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A Member of The Security 000 XX Xxxxxxxx Xx.
Benefit Group of Companies Xxxxxx, Xxxxxx 00000-0000
(000) 000-0000
SBL VARIABLE PRODUCTS
BROKER/DEALER
SALES AGREEMENT
BROKER/DEALER:
EFFECTIVE DATE:
1. Security Benefit Life Insurance Company, of Topeka, Kansas, and its
affiliated company, Security Distributors, Inc., hereinafter jointly called
"SBL", hereby authorize the above-designated Broker/Dealer to solicit and
service (1) variable annuities issued under Security Benefit Life Insurance
Company's several Variable Annuity Accounts and (2) variable life insurance
policies issued under Security Benefit Life Insurance Company's variable
life accounts, each of which has been registered as securities under the
Securities Act of 1933 with Security Distributors, Inc. (a member of the
National Association of Securities Dealers, Inc.) having been designated
Principal Underwriter thereof. Said variable annuity contracts and variable
life insurance policies are referred to herein as "Variable products."
2. Broker/Dealer hereby accepts such authorization to solicit and service such
SBL variable products and confirms that it is properly licensed to solicit
and service such variable products for SBL and is a member in good standing
of the National Association of Securities Dealers, Inc., hereinafter called
"NASD", and further agrees to notify SBL if it ceases to be a member of
NASD.
3. Broker/Dealer shall have the authority to recruit, train and supervise
registered representatives for the sale of variable products of SBL.
Appointment of any registered representative shall be subject to prior
approval of SBL. SBL reserves the right to require termination of any
registered representative's right to sell SBL variable products.
Broker/Dealer shall be responsible for any registered representative
appointed hereunder complying with the terms, conditions and limitations as
set forth in this Agreement. All registered representatives recruited by
Broker/Dealer to sell SBL's variable products shall be duly licensed as
annuity producers and/or insurance producers pursuant to applicable state
laws and regulations. Broker/Dealer shall be responsible for any registered
representative becoming so licensed.
4. Commissions on stipulated payments or premiums accepted by SBL on behalf of
an annuitant, participant, or policyholder of a variable product covered by
this Agreement will be in accordance with the Schedule of Commissions made
part of this Agreement, and are in full consideration of all services
rendered and expenses incurred hereunder by the Broker/Dealer or its
representatives. First year commissions are payable when an individual
variable annuity contract, group variable annuity certificate or variable
life insurance policy is issued and paid for upon an application submitted
through Broker/Dealer and accepted by the applicant thereof. Broker/Dealer
is not authorized to deduct commissions prior to forwarding any remittance
received to SBL. All checks or drafts received by the Broker/Dealer in
regards to any variable product shall be made payable to Security Benefit
Life Insurance Company. All compensation payable hereunder shall be subject
to a first lien and may be reduced or set off as to any indebtedness owed
by the Broker/Dealer to SBL. Any commissions paid to a third party at the
request of the Broker/Dealer shall be deducted from the commissions payable
hereunder.
5. Broker/Dealer agrees to be bound by the terms, conditions and limitations
set forth in this Agreement and the rules and practices of SBL that are now
and hereafter in force. Broker/Dealer agrees not to solicit or submit
applications for variable products to SBL unless it and its registered
representatives are properly licensed, and further agrees that it will
conform to all applicable state, federal and local laws and regulations in
conducting business under this Agreement. Both parties hereby agree to
abide by the applicable Rules of Fair Practice of the NASD which Rules are
incorporated herein as if set forth in full. The signing of this Agreement
and the purchase of variable products pursuant thereto is a representation
of SBL that Broker/Dealer is a properly registered Broker/Dealer under the
Securities and Exchange Act of 1934.
6. Neither the Broker/Dealer nor its representatives are authorized to make
any representations concerning the variable products, its sponsor (SBL),
the principal underwriter (Security Distributors, Inc.) or the underlying
mutual funds except those contained in the applicable current prospectuses
and in the printed information furnished by SBL. Broker/Dealer agrees not
to use any other advertising or sales material relating to the variable
products unless specifically approved in writing by SBL.
VA6972 (R3-87)
7. Broker/Dealer is not authorized and has no authority (a) to make, alter or
discharge any contract for or on behalf of SBL, (b) endorse any check or
draft payable to SBL, (c) to accept any variable product consideration
after the initial remittance, (d) to waive or modify any prospectus,
contract, policy or application provision, condition or obligation, and (e)
to extend the time for payment of any variable product consideration or
accept payment of any past due variable product consideration.
8. This Agreement shall not create or be construed as creating an
Employer-Employee or Master-Servant relationship between Broker/Dealer and
SBL.
9. Broker/Dealer agrees to keep accurate records on all business written and
moneys received under this Agreement. Such records may be examined by SBL
or its representatives at any reasonable time. All moneys and documents
belonging to SBL in possession of Broker/Dealer shall be held in trust and
shall not be used or commingled with funds or property belonging to
Broker/Dealer and shall be promptly remitted to SBL. Broker/Dealer agrees
to be responsible for any county or municipal occupational or privilege
fee, tax or license which may be required of Broker/Dealer or its
representatives as a result of business submitted under this Agreement.
10. Neither this Agreement nor the compensation payable hereunder shall be
assigned or pledged without the written consent of SBL. SBL reserves the
right to reject any assignment or pledge.
11. No consent or change in this agreement shall be binding upon SBL unless in
writing and signed by the president, a vice president, secretary or an
assistant secretary of SBL. Any failure of SBL to insist upon strict
compliance with the provisions of this Agreement shall not constitute or be
construed as a waiver thereof.
12. SBL shall have the right to decline or modify any application or to refund
any variable product consideration or any portion thereof, and
Broker/Dealer shall refund immediately upon request any commissions
received in connection therewith. All applications for variable products
are subject to acceptance by SBL and become effective only upon
confirmation by SBL. Broker/Dealer agrees to return to SBL without delay
any commissions received on a variable product, contract or policy if such
contract or policy is tendered for redemption within seven (7) business
days after acceptance of the application by SBL.
13. Variable products, contracts and policies will be offered to the public at
the price as outlined in the applicable variable product's current
prospectus. All cash surrenders require the written request and consent of
the contract or policy owner and such surrenders will conform to the
provisions set forth in the applicable contract or policy.
14. SBL has been and is designated Administrative Agent of Security
Distributors, Inc. to perform duties, including recordkeeping and payment
of commissions, necessary under this Agreement in connection with the
solicitation, sales and servicing of variable annuity contracts sold and
solicited hereunder.
15. SBL reserves the right to amend or terminate this Agreement at any time. In
the event Broker/Dealer ceases to be a member in good standing of the NASD,
this Agreement shall terminate automatically without notice. After
termination Broker/Dealer upon request, shall without delay pay in full any
indebtedness owed to SBL and return all SBL property to their home office.
In the event Broker/Dealer ceases doing business in such manner that
servicing would be impossible, SBL reserves the right to reassign the
business and service fees to another Broker/Dealer. Should Broker/Dealer
fail to comply with any of the terms of this Agreement, SBL reserves the
right to terminate this Agreement and terminate vesting as to all
commissions payable thereunder.
16. This Agreement is effective as of the Effective Date set forth above and
replaces any previous agreement between the parties relating to variable
products of SBL except as to any commissions payable thereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the Effective Date set forth above.
SECURITY DISTRIBUTORS, INC. BROKER/DEALER
By XXXXXXX X XXXX
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Title: President (Signature of Principal)
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SECURITY BENEFIT LIFE INSURANCE COMPANY (Name of Principal)
By XXXXXXX X XXXX
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Title: Senior Vice President Title:
|_| Individual |_| Corporation
|_| Partnership
Tax Identification No.
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A Member of The Security 000 XX Xxxxxxxx Xx.
Benefit Group of Companies Xxxxxx, Xxxxxx 00000-0000
(000) 000-0000
SBL VARIABLE PRODUCTS
COMMISSION SCHEDULE
VARIFLEX ES VARIABLE ANNUITY
Individual and Group Allocated
Broker/Dealer:
EFFECTIVE DATE OF COMMISSION SCHEDULE:
COMMISSIONS - This Commission Schedule is hereby made part of and amends the SBL
Variable Products Agreement (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 out in the applicable prospectus and contract. Commissions
to a Broker/Dealer are equal to a percentage of Purchase Payments written by
that Broker/Dealer, as follows:
1. The rate of commission paid on Purchase Payments made with respect to each
particular Variflex ES Contract during all Contract Years for all regular
installment payments, lump sums and other irregular payments added to an
individual installment payment contract or certificate of a group contract:
Commission Rate: 4.00%
*No Commission will be paid on Purchase Payments made which are less than
the minimum amount specified in the prospectus and contract.
2. ASSET BASED COMMISSIONS: SBL will pay an asset based commission at the end
of each calendar month on the aggregate Contract Value of Variflex ES
Contracts as of that date for which Broker/Dealer is listed on SBL's records
as the broker of record. On an annual basis, the asset based commission will
be equal to the amounts set forth below. The amount of the asset based
commission and its beginning date with respect to assets under a Contract
will vary based upon whether assets are allocated to the separate account
("Variable Assets") or the fixed account ("Fixed Assets"). No asset based
commission will be paid on Contracts which have annuitized under a life
contingent option. An Annuitization Fee may be available as discussed in
paragraph 5.
ANNUAL BEGINNING DATE
RATE (MEASURED FROM CONTRACT DATE)
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Aggregate Value of Variable Assets .25% 1st month
Aggregate Value of Fixed Assets .15% 61st month
3. CONTRACT YEAR: For the purpose of this Commission Schedule, the "Contract
Year" shall be measured from the "Contract Date" which is the date the first
Purchase Payment is credited to a Contract.
4. TRANSFER OF SBL CONTRACT VALUES: No commission (including asset based
commission) is paid on the transfer of cash, loan or surrender value of a
life insurance or annuity contract issued by SBL or other members of The
Security Benefit Group of Companies applied to a Variflex ES Contract under
this Commission Schedule.
Death Benefit Applied to an Annuity Option: In the event that a beneficiary
under a Variflex ES Contract under this Commission Schedule applies the
death benefit to one of the annuity forms under the Contract, no commission
will be payable upon such application. An Annuitization Fee may be available
as discussed in paragraph 5.
5. ANNUITIZATION: An Annuitization Fee will be paid to Broker/Dealers who
secure from the Contract Owner (or his or her beneficiary) the proper forms
and information to commence an immediate life contingent annuity option and
has significantly assisted 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.
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. However, any such
change will not apply to the commissions or asset based commissions
applicable to Contracts issued before the effective date of such change.
7. CHANGE OF DEALER: A Contract Owner shall have the right to designate a new
broker/dealer, or terminate a broker/dealer without designating a
replacement, by sending written notice of such designation to SBL. Upon
written notice to SBL by the owner of the designation of a new
broker/dealer, all the commissions and asset based commissions shall be
payable to the new broker/dealer. Upon written notice to SBL by the owner of
termination of Broker/Dealer, without designating a new broker/dealer, SBL
shall cease paying commissions and asset based commissions to Broker/Dealer.
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) Broker/Dealer is at
the time such commissions are payable properly licensed to receive such
commissions; (iii) Broker/Dealer is providing service to the Contract Owner
and performing its duties in a manner satisfactory to SBL; (iv) commissions
paid to Broker/Dealer in the previous calendar year amounted to at least
$500; and (v) Broker/Dealer has not been terminated, nor a new broker/dealer
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: XXXXXXX X XXXX By: XXXXXXX X XXXX
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Title: PRESIDENT Title: SENIOR VICE PRESIDENT - SALES
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