SECURITY BENEFIT
MARKETING ORGANIZATION AGREEMENT
COMMISSION SCHEDULE
THIRDFED VARIABLE ANNUITY (the "Contract')
Marketing Organization: UVEST INVESTMENT SERVICES
EFFECTIVE DATE OF COMMISSION SCHEDULE: January 1, 2006
COMMISSIONS - This Commission Schedule is hereby made a part of and amends the
Marketing Organization Agreement (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 out in the prospectus and Contract. Terms
used but not defined herein shall have the meaning given them in the prospectus.
Up front commissions to Marketing Organization are equal to the percentage of
Purchase Payments attributable to a Contract assigned to Marketing Organization,
as follows:
1. UP FRONT COMMISSIONS: The rate of commission paid on Purchase Payments made
with respect to each particular Contract is based on the issue age of the
oldest Owner (or of the Annuitant if the Contract is owned by a non-natural
person) and the allocation of each Purchase Payment as shown in the tables
below.
Purchase Payments Purchase Payments Purchase Payments Purchase Payments
Allocated to Allocated to Allocated to Fixed Allocated to Fixed
Separate Account or Separate Account or Account Account
DCA+ Accounts DCA+ Accounts
Contract Year Issue Age 0 - 80 Issue Age 81 - 85 Issue Age 0 - 80 Issue Age 81 - 85
Commission Rate* Commission Rate* Commission Rate* Commission Rate*
1 4.00% 1.90% 2.25% 1.00%
2 3.05% 1.40% 1.70% 0.75%
3 2.10% 0.95% 1.15% 0.45%
4 1.15% 0.45% 0.60% 0.20%
5 0.25% 0.00% 0.00% 0.00%
6 and thereafter 0.00% 0.00% 0.00% 0.00%
*No Commission will be paid on Purchase Payments made which are less than
the minimum specified in the prospectus.
2. ASSET BASED COMMISSIONS: SBL will pay an asset based commission at the
end of each calendar month on the aggregate Separate Account Contract Value of
Contracts which are at least 60 months old (measured from the Contract Date) for
which
Marketing Organization is the broker/dealer of record as shown by SBL's
books and records. On an annual basis, the asset-based commission will be equal
to the amounts set forth in the Tables below. The amount of the asset-based
commission is dependent on the age of the Contract in years and the allocation
of the Contract Value at the time the asset based commissions is determined. No
asset-based commission will be paid on Contracts which have annuitized under
Annuity Options 1 through 4, 7 or 8. An Annuitization Fee may be available as
discussed in paragraph 6.
Issue Age 0 - 85 Issue Age 0 - 85
Separate Account Fixed Account
Contract Value Contract Value
Contract Year Annual Rate Annual Rate
1 0.00% 0.00%
2 0.00% 0.00%
3 0.00% 0.00%
4 0.00% 0.00%
5 0.00% 0.00%
6 and thereafter 0.50% 0.00%
3. CONTRACT YEAR: For the purpose of this Commission Schedule, the term
"Contract Year" shall be measured from the date the first Purchase Payment
is credited to the 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 any SBL affiliate, or
upon the transfer of any other investment product for which Security
Distributors, Inc. (or an affiliate) has previously paid a commission,
applied to a Contract under this Commission Schedule.
5. ANNUALIZED AND ADVANCE COMMISSIONS: No commissions will be paid as an
annualizaiton based on regular planned premiums or advancement of
commission based on the estimation of an external fund transfer.
6. 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
annuity under Annuity Options 1 through 4, 7 or 8 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
payout Annuity Option and 2% of the amount applied to a variable payout
Annuity Option. However, notwithstanding anything else herein to the
contrary, no Annuitization Fee shall be payable with respect to a fixed
payout Annuity Option in the event that Annuity Payments under the Contract
are based on the guaranteed rates in the annuity tables (as opposed to
being based on current rates).
7. COMMISSION CHARGEBACK PROVISIONS: One hundred percent of the commission
paid shall be charged-back to Marketing Organization in the event of a free
look surrender. No Commission chargeback shall apply to any partial
withdrawals, full surrenders or death claims.
8. 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. This Commission
Schedule shall automatically terminate in the event that SBL is notified by
Third Federal Savings and Loan Association of Cleveland ("Third Fed") that
Marketing Organization no longer provides brokerage services to customers
of Third Fed. In the event that there is a change in this Commission
Schedule, the commission rate applicable to each allocation of a Purchase
Payment received as part of SBL's rate-lock program will be determined as
of the date the paperwork associated with the rate-lock program is signed
by the Owner, provided that the interest rate applicable in such instance
is higher than the rate would be without the rate-lock program.
THIS COMMISSION SCHEDULE replaces any previous Commission Schedule for the
Contract listed above as of the Effective Date set forth above.
SECURITY DISTRIBUTORS, INC. SECURITY BENEFIT LIFE INSURANCE COMPANY
By: ___________________________________ By: ___________________________
President Vice President
Title: ________________________________ Title: ________________________
