EXHIBIT (a)(7)
AMENDED AND RESTATED ACCOUNTING, VALUATION, REPORTING AND
TREASURY SERVICES AGREEMENT
As of January 1, 1999
The Equitable Life Assurance Society of the United States
1290 Avenue of the Americas
Xxx Xxxx, XX 00000
AMENDED AND RESTATED ACCOUNTING, VALUATION, REPORTING AND
TREASURY SERVICES AGREEMENT FOR THE GENERAL ACCOUNT AND
CERTAIN SEPARATE ACCOUNTS OF THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
Dear Sir or Madam:
Alliance Capital Management L.P. (together with any affiliated
successor to its business, "Servicer") and The Equitable Life Assurance
Society of the United States ("Client") hereby confirm our mutual agreement as
set forth below.
Client desires to avail itself of Servicer's experience, assistance
and facilities with respect to certain accounting, valuation and reporting and
treasury services set forth on Schedules A through E, annexed to and made part
of this Agreement, to be provided for Client's General Account and certain of
its Separate Accounts specified in such schedules. Servicer is willing to
perform such services upon the terms and conditions set forth below.
It is understood and agreed that, on January 1, 1997, Equitable
Variable Life Insurance Company ("EVLICO") was merged into Client and that,
pursuant to the merger, Client succeeded to EVLICO's obligations under the
Accounting, Valuation, Reporting and Treasury Services Agreement of the
General Account of EVLICO dated July 22, 1993, as amended (the "EVLICO
Agreement"). It is further understood and agreed that, by execution of this
Agreement, the relevant provisions of the EVLICO Agreement are incorporated
herein and the EVLICO Agreement is hereby terminated.
1. Client agrees to pay Servicer's fees (the "Fees") for providing
the services set forth on Schedules A through E. During the initial 12-month
period of this Agreement, as amended and restated, the annual Fees for the
services set forth on Schedules A through D will be as set forth below and the
annual Fee for the services set forth on Schedule E will be determined in
accordance with the fee rate section of Schedule E.
1
Schedule A For these services provided for the assets in the General
Account and Separate Accounts 43, 46 and 48 (the "Primary Assets"),
$4,972,000. Client agrees to pay bank custody fees.
Schedule B For these services provided for (i) Association Plan
assets as to which neither Servicer nor a subsidiary of Servicer
provides investment advisory services (the "Unmanaged Association
Plan Assets") and (ii) Annuity Separate Account assets as to which
neither Servicer nor its subsidiary provides investment advisory
services, $15,000 for Mellon Bank Account 157, $20,000 each for
British American Account 176A and Ethyl Corp. Account 177A, and
$30,000 for each other Association Plan account or Annuity Separate
Account with another investment adviser. Client also agrees to pay
with respect to these assets outside audit fees and bank custody fees
(unless the contract with Client's client provides that such charges
shall be borne by such client).
Schedule C For these services provided for Association Plan assets in
Pooled Separate Accounts as to which Servicer or its subsidiary
provides investment advisory services, $15,000 for each Association
Plan account.
Schedule D For these services provided for assets in (i) the
investment divisions of Separate Account A and of Separate Account
301 which invest in the corresponding portfolios of The Xxxxxx River
Trust and (ii) Equipension Q and G which participate in Pooled
Separate Accounts 4 and 5 as to which Servicer or its subsidiary
provide investment advisory services, $164,000.
Schedule E For these treasury services provided for the Primary
Assets and the Unmanaged Association Plan Assets, the fee determined
by applying the fee rate schedule of Schedule E separately to the
Primary Assets allocated to each segment of Client's General Account
as to which Servicer or its subsidiary provides investment advisory
services, to the invested assets in Client's General Account as to
which Client's Treasurer provides investment advisory services, and
to the Unmanaged Association Plan Assets.
Schedule F For these services provided for the assets in (i) Separate
Account PVT, $40,000 and (ii) Separate Account P-1, $32,000. All bank
custody fees for separate accounts PVT and P-1 are not to be charged
to Client but rather to such Separate Accounts.
The Fees for each successive 12-month period in which this Agreement,
as amended and restated, is in effect will be adjusted as mutually agreed by
Client and Servicer. It is understood that the Fees are based upon certain
assumptions relating to the number of accounts, transactions and assets. It is
agreed that if the nature of these services change at any time during any
12-month period, otherwise than solely as a result
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of an increase in asset base, then Servicer shall receive from Client an
increase for providing services under this Agreement for such period. All
adjustments to the Fees in subsequent periods or for changes in the nature of
the services during any period shall be based on either (i) fees being charged
by Servicer to other clients for similar services, or (ii) if Servicer is not
providing similar services to other clients, then on Servicer's costs (direct
and indirect) and expenses incurred in furnishing services pursuant to this
Agreement. In determining such costs and expenses, specific identification or
estimates based on time, company assets, square footage or other mutually
agreeable methods providing for a fair and reasonable allocation of costs may
be used, provided such method is in conformity with generally accepted
accounting principles and with the requirements of Section 1505(a) of the New
York Insurance Law and New York Insurance Department Regulation No. 33.
2. The monthly amount due is calculated at 1/12 of that 12-month
period's annual amount due on the Fees and shall be billed within 15 days of
the end of the preceding calendar month. Each xxxx shall be due and payable on
the thirtieth day after the end of the preceding calendar month and will
accrue interest on the unpaid balance from the due date at a compounded
interest rate which is the equivalent of the prime rate announced from time to
time by The Chase Manhattan Bank, N.A. if not paid by the due date. If the
initial period is shorter than a calendar month, the amounts due for such
period are the monthly payments prorated to the end of the calendar month. The
amounts due for periods shorter than a calendar month due to termination of
this Agreement are the monthly amounts prorated to the termination date. Such
amounts are due and payable upon termination of this Agreement.
3. Client shall have the right to conduct a review of the books,
records and accounts of Servicer relating to provision of services hereunder
upon giving reasonable notice of its intent to conduct such a review. In the
event of such review, Servicer shall give to Client reasonable cooperation and
access to all books, records and accounts necessary to the review.
4. Each party shall be and remain sole owner of its records,
including but not limited to business and corporate records, regardless of the
use or possession by either party of the other party's records in connection
with the services provided under this Agreement. Upon termination of this
Agreement, Servicer shall deliver to Client, or as Client may direct, all of
Client's records held by it in the course of providing services under this
Agreement.
5. Should an irreconcilable difference of opinion between Servicer
and Client arise as to the interpretation of any matter respecting this
Agreement, it is hereby mutually agreed that such differences shall be
submitted to arbitration as the sole remedy available to both parties. Such
arbitration shall be in accordance with the rules of the American Arbitration
Association, the arbitrators shall have extensive experience in the
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insurance and/or investment advisory industries, and the arbitration shall
take place in New York, New York.
6. No assignment of this Agreement shall be made by either party,
except that the Servicer may assign this Agreement to an affiliated successor
to its business.
7. Servicer may contract with one or more of its wholly owned
subsidiaries for the performance of its obligations hereunder, provided that
the terms and conditions of such contracts shall not be inconsistent herewith
and that Servicer shall not be relieved of its duties and obligations to
Client hereunder. Servicer shall be solely liable for all fees owed by it
under any such contract, irrespective of whether Servicer's compensation
pursuant hereto is sufficient to pay such fees.
8. This Agreement will continue through December 31, 1999. After
such date this Agreement shall be effective for successive 12-month periods
unless either Client or Servicer notifies the other in writing not later than
the first day of the then current 12- month period that this Agreement shall
not be renewed at the end of such period. Notwithstanding the foregoing, after
the end of the initial 12-month period, Client may terminate this Agreement
upon 90 days written notice to Servicer and Servicer may terminate this
Agreement upon 120 days written notice to Client. Pursuant to various
agreements with Client and its life insurance subsidiary, The Equitable of
Colorado, Inc., Servicer and Alliance Corporate Finance Group Incorporated, an
indirect wholly owned subsidiary of Servicer, are providing investment
advisory services and Servicer is providing accounting, valuation, reporting
and treasury services to Client and such subsidiaries. Client and Adviser
agree that it would not be appropriate for Client or Adviser to be able to
terminate this Agreement without terminating concurrently all such agreements.
Therefore, Client and Servicer agree that neither Client nor Servicer shall
give a notice of termination or notice of nonrenewal under this Agreement
other than a deemed termination notice as a result of the giving of a notice
of termination or notice of nonrenewal under the Amended and Restated
Investment Advisory and Management Agreement, dated as of January 1, 1999,
between Servicer and Alliance Corporate Finance Group Incorporated, as
adviser, and Client (the "Investment Advisory and Management Agreement") or a
termination notice pursuant to the third paragraph of this section 8. Upon
termination of this Agreement Client will pay to Servicer all fees accrued and
unpaid to the date of termination.
If Client or Servicer gives notice of termination of this Agreement,
Client and Servicer will take all necessary steps, including, without
limitation, Servicer providing Client with access to and the opportunity to
consult with Servicer's employees, in order to facilitate a smooth transition
of the records and responsibilities so as to avoid a disruption of services to
Client. Any such transition shall begin on the giving of such termination
notice, and the parties shall use their best efforts to complete such
transition by the termination date. If such transition is not completed by the
termination date and if
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Servicer continues to provide services or undertake duties and
responsibilities under this Agreement, this Agreement, including without
limitation the fee provisions, shall be deemed to continue in effect with
respect to the services so provided or duties and responsibilities so
undertaken.
If this Agreement is deemed to be terminated as a result of a
termination notice by Servicer under the Investment Advisory and Management
Agreement, then Servicer shall not be entitled with respect to any period
after the effective date of termination, to any fees of any kind other than
any fees contemplated by the following paragraph, including, without
limitation, any fees contemplated by Section 1. Notwithstanding anything to
the contrary herein contained, Servicer may terminate this Agreement if Client
fails to pay any fees due and owing under this Agreement and such failure
remains uncured for a period of 90 days after receipt by Client of written
notice of such breach during which period Client and Servicer shall work
together to resolve any disagreement concerning the calculation of such fees,
provided that termination pursuant to this provision shall not become
effective until completion of any arbitration under Section 5 of this
Agreement with respect to the calculation of such fees unless otherwise
provided in the arbitration proceedings.
If this Agreement is deemed to be terminated or not renewed (i) by
Client as a result of a termination by Client of the Investment Advisory and
Management Agreement other than for Cause (as defined in the Investment
Advisory and Management Agreement) prior to December 31, 2003, or (ii) by
Servicer pursuant to the second full sentence of the fifth paragraph of
Section 11 of the Investment Advisory and Management Agreement, other than a
termination which is a termination by Client for Cause under such agreement,
prior to December 31, 2003, then Client agrees, in recognition of Servicer's
willingness to provide such services until December 31, 2003, that it will pay
Servicer a one-time fee, depending on the date of termination set forth below,
for the transfer of books and records and such systems as are agreed by Client
and Servicer, for the opportunity to consult with Servicer's employees and for
the facilitation by Servicer of the transfer of responsibilities hereunder by
Servicer to Client or such other person as may be designated by Client:
Date of Termination Fee
------------------- -----------
Prior to 12/31/99 $80,000,000
1/1/00 to 12/31/00 $60,000,000
1/1/01 to 12/31/01 $40,000,000
1/1/02 to 12/31/02 $20,000,000
1/1/03 to 12/31/03 $10,000,000
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9. This Agreement shall not be amended, changed or modified except
by an instrument in writing signed by Client and Servicer. Any such amendment,
change or modification shall comply with all applicable requirements of the
New York Insurance Law. This Agreement shall be governed by and construed in
accordance with the laws of the state of New York.
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If you agree to the foregoing, kindly sign the enclosed copy of this
letter of agreement and return the copy so signed.
ALLIANCE CAPITAL MANAGEMENT L.P., or ANY
AFFILIATED SUCCESSOR TO ITS BUSINESS
By ALLIANCE CAPITAL MANAGEMENT
CORPORATION,
its General Partner
By: /s/ Xxxxx X. Xxxxxx, Xx.
----------------------------------------
Name: Xxxxx X. Xxxxxx, Xx.
Title: Senior Vice President and General
Counsel
Accepted as of the date first
above written
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
By: /s/ Xxxxx X. Xxxxx
------------------------------
Name: Xxxxx X. Xxxxx
Title: Senior Vice President
and Treasurer
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SCHEDULE A
SERVICES PROVIDED FOR THE ASSETS IN THE GENERAL ACCOUNT AND
SEPARATE ACCOUNTS 43, 46 & 48
STATUTORY, GAAP AND OTHER REPORTS AND JOURNAL ENTRIES
PREPARED FOR THE CONTROLLER'S DEPARTMENT
REPORTS, JOURNAL ENTRIES, ETC. FREQUENCY
------------------------------------------------- ---------
Journal entries to record all transactions and activity related Monthly
to said assets, purchases, sales, amortization of premiums,
accrual of discounts, profits and losses, equity trading
portfolios, equity in subsidiaries, bonds available for sale
(SFAS 115), short-term reclassification for cash equivalents,
joint ventures (equity basis earnings, capital contributions/
distributions, unrealized foreign exchange gain/loss, Deal Flow
Fund and other activity) open block/closed block calculations, etc.
Securities suspense Monthly
Securities suspense memorandum Monthly
Collected income on bonds & stocks Monthly
Asset valuation reserve ("AVR") and income maintenance reserve Quarterly
("IMR") aggregate and by segments (detail schedules by maturity)
Joint venture AVR report and Deal Flow Fund look through Quarterly
Joint venture AVR look through for all JVs Annually
Securities carried in foreign currency and sales Monthly
Federal Reserve Form S foreign securities Monthly
S-A-1
REPORTS, JOURNAL ENTRIES, ETC. FREQUENCY
------------------------------------------------- ---------
Accrual Journals Monthly
- Interest due & accrued on bonds
- Dividends due and accrued on preferred & common stocks
- Commitment fees due & accrued
- Excess of admitted over book value stocks and bonds
- Accrued interest on borrowed funds
- Accrued income on joint ventures
- Interest due & accrued on interest rate swaps
- Security lending activity
- GAAP Permanent Impairment
- Unrealized activity for Available for Sale accounts
Quarterly
Securities acquired - Schedule 3 to New York State Quarterly
Securities disposed - Schedule 4 to New York State Quarterly
Statement of book, admitted and GAAP value of bonds Monthly
U.S. Department of Commerce filings, including, but not limited to Quarterly
BE-1X, BE-2X and BE-8X
U.S. Treasury Department Filing (EC-3) Quarterly
Derivatives Reporting (SFAS 133), including, but not limited to, Quarterly (or
entries for Opening/Closing Positions, daily Xxxx-to-Market, monthly more
valuation and Earned Income frequently as
may be
required by
law or
regulation)
Statement of book, admitted and GAAP value of common and Monthly
preferred stocks
Admitted and GAAP asset value of stocks and bonds owned by class Monthly
Billing Report (assets under management) Monthly
Exhibit 4 - gains/losses Monthly
Letters of credit memo Monthly
S-A-2
REPORTS, JOURNAL ENTRIES, ETC. FREQUENCY
------------------------------------------------- ---------
Non-accrued interest report Quarterly
Bonds on deposit with public authorities Quarterly
Foreign assets & liabilities statement Annually
PGAAP Quarterly
Equitable FAP reporting - reconciliations and footnotes and Quarterly
supporting schedules and documentation, as required
Statutory Codification - Impact Ad Hoc
Annual statement requirements by State (e.g., South Dakota, Alaska, Annually
Mississippi, Louisiana, etc.)
Hawaii investment form Annually
Canadian journal entries Monthly
Canadian Regulatory Requirements Annually
Interest accrued on borrowed money (L/T and S/T) Quarterly
Regulation 130 Quarterly
10-Q, 10K and various registration statement reconciliations, Quarterly
disclosures and footnotes (bonds, stocks, joint ventures, etc.) and
supporting documentation as required
ACMC vs. Gemini reconciliations Quarterly
Security lending reports Monthly
IUS reports, agendas and minutes (including valuation allowance and Monthly
permanent impairments by security)
Custody reconciliation Monthly
Inventory of amounts due (payable/receivable) for completed Monthly
purchases/sales
15-Day Reclassification of Payables/Receivables Quarterly
Investment data to support cash flow statements Quarterly
S-A-3
REPORTS, JOURNAL ENTRIES, ETC. FREQUENCY
------------------------------------------------- ---------
Investment data to support GAAP and FAP footnote or Management's Quarterly
Discussion and Analysis and Business Section disclosures (e.g.,
SFAS133 disclosures on derivatives, fair market values,
commitments, JVs > 10% and > $10 million market risks, etc.)
Investment Data to support statutory footnote disclosures Annually
Joint venture investment limitation report Semi-annually
Foreign limitation report Semi-annually
NAIC valuation and compliance Quarterly
Beneficial Ownership Systems review Quarterly
ACLI Reporting (general account/separate account) Annually
All Statutory Reporting relating to all SecuritySeparate Accounts Monthly,
Quarterly,
Annually
S-A-4
IYAM REPORTS PREPARED FOR THE CONTROLLER'S DEPARTMENT
REPORTS FREQUENCY
--------- ---------
Cash Income Monthly
- Bonds & Stocks
Earned Income Monthly
- Bonds & Stocks
- Joint Ventures
Net realized gains/losses Monthly
- Bonds & Stocks
- U.S. Government
Book value owned Monthly
- Bonds & Stocks
- Joint Ventures
- U.S. Government
Admitted value Monthly
- Bonds & Stocks
- U.S. Government
Earned Income Monthly
- Exempt Bonds
Short-term bonds excluded from IMR Quarterly
Rollover memos Annually
Securities payable in Canadian currency Quarterly
Accrued interest and dividends Monthly
S-A-5
ANNUAL STATEMENT
SCHEDULES PREPARED FOR THE CONTROLLER'S DEPARTMENT
Special deposit schedule (quarterly)
Schedule BA - Part 1 - Other Long-Term Invested Assets At Year End
(annually) - Part 2 - Other Long-Term Invested Assets Acquired During Year
- Part 3 - Other Long-Term Invested Assets Disposed Of During Year
Schedule D - Summary By Country (including verification between years)
(annually)
Form for calculating AVR/IMR (annually & quarterly)
Schedule D - Part 1A - Maturity Distribution Of Bonds Owned At Year End
(aggregate and - Part 1 - All Long-Term Bonds Owned At Year End
by segment) - Part 2 - Section 1 -Preferred Stocks Owned At Year End
(quarterly - Part 2 - Section 2 -Common Stocks Owned At Year End
and annually) - Part 3 - Bonds & Stocks Acquired During Year
- Part 4 - Bonds & Stocks Disposed Of During Year
- Part 5 - Bonds & Stocks Acquired & Fully Disposed During Year
- Footnotes - Interrogatories
Schedule DA - Part 1 - All Short-Term Investments Owned At Year End
(quarterly) - Part 2 - Verification Of Short-Term Investments Between Years
Schedule DB - Part A - Options Owned, Acquired & Terminated During Year
(quarterly and - Part B - Options Written, In-Force & Terminated During Year
annually) - Part C - Futures Open, Opened & Terminated During Year
- Part D - Futures Contracts Open, Opened, Terminated
- Part E - Counterparty Exposures for Derivatives Open
- Part F - Synthetic Assets Opened (open), terminated
Schedule DC - Insurance futures, options owned, opened, terminated
Schedule DM Fair Value of Bonds And Preferred Stocks
(annually)
Schedule E - List Bank Accounts And Balances
(annually)
Schedule LS - List of Securities On Loan At Year End
(annually)
S-A-6
Schedule RR - Book Value Of Securities Subject To Reverse Repo Agreements
(annually)
S-A-7
REPORTS PREPARED FOR THE TAX OFFICE
INCOME TAX MEMORANDA
I. FEDERAL
----------
CODE NO. MEMORANDUM TITLE FREQUENCY
-------- ----------------- ---------
1.010 Tax-exempt interest Annually
1.022A Taxable accrual of discount - GNMA/FHLMC Quarterly
1.022B Original issue discount - acquired w/o coupons Quarterly
1.022C Original issue discount - acquired w/ warrants Quarterly
1.022D Accrued market discount on disposition of bonds Quarterly
issued after 7/18/84 pursuant to a tax-exempt
reorganization
1.022E Accrued market discount on disposition of bonds Quarterly
issued after 7/18/84
1.022F Taxable income (loss from hedging transactions) Quarterly
1.110 Non-taxable dividend received Quarterly
3.50 Adjusted tax basis of securities Annually
8.03 & 8.04 Gains and losses on sales or exchanges - bonds & Quarterly
stocks (summary)
8.03 & 8.04 Gains and losses on sales or exchanges - bonds & Quarterly
stocks (detail)
Maturing discount for next five years Annually
Accrual of discount for next five years Annually
Tax basis of stocks and bonds Upon request
Copy of form 1065, Schedule K-1 for all Annually
partnerships
Portion of dividends received in each of general Quarterly
account and all separate accounts eligible for the
dividends received deduction
S-A-8
II. FOREIGN
------------
Foreign investments of general account and Quarterly
separate accounts classified by book value for each
country
-- Income received
-- Income accrued and collected
-- Amortization of premium or discount
-- Foreign taxes withheld, including receipts or
other documentation
-- Foreign tax credit pass through
Detailed Canadian Reports for general and separate Quarterly
accounts
S-A-9
AUDIT COORDINATION ACTIVITIES
Explain process and controls, and provide supporting information on
all GAAP and STAT accounting and reporting activities to Internal Auditors,
External Auditors and State Examiners.
S-A-9
REPORTS & INFORMATION PROVIDED TO OCIO
REPORTS/INFORMATION FREQUENCY
------------------- ---------
Prepare and present GAAP and statutory forecast of investment results Quarterly
(total earnings; investment income; realized gains (losses); unrealized
gains (losses); total assets)
Prepare GAAP and statutory Flash Report of actual quarter-to-date Monthly
and remaining quarter estimate of investment results; analyze results
and explain variances
Prepare tables and text, and coordinate outside auditor review of Quarterly/
Quarterly and Annual Financial Supplement GAAP reports sorted by: Annually
- Total, investment grade & non-Investment grade by NAIC
& Moodys
- Total, continuing (open & closed block), discontinued by
amortized cost and fair market value
Prepare derivatives reports required by Operational Plan Monthly,
Quarterly,
Annually
Report titles:
- Investment Results by Asset Category
- Summary of Fixed Maturities
- Fixed Maturities Change in Assets
- Fixed Maturities Investment Results
- Fixed Maturities Valuation Allowances
- Fixed Maturities Problem, Potential Problem and
Restructured
- Fixed Maturities Ratings Summary
- Fixed Maturities Portfolio Credit Quality (Total, Public,
Private)
- Fixed Maturities Portfolio Credit Quality (by asset category)
- Fixed Maturities Average Life
- Fixed Maturities by Industry
- Fixed Maturities Ten Largest Holdings
- Fixed Maturities Number of Different Issuers
- Fixed Maturities Callable Corporates By Year of First Call
- Ten Largest Equity Interests Investment Results
- Ten Largest Equity in Limited Partnership Interests, Capital
Contributions and Distributions Since Inception
S-A-10
REPORTS/INFORMATION FREQUENCY
------------------- ---------
Prepare tables and text and coordinate outside auditor review of 10-Q Quarterly/
and 10-K GAAP Reports sorted by: Annually
- Total, investment grade & non-Investment grade by NAIC
& Moodys
- Total, continuing (open & closed block), discontinued by
amortized cost and fair market value
Report Titles:
- Fixed Maturities by Credit Quality
- Fixed Maturities by Problems Restructured, Potential
Problems & Potential Restructured
- Fixed Maturities Held for Sale
- Fixed Maturities and Equity Interests (by asset category)
In addition, provide various information used in tables and text of the MD&A
section of 10-Q and 10-K reports including:
- Investment grade/below investment grade largest holdings
- Public and private fallen angels
- Aaa rated NAIC 1 & 2
- One to ten year treasury holdings
- Bank participations
- Industries by NAIC (IG & BIG)
- Non cash income
- Realized loss by industry
- Analysis of sales activity
- Turnover in Locom/Non Locom accounts
- Foregone interest on restructured loans
- Non accrued interest & principal
- Reconciliation of problems/restructures/potential problems
Provide data and verify Investment Income Survey of statutory assets, Quarterly
earnings & yield by asset category and portfolio
Prepare Stock Sale Activity Reports Weekly
Prepare Investment Activity Reports for Equitable board meetings Monthly &
Quarterly
S-A-11
REPORTS/INFORMATION FREQUENCY
------------------- ---------
Respond to ad hoc information requests such as: Daily
- Risk Based Capital Reports on largest fixed maturities and
Partnerships by company
- Analysis of quarter-to-quarter changes in investment yield
- Sale strategy for stock holdings
- Analysis of Moodys vs. S & P rating information
- Change in assets for equity interests (for Tableau de )
Investment Grade Ratings
- Special analysis of gains and losses for continuing business
- Special statutory reports for presentations to rating agencies
- Special reports for presentations to AXA
- Asset reports sorted by NAIC rating, asset type, and
segment
- Reporting for private high yield CBO
Provide downloads of assets and earnings information Monthly
S-A-12
REPORTS & INFORMATION PREPARED ON SHORT-TERM INVESTMENTS FOR
THE CORPORATE TREASURER'S DEPARTMENT
REPORTS/INFORMATION FREQUENCY
------------------- ---------
Investment Activities Reports - Acquisitions, repayments and sales Monthly
Data by Segment - Book value, earned income Quarterly
Provide access and maintenance to investment management system
used for short-term securities management Daily
Provide Corporate Controllers, Office of the Chief Investment Officer
and Pension Operations all statutory and GAAP reports required for
the short term portfolio managed by Corporate Treasurers Varies
S-A-13
SCHEDULE B
SERVICES PROVIDED FOR NON-MANAGED ASSOCIATION PLAN
ACCOUNTS AND ANNUITY SEPARATE ACCOUNTS
ELECTIONS PERFORMED FREQUENCY
------------------- ---------
Maintain client transactions for contributions and withdrawals Daily
Verify client net assets to underlying investment portfolio Daily
Calculate unit values Daily
Maintain investment portfolio based on trades reported by outside Daily
manager
Maintain and update trial balance, general ledger, cash receipts and Daily
disbursements journal for daily transactions
Provide cash flow and cash balance to outside manager Daily
Reconcile bank accounts Daily
Assure timely settlement of trades executed by outside manager Daily
Issue fund report to clients Monthly
Provide statements of account activity and month end holdings to Monthly
outside manager
Reconcile holdings to custodian bank records Monthly
Satisfy statutory accounting requirements for Separate Accounts (e.g., Monthly/
Month End Trial Balances, Investment Activity, Schedule D) Quarterly
Provide financial statements for inclusion in reports for clients Semi-annually/
Annually
Provide support to external auditors for audited accounts Annually
S-B-1
SCHEDULE C
SERVICE PROVIDED FOR ASSOCIATION PLAN
ACCOUNTS IN MANAGED SEPARATE ACCOUNTS
FUNCTIONS INFORMATION FREQUENCY
--------------------- ---------
Provide financial statements for inclusion in reports for clients Semi-annually/
Annually
Prepare financial information for prospectus and SAI including Annually
contract level per share financial information
Provide support to external auditors for audited accounts Annually
Provide financial information for periodic SEC registrations (i.e., Varies
additional units)
S-C-1
SCHEDULE D
SERVICES PROVIDED FOR THE FOLLOWING SEPARATE ACCOUNTS:
SEPARATE ACCOUNT A (5 DIVISIONS)
SEPARATE ACCOUNT 301 (7 DIVISIONS)
SEPARATE ACCOUNT 4 (EQUIPENSION Q AND G)
SEPARATE ACCOUNT 5 (EQUIPENSION Q AND G)
FUNCTIONS PERFORMED FREQUENCY
------------------- ---------
Record contributions/withdrawals Daily
Process cash receipts/disbursements Daily
Purchase/sale of units in corresponding Separate Account or Xxxxxx Daily
River Trust
Calculate insurance related expenses at contract level Daily
Determine net assets at contract level Daily
Value Equitable surplus retained in Separate Accounts Daily
Calculate unit values at contract level Daily
Transmit unit value to appropriate data center Daily
Perform bank reconciliations Daily
Issue confirmations of client transactions processed Daily
Separate Account trial balance Monthly
Cash-in-transit journal entries Monthly
Investment activity reconciliation reports Monthly
Surplus values retained in Separate Accounts Quarterly
Investment Committee Report Quarterly
Semi-annual financial statements Semi-annual
Schedule D, DA & DB Quarterly/
Annually
Annual prospectus and SAI Annually
S-D-1
FUNCTIONS PERFORMED FREQUENCY
------------------- ---------
Form N-SAR Annually
Audited financial statements and per share data Annually
Contract reserves/surplus values Annually
Breakage gains and losses by contract Annually
Computations-Reserve for minimum death benefits Annually
- Annuitant Mortality Fluctuation Fund
Investment control totals Annually
S-D-2
SCHEDULE E
TREASURY SERVICES PERFORMED
Treasury Services
Confirmation Services - Includes obtaining trade confirmations,
either by mail or through automated interfaces; trade comparison
function between broker's confirmations and company records,
reconciliation of trade discrepancies and correction activity.
Settlement Services - Includes preparation and transmission of
letters of instruction to custodial agents; monitoring actual trade
settlements; investigation of and corrective action of failed trades.
Custody Services - Includes; processing corporate actions, e.g.,
tender offers, stock dividends and splits, redemptions and other
securities related transactions.
Collection Services - Includes collection for principal, interest and
dividend payments; analysis, follow-up and reconciliation of overdue
payments and payment discrepancies.
Monitoring Services - Reconciliation of asset reports from custodial
agents with company records, identification and correction of
out-of-balance conditions, providing custody reports to various
interested parties.
Fee Schedule
Long-Term Investments
Month-End Book Value Treasury Service Fee (Basic Points)
---------------------------------- -----------------------------------
Up to $10,000,000,000 1.00
$10,000,000,001 to $20,000,000,000 .75
$20,000,000,001 to $30,000,000,000 .50
Over $30,000,000,000 .40
Short-Term Investments
Month-End Book Value Treasury Service Fee (Basic Points)
---------------------------------- -----------------------------------
Up to $500,000,000 1.00
$500,000,001 to $1,000,000,000 .75
$1,000,000,001 to $1,500,000,000 .65
$1,500,000,001 to $2,000,000,000 .50
Over $2,000,000,000 .40
Securities lending - Fee is 35% of investment income
S-E-1
SERVICES PROVIDED FOR SEPARATE ACCOUNTS PVT AND P-1
INSURANCE RELATED ACCOUNTING FUNCTIONS FREQUENCY
-------------------------------------- ---------
Purchase/sale of units in corresponding Separate Account Division Daily
Calculate insurance related expenses (Mortality & Expense Risk) Daily
Transmit unit value to appropriate data center Daily
Separate Account trial balance Monthly
Investment activity reconciliation reports Monthly
Provided data to satisfy statutory accounting requirement for Quarterly/
Separate Accounts (Schedule D) Annually
S-E-2
