1
EXHIBIT (b)(3)(iii)
AMENDMENT TO PROMOTIONAL AGENT
AGREEMENT DATED JANUARY 1, 1996
AMENDMENT dated as of January 1, 1997 to the Promotional Agent
Agreement dated January 1, 1996 by and among NASL Financial Services, Inc.,
North American Security Life Insurance Company, Xxxx Xxxxx Associates, Inc.,
Xxxx Xxxxx Distributors, Inc. and NAWL Holding Company, Inc.
SCHEDULE B (Statement of Expenses and Compensation) is hereby amended
and restated as described in the attached revised Schedule X.
XXXX XXXXX ASSOCIATES, INC.
Date: 31 May 1997
----------------------------------------------------
By: /s/ A. XXXX XXXXX, President
----------------------------------------------------
Name and Title
XXXX XXXXX DISTRIBUTORS, INC.
Date: 31 May 1997
----------------------------------------------------
By: /s/ A. XXXXX XXXXX, President
----------------------------------------------------
Name and Title
NASL FINANCIAL SERVICES, INC.
Date: May 29, 1997
----------------------------------------------------
By: /s/ XXXXXXX XXXXXX Xxxxxxx X. Xxxxxx, President
----------------------------------------------------
Name and Title
NORTH AMERICAN SECURITY LIFE INSURANCE COMPANY
(with respect to Insurance Products only)
Date: May 29, 1997
----------------------------------------------------
By: /s/ XXXX XXXXXXX III Xxxx X. XxxXxxx III, President
----------------------------------------------------
Name and Title
NAWL HOLDING COMPANY, INC.
Date: June 6, 1997
----------------------------------------------------
By: /s/ H. XXXXXXX XXXX, Chairman
----------------------------------------------------
Name and Title
2
SCHEDULE B
Statement of Expenses and Compensation
1. FINANCIAL SERVICE PRODUCTS
Subject to the terms and conditions of this Agreement, NASL Financial
will pay to Promotional Agent compensation of 1% of the premiums, purchase
payments and sales proceeds received and accepted under all Financial Services
Products distributed through Broker-Dealers having a Selling Agreement with NASL
Financial as a direct result of Promotional Agent's efforts (the "Promotional
Agent Fee"). NASL Financial shall pay Promotional Agent said compensation on a
monthly basis. In addition, for the period January 1, 1997 through June 30,
1997, NASL Financial will pay to Promotional Agent a monthly fee of $1.6 million
and for the period July 1, 1997 through December 31, 1997, NASL Financial will
pay to Promotional Agent a monthly fee of $1.35 million.. The monthly fee is
payable on the first of each month and the amount of such fee may be changed by
mutual agreement of the parties thereto.
2. EXCHANGES
No commission will be paid to Promotional Agent upon exchanges among
Financial Service Products.
3. COMMISSION CHARGE BACKS
Contract owner's exercise of "FREE LOOK":
In the event a contract is returned to Security Life pursuant to such
provision, the full Promotional Agent Fee paid thereon shall be charged
back to Promotional Agent.
Refund of premium, purchase payment or Sales Proceeds:
Should any premium or purchase payment on any contract issued by
Security Life or any sales proceeds invested in the North American
Funds be refunded, for any reason, Promotional Agent shall repay or
return Promotional Agent Fees received by, it with respect to
such-premium, purchase payment or sales proceeds.
4. INVESTMENT PRODUCTS
1. NASL Financial Distribution Expenses - NASL Financial shall be entitled
to xxxx to Promotional Agent, and Promotional Agent agrees to reimburse NASL
Financial, for NASL Financial's expenses for the distribution of the North
American Funds ("NAF") as follows:
(a) the expense of maintaining the NAF wire order desk, including
personnel and associated overhead costs;
(b) costs of printing additional NAF Prospectuses and Statements
of Additional Information for use in marketing activities;
(c) costs of printing additional NAF annual and semiannual reports
for use in marketing activities; and
(d) any other distribution expenses incurred with the prior
consent of Promotional Agent.
2. Promotional Agent Distribution Expenses - Promotional Agent shall
present a report at each regular meeting of the Trustees of NAF setting forth
its distribution expenses incurred during NAF's most recently completed fiscal
quarter. Such expenses may include the distribution expenses reimbursed to NASL
Financial pursuant to paragraph 1 hereof.
