AMENDMENT NINTH TO
MARKETING AGREEMENT
THIS NINTH AMENDMENT TO THE MARKETING AGREEMENT is effective as indicated
herein, by and between TRANSAMERICA LIFE INSURANCE AND ANNUITY COMPANY,
hereinafter referred to as "Transamerica," a North Carolina corporation, and
LEGACY MARKETING GROUP, hereinafter referred to as "LMG," a California
corporation.
WHEREAS, Transamerica and LMG entered into a Marketing Agreement, dated May 29,
1998, as amended, hereinafter referred to as the "Agreement," wherein
Transamerica and LMG agreed to jointly develop proprietary annuity products,
wherein LMG would market such products on behalf of Transamerica, utilizing its
nationwide distribution channels of duly licensed and appointed Producers in
consideration of the fees as set forth in APPENDIX B of the Agreement.
NOW, THEREFORE, in consideration of the foregoing recitals and mutual promises
hereinafter contained and other good and valuable consideration, the parties
hereto do agree as follows:
1. Appendix B, attached hereto, is restated in its entirety effective
February 2, 2004.
2. All other provisions in the Agreement not specifically amended above
remain in effect and unchanged.
IN WITNESS HEREOF, the parties have hereto executed this Amendment No. 9.
LEGACY MARKETING GROUP TRANSAMERICA LIFE INSURANCE AND
ANNUITY COMPANY
By /s/ Xxx Xxxx By /s/ Xxxx Xxx
---------------------------------- -----------------------------------
Title VP of Marketing Title Vice President
------------------------------- --------------------------------
Date 5/7/04 Date 5/17/04
-------------------------------- ---------------------------------
* Confidential information has been omitted and filed separately with the SEC.
Appendix B
MARKETING AGREEMENT
COMPENSATION
February 2, 2004
All rate changes included in this table are applicable only to
applications received on or after such referenced effective dates.
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Compensation to Legacy
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(g)
Age Mandated LMG
Commission Reduction Trail
------------------------- Com.
POLICY FORM (a) (b) (c) (d) (e) (f) (AKA
NUMBERS/ Commission Comm. % Trail Mkt. Over- Adminis- Special Rules
PRODUCT NAME Effective Dates Reduces Reduc- Allow. ride trative
@ Age tion Trail
Fee or
Fund
One fee)
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SelectMark(R) Series
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T-CTMY0298-5-75/25; * 85 * * * * *
SelectMark(R) 5 75/25 T-PTMY0298-5-75/25
Effective 5/29/98
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
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T-CMY0799-7-75/25; * 85 * * * * *
SelectMark(R) 7 75/25 T-PMY0799-75/25
Effective 10/18/99
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
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T-CTMY0298-10-75/25; * 85 * * * * *
SelectMark(R) 10 75/25 T-PTMY0298-10-75/25
Effective 5/29/98
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
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* Confidential information has been omitted and filed separately with the SEC.
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Compensation to Legacy
--------------------------------------------------------------------
(g)
Age Mandated LMG
Commission Reduction Trail
------------------------- Com.
POLICY FORM (a) (b) (c) (d) (e) (f) (AKA
NUMBERS/ Commission Comm. % Trail Mkt. Over- Adminis- Special Rules
PRODUCT NAME Effective Dates Reduces Reduc- Allow. ride trative
@ Age tion Trail
Fee or
Fund
One fee)
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R) Secure Series
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SelectMark(R)5 Secure T-CTMY0298-5-50/50; * 85 * * * * *
(formerly known as the T-PTMY0298-5-50/50
SelectMark(R)5 50/50) Effective 7/10/00
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
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SelectMark(R)7 Secure T-CMY0799-7-50/50; * 85 * * * * *
(formerly known as the T-PMY0799-7-50/50
SelectMark(R)7 50/50) Effective 7/10/00
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
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SelectMark(R) Special Edition Series
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SelectMark(R)5 Special T-PSMSE-0801-5 * 80 * * * * *
Edition T-CSMSE-0801-5
Effective 01/02/02
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
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SelectMark(R)7 Special T-CMY0799-7-100; * 80 * * * * *
Edition T-PMY0799-7-100
Effective 10/18/99
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
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SelectMark(R)7 Special T-CEIA-0500-7 * 80 * * * * *
Edition Equity Index
Strategy Effective 7/26/00
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
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2
* Confidential information has been omitted and filed separately with the SEC.
------------------------------------------------------------------------------------------------------------------------------------
Compensation to Legacy
--------------------------------------------------------------------
(g)
Age Mandated LMG
Commission Reduction Trail
------------------------- Com.
POLICY FORM (a) (b) (c) (d) (e) (f) (AKA
NUMBERS/ Commission Comm. % Trail Mkt. Over- Adminis- Special Rules
PRODUCT NAME Effective Dates Reduces Reduc- Allow. ride trative
@ Age tion Trail
Fee or
Fund
One fee)
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R)10 Special T-CTMY0298-10-50/50; * 80 * * * * *
Edition (formerly known T-PTMY0298-10-50/50
as the SelectMark(R) 10
50/50) Effective 2/9/99
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
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Effective 1/1/03 * 80 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 6/30/03 * 80 * * * * * *
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SelectMark(R)10 Special T-CMY1099-10-100; * 80 * * * * *
Edition with STS T-PMY1099-10-100
Effective 4/6/00
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 1/2/03 * 80 * * * * *
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SelectMark(R)10 Special T-CEIA-0500-10; * 80 * * * * *
Edition Equity Index T-PEIA-0500-10
Strategy Effective 7/26/00
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 1/2/03 * 80 * * * * *
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SelectMark(R)10 Special T-CEIA-0500-10STS; * 80 * * * * *
Edition with STS and T-PEIA-0500-10STS
Equity Index Strategy Effective 7/26/00
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 1/2/03 * 80 * * * * *
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SelectMark(R)Special T-C-SMSE-0402-10-0; * 80 * * * * *
Edition Plus T-P-SMSE-0402-10-0
Effective 5/6/02
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 1/2/03 * 80 * * * * *
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3
* Confidential information has been omitted and filed separately with the SEC.
------------------------------------------------------------------------------------------------------------------------------------
Compensation to Legacy
--------------------------------------------------------------------
(g)
Age Mandated LMG
Commission Reduction Trail
------------------------- Com.
POLICY FORM (a) (b) (c) (d) (e) (f) (AKA
NUMBERS/ Commission Comm. % Trail Mkt. Over- Adminis- Special Rules
PRODUCT NAME Effective Dates Reduces Reduc- Allow. ride trative
@ Age tion Trail
Fee or
Fund
One fee)
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R)Special T-C-SMSE-0402-10-4; * 80 * * * * *
Edition Plus 4 T-P-SMSE-0402-10-4
Effective 4/30/02
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 6/30/03 * 80 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 9/22/03 * 80 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 02/02/04 * 80 * * * * *
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SelectMark(R) Elite Series
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SelectMark(R)5 Elite T-C390-0701-5; * 85 * * * * *
T-P390-0701-5
Effective 9/1/01
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 6/30/03 * 85 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 9/22/03 * 85 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 02/06/04 * 85 * * * * *
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SelectMark(R)7 Elite T-C390-0701-7; * 85 * * * * *
T-P390-0701-7
Effective 9/1/01
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 6/30/03 * 85 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 9/22/03 * 85 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 02/02/04 * 85 * * * * *
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SelectMark(R)10 Elite T-C390-0701-10; * 85 * * * * *
T-P390-0701-10
Effective 9/1/01
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 6/30/03 * 85 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 9/22/03 * 85 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 02/02/04 * 85 * * * * *
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4
* Confidential information has been omitted and filed separately with the SEC.
------------------------------------------------------------------------------------------------------------------------------------
Compensation to Legacy
--------------------------------------------------------------------
(g)
Age Mandated LMG
Commission Reduction Trail
------------------------- Com.
POLICY FORM (a) (b) (c) (d) (e) (f) (AKA
NUMBERS/ Commission Comm. % Trail Mkt. Over- Adminis- Special Rules
PRODUCT NAME Effective Dates Reduces Reduc- Allow. ride trative
@ Age tion Trail
Fee or
Fund
One fee)
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PreferMark Series
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PreferMark Platinum Y-CMY0500--9; * 85 * * * * * *
T-PMY0500-9
Effective 7/26/00
------------------------ --------- -------- ---------- --------- ------- ------ -----------
Effective 12/1/02 * 85 * * * * *
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PreferMark Gold T-CMY0500-10; * 85 * * * * * *
T-PMY0500-10
Effective 7/26/00
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
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5
* Confidential information has been omitted and filed separately with the SEC.
GENERAL COMPENSATION RULES
1. Base Commission (Column (a) above):
Transamerica will pay LMG on the last business day of the week base
commissions for all premiums received in cash by LMG during that week,
i.e., the prior Friday through Thursday, in the specified percentages
indicated in Column (a) above. Such commissions will be paid by
Transamerica to LMG by Transamerica authorizing LMG to write a check to
itself against the Transamerica Disbursement account for the total
weekly commission amount.
Additional premiums will be subject to the same base commission
percentages noted above as the initial premium.
In addition to the base commission rates specified in Column (a) above
Transamerica will pay LMG an additional commission as follows:
(1) * of all premiums received on or before August 31, 2001 by
LMG for the SelectMark(R) 10 Special Edition (for premiums
received after October 18, 1999), SelectMark(R) 10 Special
Edition Equity Index Strategy, SelectMark(R) 10 STS Special
Edition Equity Index Strategy and SelectMark(R) 10 Special
Edition with STS products for applications received by Legacy
for such products on or before August 31, 2001, and in the
case of 1035 exchanges and other transfers between financial
institutions, the application and completed exchange/transfer
paperwork must be received by LMG by August 31, 2001 and the
cash received by November 30, 2001 for Transamerica to pay the
extra * bonus.
(2) * of all premiums received during the period September 1,
2001 and September 30, 2001 for such products for applications
received by LMG for such products. In the case of 1035
exchanges and other transfers between financial institutions,
the application and completed exchange/transfer paperwork must
be received by LMG between September 1 and September 30th and
the cash received by November 30, 2001 for Transamerica to pay
the extra * bonus.
Note: As a practical matter, LMG's administrative system will treat
additional deposits on inforce policies in the same manner as cash
received on 1035 exchanges and other transfers with respect to the
above rules. Transamerica agrees to this treatment on additional
deposits based on (1) LMG's representation that additional deposits
will not be material and (2) LMG's agreement that this treatment on
additional deposits will not be disclosed in any manner to producers or
6
* Confidential information has been omitted and filed separately with the SEC.
policyholders. LMG also agrees to limit disclosure of this treatment on
additional deposits to LMG employees on a "need to know" basis.
2. Age Mandated and Voluntary Trail Selection Commission Reduction
(Columns (b), (c) and (d) above):
The following provision applies to payment of all base commissions for
all products subject to this Agreement (see below for separate rules
for PreferMark Gold and PreferMark Platinum) if the issue age is
greater than 79 (in the case of SelectMark(R) Special Edition products)
and 84 for other products, or voluntary trail compensation is selected.
The * additional commission payable for the SelectMark(R) 10 series
products is considered part of the base commission.
If the issue age is greater than 79 or 84 as defined in the Death
Benefit Proceeds provision of the applicable policy form or voluntary
trail compensation is selected, base commissions are reduced by the
percentage shown in Column (c). A trail base commission is paid monthly
beginning in policy year *. Column (d) reflects the trail base
commission percentage on an annual basis (calculated as Column (a)
multiplied by the percentage in Column (c) divided by *). This trail
base commission is paid monthly (the payable amount, calculated each
month, is the Column (d) annual percentage divided by 12 and multiplied
by the annuity cash value). The monthly trail base commission continues
to be paid until death of the annuitant, surrender of the policy or
election of a settlement option.
With regard to PreferMark Gold and PreferMark Platinum, if the issue
age of a policy is greater than 84 as defined in the Death Benefit
Proceeds provision of such policy form or voluntary trail compensation
is selected, the applicable base commission percentage is reduced by *
for all premiums received for that policy. No monthly trail commission
is payable.
2. Marketing Allowance (Column (e) above):
---------------------------------------
Transamerica will pay to LMG a Marketing Allowance for all premiums
received by LMG in the specified percentages indicated in Column (e)
above. LMG will xxxx Transamerica weekly and Transamerica will pay LMG
such Marketing Allowance by wire transfer within five (5) business days
of receipt of such documentation.
3. Override Commission (Column (f) above):
---------------------------------------
Transamerica will pay to LMG an override commission (on the last
business day of the week) for all premiums received by LMG during that
week, in the specified percentages indicated in Column (f) above.
The override commission percentages in Column (f) include * which is
paid back to Transamerica by LMG at the end of each fiscal year (for
7
* Confidential information has been omitted and filed separately with the SEC.
this purpose each fiscal year begins on August 1 and ends on the
following July 31) for the first * of aggregate premium received by LMG
during that fiscal year for all (excluding PreferMark Gold and
PreferMark Platinum) products (net of premiums returned to
policyholders under free look provisions if the aggregate premium
received by LMG for the fiscal year is less than *). LMG will retain
the * on all premiums received in excess of * in each fiscal year.
Notwithstanding the foregoing, LMG's obligation to pay Transamerica the
aforementioned * shall terminate upon LMG's final payment of * for the
fiscal year ending July 31, 2001.
With regard to PreferMark Gold and PreferMark Platinum, if the issue
age of a policy is greater than 84 as defined in the Death Benefit
Proceeds provision of such policy form the applicable override
commission percentage is reduced by * for all premiums received for
that policy.
4. LMG Trail Commission (Column (g) above):
----------------------------------------
With respect to applicable policies, Transamerica will pay LMG trail
commission at the annual rate shown in column (g) above, paid monthly,
times the total Annuity Cash Value of the policies sold under this
Agreement. For the purpose of the foregoing, Annuity Cash Value is the
contract's Cash Value which reflects any applicable reductions, loans
and withdrawals. The commission is based on the total month end Annuity
Cash Value and will be paid within six (6) business days of month end
by Transamerica via wire transfer to an LMG bank account.
8
