Document:

Exhibit 10.(i)

 

MANAGEMENT SERVICES AGREEMENT

 

This
Management Services Agreement (“Agreement”) is dated August 31, 2008 by
and between American Equity Investment Life Insurance Company, a life insurance
company domiciled in the State of Iowa (“AEL”) and Eagle Life Insurance
Company, a life insurance company domiciled in the State of Iowa (“Eagle”).

 

WHEREAS,
Eagle is a wholly-owned subsidiary of AEL;

 

WHEREAS,
each party acknowledges it is desirable that certain management services be
performed and certain equipment and facilities be provided by AEL for Eagle;

 

WHEREAS,
AEL and Eagle share certain personnel, resources and facilities including
office space and related costs, telephone systems, data processing systems, et.
al., (hereinafter referred to as the “Shared Resources”);

 

WHEREAS,
AEL has agreed to bear 100% of the costs and expenses associated with the
Shared Resources as more particularly described below subject to reimbursement
by Eagle as set forth in Paragraph SECOND herein;

 

WHEREAS,
AEL agrees to provide any books and records (upon request) to the Iowa
Insurance Division (“IID”) regarding this Agreement;

 

NOW,
THEREFORE, in consideration of the promises contained herein and other good and
continuing relationships between the parties hereto, it is hereby agreed as
follows:

 

FIRST:  AEL hereby agrees to provide, and Eagle
hereby accepts certain management services, equipment and facilities as
described in Exhibit A.

 

SECOND:  Eagle and AEL assure that all charges for
services and the use of the Shared Resources incurred pursuant to this
Agreement are in accordance with applicable legal requirements and to the
extent practicable reflect actual costs and are arrived at in a fair and
equitable manner.  In any event,
compensation is limited to actual costs without any profit factor.  AEL shall submit quarterly reports in a form
as mutually agreed upon by both parties covering all charges during the billing
period with the final payment being remitted by Eagle within fifteen (15) days
upon receipt of such quarterly reports. 
In the event that settlement for amounts due is not made in a timely
manner, interest will accrue on said amounts from the due date until paid at
the rate of .5% per month, compounded annually.

 

THIRD:  The Commissioner of Insurance of the State of
Iowa, or her representatives, shall, at all reasonable times, be permitted
access to all books and

 

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records
of either party pertaining to services provided and charges allocated or billed
pursuant to the provisions of this Agreement.

 

FOURTH:  All records will be maintained by AEL in
accordance with applicable legal requirements. 
However, Eagle shall own and have custody of its general corporate
accounts and records.

 

FIFTH:  All underwriting, claims and investment
accounting provided to Eagle hereunder are to be based upon the written
criteria, standards and guidelines of Eagle. 
However, Eagle shall have the ultimate and final authority over decisions
and policies, to include but not be limited to the acceptance, rejection or
canceling of applications for policies, the payment or non-payment of claims
and the purchase and sale of securities. 
Any insurance premiums that are collected by AEL on behalf of Eagle
shall be held in a fiduciary capacity and shall be paid over/credited to Eagle’s
premium account immediately following collection.  In addition, Eagle shall have ultimate
control and responsibility of the functions that it has delegated pursuant to
this Agreement.

 

SIXTH:  Any dispute or difference arising with
reference to the applicable interpretation or effect of this Agreement or any
part hereof between the parties, whether such dispute arises before or after
termination of this Agreement, shall be referred to a Board of Arbitration (the
“Board”) of two (2) arbitrators and an umpire.  The members of the Board shall be active or
retired disinterested officers of insurance or reinsurance companies.

 

One
arbitrator shall be chosen by the party initiating the arbitration and
designated in the letter requesting arbitration.  The other party shall respond, within fifteen
(15) days, advising of its arbitrator. 
The umpire shall thereafter be chosen by the two (2) arbitrators.  In the event either party fails to designate
its arbitrator as indicated above, the other party is hereby authorized and
empowered to name the second arbitrator, and the party which failed to
designate its arbitrator shall be deemed to have waived its right to designate
an arbitrator and shall not be aggrieved thereby.  The two (2) arbitrators shall then have
thirty (30) days within which to choose an umpire.  If they are unable to do so, the umpire shall
be chosen by the manager of the American Arbitration Association who shall be a
person meeting the qualifications set for the above.

 

Each
party shall submit its case to the Board within one (1) month from the
date of the appointment of the umpire, but this period of time may be extended
by unanimous written consent of the Board.

 

The
sittings of the Board shall take place in Des Moines, Iowa unless otherwise
agreed in writing by the parties.  The
Board shall make its decision with regard to the custom and usage of the
insurance and reinsurance business.  The
Board is released from all judicial formalities and may abstain from the strict
rules of evidence.  The written
decision of a majority of the Board shall be rendered within sixty (60) days
following the termination of the Board’s hearings, unless the parties consent
to an extension.  Such majority decision
of the Board shall be final and binding upon the parties both as to law

 

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and
fact, and may not be appealed to any court of any jurisdiction.  Judgment may be entered upon the final
decision of the Board in any court of proper jurisdiction.

 

Each
party involved in arbitration hereunder shall be responsible for the fees and
expenses of the arbitrator elected by or on its behalf, and the parties shall
bear the fees and expenses of the umpire as determined by the Board.

 

SEVENTH:  The effectiveness of this Agreement and any
amendments hereto shall be conditioned upon the receipt of all permits,
authorizations, licenses, consents, orders or approvals, declarations or
filings, as the case may be, required for the implementation of the management
service arrangements contemplated herein or therein.

 

EIGHTH:  The term of this Agreement shall be for a
period of five (5) years, at which time it shall be subject to
renegotiation by the parties.  At the end
of such term, Eagle shall have the right to elect and continue to receive data
processing services and/or to continue to utilize data processing facilities
and related software up to one (1) year from the date of such
termination.  Application software and
all copies thereof developed by AEL for Eagle’s use and that developed by Eagle
and provided to AEL for Eagle’s exclusive use shall remain the property of
Eagle in perpetuity.

 

The
parties acknowledge that pursuant to Section 521A.5(1)(c)(2) they
have notified the Insurance Commissioner for the State of Iowa of their
intention to enter into this Agreement and that the Agreement is subject to her
review and non-disapproval.  The parties
further acknowledge that any amendment or modification to this agreement may
also be subject to review and/or non-disapproval of any other state insurance
department, in accordance with existing law, including the Iowa Insurance
Division pursuant to Section 521A.5 of the Iowa Code.

 

NINETH:  All notices, requests, demands, approvals and
other communications transmitted by a party hereto in connection with this
Agreement shall be in writing and shall be delivered personally, telegraphed,
telexed, sent by facsimile transmission or sent by certified, registered or
express mail, postage prepaid.  Any such
notice or other communication shall be deemed given:  (a) upon actual delivery if presented
personally or sent by prepaid telegram or telex or by facsimile transmission
and (b) three (3) business days following deposit in the U.S. mail,
if sent by certified, registered or express mail, postage prepaid, in each case
to the following addresses:

 

If
to AEL:

American
Equity Investment Life Insurance Company

Attn:  Debra J. Richardson, Senior Vice President

5000
Westown Parkway

West
Des Moines, Iowa 50266

 

If
to Eagle:

Eagle
Life Insurance Company

Attn:  Wendy L. Carlson, General Counsel

 

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5000
Westown Parkway

West
Des Moines, Iowa 50266

 

TENTH:  This Agreement may be terminated by any party
hereto by thirty (30) days prior written notice to the other party.  However, Eagle shall have the right to elect
and continue to receive data processing services and/or to continue to utilize
data processing facilities and related software up to one (1) year from
the date of such notice.  In any event,
Eagle retains the right to terminate this Agreement in the event that AEL does
not perform satisfactorily.

 

ELEVENTH:  This Agreement may not be modified nor
amended except expressly by an instrument signed by the parties hereto and
subject to the prior approval of the Commissioner of Insurance of the State of
Iowa.  No failure or delay of a party in
exercising any power or right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power.  No waiver by a party of
any provision of this Agreement or consent to any departure therefrom shall in
any event be effective unless the same shall be in writing and signed by such
party, and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. 
This Agreement shall not be assigned by either party.

 

TWELFTH:  Any term or provision of this Agreement which
is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction,
be ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction.  If any provision of this Agreement is so
broad as to be unenforceable, that provision shall be interpreted to be only as
broad as is enforceable.

 

THIRTEENTH:  This Agreement shall be governed and
construed in accordance with the laws of the State of Iowa.

 

IN
WITNESS WHEREROF, this Agreement is hereby executed by duly authorized officers
of the parties hereto as of the date first above written.

 

	
  AMERICAN
  EQUITY INVESTMENT

  	
   

  	
  EAGLE
  LIFE INSURANCE COMPANY

  
	
  LIFE
  INSURANCE COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Title

  	
   

  	
   

  	
  Title

  

 

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EXHIBIT A

MANAGEMENT SERVICES AGREEMENT

 

1.               Agent Licensing &
Commissions

 

a.                                                               Employees of
AEL will review agent’s applications and perform background screening of
applicants.  Based upon such review and
screening, employees of AEL will recommend approval of agents for Eagle.  Agent’s contracts shall be executed on behalf
of Eagle only by authorized officers of Eagle.

 

b.                                                              Employees of
AEL will prepare and send commission checks to agents of Eagle, or will arrange
for electronic fund transfer of commissions. 
Such payments will be made only from funds of Eagle, and checks or
transfer authorizations will be signed only by designated officers of Eagle.

 

c.                                                               Compliance with
any state laws or regulations with respect to limitations on payments to agents
will be monitored by the Compliance Officer for AEL.

 

2.               Actuarial

 

a.                                                               Actuaries of
AEL will perform all actuarial testing and analysis necessary with respect to
the products of Eagle.

 

b.                                                              Actuaries of
AEL will perform all actuarial testing and analysis necessary with respect to
reserves, asset liability matching, amortization of deferred acquisition costs
and other financial issues.

 

c.                                                              Only actuaries
who are officers of Eagle will provide certifications required by applicable
law or regulation with respect to the business of Eagle.

 

3.               Product Issuance and New
Business

 

a.                                                               Employees of
AEL will review applications for policies and administer the issuance of
policies for approved applications.  Such
applications will clearly identify Eagle.

 

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b.                                                             Employees of
AEL will review all requests for transfers of funds to or from Eagle in
connection with any replacement transaction and comply with applicable law or
regulation with respect to such transactions.

 

c.                                                             Employees of
AEL will process all premium payments received with respect to Eagle products,
which will be transferred into a bank account owned by Eagle, at Eagle’s
direction.

 

d.                                                             AEL will
create, maintain and administer all policy forms and other related forms and
supplies necessary in connection with the issuance of policies by Eagle.

 

e.                                                               AEL employees
will provide support to agents and policyholders in connection with Eagle
pending and new business.

 

4.               In-force Policy Service

 

a.                                                              Employees of
AEL will respond to requests and inquiries by agents and policyholders of Eagle
in connection with existing business.

 

b.                                                             Employees of
AEL will provide inforce illustrations for Eagle agents and policyholders as
requested.

 

c.                                                              Employees of
AEL will administer all in-force business for Eagle, including maintenance of
all policy records and issuance of annual statements to policyholders

 

d.                                                             Employees of
AEL will facilitate policy withdrawals, transfers, surrenders and death claim
benefits on Eagle policies.  Payments
with respect to the same shall be authorized only by specified officers of
Eagle.

 

5.               Accounting and Financial

 

a.                                                              Officers of AEL
will select and retain the independent auditors for Eagle.  Engagement letters for such auditors shall be
executed only by officers of Eagle.

 

b.                                                             Accounting
entries and bookkeeping for Eagle will be made by employees of AEL, who will
ensure that all books and records of Eagle are made available to Eagle.

 

c.                                                              Only officers
of Eagle will have the ability to access the depository accounts of Eagle at
banks or other financial institutions.

 

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6.               Compliance and Market
Conduct

 

a.                                                              Employees of
AEL will review all policy forms, marketing materials and advertising used in
connection with the products of Eagle. 
Such employees will require any and all modifications of policy forms,
marketing materials and advertising which may be necessary to comply with the
laws and regulations of a state or states, including the insurance department
of any such state.

 

b.                                                             The
establishment of corporate policies with respect to compliance issues will be
authorized solely by officers of Eagle.

 

c.                                                             Employees of
AEL will conduct all market conduct reviews and suitability analyses necessary
with respect to sales practices and policy issuance.

 

d.                                                             Employees of
AEL will prepare all documentation necessary to obtain membership in IMSA for
Eagle.

 

7.               General Services and Shared
Resources

 

a.                                                               AEL will
provide all supplies, postage and mail services required in connection with the
administrative activities of Eagle.

 

b.                                                             AEL will
arrange for and provide all technology equipment and services required in
connection with the administrative activities of Eagle.

 

c.                                                              Employees of
AEL will assist employees of Eagle in recruiting agents, marketing
organizations, and independent registered representatives of broker/dealers.

 

d.                                                             Employees of
AEL will assist employees of Eagle in managing relationships with agents,
marketing organizations and independent registered representatives of broker/dealers.

 

e.                                                              Employees of
AEL will prepare marketing materials for products of Eagle.

 

f.                                                                Employees of
AEL will prepare (i) print advertisements for products of Eagle which will
appear in publications directed to agents and (ii) mailings to agents
regarding the business of Eagle.

 

g.                                                              AEL shall
provide to Eagle the use of personnel, resources and facilities including
office space within AEL offices located at 5000 Westown Parkway, West Des
Moines, Iowa, 50266) and all related utilities, all phone lines and numbers
utilized within the office space, data processing, communication and computer
systems utilized within the office space, all management personnel (including
without limitation compensation, payroll taxes and employee benefit plans, and
receptionist and clerical 

 

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staff
(including without limitation compensation, payroll taxes and employee benefit
plans.

 

8Exhibit 10.(ii)

 

COINSURANCE AGREEMENT

 

This Coinsurance Agreement (this “Agreement”),
effective as of July 1, 2009, is by and between Eagle Life Insurance
Company, a corporation organized under the laws of the State of lowa
(hereinafter referred to as the “Reinsurer”), and American Equity Investment
Life Insurance Company, a company organized under the laws of the State of lowa
(hereinafter referred to as the “Company”).

 

The Company and the
Reinsurer mutually agree to enter into a reinsurance transaction under the
terms and conditions stated herein. This Agreement is an indemnity reinsurance
agreement solely between the Company and the Reinsurer, and the performance of
the obligations of each party under this Agreement shall be rendered solely to
the other party. In no instance, except as set forth in the insolvency
provisions of this Agreement, shall anyone other than the Company or the
Reinsurer have any rights under this Agreement, and the Company shall be and
shall remain the only party hereunder that is liable to any insured or
beneficiary under the policy reinsured hereunder.

 

ARTICLE I

Definitions

 

As used in this
Agreement, the following terms shall have the following meanings (definitions
are applicable to both the singular and the plural forms of each term defined
in this Article):

 

1.1           “Account Value” means the amount
payable on a Policy upon full surrender excluding the surrender charge,
determined in a manner consistent with the amounts reported quarterly in
Schedule D.

 

1.2           “Accrual Rate” means the weighted
average crediting rate on policies in force at the end of the most recent
calendar quarter, plus 1.50%.

 

1.3           “Business Day” means any day that
is not a Saturday, Sunday or other day on which national banking institutions
are required or permitted by law or executive order to be closed.

 

1.4           “C-4 Risk Charge” shall have the
meaning specified in Section 4.5.

 

1.5           “Commission Allowance” shall have
the meaning set forth in Schedule C.

 

1.6           “Effective Date” shall have the
meaning set forth in Section 2.1.

 

1.7           “Expense Allowances” shall have
the meaning set forth in Schedule C.

 

1.8           “Insurance Taxes and Charges”
means all insurance taxes (not including any federal, state or local tax
measured by net income) and Guaranty Fund assessments related to the Reinsured
Policies.

 

 

1.9           “Monthly Accounting Report” means
the report required to be prepared in accordance with Section 8.2 and
Schedule B.

 

1.10         “Policy” means any individual
insurance policy described in Schedule A and all endorsements, riders, benefits,
and amendments thereto.

 

1.11         “Policy Benefits” shall mean
partial surrenders, full surrenders, death claims, annuity payouts under
Supplementary Contracts, and all other contractual benefits.

 

1.12         “Premiums” means the gross
considerations for the Policies reinsured hereunder.

 

1.13         “Quarterly Accounting Report”
means the report required to be prepared in accordance with Section 8.2
and Schedule D.

 

1.14         “Quota Share” means the percentage
of risk assumed by the Reinsurer with respect to the Reinsured Policies, as set
forth in Schedule A.

 

1.15         “Reinsurance Premium” shall mean
the Quota Share of Premiums on Reinsured Policies as set forth in Schedule A.

 

1.16         “Reinsured Policies” shall mean
all Policies reinsured under this Agreement, as set forth in Schedule A,
including any amendments, riders or endorsements attached thereto and all
Supplementary Contracts written by the Company on or following the Effective
Date through, but excluding, the date this Agreement is terminated.

 

1.17         “Reserves” means Exhibit 5
policy reserves as defined under statutory accounting principles.

 

1.18         “Settlement Amount” means the net
amount due and payable to either party with respect to any Monthly Accounting
Period as set forth in Section 8.3.

 

1.19         “Supplementary Contracts”  means all supplementary contracts, whether
with or without   life contingencies, issued by the Company
in exchange for a Reinsured Policy.

 

1.20         “Terminal Accounting and Settlement”
as described in Section 10.1 means the final accounting and payment of any
amount due either party upon the termination of this Agreement.

 

ARTICLE II

Coverage

 

2.1           Coverage.  For Policies
issued on or after July 1, 2009, (the “Effective Date”), the Company
agrees to cede to the Reinsurer, and the Reinsurer agrees to indemnify the
Company for the Quota Share of the risks under the Policies as of the Effective
Date. The liability of the Reinsurer with respect to its share of the risks
under the Reinsured Policies including liability for Policy Benefits under the
Reinsured Policies shall begin simultaneously with that of the Company, but not
prior to the Effective Date.

 

2

 

2.2           Conditions. The reinsurance hereunder is subject to the same
limitations, terms and conditions as the applicable Reinsured Policies
hereunder, except as otherwise provided in this Agreement.

 

2.3           Exclusions. This Agreement does not apply to any risks except
those risks under the applicable Reinsured Policy hereunder.

 

ARTICLE lII

General Provisions

 

3.1           Confidentiality. In performing the obligations arising
under this Agreement, Reinsurer may have access to and receive disclosure of
certain information from Company which is confidential or proprietary
(hereinafter “Confidential Information”). 
Confidential Information includes all information provided by Company to
Reinsurer except (a) information which Reinsurer has confirmed is publicly
known, so long as it is not publicly known through the acts or omissions of
Reinsurer; or (b) information which is legally required to be disclosed by
Reinsurer under a requirement of a governmental agency or a court of law having
jurisdiction, but only if Reinsurer discloses only that information which, in
the reasonable opinion of its counsel, is required to be disclosed.  Reinsurer agrees that it will not disclose the
Confidential Information to a third party other than to carry out the Reinsurer’s
obligations under this Agreement. 
Reinsurer further agrees not to appropriate any Confidential Information
for its own use either during the course of or subsequent to termination of
this Agreement.  If Reinsurer discloses
the Confidential Information to a third party in order to perform the
obligations under this Agreement, the Reinsurer will disclose to the Company
and will require the third party to agree to the confidentiality standards set
forth in this paragraph. Company has the right, but not the obligation, to
audit the Confidential Information in the possession of Reinsurer to detect use
of the Confidential Information which is in violation of this Coinsurance
Agreement.  Reinsurer’s obligations with
respect to the confidentiality and security of the Confidential Information
shall survive termination of this Agreement. 
All Confidential Information in any medium and any copies thereof shall
be promptly returned to Company or destroyed at Company’s option upon request
of Company or upon termination of this Agreement.

 

Notwithstanding anything in this Section 3.1
to the contrary, Company agrees that Reinsurer may disclose to analysts, rating
agencies and/or any other parties approved in advance by Company, information
limited to (i) the existence this Agreement; (ii) the quota share
amount and total dollar amount of reinsurance hereunder (premiums, benefits,
and expenses); and (iii) the terms of the Policies, but specifically
excluding contract specific data from the pricing models for the Policies
and/or the identities of any of Company’s sales agents.

 

3.2           Inspection.  Either party
or its designated representative may upon advance notice of at least ten (10) Business
Days inspect, at the offices of the Company or the Reinsurer, as the case may
be, where such records are located, and conduct reasonable audits of, the
papers and any and all other books or documents of the Company or the Reinsurer
reasonably relating to the Reinsured Policies and the administrative
responsibilities hereunder, during normal business hours for such period as
this Agreement is in effect or for as long thereafter as the Company or the
Reinsurer, as the case may be, seeks 

 

3

 

performance by the
other party pursuant to the terms of this Agreement. The information obtained
shall be used only for purposes relating to the reinsurance provided under this
Agreement and shall not be disclosed to any person without the express
permission of the other party, except to the extent that disclosure is required
by law. Each party will bear its own out of pocket costs in conducting
investigations under this Section. Each party’s rights under this Section 3.2
shall survive termination of this Agreement until all Reinsured Policies have
expired by their terms.

 

3.3           Misunderstandings and Oversights. If any delay, omission, error or
failure to pay amounts due or to perform any other act required by this
Agreement is unintentional and caused by misunderstanding, accident, or
oversight, the Company and the Reinsurer shall adjust the situation to what it
would have been had the misunderstanding, accident or oversight not occurred.
The party first discovering such misunderstanding, accident or oversight, or
act resulting from the misunderstanding or oversight, shall notify the other
party in writing promptly upon discovery thereof and the parties shall act to
correct such misunderstanding or oversight promptly upon receipt of such
notice. However, this Section 3.3 shall not be construed as a waiver by
either party of its right to enforce strictly the terms of this Agreement.

 

3.4           Misstatement. In the event that the liability provided
by a Reinsured Policy is increased or decreased because of a misstatement of
fact, the reinsurance hereunder shall increase or decrease proportionate to the
Quota Share thereunder.

 

3.5           Policy Changes. The Company and the Reinsurer shall
share, based upon the applicable Quota Share, in any increase or decrease in
the Company’s liability that results from any change in the terms or conditions
of any Reinsured Policy arising from the insured’s addition or deletion of
riders.

 

3.6           CompIiance with Applicable Laws and Regulations.

 

(a)           Agreements to be Construed in Accordance with Existing
Law. It is the
intention of the parties that this Agreement and related documents shall comply
with all applicable federal and state laws and regulations in such a way that a
Reinsured Policy remains reinsured on the quota share reinsurance plan.

 

(b)           Amendment Upon Failure to Comply. In the event that it is determined by a
regulatory authority, or by either party upon the advice of regulatory
authorities that this Agreement or related documents fail to conform to the
requirements of existing applicable laws and regulations, the parties shall
exercise reasonable efforts to reach an agreement to amend the Agreement or
related documents so as to return the parties to the economic position that
they would have been in had no such change occurred, or so that both parties
share proportionately in the economic detriment of such change. If the parties
are unable to reach an agreement to amend the Agreement or related documents,
then the party adversely affected by the change shall have the right to bring
its dispute to arbitration in accordance with the provisions of Article XII,
but in no event will this Agreement terminate prior to resolution of the
dispute in arbitration.

 

4

 

(c)           Standard of Care. 
The Reinsurer agrees to perform the duties set forth herein in a manner
consistent with general life insurance and with a standard of care equal to the
standards it uses on similar policies that it directly writes and in accordance
with applicable laws and regulations. The Reinsurer shall maintain all
licenses, obtain all regulatory approvals and comply with all regulatory
requirements necessary to perform its obligations contemplated under this
Agreement.

 

3.7           Setoff and Recoupment. Any debts or credits, matured or
unmatured, regardless of when they arose or were incurred, in favor of or
against either the Company or the Reinsurer with respect to this Agreement, are
deemed mutual debts or credits, as the case may be, and shall be set off, and
only the net balance shall be allowed or paid.

 

ARTICLE IV

Payments

 

4.1           Premiums.  The Company
will pay the Quota Share of Premiums on Reinsured Policies as shown in Schedule
A.

 

4.2           Policy Benefits. The Reinsurer shall pay its Quota Share
of all Policy Benefits including death benefits, withdrawals, surrenders, and
annuity payouts under Supplementary Contracts on Reinsured Policies as shown in
Schedule A.

 

4.3           Commission and Expense Allowances. The Reinsurer shall pay its Quota Share
of all Commission and Expense Allowances on Reinsured Policies as shown in
Schedule C.

 

4.4           Insurance Taxes and Charges. 
The Reinsurer shall pay its Quota Share of all Insurance Taxes and
Charges on Reinsured Policies.

 

4.5           C-4 Risk Charge. 
The Reinsurer shall reimburse the Company for the economic cost of
funding the statutory risk-based-capital associated with C-4 Risk (the “C-4
Risk Charge”) quarterly in an amount equal to 23 basis points per annum (0.23%)
multiplied by the average of Ceded Reserves during the relevant quarterly
period.  The C-4 Risk Charge shall be
payable in accordance with Section 8.3.

 

4.6           Payments.  All payments
made pursuant to this Agreement shall be made in immediately available U.S.
funds.

 

ARTICLE V

Reserves

 

5.1           Reserves. The Reinsurer shall establish and maintain
appropriate Reserves with respect to the Reinsured Policies and shall hold its
Quota Share of Reserves with respect to the Reinsured Policies hereunder.

 

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ARTICLE VI

Credited Rates/Non-Guaranteed Elements

 

6.1           Credited Rates/Non-Guaranteed Elements. 
The Company shall be responsible for determining credited interest rates
and other non-guaranteed elements of the Reinsured Policies. The Company may
not change the credited interest rate or any other non-guaranteed elements on
existing Reinsured Policies without the Reinsurer’s consent, which shall not be
unreasonably withheld.

 

ARTICLE VII

Administration

 

7.1.          Policy Administration. 
The Company
shall provide all required, necessary and     appropriate
claims, administrative and other services with respect to the Reinsured
Policies The Company shall use reasonable care in its underwriting,
administration and claims practices with respect to the Reinsured Policies and
in administering and performing its duties under this Agreement and such
practices, administration and performance shall (a) be consistent with the
Company’s existing practices, administration and performance and underwriting
guidelines; (b) conform with law; (c) not be fraudulent and (d) be
no less favorable than those used by the Company with respect to other policies
of the Company not reinsured by the Reinsurer. 
The Company shall not outsource any underwriting functions, administrative
functions or claims administration with respect to the Reinsured Policies.

 

7.2           Record Keeping. 
Company shall maintain all records and correspondence for services
performed by Company hereunder relating to the Reinsured Policies in accordance
with industry standards of insurance record keeping. In addition, the records
shall be made available for examination, audit, and inspection by any State
Insurance Department within whose jurisdiction the Company or the Reinsurer
operates. The Company and Reinsurer further agree that in the event of the
termination of this Agreement, any such records in the possession of the
Reinsurer shall promptly be duplicated and forwarded to the Company unless
otherwise instructed.

 

The Company shall
establish and maintain an adequate system of internal controls and procedures
for financial reporting relating to the Reinsured Policies including associated
documentation and shall make such documentation available for examination and
inspection by the Reinsurer.

 

7.3         Indemnification and Control of Defense.

 

(a)           The Reinsurer shall have no duty or obligation to
defend against any legal action or proceeding brought against the Company. The
Reinsurer shall fully cooperate with the Company’s efforts to defend such legal
action or proceeding and will make available to the Company and its counsel
such evidence relevant to such actions or proceedings as the Reinsurer may have
as a result of performing its obligations under this Agreement.

 

(b)           The Reinsurer shall not be liable to the Company for
actions within the scope of the Reinsurer’s actual authority in performing its
obligations to the Company under this 

 

6

 

Agreement when such
performance is in accordance with the standard expressed in Section 3.6(c) “Standard
of Care.”

 

(c)           The Company shall indemnify and hold harmless and
defend the Reinsurer against any costs (including reasonable attorney’s fees)
or expenses, damages or judgments whatsoever which the Reinsurer may suffer as
a result of the Reinsurer being named as a party defendant in any suit
instituted by any persons to whom a Reinsured Policy has been issued, or by any
beneficiary, heir, legatee, or personal representative of such policyholder,
where the Reinsurer’s actions relevant to the suit are within the scope of the
Reinsurer’s actual authority in performing its obligations to the Company under
this Agreement and were performed in accordance with the standard expressed in Section 3.6(c) “Standard
of Care.”

 

(d)           The Reinsurer shall indemnify and hold harmless and
defend the Company against any costs (including reasonable attorney’s fees) or
expenses, damages or judgments whatsoever which the Company may suffer as a
result of the Company being named as a party defendant in any suit instituted
by any persons to whom a Reinsured Policy has been issued, or by any
beneficiary, heir, legatee, or personal representative of such policyholder,
where the Reinsurer’s actions relevant to the suit are within its obligations
to the Company under this Agreement and were not performed in accordance with
the standard expressed in Section 3.6(c) “Standard of Care.”

 

(e)           Any party entitled to indemnification under this
Agreement shall (1) give prompt notice to the party from whom
indemnification is sought of any claim with respect to which it seeks
indemnification; (2) permit such indemnifying party to assume and control
defense of such claim with counsel reasonably satisfactory to the indemnified
party; provided, however, that any party entitled to indemnification hereunder
shall have the right to employ separate counsel and to participate in the
defense of such claim, but the fees and expenses of such separate counsel shall
be paid by the person employing separate counsel unless (a) the indemnifying
party has agreed to pay such fees and expenses or (b) the indemnifying
party shall have failed to assume the defense of such claim and to employ
counsel reasonably satisfactory to such party. No indemnifying party shall be
subject to any liability for any settlement made without its consent except
where the indemnifying party has failed to assume the defense of such claim and
to employ counsel reasonably satisfactory to the indemnified party. An
indemnifying party who elects not to assume the defense of a claim will not be
obligated to pay the fees and expenses of more than one counsel at any one time
for all parties indemnified by such indemnifying party with respect to such
claim, which counsel shall be designated in writing by the indemnified party and
shall be reasonably acceptable to the indemnifying party.

 

7

 

ARTICLE VIII

Accounting and Settlement

 

8.1           Insurance Accounting. The Company shall maintain separate
books of account with respect to any Reinsured Policy, setting forth the data
required in Schedules B and D.

 

8.2           Monthly Accounting Reports. Within eight (8) Business Days
following the end of each Monthly Accounting Period, the Company shall supply
the Reinsurer with a Monthly Accounting Report with the information as shown in
Schedule B.  Within fifteen (15) calendar
days following the end of each calendar quarter, the Company shall supply the
Reinsurer with a Quarterly Accounting Report with the information shown in
Schedule D.

 

The Company will
supply additional financial information, as reasonably needed, for the
Reinsurer to comply with changes in Statutory, GAAP, and SEC reporting and
disclosure requirements that may occur subsequent to the inception of this
Agreement.

 

8.3           Settlements. On or before the 15th day of each
month, the Company will determine an estimated Settlement Amount for that month
in accordance with Schedule B.  If the
estimated Settlement Amount is positive, the Company will pay that amount to
the Reinsurer. If the estimated Settlement Amount is negative, the Reinsurer
will pay that amount to the Company. Payments of the estimated Settlement
Amount shall be due by the fifteenth (15th)
Calendar Day of each month.

 

Within ten (10) Business
Days following the end of each Monthly Accounting Period, the Company or
Reinsurer, as the case may be, shall pay the difference between the final
Settlement Amount as reported on the Monthly Accounting Report and the
estimated Settlement Amount previously paid for the applicable Monthly Accounting
Period.

 

If any estimated
or final monthly Settlement Amount payment is not paid by the due date,
interest shall accumulate at the Accrual Rate from the due date of the payment
until such time that the Settlement Amount is paid.  If the estimated Settlement Amount payment
for any month is not within 25% of the final Settlement Amount payment,
interest shall accrue on the difference between the final Settlement Amount
payment and the estimated Settlement Amount payment at the Accrual Rate from
the due date of the estimated Settlement Amount payment until such time that
the final Settlement Amount is paid.

 

8.4           Reconciliation. Each party shall have the right to review all
individual components of transactions reflected in the Monthly Accounting
Reports, and to request adjustments, as appropriate. Any amount due either
party in connection with such adjustment shall be paid within ten (10) Business
Days of the receipt of notice that additional amounts are due.

 

8.5           Interest Payments. Payment due to either the Reinsurer or the Company
shall accrue interest at the Accrual Rate if unpaid by the due date.

 

ARTICLE IX

Term and Termination

 

9.1            Term and Duration.  Subject to
the provisions of Sections 9.3, 9.4, 9.5, 9.6 and 9.7, this Agreement shall be
unlimited as to its duration.

 

8

 

9.2           Reinsurer’s Liability. The liability of the Reinsurer with respect to a
Reinsured Policy shall terminate on the date the liability of the Company on
such Reinsured Policy is terminated.

 

9.3           Termination. Should Reinsurer at any time:

 

(a)           become insolvent;

(b)           file a petition in bankruptcy;

(c)           go into liquidation or rehabilitation;

(d)           have a receiver appointed; or

(e)           have its Company Action Level Risk Based Capital ratio
as defined by the NAIC drop below 150%,

 

the Company shall have the right to terminate this
Agreement immediately upon notice to the Reinsurer.

 

9.4           Termination Due to Nonpayment. Either party may terminate this
Agreement if the other party fails to pay, when due, any amounts due under this
Agreement provided that the delinquent party has been given at least twenty
(20) Business Days advance written notice of its intent to terminate for that
reason. Either party may avoid termination pursuant to this Section 9.4 by
paying all amounts that are delinquent and then due on or before the date upon
which the Agreement would have terminated in accordance with the notice from
the other party. The other party shall provide written notice to the curing
party that the default has been adequately cured.

 

9.5           Termination for Material Breach. In addition to all other rights and
remedies, either party may terminate this Agreement by providing the other
party with a minimum of thirty (30) calendar days prior written notice in the event
the other party commits a material breach of any provision of the Agreement.
Said notice must specify the nature of said material breach. The breaching
party shall have twenty (20) Business Days from the date of the breaching party’s
receipt of the foregoing notice to cure said material breach to the reasonable
satisfaction of the non-breaching party. If the breach is cured, the other
party shall provide written notice to the curing party that the breach has been
adequately cured. In the event the breaching party fails to cure the material
breach within said twenty (20) Business Day period, then at the option of the
non-breaching party and upon notice, this Agreement will terminate upon
expiration of the thirty (30) day notice period. Notwithstanding the foregoing,
the parties shall cooperate with each other to effect a cure of any breach of
the terms of this Agreement.

 

9.6           Termination by Reinsurer. 
The Reinsurer has the right to terminate this agreement with respect to
new business at any time by giving thirty (30) calendar days written notice to
the Company.

 

9.7           Termination by the Company. 
The Company has the right to terminate this agreement with respect to
new business at any time by giving thirty (30) calendar days written notice to
the Reinsurer.  The Company has the right
to recapture this business after a period of 10 years.  If the Company exercises its right to
recapture the business, the Reinsurer shall pay to the Company its Quota Share
of the Account Values of the Reinsured Policies and the Company will pay a
recapture fee to the Reinsurer equal to the Reinsurer’s Quota Share of the
unamortized Commission and Expense Allowances with the amortization period of
the 

 

9

 

Commission and
Expense Allowances corresponding to the initial surrender charge period of each
policy form.

 

ARTICLE X

Payments Upon Termination of Agreement

 

10.1         Payments on Termination.

 

(a)           In the event that this Agreement shall be terminated
under Sections 9.3, 9.4 or 9.5 a net accounting and settlement as to any
balance due under this Agreement shall be undertaken by the parties to this
Agreement (the “Terminal Accounting and Settlement”), which calculations shall
be performed as of the day that is thirty (30) calendar days from the date that
the liability of the Reinsurer shall have finally terminated (the “Terminal
Accounting Date”).

 

(b)           The Company shall supply the Reinsurer with a final
Schedule B as of the Terminal Accounting Date and the Settlement Amount will be
paid as due pursuant to Section 8.3.

 

(c)           In addition to the final Settlement Amount payment,
the Reinsurer shall pay to the Company its Quota Share of the Reserves of the
Reinsured Policies.

 

(d)           Any payment required under the Terminal Accounting and
Settlement by the Company shall be paid by the Company no later than thirty
(30) calendar days after the Terminal Accounting Date.  Payments made after such time shall accrue
interest in accordance with Section 8.5. In the event that the calculation
for the payment required under the Terminal Accounting and Settlement cannot be
accurately calculated by such date, then an estimate shall be paid, with a
supplemental accounting being made when the accurate information shall become
available.

 

10.2         Supplemental Accounting. In the event that, subsequent to the
Terminal Accounting and Settlement an adjustment is made with respect to any
amount taken into account in the Terminal Accounting and Settlement, a
supplemental accounting shall be made. Any net amount owed to the Reinsurer or
the Company by reason of such supplemental accounting, plus any interest due
accumulated at the Accrual Rate to the date of payment, shall be paid promptly
upon the completion of such supplemental accounting.

 

ARTICLE XI

Insolvency

 

11.1         Payments. In the event of the insolvency of the Company,
payments due the Company on all reinsurance made, ceded, renewed or otherwise
becoming effective under this Agreement shall be payable by the Reinsurer
directly to the Company or to its liquidator, receiver, or statutory successor
on the basis of the liability of the Company under Reinsured Policies without
diminution because of the insolvency of the Company, or

 

10

 

because the conservator,
liquidator, or statutory successor has failed to pay all or a portion of any
claims.

 

11.2         Executory Contract. It is expressly understood that this
Agreement is an executory contract as long as both parties are required to
perform under this Agreement. On the insolvency of the Reinsurer, if this
Agreement is not confirmed by the Reinsurer and given status as an “Administrative
Expense”, then the Company may terminate for nonperformance without additional
payment other than those required under Section 10.1.

 

ARTICLE XII

Dispute Resolution

 

12.1         Dispute Resolution. If a dispute, controversy, or claim
arises out of or relates to this Agreement, its termination or non-renewal, or
the alleged breach thereof, and if said dispute cannot be settled through
direct discussions, the parties agree to first endeavor to settle the dispute
in an amicable manner by mediation administered by the American Arbitration
Association (“AAA”) under its Commercial Mediation Rules, before resorting to
arbitration. If the matter has not been resolved pursuant to mediation within
thirty (30) calendar days of the commencement of such mediation (which period
may be extended by mutual agreement in writing), then any unresolved dispute,
controversy, or claim arising out of or relating to this Agreement, its
termination or non-renewal, or the breach thereof, shall be settled by
arbitration in accordance with the Commercial Arbitration Rules of the
AAA, and judgment upon the award rendered by the arbitrator may be entered in
any court having jurisdiction thereof. The arbitration shall be conducted by a
sole arbitrator or, at the election of either party, before a panel of three
arbitrators. Selection of the arbitrator(s) shall be in accordance with
the Commercial Arbitration Rules of the AAA. The arbitrator(s) shall
allow each party to conduct limited relevant discovery. The arbitrator(s) shall
have no authority to award punitive damages or any damages not measured by the
prevailing party’s actual damages, and may not, in any event, make any ruling,
finding or award that does not conform to the terms and conditions of this
Agreement and applicable state and federal laws. All fees and expenses of
arbitration shall be borne by the parties equally. However, each party shall
bear the expense of its own counsel, experts, witnesses, and preparation and
presentation of the arbitration matter. Any such arbitration shall be conducted
in West Des Moines, Iowa.

 

ARTICLE XIII

DAC Tax

 

13.1         Party.  The term “party”
will refer to either contracting company as appropriate.

 

13.2         Other Terms. 
The terms “Net Positive Consideration”, “Specified Policy Acquisition
Expenses” and “General Deductions Limitation” used in this Article are
defined by reference to Regulation Section 1.848-2 and Code Section 848.

 

13.3         DAC
Tax Election.  The parties to this Agreement make the
election set forth below pursuant to  Section 1.848-2(g)(8) of
the Income Tax Regulations issued under Section 

 

11

 

848
of the Internal Revenue Code of 1986, as amended (the “Code”). This election
shall be effective for taxable year 2009 and for all subsequent taxable years
for which this Agreement remains in effect.

 

(a)           The party with the Net Positive Consideration for this
Agreement for each taxable year will capitalize Specified Policy Acquisition
Expenses with respect to this Agreement without regard to the General
Deductions Limitation of Code Section 848(c)(1).

 

(b)           Both parties agree to exchange
information pertaining to the amount of net consideration under this Agreement
each year, or as otherwise required by the Internal Revenue Service, to ensure
consistency.

 

(c)           The Company will submit a schedule to the
Reinsurer by May 1 of each year with its calculation of the net
consideration for the preceding calendar year. 
This schedule will be accompanied by a statement signed by an officer of
the Company attesting to the calculation contained in said schedule. The
Reinsurer may contest such calculation by providing an alternative calculation
to the Company in writing within thirty (30) calendar days of the Reinsurer’s
receipt of the Company’s calculation.

 

(d)           If the Reinsurer contests the Company’s
calculation, the parties will act in good faith to reach an agreement as to the
correct amount within thirty (30) calendar days of the date that the Company
receives the Reinsurer’s alternative calculation. If the parties reach an
agreement on the net consideration calculation, each party will report the
agreed upon amount in its income tax return for the preceding calendar year. If
the parties are unable to reach an agreement on the amount of net
consideration, then the dispute shall be resolved pursuant to Article XII
of this Agreement.  If Reinsurer does not
contest the Company’s calculation the parties will utilize the calculation
provided by the Company for reporting purposes in their respective income tax
returns for the preceding year.

 

ARTICLE XIV

Miscellaneous Provisions

 

14.1         Headings and Schedules. Headings used herein are not a part of
this Agreement or related documents and shall not affect the terms hereof. The
attached Schedules A, B, C, and D are a part of this Agreement.

 

14.2         Notices. All notices and communications hereunder shall be in
writing and shall become effective when received. Any written notice shall be
sent by either certified or registered mail, return receipt requested, or
overnight delivery service (providing for delivery receipt) or delivered by
hand. All notices or communications under this Agreement shall be addressed as
follows:

 

12

 

If to the Company:

 

American Equity
Investment Life Insurance Company

6000 Westown
Parkway

West Des Moines,
IA 50266

Attention: John
Matovina

 

If to the
Reinsurer:

 

Eagle Life
Insurance Company

6000 Westown
Parkway

West Des Moines IA
50266

Attention:  Marla Lacey

 

14.3         Successors and Assigns. This Agreement and related documents
cannot be assigned by either party without the prior written consent of the
other. The provisions of this Agreement and related documents shall be binding
upon and inure to the benefit of and be enforceable by the parties hereto and
their respective successor and assigns as permitted herein.  The Reinsurer shall retain its Quota Share of
the risks under this Agreement without the benefit of reinsurance.

 

14.4         Execution in Counterparts. This Agreement and related documents
may be executed by the parties hereto in any number of counterparts, and by
each of the parties hereto in separate counterparts, each of which
counterparts, when so executed and delivered, shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

 

14.5         Entire Agreement. This Agreement constitutes the entire
agreement of the parties hereto. This Agreement supersedes all prior
discussions, negotiations, understandings, commitments and agreements with
respect to the subject matter hereof. Any amendment or modification of this
Agreement will not be effective unless made in writing and signed by the
parties hereto.

 

14.6         Regulatory Approval of Amendments. When and if, under insurance, public
health or other applicable laws or regulations, the approval of any amendment
to this Agreement or related documents by one or more federal, state or local
regulatory authorities is required, the amendment shall not take effect unless
and until all such necessary approvals have been received by the Company.

 

14.7         Governing Law. This Agreement and related documents
shall be governed by and construed in accordance with the laws of the State of
lowa.

 

14.8         Waivers and Remedies. The waiver by any of the parties of any
other party’s prompt and complete performance or breach or violation, of any
provisions of this Agreement and related documents shall not operate or be
construed as a waiver of any subsequent breach or violation, and the waiver by
any of the parties to exercise any right or remedy which it 

 

13

 

may possess
hereunder shall not operate or be construed as a bar to the exercise of such
right or remedy by such party upon the occurrence of any subsequent breach or
violation.

 

14.9         Severability. In the event any section or provision
of this Agreement or related documents is found to be void and unenforceable by
a court of competent jurisdiction, the remaining sections and provisions of
this Agreement or related documents shall nevertheless be binding upon the
parties with the same force and effect as though the void or unenforceable part
had not been severed or deleted.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed by their
duly authorized representative.

 

	
  EAGLE LIFE INSURANCE
  COMPANY

  	
   

  	
  AMERICAN EQUITY
  INVESTMENT

  
	
   

  	
   

  	
  LIFE INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Debra Richardson

  	
   

  	
  Name:

  	
  John Matovina

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Executive Vice
  President

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  

 

14

 

SCHEDULE A

 

CONTRACTS AND RISKS REINSURED

 

Company
agrees to cede to the Reinsurer, and the Reinsurer agrees to accept from the
Company the Quota Share reinsurance participation for the risks as scheduled
below:

 

The Quota Share
will equal 20%.

 

Reinsured
Contracts

 

SPDA-MYGA

 

State variations of the
listed products are included under this agreement

 

Effective date of this
Schedule: Policies issued on or after July 1, 2009.

 

15

 

SCHEDULE B

 

MONTHLY ACCOUNTING
REPORT

 

(For qualified and
non-qualified business, separately)

(All amounts are
net of reinsurance to other reinsurers)

 

	
  I.

  	
   

  	
  Premiums

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  Policy Benefits

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  Commission Allowance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  Acquisition Expense
  Allowance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  Maintenance Expense
  Allowance

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  Insurance Taxes and
  Charges

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  VII.

  	
   

  	
  Net (I - II - III - IV –
  V – VI)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  VIII.

  	
   

  	
  Reinsured %

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  IX.

  	
   

  	
  Settlement Amount
  Before C-4 Risk Charge (VII times VIII)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  X.

  	
   

  	
  C-4 Risk Charge

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  XI.

  	
   

  	
  Settlement Amount (IX - X)

  	
   

  

 

16

 

SCHEDULE C

 

COMMISSION AND EXPENSE ALLOWANCES FOR REINSURED
POLICIES

 

The Reinsurer will grant to the Company the
Quota Share of the following commission and expense allowances on the Reinsured
Policies:

 

Expense Allowances

 

1.     Per policy Expense Allowances

 

	
  Acquisition
  Expense

  	
   

  	
  $

  	
  145

  	
   

  
	
  Maintenance
  Expense (Annual Amount)

  	
   

  	
  $

  	
  36

  	
  **

  

 

The Maintenance
Expense Allowance will be calculated on a monthly basis as follows:

 

(C/12) * (A + B)/2 where

 

A is the number of
policies inforce as of the beginning of each month, and

B is the number of
policies inforce as of the end of the each month, and

C is the annual per
policy expense allowance.

 

**A three percent (3.00%)
per annum inflation factor will be added to the Maintenance Expense listed
above commencing on the first anniversary of the Agreement.

 

2.     Marketing Expense Allowance

 

The Marketing
Expense Allowance shall be equal to zero percent (0.00%) of Premiums.

 

The
Expense Allowances shall be adjusted from time to time to reflect changes made
in the Company’s product pricing assumptions.

 

Commission Allowances

 

The commission
allowance shall be an amount as determined by the Company based upon its
published commission schedules, and shall be based on the commissions actually
paid.

 

17

 

SCHEDULE D

 

QUARTERLY ACCOUNTING REPORT

 

(All amounts are
net of reinsurance to other reinsurers)

 

	
  I.

  	
   

  	
  Beginning Account Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  Premiums

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  Interest Credited

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  Policy Benefits

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  Surrender Charges

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  Ending Account Value

  	
   

  
	
   

  	
   

  	
  (I + II + III - IV – V)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  VII.

  	
   

  	
  Ending Policy Count

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  VIII.

  	
   

  	
  Ending Reserves

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  IX.

  	
   

  	
  Ending Cash Surrender
  Values

  	
   

  

 

18

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