Document:

exv10w13

 

Exhibit 10.13

ML LIFE INSURANCE COMPANY OF NEW YORK

NONAFFILIATED BROKER-DEALER

WHOLESALING AGREEMENT

This WHOLESALING AGREEMENT (“Agreement”) is made this 28th day of December, 2007. The parties to
this Agreement are ML Life Insurance Company of New York, a New York corporation (“Company”),
issuer of annuity policies (“Contracts”), Merrill Lynch, Pierce, Fenner & Smith Incorporated, a
Delaware corporation (“Distributor”), and Transamerica Capital, a California corporation
(“Wholesaler”).

RECITALS

WHEREAS, Company issues the Contracts that are described in the attached Wholesaling Allowance
Compensation Schedules, as may be amended from time to time, which are registered as securities
with the United States Securities and Exchange Commission (“SEC”) under the Securities Act of 1933
(“1933 Act”); and

WHEREAS, Distributor is duly registered as a broker-dealer with the SEC, is a member of the
Financial Industry Regulatory Authority (“FINRA,” formerly known in part as the National
Association of Securities Dealers, Inc.), and has been appointed by Company as the principal
underwriter of the Contracts, as applicable; and

WHEREAS, Wholesaler is duly registered as a broker-dealer with the SEC and is a member of FINRA;
and

WHEREAS, Company and Distributor desire to authorize Wholesaler to perform wholesaling services as
set forth in Exhibit A  (“Wholesale Services”) in regard to the Contracts.

NOW, THEREFORE, in consideration of the premises and mutual promises contained herein, the parties
agree as follows:

1. APPOINTMENT

Company and Distributor hereby authorizes Wholesaler, on an exclusive basis, to enter into
arrangements with broker-dealers for the purpose of promoting the Contracts to such broker-dealers
and performing Wholesale Services to such broker-dealers’ registered representatives. Wholesaler
shall provide Wholesaling services only to broker-dealers that have been pre-approved by Company or
Distributor to receive such services. Company and Distributor agree that Wholesaling Services shall
not include determining the suitability of any Contract for any prospective purchaser, recommending
any Contract to any prospective purchaser, either directly or indirectly through broker-dealers,
supervising the sales activities of broker-dealers and their registered representatives or ensuring
their compliance with any applicable insurance and securities laws, regulations and rules. However,
if Wholesaler undertakes to provide any of the aforementioned services to any broker-dealer or
registered representative, Wholesaler agrees to perform such service in accordance with the
requirements set forth in FINRA’s conduct rules regarding determinations of suitability, sales
supervision and compliance supervision.

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For purposes of this Agreement, Wholesaler shall only promote the Contracts to Merrill Lynch,
Pierce, Fenner and Smith Incorporated and its registered representatives for the term of this
Agreement.

2. REPRESENTATIONS

Company, Distributor and Wholesaler represent to each other that each of them, and each of their
undersigned officers, has full power and authority to enter into this Agreement.

	 	a.	 	Company represents to Distributor and Wholesaler that the Contracts and the
related
Separate Accounts have been duly registered with the SEC in accordance with the
requirements of the 1933 Act and the Investment Company Act of 1940 (“1940 Act”),
respectively, and the SEC rules promulgated thereunder, and comply with these and
all other applicable federal securities laws and regulations.
	 
	 	b.	 	Company represents to Distributor and Wholesaler that the Contracts have been
duly
filed with and approved for sale by the insurance departments of each state and other jurisdiction in which the Contracts are offered for sale.
	 
	 	c.	 	Company represents to Distributor and Wholesaler that the Contracts’
prospectuses
included in the Company’s registration statements and post-effective amendments
thereto, as have been filed or will be filed with the SEC, contain or will contain, as
of
their respective effective dates, all statements and information required to be stated
therein by the 1933 Act, and in all other respects conform or will conform with the
requirements of the 1933 Act.
	 
	 	d.	 	Distributor represents to Company and Wholesaler that it is duly registered
with the
SEC as a broker-dealer under the provisions of the Securities Exchange Act of 1934 (“1934 Act”) and is a member of FINRA.
	 
	 	e.	 	Wholesaler represents to Company and Distributor that it is duly registered
with the
SEC as a broker-dealer under the provisions of the 1934 Act and is a member of
FINRA. Wholesaler also represents to Company and Distributor that it is, or will be,
a licensed broker-dealer in any state or other jurisdiction in which it will perform
Wholesaling Services if that state or jurisdiction regulates the Contracts as securities
and requires Wholesaler to be a licensed broker-dealer to perform Wholesaling
Services and/or to sell the Contracts.
	 
	 	f.	 	Wholesaler represents to Company and Distributor that it is duly licensed
as an
insurance agent in each state and other jurisdiction in which it will perform Wholesaling Services.
	 
	 	g.	 	Wholesaler represents to Company and Distributor that each individual that
Wholesaler designates and authorizes to perform Wholesaling Services
(“Wholesaling Agents”) will be registered representatives of Wholesaler, will be duly
contracted or appointed by Company as an insurance producer, will be pre-approved

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	 	 	 	by Distributor to perform Wholesaling Services, will be registered with FINRA in the
category of registration that is required to sell the Contracts, and will have all other
necessary securities and insurance licenses that are required to perform Wholesaling
Services and sell the Contracts in the states and other jurisdictions in which
Wholesaling Agents perform Wholesaling Services.
	 
	 	h.	 	Company, Distributor and Wholesaler each represents and warrants that, to the
extent applicable to their operations, they have adopted and will enforce policies and
procedures that are reasonably designed to comply with (i) all anti-money laundering
requirements of the USA Patriot Act (“Act”) and the regulations promulgated thereunder,
and (ii) all suspicious activity reporting and other reporting requirements of the Act
and the rules of FINRA and any other applicable administrative agency (“Rules”).
Company, Distributor and Wholesaler agree that their separate obligations to comply
with the applicable requirements of the Act and Rules, including the filing of any
reports, will not be diminished by any other party complying with its applicable
requirements under the Act and Rules.
	 
	 	j.	 	Company represents and warrants that all materials, including but not limited
to prospectus and any supplements for Contracts, training materials, illustration
software, brochures, marketing materials and policy forms (collectively “Wholesaling
Materials”), provided to Wholesaler in order for Wholesaler to perform Wholesaling
Services, comply with applicable insurance and state and federal securities laws, and
filing requirements if any, and will be true and accurate in all material respects and
will not contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. Company acknowledges and agrees that
Wholesaler will be using and relying on Wholesaling Materials without independent
investigation or verification thereof.

3. COMPLIANCE AND SUPERVISION

	 	a.	 	Wholesaler agrees that in providing Wholesaling Services, Wholesaler and its
Wholesaling Agents will fully comply with all applicable rules and regulations of the
SEC and FINRA, including without limitation FINRA’s Conduct Rules, and will
comply with all applicable rules and regulations of the states and other jurisdictions
in
which Wholesaling Services are performed. Wholesaler further agrees that it and its
Wholesaling Agents will conform to all applicable policies and procedures of
Company, as such policies and procedures may be amended from time to time, to the
extent that they do not conflict with the terms of this Agreement.
	 
	 	b.	 	Wholesaler agrees that it will establish and maintain compliance and
supervisory
rules and procedures for the supervision of Wholesaling Agents, and that it will
diligently supervise its Wholesaling Agents in regard to their performance of
Wholesaling Services. Wholesaler’s supervisory responsibilities shall include, but
shall not be limited to, ensuring that (1) all Wholesaling Agents are registered
representatives of Wholesaler, (2) all Wholesaling Agents have all necessary

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	 	 	 	securities and insurance licenses to perform the Wholesaling Services, (3) all Wholesaling
Agents are trained and qualified to perform the Wholesaling Services, (4) all Wholesaling
Agents use only advertising materials and sales literature that have been approved by Company,
as applicable under the circumstances, (5) all Wholesaling Agents use only current prospectuses
in performing Wholesaling Services, (6) Wholesaling Services are provided to only those
broker-dealers (and their registered representatives) that have been pre-approved by Company or
Distributor to receive such services, and (7) Wholesaling Services are conducted only in states
and other jurisdictions in which Company has authorized the solicitation of the Contracts.
	 
	 	c.	 	If Wholesaler discovers that any Wholesaling Agent has failed to comply with
Company’s and/or Distributor’s standards or rules with regard to Wholesaling
Services, or if Wholesaler shall discover that any Wholesaling Agent has failed to
comply with the terms of this Agreement that relate to Wholesaling Services, and if
such failure constitutes a material breach of the aforementioned standards or rules or
of this Agreement, Wholesaler shall immediately notify Company and Distributor.
Also, Wholesaler shall immediately terminate the Wholesaling Agent’s authority to
perform Wholesaling Services.
	 
	 	d.	 	Upon the request of Company or Distributor, Wholesaler shall furnish to Company or
Distributor certification that Wholesaler has policies and procedures reasonably designed to achieve compliance with applicable securities laws and FINRA rules.
	 
	 	e.	 	Company will be solely responsible for conducting all due diligence reviews of all
broker-dealers and their registered representatives that are recommended by Wholesaler under Section 4 of this Agreement.
	 
	 	f.	 	Wholesaler agrees that it will not divulge any of Company’s or Distributor’s
Confidential Information to any third party and will train and supervise the
Wholesaling Agents to ensure that they maintain the confidentiality of such
information. Notwithstanding the foregoing, Wholesaler shall not be restricted from
disclosing any of Company’s or Distributor’s Confidential Information if it is
required to do so by any applicable state or federal laws, or by order of any court or
government agency that has jurisdiction over the parties upon prior written notice.
Furthermore, this restriction shall not apply to Confidential Information which,
without any breach by Wholesaler of any obligation of confidentiality: (1) is
independently developed by Wholesaler; (2) is or becomes publicly known; (3) is
already known by Wholesaler, evidenced by the written records of Wholesaler; or (4)
is obtained from an independent source. “Confidential Information” shall be defined
as all information communicated to Wholesaler by Company or Distributor relating to
the Company, Distributor, or their affiliates, during the term of this Agreement,
including but not limited to: 1) financial, business or technical information of the
Company, Distributor, or their affiliates, and 2) information regarding consumers,
customers or policy holders.

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	 	 	 	Wholesaler also agrees to comply with the provisions of the Gramm-Leach-Bliley Act
(“GLBA”), the rules and regulations promulgated thereunder, SEC Regulation S-P and all
relevant state laws and regulations that may apply to Wholesaler’s and the Wholesaling
Agents’ receipt of any non-public personal information (as defined in GLBA, the
regulations thereunder, SEC Regulation S-P or relevant state laws and regulations) of
Company’s customers, including without limitation purchasers and prospective purchasers
of the Contracts.

4. LICENSING AND/OR APPOINTMENT OF RETAIL BROKER-DEALERS AND THEIR REGISTERED REPRESENTATIVES

Wholesaler shall recommend to broker-dealers and to their registered representatives who are not
contracted or appointed with Company, but desire to sell the Contracts, that they become contracted
with or appointed by Company. Furthermore, Wholesaler shall recommend to such broker-dealers that
they sign selling agreements with Company and Distributor to become authorized to sell the
Contracts. Company and/or Distributor reserve the right to reject any such recommendation.

5. ADVERTISING, SALES LITERATURE AND OTHER SALES PROMOTION MATERIALS

Wholesaler and its Wholesaling Agents shall use only advertising, sales literature and other sales
promotion materials that have been pre-approved in writing by Company when performing Wholesaling
Services.

6. COMPENSATION

	 	a.	 	All commissions and other compensation payable for Wholesaling Services shall
be
payable to Wholesaler in accordance with the Wholesaling Allowance Compensation
Schedules attached to this Agreement, as such Schedules may be amended from time
to time. Commissions and other compensation for Wholesaling Services related to
any particular Contract shall be determined in accordance with the Wholesaling
Allowance Compensation Schedule for that Contract that is in effect at the time that
premium payments for the Contract are received by Company. Company reserves the
right to amend any Wholesaling Allowance Compensation Schedule at any time upon
prior written notice to Wholesaler. The amendment of any Wholesaling Allowance
Compensation Schedule shall be effective as of the effective date set forth in the
written notice, and shall apply to all premiums for Contracts that are received by
Company on and after that date. The compensation to the Wholesaling Agent will be
governed by the agreement between Wholesaler and the Wholesaling Agent.
	 
	 	b.	 	If Company is required to refund premiums or return Contract values and waive
surrender charges on any Contract for any reason, then no commission or other
compensation for Wholesaling Services will be payable with respect to such premiums
and any commissions or other compensation for Wholesaling Services previously paid on
account of such premiums must be refunded to Company.

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	 	c.	 	For purposes of this section, Company is solely responsible for any Compensation
payable hereunder.

7. HOLD HARMLESS AND INDEMNIFICATION PROVISIONS

If any director, officer, employee, associated person or other agent of any party to this Agreement
(“Employer Party”) materially breaches any of the provisions of this Agreement, or otherwise fails
to materially comply with any of its provisions, the Employer Party agrees to indemnify and hold
harmless each of the other parties hereto for any and all liability, loss, damage or expense,
including without limitation reasonable attorney’s fees and costs, that any of the other parties
may incur or suffer as a result of such material breach or failure to materially comply. For
purposes hereof, the term “associated person” shall have the same definition as in Article I of
FINRA By-Laws. No party to this Agreement shall be responsible to perform any act or other
obligation of any other party.

8. NON-ASSIGNABILITY OF AGREEMENT

No party may assign any of its rights or obligations under this Agreement without the express prior
written consent of each of the other parties hereto.

9. NON-WAIVER OF BREACH

The failure of any party to terminate this Agreement for any act or omission by any other party
that constitutes a breach of this Agreement shall not constitute a waiver by such party of the
right to terminate this Agreement at a later time for another such breach.

10. AMENDMENTS

No amendment to this Agreement will be effective unless it is in writing and signed by all of the
parties hereto.

11. INDEPENDENT CONTRACTOR

Wholesaler is an independent contractor of Company and Distributor.

12. NOTIFICATION OF DISCIPLINARY PROCEEDINGS AND AGREEMENT TO COOPERATE IN
INVESTIGATIONS

	 	a.	 	Wholesaler agrees to promptly notify Company and Distributor if Wholesaler
receives notice that any of the following actions have been taken, or are threatened to
be taken, against Wholesaler or any of its Wholesaling Agents in connection with the
Wholesaling Services: (1) any disciplinary proceeding by the SEC, FINRA, any securities
or insurance regulatory authority of any state or other jurisdiction, or any other
governmental agency or self-regulatory organization; (2) any civil lawsuit or criminal
indictment; or (3) any arbitration proceeding. In the event that any of the
aforementioned actions are taken or threatened, Wholesaler agrees to fully cooperate
with Company and Distributor in connection with any investigation that they may

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	 	 	 	make of the claims against Wholesaler or its Wholesaling Agents in such regulatory
proceeding, civil lawsuit, criminal indictment or arbitration proceeding.
	 
	 	b.	 	Company, Distributor and Wholesaler jointly agree to fully cooperate with
each other, subject to the advice of their respective counsel, with regard to any
securities, insurance or other regulatory investigation or proceeding that may arise in
connection with or as a result of any Wholesaling Services.

13. BOOKS AND RECORDS

	 	a.	 	Company, Distributor and Wholesaler agree to maintain such books, accounts,
records and other documentation pertaining to Wholesaling Services and related sales
of Contracts (“Books and Records”) that are required to be maintained by applicable
laws and regulations, and shall preserve all such Books and Records for the periods
prescribed by such laws and regulations. Each party hereto shall maintain its Books
and Records so as to clearly and accurately disclose the nature and details of the
transactions covered thereby, including such accounting records that may be
necessary to correctly determine the compensation to be paid for Wholesaling
Services.
	 
	 	b.	 	If any party hereto shall request from any other party any report or other
information
pertaining to Wholesaling Services and related sales of Contracts for the purpose of
enabling the requesting party to comply with its record keeping and reporting
requirements under applicable laws and regulations, the party upon whom the request
is made shall, to the best of its ability, promptly furnish a copy of such report and/or
provide such information to the requesting party.

14. LIMITATIONS

Company and Distributor shall have the sole and exclusive authority to make, alter or discharge any
selling agreement between Company and Distributor. Company shall have the sole and exclusive
authority to make, alter or discharge any of its Contracts, waive any forfeiture, grant or permit
an extension of time for making any premium payment, alter any form used in connection with any of
its Contracts, or enter into any proceeding in a court of law or before any regulatory agency in
the name of or on behalf of Company.

15. TERMINATION

This Agreement shall continue until April 30, 2008, subject to termination by any party hereto with
or without cause upon sixty (60) days prior written notice to the other parties; except however,
that in the event Distributor or Wholesaler ceases to be a registered broker-dealer with the SEC or
a member of FINRA, this Agreement shall terminate immediately. Upon termination of this Agreement,
the authorizations, rights and obligations of the parties shall cease, except for the survival of
(1) the provisions contained in Sections 7, 12 and 13 hereof.

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16. NOTICES

All notices to Company, Distributor and Wholesaler relating to this Agreement, or to any other
matter that may otherwise arise in connection with Wholesaling Services, shall be sent to:

Company:

ML Life Insurance Company of New York

4333 Edgewood Road NE

Cedar Rapids, IA 52499

Attn: President and Division General Counsel

Distributor:

Merrill Lynch, Pierce, Fenner & Smith Incorporated

1700 Merrill Lynch Drive, 3rd Floor

Pennington, New Jersey 08534

Attn: Barry Skolnick, First Vice President & Assistant General Counsel

Wholesaler:

Transamerica Capital, Inc.

4600 South Syracuse Street, Suite 1100

Denver, CO 80237

Attn: President and Legal Department

All notices shall be in writing, shall be addressed as indicated above, and shall be sent by United
States mail, telegram, facsimile or personal delivery. Notices sent by United States mail shall be
deemed delivered by the third business day after such notice is deposited in the mail properly
addressed and with correct first class postage pre-paid. Notices sent by telegram or facsimile
shall be deemed delivered when sent if properly addressed. Notices sent by personal delivery shall
be deemed delivered when received by the person to whom the notice is addressed, or by that
person’s duly authorized representative.

17. BINDING EFFECT AND SEVERABILITY

This Agreement shall be binding on and shall inure to the benefit of the parties hereto and to
their respective successors in interest. If any provision of this Agreement would require any party
to take any action that is, at that time, prohibited by applicable federal law or regulation, by
FINRA rule, or by the applicable laws or regulations of any state or other jurisdiction, or if any
provision of this Agreement is held to be invalid or unenforceable by a court of competent
jurisdiction, then such provision shall be enforced only to the extent permitted by such law,
regulation, rule or court decision, and all of the other provisions of this Agreement shall remain
in full force and effect to the greatest extent possible.

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18. ENTIRE AGREEMENT

This Agreement and the attached Exhibits and Wholesaling Allowance Compensation Schedules
constitute the entire agreement between Company, Distributor and Wholesaler with respect to
the subject matter hereof, and supersedes any and all prior oral or written understandings,
agreements or negotiations between the parties with respect to the subject matter. No prior
writings by or between the parties hereto with respect to the subject matter hereof shall be used
by any party to interpret any provision of this Agreement.

19. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the internal laws of the State
of New York without giving any effect to any principles of conflict of laws.

20. DISPUTE RESOLUTION

Any dispute, claim, or controversy arising out of or relating to this Agreement, or any breach
thereof, will be submitted to binding arbitration under FINRA Code of Arbitration Procedure and
settled in accordance with the then existing rules thereof. Any such arbitration shall be conducted
in New York, New York, and each arbitrator shall be from the securities industry. Any award
rendered by the arbitrators shall be binding and judgment thereon may be entered in any court
having jurisdiction thereof.

21. EXECUTION IN COUNTERPARTS

This Agreement may be executed in two or more counterparts, each of which when taken together
shall constitute one and the same instrument.

22. CAPTIONS

The captions of this Agreement are for convenience and reference only, and the words contained
therein shall not be held to explain, modify, amplify or aid in the interpretation, construction or
meaning of any provision of this Agreement.

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23. TIME IS OF THE ESSENCE

Time is of the essence in the performance of the provisions of this Agreement.

24. EFFECTIVE DATE

This Agreement shall be effective as of the date first shown on page 1 hereof.

IN WITNESS WHEREOF, the parties have executed this Agreement as indicated by the signatures set
forth below.

ML Life Insurance Company of New York

	 	 	 	 	 
	By:

	 	/s/ Brian C. Scott
 

	 	 
	Title:

	 	SVP
 

	 	 

Merrill Lynch, Pierce, Fenner & Smith Incorporated

	 	 	 	 	 
	By:

	 	/s/ Barry G. Skolnick
 

Barry G. Skolnick
	 	 
	Title:

	 	First Vice President	 	 

Transamerica Capital, Inc.

	 	 	 	 	 
	By:

	 	/s/ Rob Frederick
 

	 	 
	Title:

	 	President
 

	 	 

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WHOLESALING ALLOWANCE COMPENSATION SCHEDULE

Annuity Contracts

Merrill Lynch Investor Choice

Merrill Lynch Consults Annuity

Merrill Lynch Asset I Annuity

RateMax Annuity

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EXHIBIT A

WHOLESALE SERVICES

Wholesaler, through its Wholesaling Agents, may provide Wholesaling Services listed below, or other
activities related to this Agreement as agreed to in advance in writing among Wholesaler, Company,
Distributor and/or broker-dealers (“BD”):

	 	•	 	At the request of BD, Company or Distributor, provide training on Contract features to
BD and its registered representatives (“RRs”) utilizing materials created and approved by Wholesaler, Company, Distributor and BD.
	 
	 	•	 	Answer questions from BD and RRs regarding Contract features as represented in
Wholesale Materials.
	 
	 	•	 	Complete insurance illustrations at the request of RRs for RRs to deliver to
prospective
Contract purchasers utilizing software provided by Company based on customer information provided by RRs.
	 
	 	•	 	Assist BD with the review of Contract applications for completeness prior to forwarding
Contract applications to Company.
	 
	 	•	 	Assist BD with processing commissions received by BD under selling group agreements
executed among BD, Company and Distributor.

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Exhibit 10.14

SELLING AGREEMENT

     This Agreement, effective as of the 28th day of December, 2007, is made by and among ML Life
Insurance Company of New York (“Insurer”), and Merrill Lynch, Pierce, Fenner & Smith Incorporated
(“Distributor”), selling products listed on the attached Appendix A (hereinafter referred to
collectively as “The Company”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated
(“Broker/Dealer”) and its duly licensed insurance affiliate(s), Merrill Lynch Life Agency Inc., a
Washington corporation, and the corporations listed together with their respective states of
incorporation on the signature pages hereof (hereinafter referred to collectively as “General
Agent”).

     Where applicable, any reference in this Agreement to General Agent or the Company, while
defined collectively, will be deemed to refer to the individual entity liable for the stated act.

     The Company represents that it is the issuer of those products listed on Appendix A. The
Company further represents that the products and approved contracts, applications, riders,
endorsement etc. (“Forms”) listed on Appendix A are, (i) properly filed and/or approved for use by
each state insurance department where the product is available for sale and that the Forms comply
in all material respects with applicable insurance and securities state laws, regulation notices
or bulletins; and (ii) where applicable, registered under the Securities Act of 1933 and the
Investment Company Act of 1940, that the registration statements and prospectuses comply in all
material respects with the applicable provisions of such acts, and do not contain any untrue
statement of material fact nor omit to state a material fact required to be stated therein, or
necessary to make the statements therein not misleading.

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     Broker/Dealer and Distributor each represent that it is registered as a broker and dealer
under the Securities Exchange Act of 1934, as amended, and is a member in good standing of the
Financial Industry Regulatory Authority (“FINRA”).

     General Agent represents that with respect to Securities and Exchange Commission-registered
contracts sold under this Agreement, its producers shall be registered representatives of
Broker/Dealer acting in accordance with SEC No Action letter date May 21, 1975, is duly licensed
and lawfully authorized to distribute any unregistered products, if available for sale under this
agreement.

I. Appointment

     Subject to all the terms of this Agreement, and to the applicable state insurance and
securities laws regarding licensing insurance agents, General Agent is hereby appointed by
the Company to represent it and any subsidiary, agency or company designated by it in
writing, only in accordance with the terms of this Agreement, in the sale of annuity products
set forth in Appendix A, attached to and made a part of this Agreement and in any written
amendment thereto, (hereinafter referred to as “Products” or “the Products”), in any
jurisdiction in which General Agent is validly licensed and in good standing and in which
the Products may be legally sold and while any applicable registration under the Securities
Act of 1933, as amended, is in effect. General Agent hereby accepts such appointment. The
Company and General Agent agree that this Agreement is not an exclusive Agreement and no
rights of exclusivity arise here from in favor of either party. Distributor has been
appointed as the principal underwriter of the registered products of Company.

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II. Authorization and Responsibilities

     General Agent and Broker/Dealer is authorized to:

     A. promote, market, solicit, sell and deliver the Products, receive, and forward initial
premiums thereon, and perform any other act specifically authorized by this Agreement or in
writing by the Company; and

     B. designate its producers, subject to the approval of the Company, as General Agent
deems necessary to conduct the General Agency business under this Agreement. Any such
producers that General Agent allows to sell the Products or to whom General Agent pays
commissions under this Agreement shall also be licensed and appointed as required by law and
securities registered as required by law.

     C. General Agent shall notify the Company promptly upon notice of termination of
any Broker. General Agent shall provide, or shall forward to Producers such document request
by Company to provide, the Company with appropriate authorization to allow the Company to
conduct such background and credit investigations of Producers as may reasonably be necessary
or appropriate under applicable law.

III. Relationship

     General Agent shall freely exercise its own judgment as to the time, place and means of
exercising authority under this Agreement. General Agent is an independent contractor and nothing
in this Agreement shall create the relationship of employer and employee between the Company and
General Agent and its producers and employees. Nothing contained in this Agreement shall restrict
General Agent from acting as an agent or producer for other insurance companies.

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IV. General

     The Company shall maintain an administrative office to which all policy applications,
premiums and policy service requests shall be referred by General Agent. The Company shall
designate dedicated service personnel to support General Agent’s business. The Company will accept
business only from General Agent’s producers properly licensed and appointed to sell the Products
for which applications are submitted by such producers. In the event that any of the Products are
not approved products of General Agent prior to General Agent’s execution of this Agreement, they
must be so approved prior to this Agreement’s effective date.

     General Agent will obtain and transmit promptly to the Company all applications and premiums
for the Products. All premiums shall be submitted to the Company by check payable to the Company
or by wire transfer directly to the Company’s designated account.

     General Agent shall provide the Company with any necessary paperwork and license information
required by state insurance departments in order to appoint General Agent or designated producers
with the Company and the Company shall use best efforts to forward all appointment paperwork to
state insurance departments within two (2) business days of receipt of all necessary information
from General Agent.

     Upon issuance of a contract, unless otherwise delivered to General Agent’s producer at
General Agent’s request, the Company shall promptly deliver such contract to its purchaser by
first class mail to the purchaser’s last known address of record. For purposes of this provision,
“promptly” shall be deemed to mean not later than five (5) business days.

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V. Unauthorized Acts

     General Agent and Producers have no authority to, and General Agent shall ensure that it and
any Producer shall not: (a) make any promise or incur any debt on behalf of the Company; (b) hold
themselves out as employees or affiliates of the Company unless true; (c) misrepresent, add, alter,
waive, discharge, or omit any provision of the Products, the then-current prospectus for the
registered Products or the underlying funds, Company produced confirmations and statements or any
other Company materials; (d) give or offer to give, on the Company’s behalf, any advice or opinion
regarding the taxation of any purchaser’s or prospective purchaser’s income or estate in connection
with the sale or solicitation for sale of any Products.

VI. Expenses

     General Agent shall pay all expenses whatsoever connected with operating its insurance
business except that the Company shall pay those expenses which it expressly assumes under this
Agreement or otherwise in writing.

VII. Compliance

     A. The Company agrees that during the continuance of this Agreement it will take all action
which is required for it to comply and for all Products marketed hereunder to comply, and to
continue to comply with all applicable federal and state laws and regulations, and the rules and
regulations of all appropriate self-regulatory organizations. The Company represents that all
Products marketed hereunder as well as any prospectus for any Products marketed hereunder and all
advertising or sales promotional material provided by the Company hereunder have been

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reviewed and approved, as applicable, by the Company’s legal and/or compliance personnel, including
the Distributor’s FINRA Registered Principal.

     All parties to this Agreement each represent that during the continuation of the Agreement
they will take all action which is required for them to comply with state and federal laws and
regulation, and the rules and regulations of all self-regulatory organizations with respect to the
sale of annuities, including variable annuities.

     B. The Company shall appoint, prior to any solicitation of the Products, all producers
mutually agreed to by the parties. Such appointments shall be in any and all states where General
Agent indicates a designated producer will be doing insurance business under this Agreement and
shall be at the expense of the Company. Throughout the term of this Agreement, each of General
Agent’s District Annuity Specialists and any other of General Agent’s insurance specialists shall
be appointed at the Company’s expense in all states where such District Annuity Specialist or
insurance specialist holds an insurance license and in all states included in their respective
territories as designated by General Agent. The Company shall use its best efforts to appoint
producers based upon electronic transmissions of licensing information from General Agent. The
Company shall provide General Agent with an electronic file to the designated General Agent data
center, updating the appointment status of General Agent’s designated producers on a weekly basis
or as otherwise requested by General Agent. Except as otherwise specified herein, regardless of
individual production, Company shall renew at the Company’s expense all appointments of General
Agent’s life insurance specialists (currently District Annuity Specialists and their assistants).
Further, regardless of individual production, the Company shall also renew at the Company’s expense
for not less than twenty-four (24) months from their original appointment date all appointments of
General Agent’s other producers.

6

 

Thereafter, the Company shall continue to renew at its expense all appointments of General Agent’s
other producers who have made a sale under this Agreement within the year prior to any renewal
date. Company shall not terminate or fail to renew any designated producer’s appointment for
non-production without thirty (30) days prior written notice to General Agent. If Company does not
renew any designated producer’s appointment for non-production, Company shall notify said producer
directly and indicate said non-renewal on its daily electronic appointment file provided to
General Agent.

     C. The parties understand and agree that General Agent is party to an agreement with the
National Insurance Producer Registry (“NIPR”). As a result of this agreement between General Agent
and NIPR, General Agent does not retain actual hard license copies for its individual producers.

VIII. Notice and Required Regulatory Reports

     A. The Company will give General Agent notice in advance of any changes made with regard to
the Products marketed under this Agreement. If the decision to make changes with regard to such
Products is not in response to legal or regulatory mandate, thirty (30) days prior written notice
to General Agent is required.

     B. Each party shall notify the others within ten (10) days of its obtaining knowledge of any
actual or impending material adverse change in its Company’s financial condition, the financial
condition of any subsidiary, parent company or reinsurer, or if any published rating of the party,
any subsidiary, parent or reinsurer has been or is to be lowered. Each party shall also notify the
others within ten (10) days of its obtaining knowledge of any actual or impending

7

 

material adverse change in the financial condition of any reinsurer if such change has or could
have a material effect on the financial condition of the party or its affiliates.

     C. (1) Within twenty (20) days after the Company has sent or delivered the following reports
to the pertinent regulatory agency, the Company agrees to send or furnish General Agent a copy of
each such report actually filed. If the Company fails to provide such copies, the General Agent
shall give notice thereof and allow twenty (20) days from date of notice to provide the requested
documents.

The reports are:

	 	(a)	 	The Annual Statement of the Company filed with
the Company’s state
of domicile.
	 
	 	(b)	 	The Quarterly Convention Statement of the
Company filed with the
Company’s state of domicile.

          (2) If the Company is part of an insurance holding company system under the laws of its state
of domicile and subject to said laws, the Company agrees to send within twenty (20) days of
delivery to the pertinent regulatory agency, copies of the following:

	 	(a)	 	Any amendments to the Company’s Registration Statement.
	 
	 	(b)	 	The Company’s Annual Report describing
transactions during the prior
year with entities within the holding company system.
	 
	 	(c)	 	Any requests for approval filed by the Company
with said regulatory
agency with respect to any proposed transaction(s) between the Company and any entity within the holding company system.

8

 

	 	(d)	 	If applicable, the 10K report of the Company’s parent filed with the United States Securities and Exchange Commission (“SEC”).
	 
	 	(e)	 	If applicable, the 10-Q report of the Company’s
parent filed with the
SEC.

     D. Each party will notify the other of any regulatory or administrative investigation or
inquiry, claim, judicial proceeding or customer complaint which may affect Products marketed or
services rendered under this Agreement within ten (10) days of knowledge of such, excluding,
however, claims for benefits under a policy or application or contests regarding the validity,
enforceability, or construction of any policy or application issued by the Company.

          (1) Within ten (10) days after receipt by either party of notice of any such customer complaint, investigation or proceeding involving General Agent or any of its
Producers, the party in receipt thereof will notify the other party by forwarding a copy of
all documents received in connection with the matter and will communicate to the other party additional information it deems necessary to furnish the other party a complete understanding
of the same.

          (2) In the case of a customer complaint with respect to General Agent, any
designated producer or any company or person affiliated with General Agent or any designated
producer, the parties shall not take any final action with respect to such complaint without
prior consultation with the other party involved. This Subparagraph D (2) shall survive termination
of this Agreement.

          (3) For the purposes of this Agreement, the term “customer complaint” shall
mean a written communication either directly from a purchaser or a purchaser’s representative
or indirectly from a regulatory agency to which a purchaser or a purchaser’s representative has

9

 

written expressing a grievance. Further, for purpose of this Agreement, any oral complaints
alleging misrepresentation of information or improper sales practices shall be treated as a
written complaint.

     Each party agrees to cooperate fully with the other in any regulatory investigation,
administrative or judicial proceeding or customer complaint regarding products marketed or services
rendered under this Agreement. This Subparagraph D(4) shall survive termination of this Agreement.

     Each party shall bear its own cost and expenses in complying with any regulatory
investigation, administrative or judicial proceeding, customer complaint, or regulatory or
self-regulatory requests, subject to any right of indemnification that may be available pursuant
to Section XXIII of this Agreement.

     E. Distributor agrees that it shall act as Broker/Dealer’s agent in providing customer
confirmations pursuant to Rule 10b-10 under the Securities Exchange Act of 1934, as amended the
(“1934 Act”) and shall confirm or cause to be confirmed to customers of Broker/Dealer all contract
transactions, as and to the extent legally required. Distributor either directly or through the
services of the Company shall maintain as agent for Broker/Dealer in compliance with Rules 17a-3
and 17a-4 under the 1934 Act all books and records concerning such customer confirmations.

     F. If applicable, Company shall confirm to General Agent either electronically or in writing
any change in interest rates for new contracts, additional premiums or renewals as soon as Company
becomes aware or receives notice of any such change. At all times Company shall

10

 

provide General Agent with access to current interest rates for Products marketed under this
Agreement.

     G. All communications under this Agreement shall be in writing and shall be mailed by
certified mail, postage prepaid, sent by recognized overnight courier service, or transmitted by
facsimile, with receipt confirmed by the transmitter via telephone within twenty-four (24) hours of
transmission, provided a duplicate copy thereof is mailed by certified mail or sent by courier
service, as indicated above;

	 	 	 	 	 	 	 	 	 
	 

	 	 	(1	)	 	if to General Agent, to:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Merrill Lynch Life Agency Inc.	 	 
	 

	 	 	 	 	 	1700 Merrill Lynch Drive, 3rd Floor	 	 
	 

	 	 	 	 	 	Pennington, New Jersey 08534	 	 
	 

	 	 	 	 	 	Attention: Lori Caracappa	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	with a copy to:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Merrill Lynch Insurance Group, Inc.	 	 
	 

	 	 	 	 	 	1700 Merrill Lynch Drive, 3rd Floor	 	 
	 

	 	 	 	 	 	Pennington, New Jersey 08534	 	 
	 

	 	 	 	 	 	Attention: Barry Skolnick, Senior V.P. & General Counsel	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	(2	)	 	if to the Company, to:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	ML Life Insurance Company of New York	 	 
	 

	 	 	 	 	 	4333 Edgewood Road NE	 	 
	 

	 	 	 	 	 	Cedar Rapids, IA 52499	 	 
	 

	 	 	 	 	 	Attention: President and Division General Counsel	 	 

     Notice will be deemed to have been effected once the certified mail or courier package has
been delivered or once receipt of the facsimile has been confirmed in accordance with instructions,
above.

     Either party may change the address indicated herein by written notice to the other.

11

 

     H. For the purposes of this Agreement, the term “days” shall refer to calendar days
unless otherwise specifically indicated.

IX. Litigation

     Each party shall use its best efforts to give reasonable notice of any legal proceedings
against a third party regarding or affecting Products marketed or services rendered under this
Agreement except in the case of any legal proceeding instituted against a customer of General
Agent, Company agrees to provide ten (10) days prior notice.

X. Limitation

     A. To the extent permitted by law, the Company has the right to reject any applications or
premiums received by it and to return or refund to an applicant such applicant’s premium. In the
event that the Company rejects an application, it will return any premium paid by the applicant to
such applicant and will promptly notify General Agent and producer of such action. In the event
that a purchaser exercises his or her “free look” right under a Product, any amount to be refunded
will be so refunded to the purchaser by the Company.

     B. Subject to Section VII(A) hereof, the Company may limit the amount and type of
contract it shall distribute or issue and the amount of premium or deposit it shall accept.

XI. Territory, Withdrawal of Business and Policy Forms

     The Company, upon thirty (30) days prior written notice to General Agent, may stop doing
business in any state or territory or withdraw any Products from sale by General Agent. The
foregoing notwithstanding and in the sole discretion of the Company, the Company may

12

 

immediately suspend the sale of any Products and may immediately cease doing business in any state
upon notice to General Agent when such suspension or such cessation of business is in response to
regulatory authority. The Company may additionally resume the use of Products at any time upon
thirty (30) days prior written notice to General Agent, or such lesser period of time as agreed to
by General Agent. In such event, the Company shall specifically advise General Agent of any
modifications or changes to the resumed Products and provide General Agent with complete copies of
any changed forms at the time notice is given to resume sales of the Products.

XII. Compensation

     A. The Company will pay General Agent compensation hereunder as provided in the Commission
Schedule attached to and made a part of this Agreement for sale during the term of this Agreement.
Compensation will be paid on premiums received by the Company for issued Products which are
produced in accordance with this Agreement and are accepted by the proposed owners, and are not
refunded during any “free look” period required by law or permitted under a Product. The Insurer
is solely responsible for the payment of all commissions under this Agreement. Distributor’s
liability, if any, for commissions is limited solely to proceeds of commissions received from
Insurer.

     The Company may alter or amend the Commission Schedule for all Products upon thirty (30) days
prior written notice to General Agent and the issuance of a new Commission Schedule. Changes or
amendments to the rate of compensation payable on premiums or on asset-based compensation become
effective for Products issued on or after the effective date of such changes unless otherwise
agreed to in writing by General Agent and the Company. Changes or

13

 

amendments to the rate of compensation payable on premiums or asset-based compensation will not
apply to Products issued prior to the effective date of such change, unless otherwise agreed in
writing by General Agent and the Company. Changes or amendments to the Commission Schedule that do
not relate to rate of compensation may be applied to Products issued prior to the effective date
of the change.

     Initial and trail commissions are payable to General Agent when earned under the applicable
Commission Schedule. The terms of said Commission Schedule notwithstanding, all commissions or
other compensation payable based on the production of designated producers hereunder shall be paid
and reported only to General Agent.

     B. The Company will send electronically a Statement of Account referencing all
compensation payable hereunder for the preceding week to General Agent on a daily basis. Any and all compensation payable hereunder will be paid only to General Agent, on an automated
basis, each day.

     C. With respect to commissions or compensation owed by the Company or any affiliate to the General Agent, the Company shall have the right to set off against such amounts any chargebacks payable by the General Agent under this Agreement, to the extent permitted by applicable law.

     D. Producers shall have no interest in this Agreement or right to any commissions to be paid by the Company to General Agent. General Agent shall be solely responsible for the payment of any commission or consideration of any kind to producers.

     E. General Agent shall be solely responsible under applicable tax laws for reporting
of compensation paid to producers and for any withholding of taxes from compensation paid to producers, including, without limitation, FICA, FUTA, and federal, state and local income taxes.

14

 

     F. This Section XII shall survive termination of this Agreement.

XIII. Books, Records

     A. Each party hereto shall have the right, during normal business hours and upon ten
(10) days prior written notice, to audit and inspect the books and records of the other party
relating solely to the business contemplated by this Agreement. Such books and records will be
complete and available for review at each party’s business offices in a good and legible
condition for a period of three (3) full calendar years after the year of termination of this Agreement,
or longer if required by applicable federal or state law or regulation, during which time this
audit right shall continue.

     B. The Company shall furnish General Agent with all necessary forms required by
applicable SEC and state insurance regulations, such as replacement analysis forms, disclosure
material etc. required for use in connection with the sale of the Products.

     C. The Company shall furnish General Agent with in-force current customer data
and contract information through electronic means in a manner and format as specified in Appendix B.

     D. Any unused contracts, forms, applications and other supplies furnished by the
Company to General Agent shall always remain the property of the Company and shall be
accounted for and returned to the Company or destroyed by General Agent on demand.

     E. The Company will provide General Agent, on at least a quarterly basis, with the
following statistical information: dollar amount of business generated; number and accumulated
value of contracts in force and number and dollar amount of surrenders to date.

15

 

XIV. Product Names

     A. The Company hereby represents and warrants that the Company, together with its
affiliates, has exclusive right, title and interest in all Products’ names.

     B. The Company shall indemnify and defend General Agent from and against any
and all claims (including the costs of reasonable attorneys’ fees, investigation and defense
of such claims) relating to General Agent’s use hereunder of any Products’ names.

     C. Each party shall notify the other promptly in writing of any and all allegations or
claims by others of which it may become aware that the use of any Products’ names infringes
any trademark or service mark, violates any property right of a third party, or violates or is
contrary to any law, regulation, order, consent, or the like. The Company shall notify General
Agent of the settlement or outcome of any such claim or suit.

XV. Customer and Producer Confidentiality

     The Company agrees that the names and addresses of all customers and prospective customers of
General Agent, of General Agent’s parent company and of any affiliated company as well as the
names, address and any information of all Producers of General Agent which may come to the
attention of the Company or any company or person affiliated with the Company as a result of this
Agreement are confidential. Such customer or producer information shall not be used, without the
prior written consent of General Agent, by the Company or any company or person affiliated with
the Company for any purpose whatsoever except as may be necessary in connection with the
administration and servicing of products sold by or through General Agent.

     In no event shall the names and addresses of such customers and prospective customers and
Producer information that constitute confidential information under this Agreement be

16

 

furnished by the Company to any other company or person including, but not limited to: (1) any of
such company’s managers, agents or producers which are not designated producers of General Agent;
(2) any company affiliated with the Company or any manager, agent or producer of such company; or
(3) any securities broker-dealer or any insurance agent affiliated with such broker-dealer other
than Merrill Lynch, Pierce, Fenner & Smith.

     The Company agrees that neither the Company nor any company or person affiliated with the
Company shall solicit directly any customers whose names constitute confidential information
pursuant to this Section. Notwithstanding the foregoing, Company reserves the right to contact
customers or Producers for purpose of conversation of existing annuity or life insurance policies.
Further, the parties understand that the Company or its affiliates may, from time to time, conduct
general and untargeted solicitations of investments, insurance or annuity products using its own
information or other publicly available information, but not the customers’ information. Such
general untargeted solicitations may incidentally include General Agent’s customer and shall not be
considered a breach of this Section provide that the Company or its affiliates received Customer
Information from a third party or independently and not in any way as a result of the its
relationship hereunder. The Company shall keep Customer Information separate and secure under this
Agreement.

     The intent of this paragraph is that the Company shall not utilize, or permit to be utilized,
its knowledge of General Agent, of its parent company or of any affiliated companies or of the
customers of any of the foregoing for the solicitation of sales of any products or services.

     This Section XV shall survive termination of this Agreement.

17

 

XVI. Gramm-Leach-Bliley Compliance

     The parties hereby acknowledge that they are subject to the privacy regulations under Title V
of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6801 et seq., (“GLBA”), to which regulations the parties
are required to obtain certain undertakings from each other with regard to the privacy, use and
protection of nonpublic personal financial information of Broker/Dealer’s and/or General Agent’s
clients or prospective clients or Company’s insureds or prospective insureds. Therefore,
notwithstanding anything to the contrary contained in this Agreement, the parties agree that: (1)
they shall not disclose or use any Client Data except to the extent necessary to carry out their
obligations under this Agreement and for no other purpose, (2) they shall not disclose Client Data
to any third party, including, without limitation, their respective third party service providers
except to the extent necessary to carry out their obligations under this Agreement and then only
with an agreement in writing from the third party to use or disclose such Client Data only to the
extent necessary to carry out their respective obligations under this Agreement and for no other
purposes, (3) they shall maintain, and shall require all third parties approved under subsection
(2) to maintain effective information security measures to protect Client Data from unauthorized
disclosure or use, and (4) they shall provide each other with information regarding such security
measures upon the reasonable request of the other party and promptly provide the other with
information regarding any failure of such security measures or any security breach related to
Client Data. The obligations set forth in this Section shall survive termination of the Agreement.
For the purposes of this Agreement, Client Data means the nonpublic personal Information (as
defined in 15 U.S.C. § 6809(4)) of the parties’ clients or prospective clients or insureds or
prospective insureds received by the other party in connection with the performance of its
obligations under the Agreement, including, but not limited to (I) an

18

 

individual’s name, address, e-mail address, IP address, telephone number and/or social security
number, (II) the fact that an individual has a relationship with the other party and their
parents, affiliated or subsidiary companies, or (III) an individual’s account information.

     The parties acknowledge that each of them may be under a separate duty to effect compliance
with the GLBA. The parties shall use their best efforts to coordinate their actions in the
performance of the actions contemplated by this Agreement so as to ensure both compliance with GLBA
and avoid conflicts among themselves.

XVII. Anti-Money Laundering

     Broker/Dealer acknowledges that it has in place procedures to comply with all applicable
provisions of the USA PATRIOT Act, including: (a) the requirement for an anti-money laundering
program; (b) the requirement for a Customer Identification Program (CIP); (c) the requirement to
file suspicious activity reports; and (d) that Broker/Dealer has an ongoing training program on
products subject to Anti-Money Laundering regulations for its affiliated registered
representatives and will produce documentation of specific registered representatives upon
request.

     Broker/Dealer will not knowingly sell any product issued by the Company to: (1) any investor
listed on the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) list of
prohibited persons, entities, and countries, or (2) a foreign shell bank, as defined in the USA
PATRIOT Act.

     Broker/Dealer, General Agent and the Company each agree that, if authorized by law to do so,
each may choose to share information with one another pursuant to Section 314 of the USA PATRIOT
Act as to matters for which such sharing is permitted.

19

 

     Company has developed and implemented Anti-Money Laundering procedures in accordance with
applicable laws and regulations. General Agent shall use reasonable efforts to support Company
with such procedures. Notwithstanding the foregoing, General Agent acknowledges that Company will
rely on General Agent to have in place appropriate AML and CIP procedures and controls as
specified above, and to follow such procedures and controls in connection therewith relating to
the sale of Company’s products.

XVIII. Advertising Approval

     A. The Company agrees that it will make available to General Agent for General
Agent’s review and prior approval any advertising or sales promotional material to be sent to
or used by General Agent’s designated producers, employees, representatives, and/or customers
which relates to the sale of the Products, at least thirty (30) days prior to the scheduled
release of such information or material directly to General Agent’s designated producers, employees,
representatives, and/or customers. Such material shall have been reviewed and approved by the
Company’s legal and/or compliance personnel, including a FINRA Registered Principal, as
applicable. Such material will not be released to General Agent’s designated producers,
employees, representatives, and/or customers without General Agent’s approval. The Company
shall maintain product-specific advertising or sales promotional materials on an up-to-date
basis and shall promptly notify General Agent when any previously- approved materials are
withdrawn or are no longer accurate.

     B. General Agent agrees that neither it nor its designated producers or employees
shall use in any way create, print, publish, disseminate, or otherwise make available to its
designated producers, employees or customers any press release, advertising or
sales

20

 

promotional material which refers to the Company (or any affiliate thereof) or Products or contains
any of the Company’s trademarks without the prior consent of the Company. The consideration for and
the giving of such Company approval shall apply to each specific request and shall not be construed
to have applied to any subsequent materials or programs.

     The provision of Products and Sales Material to General Agent, or sales material referring to
the General Agent, shall not provide the receiving party with any license to use any tradenames,
trademarks, service marks or logos or proprietary information of the providing party, except to the
extent explicitly allowed in writing by the providing party necessary to carry out the purposes of
this Agreement.

     C. The Company agrees that neither it nor its agents, or employees shall use in any
way, print, publish, disseminate, or otherwise make available to its agents, employees, or
customers any press release, advertising or sales promotional material which refers to General
Agent or contains any of General Agent’s trademarks without the prior consent of General
Agent.

     D. “Advertising or Sales Promotional Material” for the purpose of this contract shall
include:

	 	(1)	 	printed and published material, audiovisual material,
billboards and similar displays, descriptive literature used in direct mail, newspapers, magazines, radio and television scripts;
	 
	 	(2)	 	descriptive literature and sales aids of all kinds including but not
limited to circulars, leaflets, booklets, marketing guides, seminar material, computer print-outs, depictions, illustrations and form letters;

21

 

	 	(3)	 	material used for the training and education of designated producers which
is designed to be used or is used to induce the public to purchase or retain
Products; and
	 
	 	(4)	 	prepared sales talks, presentations and material for use by
designated producers.

     E. Any sales or promotional materials developed by one party and delivered to the
other will be owned solely by the party that developed the materials.

     F. Any unused materials furnished by one party to the other shall always remain the
property of the party who furnished such materials and shall be accounted for and returned to
the owner on demand.

XIV. Software

     From time to time the Company may develop and make available to General Agent computer
software or related materials (“Software”) in magnetic, written, or other form, to be used in
connection with the sale of the Products. The Company hereby grants General Agent a non-exclusive
royalty-free license to use any such Software. The Company warrants that all such Software is and
shall remain its exclusive property, free from all third party claims. The Company shall indemnify
and defend General Agent from and against any and all losses or claims (including the costs of
reasonable attorneys’ fees, investigation and defense of such claims) relating to General Agent’s
non-exclusive, royalty-fee, license to use such Software. General Agent agrees not to use such
Software for any purpose except for which it was provided and not to copy such Software except as
required to perform its obligations hereunder, nor to

22

 

generate or obtain written copies of Software supplied in magnetic form and to return all such
Software and all copies upon demand or upon written termination of this Agreement.

     The Company represents, warrants, and covenants that (i) all Software shall be free from
significant programming errors and defects; and (ii) all Software (and all updates thereto) shall
be delivered free of any “worm”, “virus”, “lock out”, or “self destruct” devices, as such terms
are understood in the computer industry.

     This Section XIV shall survive termination of this Agreement.

XX. Training

     The Company will, at its own costs, provide the necessary personnel to provide training
sessions to General Agent’s employees and representatives in order to familiarize them with the
Products and to introduce new Products to be marketed hereunder. The Company will provide
additional initial training as mutually agreed to by General Agent and the company at General
Agent’s Jacksonville, Florida location to General Agent’s licensing, commission and marketing
operations. Training sessions shall be conducted thereafter at locations as mutually agreed
between the parties on at least a semi-annual basis, or as otherwise mutually agreed between the
parties.

XXI. Processing Standards

     The Company will implement reportable processing standards with regard to supporting new
business and in-force servicing of General Agent’s business. During and after the term of this
Agreement, the Company shall use its best efforts to meet processing standards as identified in
Appendix C for business sold under this Agreement. During the term of this Agreement, the

23

 

Company shall measure and report to General Agent, as reasonably requested, actual
performance against these standards.

XXII. Amendment; Assignment

     This Agreement may be amended, modified or waived, in whole or in part, only by a writing
signed by the party against whom enforcement thereof is sought. This Agreement may be assigned by
either party only with the prior written consent of the other party. This Agreement shall be
binding on the parties’ respective successors and assigns.

XXIII. Indemnification

     A. The Company shall indemnify and hold General Agent, its officers, employees and agents
harmless against all civil liability, including attorneys’ fees and costs of investigation and
defense incident thereto arising as a result of errors, omissions, negligence, misrepresentation,
fault, wrongful action or breach of any representation or warranty by the Company, its affiliates,
agents (other than General Agent), or any officer, director or employee of the Company or said
affiliates or agents (including) but not limited to (i) providing any unauthorized sales material
or any verbal or written misrepresentations or any unlawful sales practices concerning the products
by company’s employees or company’s agents to General Agent, (ii) failure to provide adequate
disclosure including, but not limited to tax disclosure, concerning the Products or to properly
administer the Products and (iii) failure to comply with any applicable federal law or regulation,
state law or regulation, administrative or exchange rule or regulation, or rule of any applicable
self-regulatory organization) in the performance of obligations hereunder.

24

 

     B. General Agent shall indemnify and hold the Company, its officers and employees
harmless against all civil liability, including attorneys’ fees and costs of investigation and
defense incident thereto arising as a result of errors, omissions, negligence, misrepresentation,
fault or wrongful action of General Agent or its affiliates, or of any officer, director, employee of
General Agent or sales persons associated with General Agent including but not limited to (i)
any unauthorized use of sales materials or any verbal or written misrepresentations or any
unlawful sales practices concerning the Products by General Agent, its agents, employees, or
representatives; (ii) claims for commissions, services fees, development
allowances,reimbursements, or other compensation or remuneration of any type relating to any Broker or
former Broker or relating to any employee General Agent or any of its Broker; (iii) failure to
comply with any applicable federal law or regulation, state law or regulation, administrative
or exchange rule or regulation, or rule of any applicable self-regulatory organization, in the
performance of obligations hereunder.

     C. This Section XXIII shall survive the termination of this Agreement.

XXIV. Arbitration

     A. Any and all disputes arising under this agreement shall be settled by arbitration in New
York City, NY or such other place as may be mutually agreed upon by the parties, under the then
current rules of the American Arbitration Association, and judgment may be entered upon the award
in any court of competent jurisdiction. The arbitration will be determined by one neutral
arbitrator mutually agreed to by each party. If the parties fail to appoint an arbitrator on a
timely basis or are unable to agree on the choice of an arbitrator on a timely basis, any one of
the

25

 

parties may apply to the America Arbitration Association to appoint a neutral arbitrator to sit
and hear the arbitration.

     B. The determination of the arbitrators shall be final and binding on all parties to the
extent that arbitrator(s) do not exceed their statutory authority. The costs of arbitration shall
be equally borne by the Company and General Agent provided, however, that the arbitrators may
assess one party more heavily than the other for these costs upon a finding that the party did not
make a good faith effort to settle the dispute informally when it first arose. Each party hereto
hereby waives the right to a trial by either a jury or a court, including but not limited to a
trial of any issue concerning the validity of this section and the right of appeal from the
arbitrator’s award. Each party waives any claim to recover punitive damages and non-compensator
damages against the others.

XXV. Termination

     A. Termination

     After the initial annual term of this Agreement, it may be terminated at any time, with or
without cause, by either party upon ninety (90) days prior written notice of such termination to
the other party. This Agreement will additionally terminate automatically without notice: (1) if
either party ceases to exist (this shall not apply to General Agent unless all of the separate
corporations referred to collectively as General Agent cease to exist) or either party becomes
bankrupt or insolvent; (2) if this Agreement is assigned by either party without the consent of
the other party, voluntarily or involuntarily; (3) as to any Products, if the Company ceases to
issue such Products pursuant to the terms of this Agreement or if General Agent provides the
Company with written notice that it will no longer market such Products; and (4) in any

26

 

jurisdiction in which either the Company or General Agent no longer has all necessary licenses to
perform its duties under this Agreement. Should either party lose a license to perform its duties
hereunder, said party shall promptly advise the other.

     B. Consequences of Termination

     In the event of termination, compensation on business previously written hereunder, or
business submitted to the Company through General Agent prior to the date of such termination and
then issued, shall be payable as it becomes due in accordance with the terms of this Agreement. No
new applications shall be submitted by General Agent and General Agent shall return or destroy all
property of the Company unless otherwise agreed between the parties. If such property is destroyed,
General Agent shall furnish the Company with written verification. Each party will promptly pay the
other any fees, commissions, or other monies owed hereunder, and all obligations of each party to
the other shall terminate other than as specifically otherwise indicated herein. Outstanding
initial and subsequent compensation shall be paid in the event of termination as indicated below:

          (1) Initial Premiums. All commissions, trails, overrides and allowances for
Products in the process of delivery, or for Products which may be subsequently issued on
applications then pending, shall be payable to General Agent according to the applicable
compensation schedules in effect at the time the properly completed application was submitted.

          (2) Subsequent Payments. All commissions, trails, overrides and allowances
shall be payable to General Agent, unless otherwise prohibited by law, according to the
applicable compensation schedules in effect at the time the contract was issued.

27

 

     In the event of termination, the Company shall continue to provide General Agent with current
customer information regarding continued in-force business pursuant to Section XIII (C).

XXVI. Market Timing

     Market timing is against Broker/Dealer’s policy. The Company and Broker/Dealer mutually agree
to notify the other immediately should it suspect market timing activity in any contracts sold
under this Agreement. The parties acknowledge that each of them may be under a separate duty to
effect compliance with legislation and regulation regarding market timing activities. The parties
shall use their best efforts to conform and coordinate their actions under, and interpretations of,
their respective polices and procedures in the performance of the actions contemplated by this
Agreement so as to ensure both compliance with such legislation and regulation, and avoid conflicts
among themselves. The Company reserves the right to reject any purchase orders submitted by any
parties whom (or whose clients) Company determines to be engaging in market timing activity but
only upon consultation with General Agent.

XXVII. Waiver

     Forbearance, neglect or failure of either party to enforce strict compliance with any or all
provisions of this Agreement shall not waive any such provision or release the other party hereto
in any way. A waiver of a past act or circumstance shall not constitute or be a course of conduct
or waiver of any subsequent action or circumstance.

XXVIII. Complete Agreement

     This Agreement, together with its attachments, contains the entire Agreement between the
parties concerning any transactions entered into on or after the date hereof and replaces and

28

 

supersedes all other Agreements (written and oral) between the parties with regard to the subject
matter. General Agent and Company hereby acknowledge that they have not relied upon any
representations other than the representations expressly by contained within this Agreement.

XXIX. Miscellaneous

     A. This Agreement incorporates by reference all of its attachments and their terms
and conditions. In the event of a conflict between the terms and conditions of this
Agreement and any of its attachments, the terms and conditions of the Agreement shall govern.

     B. In case any provision of this Agreement shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.

     C. This Agreement shall be construed and enforced according to the laws of the State
of New York.

     D. For convenience, this instrument may be executed in one or more counterparts,
each of which shall be deemed in all respects an original.

29

 

     IN WITNESS WHEREOF, the Company and General Agent have caused this instrument to be signed by
their duly authorized officers effective as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	ML Life Insurance Company of New York	 	 	 	Merrill Lynch, Pierce, Fenner & Smith,

Incorporated	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Ronald L. Ziegler
	 	 	 	By:
	 	 /s/ Barry G. Skolnick	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Ronald L. Ziegler
	 	 	 	 	 	Barry G. Skolnick	 	 
	Title:

	 	SVP
	 	 	 	 	 	First Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	December 28, 2007
	 	 	 	Date:
	 	December 28, 2007	 	 

30

 

	 	 	 	 	 	 	 
	Merrill Lynch Life Agency Inc.	 	Merrill Lynch Life Agency Inc.	 	 
	A Montana Corporation	 	An Puerto Rico Corporation	 	 
	13-2910703	 	13-3113174	 	 
	 
	 	 	 	 	 	 
	Merrill Lynch Life Agency Inc.	 	Merrill Lynch Life Agency Inc.	 	 
	A Washington Corporation	 	A Virgin Islands Corporation	 	 
	13-2808480	 	13-3072924	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark T. Buchinsky	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Mark T. Buchinsky	 	 
	 

	 	 	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	December 28, 2007	 	 

31

 

Appendix A —

Available Products & Commission Schedule

(As of 03/03)

Gross compensation paid to Merrill Lynch Life Agency is confidential and must not be disclosed to
wholesalers or Financial Advisors.

B-Share & Bonus (upfront)

	 	 	 	 	 
	Ages	 	Upfront	 	Trails
	0-80
	 	5.25%	 	.45% in CDSC; .50% post CDSC
	81-85
	 	2.75%	 	.45% in CDSC; .50% post CDSC
	86-90
	 	1.75%	 	.45% in CDSC; .50% post CDSC

B-Share & Bonus (level)

	 	 	 	 	 
	Ages	 	Upfront	 	Trails
	0-80
	 	1.20%	 	1.20% yrs 2-3; 1.0% yrs 4+
	81-85
	 	  .75%	 	.75% yrs 2+
	86-90
	 	  .75%	 	.75% yrs 2+

C-Share

	 	 	 	 	 
	Ages	 	Upfront	 	Trails
	0-80
	 	1.20%	 	1.20%
	81-85
	 	  .75%	 	  .75%
	86-90
	 	  .75%	 	  .75%

L-Share

	 	 	 	 	 
	Ages	 	Upfront	 	Trails
	0-80
	 	2.75%	 	1.00%
	81-85
	 	1.60%	 	1.00%
	86-90
	 	  .80%	 	  .80%

	•	 	Chargebacks on surrenders for all Variable Annuities: 100% months 0-6,
50% months 7-12
	 
	•	 	Trails paid monthly within 10 business days after month end.
	 
	•	 	Consistent age breaks as noted above

 

 

Appendix B — Communication and Data Exchange Standards

Company will provide electronic means for data communication with General Agent in a mutually
agreed upon manner and form as set forth herein.

Depository Trust & Clearing Corporation (“DTCC”) Interface

The parties intend that the DTCC Insurance Processing System (IPS) Commissions, Positions and
Financial Activity interfaces will be used to transmit inforce policy/contract values and
commission information to General Agent on a daily basis.

The DTCC IPS and the electronic file formats defined by that system, shall be used by all
companies for the transmission of information to the General Agent on a daily basis. Company shall
also support additional functions, such as daily Licensing and Appointments and Electronic
Applications using the DTCC processing capability. Settlement of cash associated with transactions
processed through the DTCC system will be made using the money settlement services of the DTCC.

Electronic Order Entry for New Annuity Sales

General Agent requires that Company issue all new annuity contracts and accepts subsequent premium
transactions based upon the electronic transmission of an electronic order entry system in
accordance with General Agent specifications. The parties intend that the AnnuityNet system will
be used to transmit new annuity contracts and subsequent premium transactions.

Appointment Processing

General Agent requires that the appointment process between the Jacksonville servicing location
and the Company home office be automated via the DTCC Licensing and Appointment interface prior to
introducing the Company into the General Agent distribution channel.

Daily files need to be sent via the DTCC Licensing and Appointment interface.

Commissions Processing

Daily electronic feed of all commissions payable to General Agent provided via DTCC interface.

In-force Policy/Contract Information/Financial Activity Reporting & Positions

Daily Feed of in-force policy/contract information/positions provided via the DTCC Financial
Activity Reporting (FAR) and Positions interface.

33

 

Scrub Files

General Agent requires Company to receive a monthly electronic feed of ML account numbers and
associated agents for all inforce business provided via a download file. Company will implement a
monthly upload of this data into their systems no less than five business days upon receipt.

E-Mail Connectivity

E-mail connectivity is required between the Company and General Agent through a standard Internet
process. Both parties will provide appropriate e-mail addresses.

Future Enhancements

If Company has a website that is accessible by producers that contains pending and inforce policy
information, Company shall design a separate home page for access by the General Agent and its
designated producers. The technological, security protection and access specifications as well as
the aesthetic considerations of this General Agent home page will be dictated by General Agent.
Company shall employ all appropriate measures to ensure that this separate home page is accessible
only to General Agent and its designated producers as dictated by General Agent and inaccessible
to any unauthorized third party. This General Agent home page will contain links to the following
sections of the Company’s website: General Agent-approved policy forms and marketing materials,
pending case status, inforce policy information, state availability grids/charts, producer
licensing status and underwriting requirements. Access to pending case status and inforce policy
information shall be limited on a producer-level basis, with full access being granted to General
Agent home office staff. Company shall employ all encryption methods required by General Agent in
connection with accessing and transmitting information.

34

 

Appendix C

Customer Service Standards

	 	 	 	 	 	 	 	 	 
	Processing Transaction	 	Description	 	Start Date	 	End Date	 	Processing Standard
	Fund Transfers

	 	The contract owner
requests reallocation of
contract value of
funds within the
variable annuity
	 	The day Company
receives a request
to reallocate funds
within the variable
annuity
	 	The day Company
service
representative
finalizes request
and notifies the
client
	 	Same day of receipt
of request in good
order
	 
	 	 	 	 	 	 	 	 
	Surrenders

	 	The contract owner

terminates the

contract
	 	The day Company
receives a request
to cancel the
contract and begins
to analyze for
client
	 	The day Company
service
representative
mails or wires
funds to client
	 	Same day of receipt
of request in good
order
	 
	 	 	 	 	 	 	 	 
	Annuity Contract Issuance

	 	The contract owner

requests new

contract
	 	The day Company
receives
documentation and
new money in good
order
	 	The day Company
mails issued
contract to the
client
	 	Same day of receipt
of request in good
order
	 
	 	 	 	 	 	 	 	 
	External 1035

	 	The contract owner

requests external

exchange
	 	The day Company
receives an
exchange request
and begins to
analyze for client
	 	The day Company
service
representative
finalizes request
and notifies the
client
	 	5 business days

from receipt or

request in good

order
	 
	 	 	 	 	 	 	 	 
	Beneficiary Changes

	 	The contract owner
requests a change
of beneficiary
	 	The day Company
receives a request
and begins to
analyze for client
	 	The day Company
service
representative
finalizes request
and notifies the
client
	 	4 business days
from receipt of
request in good
order
	 
	 	 	 	 	 	 	 	 
	Owner Name Changes

	 	The contract owner
requests a change
of owner or name
	 	The day Company
receives a request
and begins to
analyze for client
	 	The day Company
service
representative
finalizes request
and notifies the
client
	 	5 business days
from receipt of
request in good
order
	 
	 	 	 	 	 	 	 	 
	Address Changes

	 	The contract owner
reports a change of
mailing address
	 	The day Company

receives a request

by mail or phone
	 	The day Company

service

representative

processes request
	 	3 business days
from receipt of
request in good
order
	 
	 	 	 	 	 	 	 	 
	FA Changes

	 	The contract owner

or ML requests a

change in FA number
	 	The day Company

receives a request

by mail or phone
	 	The day Company

service

representative

processes request
	 	5 business days
from receipt of
request in good
order

35

 

	 	 	 	 	 	 	 	 	 
	Processing Transaction	 	Description	 	Start Date	 	End Date	 	Processing Standard
	ML Account Number 

Changes

	 	The contract owner

or ML requests a

change in ML

account number
	 	The day Company

receives a request

by mail or phone
	 	The day Company

service

representative

processes request
	 	5 business
days from
receipt of request
in good order
	 
	 	 	 	 	 	 	 	 
	Client Service 

Phone Standards

	 	The contract owner

or ML contacts the

Company service

representative by

phone
	 	When call is
received at Company
	 	When call is ended
at Company
	 	98% of call
answered 80%
answered within 30
seconds 80%
point of
call resolution

36

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