[SDI LOGO] SECURITY DISTRIBUTORS, INC.
--------------------------------------------------------------------------------
ONE SECURITY BENEFIT ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
MARKETING ORGANIZATION AGREEMENT
COMMISSION SCHEDULE
AdvisorDesigns Variable Annuity (the "Contract")
Issued by First Security Benefit Life Insurance
and Annuity Company of New York
Marketing Organization:
(Broker/Dealer)
EFFECTIVE DATE OF COMMISSION SCHEDULE:
COMMISSIONS - This Commission Schedule is hereby made a part of and amends your
Marketing Organization Agreement (hereinafter called the "Agreement"), with
Security Distributors, Inc. (hereinafter called "SDI"), and commissions payable
hereunder are subject to the provisions contained in the Agreement and this
Commission Schedule. Minimum Purchase Payments are as set forth in the
applicable prospectus and Contract. Commissions to a Marketing Organization are
equal to a percentage of each Purchase Payment written by Marketing
Organization, as follows:
1. UP FRONT COMMISSIONS: The rate of commissions paid on Purchase Payments
made with respect to each particular Contract is based on the issue age of
the Owner (or of the Annuitant if the Contract is owned by a non-natural
person) as set forth in the tables below. You may select one of Commission
Options A through D as shown in the table below at the time of application
for each Contract. If no selection is made on the application, SDI will pay
you pursuant to Option B. You may select a different option for each
Contract but may not change the Option in effect after the Contract is
issued.
================================================================
COMMISSION OPTION OPTION A OPTION B OPTION C OPTION D
----------------------------------------------------------------
OWNER ISSUE AGE 0-80 81-90 0-80 81-90 0-80 81-90 0-80 81-90
----------------------------------------------------------------
6.50% 2.50% 5.00% 2.50% 2.50% 2.50% 0.00% 0.00%
================================================================
*No Commission will be paid on Purchase Payments made that are less than
the minimum specified in the applicable prospectus and Contract.
2. ASSET-BASED COMMISSIONS: Under Commission Options A (for issues ages 81 -
90 only), B, C and D, SDI will pay an asset-based commission as of the end
of each calendar month. The amount of the asset-based commission under each
Option is equal to 1/12 of the applicable percentage set forth in the table
below times the aggregate Contract Value of those Contracts sold under the
applicable Commission Option for which Marketing Organization is the broker
of record and, with respect to Options A, B and C only, the initial
Purchase Payment is more than 12 months old. For Option D only, the
asset-based commission will be paid as of the end of the first calendar
month of the Contract Date. On an annual basis, the asset-based commission
is equal to the amount set forth in the Table below. No asset-based
commission will be paid on Contracts that have annuitized under a life
contingent annuity option. An Annuitization Fee may be available as
discussed in paragraph 6.
================================================================
COMMISSION OPTION OPTION A OPTION B OPTION C OPTION D
----------------------------------------------------------------
OWNER ISSUE AGE 0-80 81-90 0-80 81-90 0-80 81-90 0-80 81-90
----------------------------------------------------------------
0 bps 25 bps 25 bps 25 bps 45 bps 25 bps 65 bps 60 bps
================================================================
3. ALTERNATE WITHDRAWAL CHARGE RIDER: For a Contract sold with an Alternate
Withdrawal Charge Rider, the commission and asset-based commission
schedules set forth above do not apply. The following commission and
asset-based commission schedule will apply in lieu of those set forth above
if an Alternate Withdrawal Charge Rider is in effect.
=====================================================
ALTERNATE WITHDRAWAL UP FRONT ASSET-BASED
CHARGE RIDER COMMISSION* COMMISSION**
-----------------------------------------------------
0 - year 0.00% 100 bps
=====================================================
*The commission is equal to the applicable percentage of each Purchase
Payment written by Marketing Organization based upon the applicable
Alternate Withdrawal Charge Rider in effect.
**The amount of the asset-based commission is equal to 1/12 of the
applicable percentage set forth in the table above times the aggregate
Contract Value of those Contracts sold under the applicable Alternate
Withdrawal Charge Rider for which Marketing Organization is the broker of
record.
4. CONTRACT DATE: For the purpose of this Commission Schedule, the term
"Contract Date" shall be the date the first Purchase Payment is credited to
the Contract.
5. DEATH BENEFIT APPLIED TO ANNUITY OPTION: In the event that a beneficiary of
a Contract under this Commission Schedule applies the death benefit to one
of the annuity options under the Contract, no commission will be payable
upon such application. An Annuitization Fee may be available as discussed
in paragraph 6.
6. ANNUITIZATION: An Annuitization Fee will be paid to a Marketing
Organization who secures from the Contract Owner (or his or her
beneficiary) the proper forms and information to commence an immediate life
contingent annuity option under the Contract and significantly assists the
client and insurance company in such settlement. The Annuitization Fee will
be equal to 4% of the amount applied to a fixed life contingent annuity
option and 2% of the amount applied to a variable life contingent annuity
option.
7. COMMISSION CHARGEBACK PROVISIONS: No Commission chargebacks are applicable
to any partial withdrawals, full surrenders or death claims except in the
event of a free look surrender. SDI will charge back 100% of commissions in
the event of a free look surrender.
8. CHANGE OF COMMISSION SCHEDULE: Notwithstanding any other provision of the
Agreement to the contrary, the following provisions shall apply. SDI
reserves the right at any time, with or without notice, to change, modify
or discontinue the commissions, asset-based commissions or any other
compensation payable under this Commission Schedule. However, any such
change will not apply to the commissions or asset based commissions
applicable to Contracts issued before the effective date of such change.
9. CHANGE OF DEALER: A Contract Owner shall have the right to designate a new
marketing organization, or terminate a marketing organization without
designating a replacement, by sending written notice of such designation or
termination to SDI. Upon written notice to SDI by the owner of the
designation of a new marketing organization, all the commissions and
asset-based commissions shall be payable to the new marketing organization.
Upon written notice to SDI by the Contract Owner of termination of
Marketing Organization, without designating a new marketing organization,
SDI shall cease paying commissions and asset based commissions to Marketing
Organization.
10. TERMINATION OF THE AGREEMENT/VESTING: In the event of termination of the
Agreement for any reason, all rights to receive commissions, asset-based
commissions or other compensation under this Commission Schedule shall be
terminated, unless each of the following requirements is met: (i) the
Agreement has been in force for at least one year; (ii) Marketing
Organization is at the time such commissions are payable properly licensed
to receive such commissions; (iii) Marketing Organization is providing
service to the Contract Owner and performing its duties in a manner
satisfactory to SDI; (iv) commissions paid to Marketing Organization in the
previous calendar year amounted to at least $500; and (v) Marketing
Organization has not been terminated, nor a new marketing organization
designated, by the Contract Owner as set forth in paragraph 9 above.
THIS COMMISSION SCHEDULE replaces any previous Commission Schedule for the
Variable Annuity Contract listed above as of the Effective Date set forth above.
SECURITY DISTRIBUTORS, INC.
By: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
------------------------------------------
Title: President
------------------------------------------