Document:

Exhibit 10.86

                               GUARANTY AGREEMENT

         This Guaranty  Agreement dated as of August 31,  1999 (as amended or
otherwise modified from time to time, this "Guaranty") is by FemPartners,  Inc.,
a Delaware  corporation  ("Guarantor") in favor of American  Physicians  Service
Group, Inc., a Texas corporation ("Lender").

         WHEREAS,   (i)  Lender,   Syntera  HealthCare   Corporation,   a  Texas
corporation  ("Syntera"),  Guarantor and  FemPartners of Central Texas,  Inc., a
Delaware corporation and wholly-owned  subsidiary of Guarantor  ("Obligor") have
entered  into an  Agreement  and Plan of Merger of even  date  herewith  whereby
Syntera  is merging  with and into  Obligor  with  Obligor  being the  surviving
corporation,  (ii) certain debt owing to Lender from Syntera is evidenced by the
Promissory Note dated November 1, 1998, and is being contemporaneously  amended,
restated and replaced in its entirety by the  Replacement  Promissory Note dated
of even date herewith (as may be amended and or otherwise  modified from time to
time, the "Note"), (iii) Guarantor will directly and indirectly benefit from the
Note,  and (iv) as a condition  precedent to the  consummation  of the merger of
Syntera into Obligor, Lender has required that Guarantor guarantee to Lender all
payment obligations of Obligor under the Note.

         NOW THEREFORE, Guarantor agrees with Lender as follows:

         1.   PAYMENT   GUARANTY.   Guarantor   absolutely,    irrevocably   and
unconditionally  guarantees  to  Lender,  and  to  its  successors,   endorsees,
transferees and assigns,  the prompt and complete  payment when due,  whether at
the stated maturity, by acceleration or otherwise, of the obligations of Obligor
set forth in the Note (collectively,  the "Obligations").  No termination of the
Note shall affect any  obligations  incurred by Guarantor under this Guaranty at
the time of termination.  No notice of the Obligations need be given in any form
to Guarantor at any time and  Guarantor  waives any such notice and the right to
consent to the Obligations. Guarantor waives any right to require as a condition
to its obligations hereunder that collateral be applied to the Obligations, that
presentment  or demand be made upon  Obligor or that  action be brought  against
Obligor or any other person or entity  except  Guarantor,  should Lender seek to
enforce  the  obligations  of  Guarantor.   Specifically,   without  limitation,
Guarantor  waives any right to require  that a judgment  previously  be rendered
against Obligor or any other person or entity except Guarantor,  that Obligor or
any other person or entity be joined in any action against  Guarantor or that an
action  separate from one against  Guarantor be brought  against  Obligor or any
other person or entity.  The  obligations of Guarantor are several from those of
Obligor  or any other  person or entity,  and are  primary  payment  obligations
concerning which Guarantor is the principal  obligor.  If all or any part of the
Obligations are not paid when due,  Guarantor hereby guarantees that it will pay
the same to Lender,  upon demand,  without set-off or  counterclaim  and without
reduction by reason of any taxes,  levies,  imposts,  charges and  withholdings,
restrictions  or  conditions  of any  nature  that are now or may  hereafter  be
imposed,  levied or assessed by any  country,  political  subdivision  or taxing
authority,  all of which will be for the account of and paid by  Guarantor,  and
Lender need not first proceed to preserve, utilize or exhaust any other right or
remedy  against  Obligor,  any  other  guarantor,  any  collateral  or any other
security  that  Lender  may have in  order  to  obtain  payment  hereunder.  The
obligations  of Guarantor  hereunder  shall in no way be affected or impaired by
reason  of the  happening  from  time  to  time  of any  of the  following:  (i)
extensions  (whether  or not  material)  of the time for  payment  of all or any

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portion of the  Obligations,  (ii) the  modification  or amendment in any manner
(whether  or not  material)  of the Note or the  Obligations,  (iii)  except for
applicable statutes of limitations,  any failure,  delay or lack of diligence on
the part of Lender, or any other person or entity to enforce, assert or exercise
any right, privilege, power or remedy conferred on Lender or any other person or
entity in the Note or at law,  or any action on the part of Lender or such other
person  or  entity  granting  indulgence  or  extension  of any  kind,  (iv) the
settlement  or compromise of any  Obligations  and (v) the status,  composition,
structure or name of Obligor change, including, without limitation, by reason of
merger,  dissolution,  consolidation  or  reorganization.   NOTWITHSTANDING  THE
FOREGOING,  THE  LIABILITY  OF GUARANTOR  HEREUNDER  SHALL BE LIMITED TO DIRECT,
ACTUAL  DAMAGES  AND  GUARANTOR  SHALL NOT BE LIABLE  UNDER  THIS  GUARANTY  FOR
CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS
OR OTHER BUSINESS INTERRUPTION DAMAGES, IN TORT, CONTRACT OR OTHERWISE.  Upon 30
Days written notice and with the prior written consent of Lender,  which consent
shall not be  unreasonably  withheld,  this  Guaranty  may be  replaced by (x) a
guaranty in  substantially  similar  form made by a guarantor of equal or better
creditworthiness  or (y) a letter of credit in favor of Lender in the  amount of
the maximum Limit (below defined), issued by a bank and in a form, each of which
shall be reasonably satisfactory to Lender.

         2.       COSTS AND  EXPENSES. In addition to its guarantee of Obligor's
payment of the  Obligations,  Guarantor  shall pay all actual costs and expenses
(including  reasonable attorney's fees) paid or incurred by Lender in connection
with the enforcement of this Guaranty.

         3. CONTINUING  GUARANTY.  This is intended to be and shall be construed
as a continuing guarantee and shall remain in full force and effect and shall be
binding in accordance with and to the extent of its terms upon Guarantor and its
successors  and  assigns,  and shall  inure to the  benefit of  Lender,  and its
successors,  endorsees,  transferees  and assigns.  The obligations of Guarantor
under this Guaranty  shall continue in full force and effect and shall remain in
operation until all of the Obligations shall have been paid in full or otherwise
fully satisfied, and continue to be effective or be reinstated,  as the case may
be, if at any time payment or other  satisfaction  of any of the  Obligations is
rescinded  or must  otherwise  be  restored  or  returned  upon the  bankruptcy,
insolvency,  or reorganization of Obligor, or otherwise,  as though such payment
had not been made or other satisfaction occurred. No invalidity, irregularity or
unenforceability  by reason of applicable  bankruptcy  laws or any other similar
law, or any law or order of any  government or government  agency  purporting to
reduce, amend or otherwise affect, the Obligations,  shall impair,  affect, be a
defense to or claim against the obligations of Guarantor under this Guaranty.

         4.  SUBROGATION.  Notwithstanding  any  payment  or  payments  made  by
Guarantor under this Guaranty or any setoff or application of funds of Guarantor
by Lender, Guarantor shall not be entitled to be subrogated to any of the rights
of Lender  against  Obligor or any  collateral or other security or guarantee or
right  of  offset  held  by  Lender  for  the  payment  or  performance  of  the
Obligations,  nor shall Guarantor seek any reimbursement from Obligor in respect
of payments made by Guarantor under this Guaranty,  until all amounts then owing
and any other performance then due to Lender by Obligor for or on account of the

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Obligations are paid and satisfied in full.  Upon such payment and  satisfaction
in full,  Guarantor  shall be subrogated to all rights of Lender against Obligor
or any  collateral  or other  security or  guarantee  or right of offset held by
Lender for the payment and performance of the Obligations.

         5. SUBORDINATION.  Any and all indebtedness of Obligor now or hereafter
owed to or held by Guarantor is hereby  subordinated  to the Obligations and all
other  indebtedness  of Obligor to Lender;  and such  indebtedness of Obligor to
Guarantor, if Lender so requests,  shall be collected,  enforced and received by
Guarantor  as  trustee  for  Lender and be paid over to Lender on account of the
indebtedness  of Obligor to Lender but  without  reducing  or  affecting  in any
manner the liability of Guarantor under the other provisions of this Guaranty.

         6. DEFAULT.  If Obligor fails or refuses to timely pay any Obligations,
Lender may at its option exercise any or all of its rights,  powers and remedies
afforded  hereunder and may declare the unpaid amounts of all  Obligations  then
owing under the Note to be  immediately  due and  payable,  and  thereupon  such
amounts shall be immediately due and payable without presentation and demand for
payment,  protest,  notice of protest or dishonor,  notice of default, notice of
intent to accelerate or notice of  acceleration to Guarantor or any other person
or entity, all of which Guarantor waives.

         7. NO WAIVER. No failure to exercise and no delay in exercising, on the
part of Lender,  any right, power or privilege under this Guaranty shall operate
as a waiver of the right,  power or  privilege,  nor shall any single or partial
exercise of any right, power or privilege preclude any other or further exercise
of the right,  power or privilege,  or the exercise of any other power or right.
The rights  and  remedies  provided  in this  Guaranty  are  cumulative  and not
exclusive of any rights or remedies provided by law.

         8. NOTICE.  All notices and  communications  made pursuant to this
Guaranty  shall be in writing and  delivered  personally  or mailed by certified
mail,  postage prepaid and return receipt  requested,  or sent by facsimile,  as
follows:

         To Guarantor:
         ------------

         FemPartners, Inc.
         1300 Post Oak Blvd., Suite 600
         Houston, Texas    77056
         Attn.:   Jack Thompson
         Facsimile: (713) 512-8080

         To Lender:
         ---------

         American Physicians Service Group, Inc.
         1301 Capital of Texas Highway, Suite C-300
         Austin, Texas   78746-6550
         Attn:  Colleen Webb
         Facsimile:  (512) 314-4333

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Notice given by person, delivery or mail shall be effective upon actual receipt.
Notice given by facsimile  shall be  effective  upon actual  receipt if received
during recipient's normal business hours or at the beginning of recipient's next
business day after receipt if not received  during  recipient's  normal business
hours. Any party may change its address to which notice is to be given hereunder
by providing notice of same in accordance with this Section 8.

         9.  MISCELLANEOUS.  THIS GUARANTY SHALL IN ALL RESPECTS BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD
TO  PRINCIPLES  OF CONFLICTS OF LAWS.  Guarantor  waives notice of acceptance of
this Guaranty. No term or provision of this Guaranty shall be amended, modified,
altered,  waived,  supplemented or terminated  except in a writing signed by the
parties hereto.  This Guaranty shall be binding upon and inure to the benefit of
an be  enforceable  by the  respective  successors  and assigns of Guarantor and
Lender.  This Guaranty embodies the entire agreement and  understanding  between
Guarantor and Lender and  supersedes  all prior  agreements  and  understandings
relating to the subject  matter  hereof.  The headings in this  Guaranty are for
purposes  of  reference  only,  and shall not affect the  meaning  hereof.  This
Guaranty may be executed in any number of  counterparts,  each of which shall be
an original, but all of which together shall constitute one document.

         IN WITNESS WHEREOF,  the Guarantor has executed this Guaranty Agreement
on the date first above written.

                                         FEMPARTNERS, INC.

                                         By:  /s/ William C. Altman
                                              -----------------------
                                              William C. Altman
                                              Executive Vice PresidentDISTRIBUTION AND SERVICING AGREEMENT

      This DISTRIBUTION AND SERVICING AGREEMENT, dated as of May 1, 1994, is
made by and among Equico Securities, Inc. ("Equico"), The Equitable Life
Assurance Society of the United States ("Equitable") and Equitable Variable Life
Insurance Company ("Equitable Variable"), as follows:

      WHEREAS, pursuant to a Distribution Agreement, dated as of May 1, 1994,
Equico is the principal underwriter of The Hudson River Trust ("Trust"), a
series mutual fund registered under the Investment Company Act of 1940 ("1940
Act") whose shareholders are separate accounts of Equitable and Equitable
Variable and of other insurance companies;

      WHEREAS, both Equitable and Equitable Variable issue variable insurance
contracts ("Variable Contracts") whose net premiums or considerations are
allocated in whole or in part to the respective separate accounts of Equitable
and Equitable Variable for investment in the Trust, for direct investment or for
investment in other funding media ("Separate Accounts");

      WHEREAS; units of interest in the Separate Accounts are registered
under the Securities Act of 1933 ("1933 Act") to the extent such registration is
required;

      WHEREAS, Equitable and Equitable Variable are each broker-dealers
registered under the Securities Exchange Act of 1934, as amended ("1934 Act"),
and each is a member of the National Association of Securities Dealers, Inc.
("NASD");

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                                      -2-

      WHEREAS, the Variable Contracts (including all Variable Contracts issued
by Equitable Variable) are offered and sold by members of Equitable's agency
force, or by insurance brokers under contract with Equitable, who are also
registered representatives of Equico and of Equitable ("Agents");

      WHEREAS, Equitable and Equitable Variable each desire to engage Equico, a
wholly-owned subsidiary of Equitable which is a registered broker-dealer under
the 1934 Act and a member of the NASD, to assume the responsibilities set forth
in this Agreement with respect to the distribution of the Variable Contracts,
including in particular the responsibility for compliance with broker-dealer
requirements under federal and any applicable state or foreign securities laws
and the NASD Rules of Fair Practice ("NASD Rules") with respect to the offering
of the Variable Contracts, and Equico desires to assume such responsibilities;

      WHEREAS, Equico desires to utilize Equitable's services and personnel in
carrying out certain of its responsibilities under this Agreement, and Equitable
is willing to furnish the same on the terms and conditions hereinafter set
forth;

      NOW, THEREFORE, the parties hereto agree as follows:

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                                      -3-

                                   ARTICLE I.

             Distribution Responsibility for the Variable Contracts

      ss.1.1  Equitable and Equitable Variable authorize Equico to act, and
Equico agrees to serve, as broker-dealer in connection with the distribution of
their respective Variable Contracts to the extent provided in this Agreement.
Equico shall be fully responsible for carrying out all compliance and
supervisory obligations in connection with the distribution of the Variable
Contracts, as required by the NASD Rules and by federal and any applicable state
or foreign securities laws. Equitable shall be fully responsible for
compensating the Agents for their sales of Variable Contracts, as provided in
Section 1.4.

      ss.1.2  Without limiting the generality of Section 1.1, Equico agrees that
it shall be fully responsible for:

              (A)  Requiring that each person who is authorized to offer and
sell the Variable Contracts is duly registered as a representative of Equico and
is appropriately licensed, registered or otherwise qualified to offer and sell
the Variable Contracts under the federal securities laws and any applicable
securities laws of each state or other jurisdiction in which the Variable
Contracts offered by such person may be lawfully sold;

              (B)  Training, supervising and directing the Agents for purposes
of complying on a continuous basis with the NASD Rules and with federal and
state securities laws applicable in connection with the offer and sale of the
Variable Contracts. In this connection, Equico shall:

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                                      -4-

                   (i)  Establish and implement reasonable written procedures
which provide for diligent supervision of sales practices of the Agents;

                  (ii)  Require that Agents shall recommend the purchase of
Variable Contracts only upon reasonable grounds to believe that the purchase is
suitable for each prospective purchaser, and verify their compliance with such
requirement;

                 (iii)  Provide a sufficient number of registered principals and
an adequate compliance staff to carry out the responsibilities set forth herein;
and

                  (iv)  Impose disciplinary measures on the Agents.

              (C)  Oversight of the securities activities of all persons engaged
directly or indirectly in operations of Equico, Equitable and Equitable Variable
related to the offer or sale of the Variable Products, each of whom shall be
considered a "person associated" with Equico, as defined in Section 3(a)(18) of
the 1934 Act. Equico shall have full responsibility for each such person with
regard to his or her training, supervision and control, as contemplated by
Section 15 of the 1934 Act, and, in that connection, shall have the authority to
require that disciplinary action be taken with respect to such persons.

      ss.1.3  Equico represents that it is a broker-dealer duly registered under
the 1934 Act and is a member in good standing of the NASD and, to the extent
necessary to perform the activities contemplated hereunder, is duly registered,
or otherwise qualified, under the securities laws of every state or other
jurisdiction in

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                                      -5-

which the Variable Contracts are available for sale, and Equico agrees to
maintain such status. Consistent with its designation as distributor of the
Variable Contracts, as provided in Section 1.1 of this Agreement, Equico
acknowledges that it may be deemed to be an "underwriter" or a "principal
underwriter" of the Separate Accounts under the federal securities laws.

      ss.1.4  Equitable shall have exclusive responsibility for the payment of
commissions or other fees in accordance with the applicable agreements between
each Agent and Equitable relating to the Variable Contracts. All compensation
paid by Equitable to the Agents with respect to sales of the Variable Contracts
shall be paid by Equitable on its own behalf or on behalf of Equitable Variable
(with respect to sales of Variable Contracts issued by Equitable Variable), and
shall be reflected on the books and records of Equitable and, to the extent
related to Variable Contracts issued by Equitable Variable, on the books and
records of Equitable Variable. The responsibility of Equitable shall include the
performance of all activities necessary in order that the payment of
compensation hereunder complies with all applicable federal securities laws and
state securities and insurance laws. Equitable and Equitable Variable retain the
ultimate right to determine the rates of commission and other fees to be paid to
the Agents in connection with their respective Variable Contracts. Nothing
contained in this Agreement shall obligate Equico to pay any commissions or
other fees to Agents or to reimburse any Agents for expenses incurred by them,
nor shall Equico have any responsibility for the adequacy or accuracy of any
amount paid to an Agent in connection with the sale of the Variable Contracts.
Equico shall have no right or interest whatsoever in any commissions or other
fees payable to Agents by Equitable by Equitable Variable.

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                                      -6-

      ss.1.5  Equitable represents that it is a broker-dealer duly registered
under the 1934 Act and is a member in good standing of the NASD. If Equitable
shall determine, in its sole judgment, that such status is not required for the
purpose of properly discharging its responsibility under Section 1.4 of this
Agreement, Equitable may terminate its status as a registered broker-dealer
without notice to the other parties hereto.

      ss.1.6  Equitable Variable agrees to cooperate fully with Equico and with
Equitable in the proper discharge of the responsibilities allocated to them
under this Article I. While undertaking to provide such cooperation and to
perform various activities on its own behalf hereunder, Equitable Variable
assumes no duties or responsibilities under this Agreement in its capacity as a
registered broker-dealer and, accordingly, shall be under no obligation to
maintain such status.

      ss.1.7  Equico, Equitable and Equitable Variable shall each cause to be
maintained and preserved such accounts, books and other documents as are
required by the 1934 Act and 1940 Act and any other applicable laws and
regulations. In particular, without limiting the foregoing, Equico shall cause
all the books and records in connection with the offer and sale of the Variable
Contracts to be maintained and preserved in conformity with the requirements of
Rules 17a-3 and 17a-4 under the 1934 Act, to the extent that such requirements
are applicable to the Variable Contracts. The payment of premiums, purchase
payments, commissions and other fees and payments in connection with the
Variable Contracts shall be reflected on the books and records of Equitable and
of Equitable Variable, as provided in Section 1.4 hereof and as may otherwise be

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                                      -7-

required under applicable NASD regulations and federal and applicable state
securities laws requirements.

      ss.1.8  Equico, Equitable and Equitable Variable shall each submit to all
regulators and administrative bodies having jurisdiction over the sales of the
Variable Contracts, present or future, any information, reports or other
material that any such body by reason of this Agreement may request or require
pursuant to applicable laws or regulations. In particular, without limiting the
foregoing, Equitable and Equitable Variable agree that any books and records
which they maintain pursuant to Section 1.5 of this Agreement which are required
to be maintained under Rule 17a-3 or 17a-4 of the 1934 Act shall be subject to
inspection by the SEC in accordance with Section 17(a) of the 1934 Act.

      ss.1.9  Equico and Equitable each agree and understand that all documents,
reports, records, books, files and other materials required under applicable
NASD regulations and federal and state securities laws relative to the sale of
Variable Contracts shall be the property of Equico, with the exception of those
books and records maintained by Equitable pursuant to Section 1.4 which relate
to sales compensation and shall be the joint property of Equitable and Equico.
If, however, such documents, reports, records, books, files and other materials
which are the property of Equico are required by applicable regulation or law to
be maintained also by Equitable or by Equitable Variable, such material shall be
the joint property of Equico, Equitable or Equitable Variable. All other
documents, reports, records, books, files and other materials maintained
relative to this Agreement shall be the property of Equitable or of Equitable
Variable, depending upon the identity of the issuer of the Variable Contracts
involved. Upon the

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                                      -8-

termination of this Agreement, all such material shall be returned to the
applicable party.

      ss.1.10  Equico, Equitable and Equitable Variable from time to time during
the term of this Agreement, shall allocate among themselves, subject to a right
of further delegation, the administrative responsibility for maintaining and
preserving the books, records and accounts kept in connection with the Variable
Contracts; provided however, in the case of books, records and accounts kept
pursuant to a requirement of applicable law or regulation, the ultimate
responsibility for maintaining and preserving such books, records and accounts
shall be that of the party which is required to maintain or preserve such books,
records and accounts under the applicable law or regulation, and such books,
records and accounts shall be maintained and preserved under the supervision of
that party. Equico, Equitable and Equitable Variable shall cause each other to
be furnished with such reports as each may reasonably request for the purpose of
meeting its respective reporting and recordkeeping requirements under such
regulations and laws and under the insurance laws of the State of New York and
any other applicable states or jurisdictions.

                                  ARTICLE II.

                    Procedures for Sale of Variable Contracts

      ss.2.1  Equitable and Equitable Variable each represent and warrant that
units of interest of their respective Separate Accounts offered under the
Variable Contracts are registered under the 1933 Act to the extent such
registration is required, that the Separate Accounts are registered under the
1940 Act unless

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                                      -9-

exempt from such registration, and that the Variable Contracts are qualified to
be sold under the insurance laws and any applicable securities laws of all
states and other jurisdictions in which the Variable Contracts are authorized
for sale. Equitable and Equitable Variable each further represent and warrant
that each of them is a life insurance company duly organized under the laws of
the State of New York and in good standing and authorized to conduct business
under the laws of each state in which the Variable Contracts are offered and
sold.

      ss.2.2  Equico will require that the Agents use only the effective
prospectuses, statements of additional information ("SAIs") and other authorized
materials in soliciting and selling the Variable Contracts. Equico is not
authorized to give any information or to make any representations concerning the
Variable Contracts other than those contained in the current prospectus or SAI
therefor filed with the Securities and Exchange Commission ("SEC") or in such
materials as may be authorized by Equitable or by Equitable Variable.

      ss.2.3  All applications for Variable Contracts shall be made on
application forms supplied by Equitable or by Equitable Variable, as
appropriate, and all payments collected by Equico shall be remitted by Equico
promptly in full, together with such application or enrollment forms and any
other required documentation, directly to Equitable or to Equitable Variable, as
appropriate, at the address indicated on such application or to such other
address as Equitable or Equitable Variable may, from time to time, designate in
writing. Equico shall review all such applications for suitability. Checks or
money orders in payment on any Variable Contract shall be drawn to the order of
"The Equitable Life Assurance Society of the United States" or "Equitable
Variable Life Insurance Company", as appropriate. All applications for Variable
Contracts shall be subject

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                                      -10-

to acceptance or rejection by Equitable or by Equitable Variable at their
respective discretion.

      ss.2.4  All money payable in connection with any of the Variable
Contracts, whether as premiums, purchase payments or otherwise, and whether paid
by, or on behalf of any applicant or contractowner, is the property of Equitable
or of Equitable Variable and shall be transmitted promptly in accordance with
the administrative procedures of Equitable and Equitable Variable without any
deduction or offset for any reason, including by example but not limitation, any
deduction or offset for compensation claimed by Equico or payable to the Agents.
No cash payments shall be accepted by Equico in connection with the Variable
Contracts.

      ss.2.5  Equitable and Equitable Variable shall be responsible for payment
of the costs of printing the prospectuses, SAIs and sales material used in
connection with the solicitation of applications for the Variable Contracts and
to allocate such costs between themselves. Equitable and Equitable Variable
shall provide to Equico copies of such prospectuses, SAIs and sales material in
such number as Equico shall reasonably request. Equitable and Equitable Variable
shall make available to Equico copies of all financial statements and other
documents that Equico shall reasonably request for use in connection with the
distribution of the Variable Contracts.

      ss.2.6  Notwithstanding anything in this Agreement to the contrary, Equico
may enter into sales agreements with independent broker-dealers for the sale of
the Variable Contracts, subject to the prior written approval of Equitable and
of Equitable Variable of each such sales agreement and the terms thereof. All
such

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                                      -11-

sales agreements entered into by Equico shall provide that each independent
broker-dealer will assume full responsibility for continued compliance by itself
and its associated persons with the NASD Rules and applicable federal and state
securities and insurance laws. All associated persons of such independent
broker-dealer soliciting applications for the Variable Contracts shall be duly
and appropriately licensed or appointed for the sale of the Variable Contracts
under the NASD Rules and federal and state securities and insurance laws in
which such person shall offer or sell the Variable Contracts.

      ss.2.7  Equitable shall apply for and maintain the proper insurance
licenses for each of the Agents selling the Variable Contracts in all states or
jurisdictions in which the Variable Contracts are offered for sale by such
Agent. Equitable and Equitable Variable reserve the right to refuse to appoint
any proposed agent, or independent broker-dealer, and to terminate an Agent or
independent broker-dealer once appointed. Equitable and Equitable Variable shall
promptly notify Equico of each such termination. Equitable agrees to be
responsible for all licensing or other fees required under pertinent state
insurance laws to properly authorize Agents for the sale of the Variable
Contracts; however, the foregoing shall not limit Equitable's right to collect
such amount from any person or entity other than Equico.

      ss.2.8  The parties hereto recognize that any person selling the Variable
Contracts as contemplated by this Agreement shall be acting as an insurance
agent of Equitable or of Equitable Variable or as an insurance broker, and that
the rights of Equico to supervise such persons shall be limited to the extent
specifically described herein or required under applicable federal or state
securities laws or NASD regulations. Such persons shall not be considered
employees of Equico and

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                                      -12-

shall be considered agents of Equico only as and to the extent required by such
laws and regulations. Further, it is intended by the parties hereto that such
persons are and shall continue to be considered to have a common law independent
contractor relationship with Equitable and Equitable Variable and not to be
common law employees of Equitable or of Equitable Variable, unless any contract
between Equitable and any person selling the Variable Contracts specifically
provides otherwise.

      ss.2.9  Consistent with the responsibility of Equico to discharge all
compliance and supervisory obligations relating to the distribution of the
Variable Contracts as provided in this Agreement and consistent with the
authority given to Equico hereunder, Equitable and Equitable Variable shall
retain the ultimate right of control over, and responsibility for, the issuance,
servicing and marketing of their respective Variable Contracts. In that
connection, Equitable and Equitable Variable shall review and approve all
advertising concerning the Variable Contacts issued by each of them; however,
Equico shall be responsible for filing such materials, as required, with the
NASD and with state securities regulators and for obtaining such approvals as
may be necessary.

      ss.2.10 Unless otherwise agreed in writing by Equitable or by Equitable
Variable, neither Equico nor any Agent nor any independent broker-dealer shall
have an interest in any surrender charges, deductions or other fees payable to
Equitable or to Equitable Variable.

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                                      -13-

                                  ARTICLE III.

                  Services and Personnel Provided by Equitable

      ss.3.1  Equitable agrees to furnish compliance and related support
services, including personnel, to assist Equico in the performance of the
services which Equico is required to provide hereunder. In furnishing such
services, all personnel of Equitable shall be subject at all times to the
supervision and control of Equico.

                                  ARTICLE IV.

                            Compensation and Expenses

      ss.4.1  Equico shall be compensated, not less frequently than quarterly,
by Equitable and by Equitable Variable for its services under this Agreement in
an aggregate annual amount which shall be equal to the actual expenses incurred
by Equico to provide compliance and related support services, plus a percentage
of such expenses which shall approximate the annual rate of profit earned by
Equico from its performance of comparable services for unaffiliated clients.

      ss.4.2  Equico shall pay the costs and expenses, direct and indirect,
incurred by Equitable in furnishing services and personnel, pursuant to Article
III of this Agreement. In determining the basis for the apportionment of
expenses, specific identification or estimates based on time, company assets,
square footage or any other mutually agreeable method providing for a fair and
reasonable allocation of cost may be used, provided such method is in conformity
with the requirements of Section 1712 of the New York Insurance Law and New York
Insurance

<PAGE>

                                      -14-

Department Regulation No. 33. The charge to Equico for such apportioned expenses
shall be at cost as described in this Section 4.2.

      ss.4.3  Within 45 days after the end of each calendar quarter, and more
often if desired, Equitable shall submit to Equico a statement of apportioned
expenses showing the basis for such apportionment; and settlement shall be made
within 15 days thereafter. The statement of apportioned expenses shall set forth
in reasonable detail the nature of the expenses being apportioned and other
relevant information to support the charge.

      ss.4.4  To enable Equitable to compensate Agents for the sale of Variable
Contracts issued by Equitable Variable, Equitable Variable shall furnish
Equitable with a schedule of the commissions and other fees payable with respect
to each form of Variable Contract issued by it, together with a list of rules
and procedures applicable to the payment of such compensation. Equitable
Variable agrees to reimburse Equitable for commissions and service fees (not in
excess of the amounts specified by Equitable Variable) paid to the Agents for
the sale of its Variable Contracts pursuant to Section 1.4 of this Agreement.

                                   ARTICLE V.

                                Term of Agreement

      ss.5.1  Subject to termination as herein provided, this Agreement shall
remain in full force and effect for a two-year period commencing on the date
first above written, and this Agreement shall continue in full force and effect
from year to year thereafter, until terminated as herein provided.

<PAGE>

                                      -15

      ss.5.2  This Agreement may be terminated by any party hereto on not less
than 60 days' prior written notice to the other parties or by an agreement in
writing signed by all of the parties hereto, except that data processing
services may not be terminated on less that 180 days' prior written notice, if
requested by Equico in writing promptly following its receipt of written notice
of termination of this Agreement. This Agreement shall automatically be
terminated in the event of its assignment.

      ss.5.3  Upon termination of this Agreement, all authorizations, rights,
and obligations shall cease except the obligations to settle accounts hereunder,
including the settlement of monies due in connection with Variable Contracts in
effect at the time of termination or issued pursuant to applications received by
Equitable or by Equitable Variable prior to termination.

                                   ARTICLE VI.

                                  Miscellaneous

      ss.6.1  Should an irreconcilable difference of opinion arise between or
among the parties to this Agreement as to the interpretation of any matter
respecting this Agreement, it is hereby mutually agreed that such differences
shall be submitted to arbitration as the sole remedy available to the parties.
Such arbitration shall be in accordance with the rules of the American
Arbitration Association, the arbitrators shall have extensive experience in the
insurance industry, and the arbitration shall take place in New York, New York.

<PAGE>

                                      -16-

      ss.6.2  For purposes of this Agreement, the term "Variable Contracts"
shall not include any variable insurance contract issued by Equitable which is
not offered and sold by employees or agents of Equitable.

      ss.6.3  This Agreement replaces the Sales Agreement, dated December 23,
1985, as amended, between Equitable Variable and Equitable, which shall
terminate on the effective date hereof.

      ss.6.4  If any provision of this Agreement shall be held or made invalid
by a court decision, statute, rule, or otherwise, the remainder of this
Agreement shall not be affected thereby.

      ss.6.5  This Agreement constitutes the entire agreement between the
parties hereto and may not be modified except in a written instrument executed
by all parties hereto.

      ss.6.6  This Agreement shall be subject to the provisions of the 1934 Act
and, to the extent applicable, the 1940 Act and the rules, regulations and
rulings thereunder and of the NASD, from time to time in effect, including such
exemptions from the 1940 Act as the SEC may grant, and the terms hereof shall be
interpreted and construed in accordance therewith.

      ss.6.7  This Agreement shall be interpreted in accordance with the laws of
the State of New York.

<PAGE>

                                      -17-

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed by their respective officials thereunto duly authorized, as of the day
and year first above written.

                                      THE EQUITABLE LIFE ASSURANCE
                                      SOCIETY OF THE UNITED STATES

                                      By:  /s/ Joseph J. Melone
                                           ---------------------------
                                               Joseph J. Melone
                                               Chairman and
                                               Chief Executive Officer

                                      EQUITABLE VARIABLE LIFE
                                      INSURANCE COMPANY

                                      By:  /s/ Samuel B. Shlesinger
                                           --------------------------
                                               Samuel B. Shlesinger
                                               Senior Vice President

                                      EQUICO SECURITIES, INC.

                                      By:  /s/ Richard V. Silver
                                           --------------------------
                                               Richard V. Silver
                                               President and
                                               Chief Operating Officer

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