EX-99.B(e)amendpua
July 8, 1999
Xx. Xxxxxx X. Xxxxxxx
President
Xxxxxxx & Xxxx, Inc.
0000 Xxxxx
Xxxxxxx Xxxxxxx, XX 00000
Dear Xxx:
As you requested, this letter will set forth some details of the agreement
that we reached over the telephone on Wednesday, July 7.
Compensation payable to Xxxxxxx & Xxxx beginning 1/1/2000
For variable annuity contracts issued beginning 1/1/2000:
7.75% of premiums received, plus
.25% annually of variable assets, paid monthly beginning the first
month
For the in force block of variable annuity business (i.e., issues of 1999
and earlier):
.20% annually of variable assets, paid monthly
Certain variable annuity product features
In addition to product features previously proposed, we agree to the
following:
* 1.25% mortality & expense charge
* .15% admin. charge
* 7 year surrender charge period, with surrender charge pattern of 7%,
6, 5, 4, 3, 2, 1, 0%
* $25 contract maintenance fee, waived for accounts >$25,000
By agreeing to the foregoing arrangements, we acknowledge that Xxxxxxx &
Xxxx has withdrawn its consideration of possible relationships on
attractive terms with other third party insurance companies in order to
establish a long-term relationship with us. In doing so, Xxxxxxx & Xxxx has
relied on our representations with respect to our commitment to provide,
jointly with Xxxxxxx & Xxxx, a first-class, competitive product that is
fully supported and serviced by sufficient resources, including personnel,
systems and technology. We acknowledge that Xxxxxxx & Xxxx will commit
substantial resources to market and provide a first-class, competitive
product to its customers, and we agree that we will work cooperatively with
Xxxxxxx & Xxxx towards this end. Among other things, we will cooperate with
Xxxxxxx & Xxxx and commit the reasonable resources necessary (a) to design,
create, implement and introduce products and product features that will be
first-class and competitive and (b) to enhance and improve such products
and product features as the market for insurance products and variable
insurance products evolves. In addition, we acknowledge that the breadth
and quality of client service is an integral component of providing a
first-class, competitive product. Accordingly, we also agree to commit the
reasonable resources necessary, including, but not limited to, personnel,
systems and technology, to develop and/or acquire and implement the
services necessary to support and service clients who purchase the products
jointly offered by Xxxxxxx & Xxxx and us, and to enhance and improve such
services in order to remain fully competitive.
Bob, I believe this fully describes the items that we discussed regarding
compensation and product features. If you are in agreement with the
foregoing terms and conditions, please sign this letter below and return a
copy to me as soon as possible.
Sincerely,
/s/ Xxxx XxXxxxxxx
------------------
Xxxxxxx X. XxXxxxxxx
Accepted and agreed to this 12th
day of July, 1999.
Xxxxxxx & Xxxx, Inc.
By: /s/ Xxxxxx X. Xxxxxxx
--------------------------
Its: President
