EXHIBIT (8)(s)
April 25, 1998
Annuity Investors Life insurance Company
000 Xxxx Xxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Attention: Xxxx X. Xxxxxxxx
Dear Xxxx:
Re: Fee letter relating to the Annuity Investors Life Insurance Company
Participation Agreement.
Pursuant to the Participation Agreement by and among The Xxxxxxx Plan Variable
Series (the "Fund"), and Annuity Investors Life Insurance Company (the
"Company") dated May 1, 1998 (the "Participation Agreement"), the Company will
provide certain administrative services on behalf of the registered investment
companies or series thereof specified in Exhibit A.
In recognition of the reduction in administrative expenses that derives from the
performance of said administrative services, The Xxxxxxx Plan Variable Series
Fund agrees to pay the Company the fee specified below.
(a) For average aggregate amounts (as calculated in paragraph (b), below)
invested through variable insurance products issued by the Company with
the Fund, the monthly fee shall equal the percentage (calculated
paragraph (b), below) of the applicable annual fee for each Fund
specified in Exhibit A.
(b) For purposes of computing the fee contemplated in paragraph (a) above,
the Fund shall calculate and pay to the Company an amount equal to the
product of: (a) the product of (i) the number of calendar days in the
applicable month divided by the number of calendar days in that year
(365 or 366 as applicable) and (ii) the applicable percentage specified
in Exhibit A, hereto, multiplied by (b) the average daily market value
of the investments held in such Fund pursuant to the Participation
Agreement computed by totaling the aggregate investment (share net asset
value multiplied by the total number of shares held) on each day during
the calendar month and dividing by the total number of days during such
month.
(c) The Fund shall calculate the amount of the payment to be made pursuant
to this Letter Agreement at the end of each calendar month and will make
such payment to the Company within 30 days after receiving the report
referenced in paragraph (e), below. Fees will be paid by wire transfer
or by check. All payments hereunder shall be considered final unless
disputed by the Company in writing within 60 days of receipt.
(d) The parties agree that the fees contemplated herein are solely for
shareholder servicing and other administrative services provided by the
Company and do not constitute payment in any manner for investment
advisory, distribution, trustee, or custodial services.
(e) The Company agrees to provide the Fund by the 15th day of each month
with a report, which indicates the number of Owners that hold Contract
interests in each Account as of the last day of the prior month.
(f) If requested in writing by the Fund, and at the Fund's expense, the
Company shall provide to the Fund, by February 14th of each year a
"Special Report" from a nationally recognized accounting firm reasonably
acceptable to the Fund which substantiates for each month of the prior
calendar year: (a) the number of Owners that hold, through an Account,
interests in each Account maintained by the Company on the last day of
each month which held shares for which the fee provided or in this
Letter Agreement was received by the Company, (b) that any fees billed
to the Fund for such month were accurately determined in accordance with
this Letter Agreement, and (c) such other information in connection with
this Agreement and the Participation Agreement as may be reasonably
requested by the Fund.
(g) The parties hereto agree that the Fund may unilaterally amend Schedule A
hereto to add additional investment companies or series thereof ("New
Funds") as Funds subject to the provisions of this Letter Agreement by
sending to the Company a written notice of the New Funds and indicating
therein the fees to be paid to the Company with respect to the
administrative services provided pursuant to the Participation Agreement
in connection with such New Funds.
(h) This Letter Agreement shall terminate upon termination of the
Participation Agreement. Accordingly, all payments pursuant to this
Letter Agreement shall cease upon termination of the Participation
Agreement.
(i) Capitalized terns not otherwise defined herein shall have the meaning
assigned to herein in the Participation Agreement.
If you are in agreement with the foregoing, please sign and date below where
indicated and return one copy of this signed letter agreement to me.
Very truly yours,
Xxxxxx X. Xxxx
President
Accepted and agreed as of May 1,
1998 by Xxxxxxx Investors Life
Insurance Company
By:
------------------------------
Name: Xxxx X. Xxxxxxxx
Title: Senior Vice President
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Exhibit A to Letter dated April 25, 1998
The Funds subject to this Agreement and applicable annual fees are as follows:
Fund Annual Fee
The Xxxxxxx Plan Variable Series .20%
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