SECURITY BENEFIT(SM)
SECURITY DISTRIBUTORS, INC.
-------------------------------------------------------------------------------
FIRST SECURITY BENEFIT LIFE INSURANCE AND
ANNUITY COMPANY OF NEW YORK
00 XXXX XXX XXX XXXX, 0XX XXXXX
XXXXX XXXXXX, XX 00000
MARKETING ORGANIZATION AGREEMENT
SUPERVISORY FEE AMENDMENT
EliteDesignsSM Variable Annuity (the "Contract")
Marketing Organization:
EFFECTIVE DATE:
This Supervisory Fee Amendment (the "Amendment") is hereby made a part of and
amends your selling agreement including, but not limited to, the FSBL Variable
Products Sales Agreement and/or Marketing Organization Agreement, as applicable
(hereinafter called the "Agreement"), with First Security Benefit Life Insurance
and Annuity Company of New York and Security Distributors, Inc. (hereinafter
jointly called "FSBL"), and any compensation payable hereunder is subject to the
provisions contained in the Agreement, as amended.
1. ADMINISTRATIVE FEE FOR SUPERVISION: FSBL acknowledges that Marketing
Organization has responsibility for supervision of its registered
representatives that sell the Contract (referred to herein as
"Marketer(s)") and Marketing Organization is not compensated in connection
with sales of the Contract as the current commission rate for the Contract
is 0%. Accordingly, FSBL agrees to compensate Marketing Organization
pursuant to the schedule below for administrative services provided in
connection with supervision of its Marketers:
------------------------------------------------------- --------------------------------------------------------------------------
AGGREGATE CONTRACT VALUE ANNUAL ADMINISTRATIVE FEE(2)
OF ELITEDESIGNS CONTRACTS (1) (AS A PERCENTAGE OF THE AGGREGATE CONTRACT VALUE OF ELITEDESIGNS
CONTRACTS SOLD FOR WHICH MARKETING ORGANIZATION IS THE BROKER OF RECORD)
------------------------------------------------------- --------------------------------------------------------------------------
Less than $25 million 0.05%
------------------------------------------------------- --------------------------------------------------------------------------
$25 million or more 0.10%
------------------------------------------------------- --------------------------------------------------------------------------
(1) FSBL determines the applicable percentage on the basis of aggregate
Contract Value of EliteDesigns Contracts for which Marketing Organization
is the broker of record as of December 31 of the prior calendar year, or
the Effective Date of this Amendment during the calendar year in which this
Amendment is first effective.
(2) FSBL will pay the Administrative Fee as of the end of each full calendar
month during which this Amendment is in effect. The amount of the
administrative fee will be equal to 1/12 of the applicable percentage set
forth above times the aggregate Contract Value as of the applicable
calendar month end of those Contracts sold for which Marketing Organization
is the broker of record.
(3) Notwithstanding the foregoing, during calendar year 2007, FSBL will pay an
annual Administrative Fee of 0.10% without regard to the amount of
aggregate Contract Value. Thereafter, FSBL will pay the Administrative Fee
set forth in the table above while this Amendment is in effect.
--------------------------------------------------------------------------------
2. TERMINATION OF THE AGREEMENT: In the event of termination of the Agreement
or this Amendment for any reason, any rights to receive compensation under
this Amendment shall be terminated. FSBL reserves the right to amend or
terminate this Amendment at any time upon ten days' prior written notice to
Marketing Organization.
THIS AMENDMENT replaces any previous agreement for the Contract listed above
with regard to an administrative fee for supervision as of the Effective Date
set forth above.
SECURITY DISTRIBUTORS, INC.
By: /s/ Xxxxxxx X. Xxxxxx
--------------------------
Title: President
--------------------------
MARKETING ORGANIZATION
By:
--------------------------
Title: --------------------------
