Common use of Character of Compensation Clause in Contracts

Character of Compensation. GEID and Product Distributor agree that the compensation paid by GEID to Product Distributor described in Section 2(a) of this Agreement is either for Sales Services or for a combination of Sales Services and Investor Services in the form of Personal Services, as those terms are defined in this Agreement. In particular, Product Distributor understands and acknowledges that the compensation paid to it by GEID is not to be used for activities primarily intended to result in the sale of Contracts and Policies unless such activities entail a sufficiently large element of promotion of the Funds and the Class 3 Shares that the activities clearly come within the definition of Sales Services in this Agreement.

Character of Compensation. GEID and Product Distributor agree that the compensation paid by GEID to Product Distributor described in Section 2(a) of this Agreement is either for Sales Services or for a combination of Sales Services and Investor Services in the form of Personal Services, as those terms are defined in this Agreement. In particular, Product Distributor understands and acknowledges that the compensation paid to it by GEID is not to be used for activities primarily intended to result in the sale of Contracts and Policies unless such activities entail a sufficiently large element of promotion of the Funds and the Class 3 Shares that the activities clearly come within the definition of Sales Services in this Agreement.