Goldman, Sachs & Co. One New York Plaza New York, NY 10004 November 1. 1999
Item 30 Exhibit 26 (h) i. k2
Xxxxxxx, Xxxxx & Co.
Xxx Xxx Xxxx Xxxxx
Xxx Xxxx, XX 00000
November 1. 1999
C. M. Life Insurance Company
000 Xxxxxx Xxxxxx
Xxxxxxxx, XX 00000
Ladies and Gentlemen:
This letter sets forth the agreement between C.M. Life Insurance Company ("you" or the "Company") and the undersigned ("we" or "Xxxxxxx, Sachs & Co.") concerning certain administrative
services to be provided by you, with respect to the Xxxxxxx Xxxxx Variable Insurance Trust (the "Trust").
1. The Trust. The Trust is a Delaware business trust registered with the Securities and Exchange Commission (the "SEC") under the Investment Company Act of 1940, as amended (the "Act"), as an open-end
management investment company. The Trust consists of one or more separate series ("Portfolios") of shares and serves as a funding vehicle for variable annuity contracts and variable life insurance contracts. As such, the Trust sells its shares to
insurance companies and their separate accounts. With respect to various provisions of the Act, the SEC requires that owners of variable annuity contracts and variable life insurance contracts be provided with materials and rights afforded to
shareholders of a publicly-available SEC-registered mutual fund.
2. The Company. The Company is a Connecticut life insurance company. The Company issues variable life contracts (the "Contracts") supported by C.M. Variable Life Separate Account I (the "Separate
Account"; if more than one, the term "Separate Account" shall apply to each Separate Account subject hereto) which is registered with the SEC as a unit investment trust. The Company has entered into a participation agreement (the "Participation
Agreement") with the Trust pursuant to which the Company purchases shares of the Trust for the Separate Account supporting the Company's Contracts.
3. Xxxxxxx, Sachs & Co. Xxxxxxx, Xxxxx & Co. serves as the distributor for the Trust. Xxxxxxx Sachs Asset Management ("GSAM"), an operating division of Xxxxxxx, Xxxxx & Co.,
serves as the Trust's investment adviser. GSAM supervises and assists in the overall management of the Trust's affairs under an Investment Management Agreement with the Trust, subject to the overall authority of the Trust's Board of Trustees in
accordance with Delaware law. Under the Investment Management Agreement, we are compensated for providing investment advisory and certain administrative services.
4. Administrative Services. You have agreed to assist us, as we may request from time to time, with the provision of administrative services to the Trust, as they may relate to the investment in
the Trust by the Separate Account. It is anticipated that such services may include (but shall not be limited to) the mailing of Trust reports, notices, proxies and proxy statements and other informational materials to owners of the Contracts
supported by the Separate Account; the transmission of purchase and redemption requests to the Trust's transfer agent; the maintenance of separate records for each owner of a Contract reflecting shares purchased and redeemed and share balances
attributable to such Contract Owner in the form of units; the preparation of various reports for submission to the Trust's Trustees; the provision of shareholder support services with respect to the Portfolios serving as funding vehicles for the
Company's Contracts; and the services listed on Schedule A.
5. Payment for Administrative Services . In consideration of the services to be provided by you, we shall pay you on an annual basis, from our assets, including
GSAM's bona fide profits as investment adviser to the Trust, an amount equal to 20 basis points (0.20 %) per annum of the average aggregate net asset value of shares of the Trust held by the Separate Account under the Participation Agreement.
For purposes of computing the payment to the Company contemplated under this Paragraph 5, the average aggregate net asset value of shares of the Trust held by the Separate Account over each calendar year period shall be computed by totaling the
Separate Account's aggregate investment (share net asset value multiplied by total number of shares held by the Separate Account) on each calendar day during the year, and dividing by the total number of calendar days during such each. The payment
contemplated by this Paragraph 5 shall be calculated by GSAM at the end of each calendar year and will be paid to the Company within thirty (30) days after year end until assets in the Company's separate accounts investing in the Trust reach $5
million. Thereafter, it is proposed that the fee be paid quarterly on an ongoing basis, within 30 business days after the end of the calendar quarter in which the services to which they relate are provided. The average aggregate net asset value used
in the fee calculation for the quarterly periods will be calculated in a manner consistent with the manner in which the average aggregate net asset value is calculated for the annual period. All payments will be made by check unless otherwise agreed.
6. Nature of Payments. The parties to this letter agreement recognize and agree that Xxxxxxx, Sachs & Co.'s payments to the Company relate to
administrative services only and do not constitute payment in any manner for investment advisory services or for costs of distribution of the Contracts or of Trust shares; and, further, that these payments are not otherwise related to investment
advisory or distribution services or expenses, or administrative services which the Company is required to provide to owners of the Contracts pursuant to the terms thereof. You represent that you may legally receive the payments contemplated by this
Agreement.
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7. Term. This letter agreement shall remain in full force and effect for an initial term of one year, and shall automatically renew for successive one-year periods unless either party notifies the
other upon sixty (60) days' written notice of its intent not to continue this agreement. This letter agreement shall terminate automatically upon the redemption of the Separate Account's investment in the Trust, or upon termination of the Trust's
obligation to sell its shares under the Participation Agreement.
8. Representations and Warranties. The Company represents and warrants that:
(a)
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it is an insurance company duly organized and in good standing under Connecticut insurance law;
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(b)
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its entering into and performing its obligations under this letter agreement does not and will not violate its charter documents or by-laws, rules or regulations, or any agreement to which it is a party; and
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(c)
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it will keep confidential any information acquired in connection with the matters contemplated by this letter agreement regarding the business and affairs of the Trust, Xxxxxxx, Xxxxx & Co. and their
affiliates.
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9. Interpretation. This letter agreement shall be construed in accordance with the laws of the State of Delaware, without giving effect to the principles of conflicts of laws,
subject to the following rules:
(a)
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This letter agreement shall be subject to the provisions of the Act, and the rules, regulations and rulings thereunder, including such exemptions from that statute, rules and regulations as the SEC may grant,
and the terms herein shall be limited, interpreted and construed in accordance therewith.
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(b)
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The captions in this letter agreement are included for convenience of reference and in no way define or delineate any of the provisions herein or otherwise affect their construction or effect.
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10. Amendment. This letter agreement may be amended only upon mutual agreement of the parties hereto in writing.
11. Counterparts. This letter agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall together constitute one and the same instrument.
If this letter agreement is consistent with your understanding of the matters we discussed concerning your administrative services, kindly sign below and return a signed copy to us.
Very truly yours,
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Xxxxxxx, Xxxxx & Co.
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By:
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/s/ Xxxxxxx X. Grip
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Name:
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Xxxxxxx X. Grip
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Title:
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Managing Director
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Acknowledged and Agreed to:
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C. M. LIFE INSURANCE COMPANY
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By:
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/s/ Xxxxx X. Xxxxxx
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Name:
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Xxxxx X. Xxxxxx
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Title:
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Executive Vice President - Operations
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SCHEDULE A
Maintenance of books and records
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Record issuance of shares
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-
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Record transfers (via net purchase orders)
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-
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Reconciliation and balancing of the Separate Account at the Trust level in the general ledger, at various banks and within systems interface to the summary of each Contract Owner's position
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Purchase orders
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Determination of net amount available for investment by the Trust
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-
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Deposit of receipts at Trust custodian by Trust (wire order)
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-
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Notify custodian of estimated amount required to pay dividend distributions or reinvestments
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Redemption orders
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Determination of net amount required for redemptions by Trust
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Notification of custodian and Trust of cash required to meet payments
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-
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Cost of share redemptions
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Fund-related Contract Owner services
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Mailing costs associated with dissemination of Trust prospectuses to existing Contract Owners
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-
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Printing costs associated with dissemination of Trust prospectuses to existing Contract Owners if the form of Prospectus delivered is bound together with the prospectuses of other funds available to Contract
Owners under the Contract; in the event that stand alone Trust Prospectuses are distributed to existing Contract Owners, 50% of the cost of printing such stand alone Trust prospectuses
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-
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Telephonic support for Contract Owners with respect to inquiries about the Trust (not including information related to sales of annuity contracts)
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-
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50% of the costs related to Trust proxies (preparation of materials, inclusive of printing, distribution, tabulation, and reporting)
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-
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Printing and mailing costs associated with dissemination of Trust reports and notices to existing Contract Owners
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Other administrative support
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Sub-accounting services
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-
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Providing other administrative support to the Trust as mutually agreed between insurer and the Trust
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-
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Relieving the Fund of other usual or incidental administrative services provided to individual shareholders
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