AMENDMENT SEVEN TO
MARKETING AGREEMENT
THIS SEVENTH 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 A, attached hereto, is restated in its entirety effective
September 22, 2003.
2. Appendix B, attached hereto, is restated in its entirety effective
September 22, 2003.
3. Transamerica may from time to time declare changes to the Marketing
Allowances rates (Appendix B, column E). Legacy will be advised of
such Marketing Allowance rate changes, if any, in writing. Each
Marketing Allowance rate will continue to be in effect during the time
this Agreement is in effect until written notification of a change or
discontinuance is provided by Transamerica.
4. 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. 7.
LEGACY MARKETING GROUP TRANSAMERICA LIFE INSURANCE AND
ANNUITY COMPANY
By /s/ ▇▇▇ ▇▇▇▇ By /s/ ▇▇▇▇ ▇▇▇
--------------------------------- ---------------------------------
Title VP of Marketing Title Vice President
--------------------------------- ---------------------------------
Date 5/7/04 Date 5/17/04
--------------------------------- ---------------------------------
APPENDIX A
ADMINISTRATIVE SERVICES AGREEMENT
September 22, ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇:
All states (except New York, Hawaii and Alabama) and the District of Columbia
POLICY FORMS
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
PRODUCT NAME POLICY FORM NUMBERS* Effective Dates Discontinuance Dates
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R) Series
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)5 75/25 T-CTMY0298-5-75/25; 5/29/98 3/3/03
T-PTMY0298-5-7525
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)7 75/25 T-CMY0799-7-75/25; 10/18/99 3/3/03
T-PMY0799-7-75/25
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)10 75/25 T-CTMY0298-10-75/25; 5/29/98 3/3/03
T-PTMY0298-10-75/25
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R) Secure Series
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R)5 Secure (formerly T-CTMY0298-5-50/50; 7/10/2000 3/3/03
known as the SelectMark(R)5 50/50) T-PTMY0298-5-50/50 (5/29/98 for
SelectMark(R) 5 50/50)
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)7 Secure (formerly T-CMY0799-7-50/50; 7/10/2000 3/3/03
known as the SelectMark(R)7 50/50) T-PMY0799-7-50/50 (10/18/99 for SelectMark(R)
7 50/50)
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R) Special Edition Series
------------------------------------------------------------------------------------------------------------------------------------
Selectmark(R)5 Special Edition T-PSMSE-0801-5 01/02/02 3/3/03
T-CSMSE-0801-5
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)7 Special Edition T-CMY0799-7-100; 10/18/99 3/3/03
T-PMY0799-7-100
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)7 Special Edition T-CEIA-0500-7 7/26/2000 3/3/03
Equity Index Strategy
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)10 Special Edition T-CTMY0298-10-50/50; 2/9/99 3/3/03 for all states except
(formerly known as the Select T-PTMY0298-10-50/50 5/29/98 for Florida.
▇▇▇▇(R)10 50/50) SelectMark(R) 10 50/50) 9/22/03 for plan codes ARIH52
& ARIR52 in Florida
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)10 Special Edition T-CMY1099-10-100; 4/6/2000 3/3/03
with STS T-PMY1099-10-100
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)10 Special Edition T-CEIA-0500-10; 7/26/2000 3/3/03
Equity Index Strategy T-PEIA-0500-10
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)10 Special Edition T-CEIA-0500-10STS; 7/26/2000 3/3/03
with STS and Equity Index Strategy T-PEIA-0500-10STS
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
Selectmark(R) Special Edition T-C-SMSE-0402-10-4; 04/30/02
Plus 4 T-P-SMSE-0402-10-4
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
Selectmark(R)Special Edition Plus T-C-SMSE-0402-10-0; 05/06/02 3/3/03
T-P-SMSE-0402-10-0
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R) Elite Series
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R)5 Elite T-C390-0701-5; 9/1/01
T-P390-0701-5
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R)7 Elite T-C390-0701-7; 9/1/01
T-P390-0701-7
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
SelectMark(R) 10 Elite T-C390-0701-10; 9/1/01
T-P390-0701-10
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
1
------------------------------------------------------------------------------------------------------------------------------------
PreferMark Series
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
PreferMark Platinum T-CMY0500-9; 7/26/2000 7/1/03
T-PMY0500-9
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
PreferMark Gold T-CMY0500-10; 7/26/2000 7/1/03
T-PMY0500-10
------------------------------------------------------------------------------------------------------------------------------------
Riders
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
Beneficiary Rider T-CBR-0799; 10/18/99
T-PBR-0799
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
Beneficiary Rider Plus T-PBRII-0400;
T-CBRII-0400 7/26/2000
----------------------------------- ----------------------------------- ---------------------------- -------------------------------
* Including all State required variations of the above referenced
products/policy form numbers
"Discontinuance Date"
---------------------
The discontinuance date is the date which on or after no further applications
will be accepted. No new policies may be issued for applications received on or
after the discontinuance date.
1. For the products earmarked to be withdrawn effective March 3rd, 2003 in the
case of 1035 exchanges and other transfers between financial institutions,
the application and completed exchange transfer paperwork must be received
by March 3rd, 2003 and the transferred funds completed by June 6th, 2003 in
order for the policy to be issued.
2. For the products earmarked to be withdrawn effective July 1, 2003 in the
case of 1035 exchanges and other transfers between financial institutions,
the application and completed exchange transfer paperwork must be received
by July 1, 2003 and the transferred funds completed by September 26, 2003
in order for the policy to be issued.
3. For the products earmarked to be withdrawn effective September 22, 2003 in
the case of 1035 exchanges and other transfers between financial
institutions, the application and completed exchange transfer paperwork
must be received by September 22, 2003 and the transferred funds received
by December 20, 2003 in order for the policy to be issued.
"Unique Features"
-----------------
The "Unique" features contained in the policy forms that would preclude LMG from
separately selling or marketing any products which are the same as those unique
products co-developed by LMG and Transamerica are as follows:
The Total Return Crediting Rate Strategy in combination with the
Multiple Year Crediting Rate Strategy in a fixed annuity.
The "Unique" features contained in the policy forms that would preclude
Transamerica from separately selling or marketing any products which are the
same as those unique products co-developed by LMG and Transamerica are as
follows:
The Total Return Crediting Rate Strategy in combination with the
Multiple Year Crediting Rate Strategy in a fixed annuity.
The features described above as the " Total Return Crediting Rate Strategy" and
"Multiple Year Crediting Rate Strategy" are described in the policy forms listed
in this Appendix A under the caption or headings "Total Return Strategy" and
"Multiple Year Strategy."
2
* Confidential information has been omitted and filed separately with the SEC.
Appendix B
MARKETING AGREEMENT
COMPENSATION
September 22, 2003
All rate changes included in this table are applicable only to
applications received on or after such referenced effective dates.
------------------------------------------------------------------------------------------------------------------------------------
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) Series
------------------------------------------------------------------------------------------------------------------------------------
T-CTMY0298-5-75/25; * * * * *
SelectMark(R) 5 75/25 T-PTMY0298-5-75/25
Effective 5/29/98 * 85
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
T-CMY0799-7-75/25; * * * * * *
SelectMark(R) 7 75/25 T-PMY0799-75/25
Effective 10/18/99 85
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
* 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) Secure Series
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R) Special Edition Series
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R)5 Special T-PSMSE-0801-5 * 80 * * * * *
Edition T-CSMSE-0801-5
Effective 01/02/02
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R)7 Special T-CMY0799-7-100; * 80 * * * * *
Edition T-PMY0799-7-100
Effective 10/18/99
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R)7 Special T-CEIA-0500-7 * 80 * * * * *
Edition Equity Index
Strategy Effective 7/26/00
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 80 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
Effective 1/1/03 * 80 * * * * *
------------------------------------------------------------------------------------------------------------
Effective 6/30/03 * 80 * * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
SelectMark(R)
Elite Series
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
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)
------------------------------------------------------------------------------------------------------------------------------------
PreferMark Series
------------------------------------------------------------------------------------------------------------------------------------
PreferMark Platinum Y-CMY0500--9; * 85 * * * * * *
T-PMY0500-9
------------------------------------------------------------------------------------------------------------
Effective 7/26/00
------------------------ --------- -------- ---------- --------- ------- ------ -----------
Effective 12/1/02 * 85 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
PreferMark Gold T-CMY0500-10; * 85 * * * * * *
T-PMY0500-10
Effective 7/26/00
------------------------------------------------------------------------------------------------------------
Effective 12/1/02 * 85 * * * * *
------------------------------------------------------------------------------------------------------------------------------------
5
32
* 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
policyholders. LMG also agrees to limit disclosure of this treatment on
additional deposits to LMG employees on a "need to know" basis.
6
* Confidential information has been omitted and filed separately with the SEC.
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 ▇▇▇▇ 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 this purpose each fiscal year begins on
August 1 and ends on the following July 31) for the first * of
7
* Confidential information has been omitted and filed separately with the SEC.
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 * 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
