Exhibit 10.9
[LOGO] Xxxxxxx X. XxXxxxxxx FSA, MAAA
PRESIDENT
000-000-0000
FAX 000-000-0000
UNITED INVESTORS LIFE 2001 THIRD AVENUE SOUTH (35233) POST OFFICE BOX 10207,
BIRMINGHAM, ALABAMA 35202-0207
July 8, 1999
Xx. Xxxxxx Xxxxxxx
President
Xxxxxxx & Xxxx, Inc.
0000 Xxxxx
Xxxxxxx Xxxxxxx, XX 00000
Dear Bob:
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 GREATER THAN $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has withdrawn its consideration of possible relationships on attractive terms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,
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July 8, 1999
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
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Its: President
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