of the policy or annuity being replaced
upon its lapse, surrender, conversion or exchange, as the case may be, less any
loans and accrued loan interest and (b) if a term product is replaced by a term
product, the amount of the first year premium paid under the terms of the
product being replaced. In calculating compensation, the Replacement Value will
be applied first to the Qualifying First Year Premiums up to Target, then to the
Excess Premiums, before any new money is applied.
Life Insurance Replacement
Policies
Qualifying First Year 25% up to the Replacement Value, Schedule 1
Premiums up to Target compensation on new money.
Excess Premiums 3% up to the Replacement Value, Schedule 1
compensation on new money
Renewals Schedule 1 compensation
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