Document:

EXHIBIT 8(p)

                   This Reinsurance Agreement ("Agreement")

                                 is made between

                         LONDON LIFE REINSURANCE COMPANY

                                 of Pennsylvania

                  (hereinafter referred to as the "Reinsurer")

                                       and

                        RELIASTAR LIFE INSURANCE COMPANY

                                   of New York

                   (hereinafter referred to as "ReliaStar of NY")

                      The following articles, including the

                              Schedules, will form

                              the entire Agreement

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                                TABLE OF CONTENTS

A.    RECITALS................................................................3
B.    REINSURANCE COVERAGE....................................................3
C.    PAYMENTS BY RELIASTAR OF NY.............................................4
D.    PAYMENTS BY REINSURER...................................................5
E.    TERMS OF REINSURANCE....................................................6
1        Amounts Due to ReliaStar of NY or Reinsurer..........................6
2        Reports and Payment Dates............................................6
3        Offset...............................................................6
4        Liability and Payment................................................7
5        Contested Claims.....................................................7
6        Reinsurance Premium Rates............................................7
F.    UNUSUAL EXPENSES AND ADJUSTMENTS........................................8
G.    RESERVE CREDIT..........................................................8
H.    ERRORS AND OVERSIGHTS...................................................8
I.    AUDIT OF RECORDS AND PROCEDURES.........................................8
J.    ARBITRATION.............................................................8
K.    INSOLVENCY..............................................................9
L.    AGREEMENT...............................................................9
M.    ASSIGNMENT..............................................................10
N.    IMPROPER SOLICITATION OF CONTRACT OWNERS................................10
O.    DAC TAX - SECTION 1.848-2(G)(8) ELECTION................................10
P.    EFFECTIVE DATE..........................................................11
Q.    DURATION OF AGREEMENT...................................................11
R.    REPRESENTATIONS. WARRANTIES AND COVENANTS OF RELIASTAR OF NY............12
S.    REPRESENTATIONS. WARRANTIES AND COVENANTS OF THE REINSURER..............13
T.    MISCELLANEOUS...........................................................13
U.    EXECUTION...............................................................16
SCHEDULE I - PREMIUM RATES....................................................17
SCHEDULE II - THE CONTRACT....................................................18
SCHEDULE III - FUND PROSPECTUS................................................19
SCHEDULE IV - MONTHLY PERIODIC REPORTS........................................20
SCHEDULE V - ARBITRATION SCHEDULE.............................................21
SCHEDULE VI - LIST OF ELIGIBLE FUNDS..........................................23

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                               A. RECITALS
                               ===========

1.   ReliaStar  of NY has issued or will  issue  Group and  Individual  Deferred
     Variable Annuity Contracts (the "Contracts", and each a "Contract"), in the
     forms  attached  as Schedule  II. The  Contracts  provide for a  guaranteed
     minimum death  benefit in  accordance  with and subject to the terms of the
     Contracts  and the Fund  Prospectuses,  which are  attached as Schedule III
     (this benefit is hereafter referred to as the "GMDB").

2.   Capitalized  terms used but not  defined in this  Agreement  shall have the
     meanings as defined in the Contract.

3.   The parties have agreed that  ReliaStar  of NY will,  on and subject to the
     terms and conditions  hereinafter set out, reinsure with the Reinsurer,  on
     an indemnity  coinsurance basis, a Quota Share of the Net Amount at Risk of
     the Contracts.  For purposes of this Agreement,  the Quota Share percentage
     shall be 100%.

                            B. REINSURANCE COVERAGE
                            =======================

1.   The Reinsured  Obligation of any given Contract shall be the Quota Share of
     the Net  Amount at Risk  (NARR) of that  Contract  upon  ReliaStar  of Ny's
     receipt  of due proof of death of the  Contractholder  and shall be zero at
     any other time, except as outlined in part e. below.

     a.  Net Amount at Risk (NARr)
            NARr = Maximum [ 0, Guaranteed Death Benefit - Accumulation Value ]
                                + Termination Charge

     b.  Guaranteed Death Benefit

         The guaranteed  death benefit amount for the total contract  determined
         based  on the  death  benefit  option  as  defined  in  the  applicable
         contracts as outlined in Schedule II.

     c.  Accumulation Value

         The  accumulation  value  is equal to the  accumulation  value  for the
         entire  contract,  including both fixed and variable  separate  account
         funds.  The  accumulation  value for variable  funds is based on market
         value.  The  accumulation  value for the fixed funds is based on market
         value adjusted book value.

     d.  Termination Charge

         The  termination  charge  equals the total of the sum of any  surrender
         charge,  any  charge  for  premium  taxes,  and any  annual  per policy
         administrative charges incurred but not yet deducted, as defined in the
         applicable contracts included in Schedule II, which would be imposed at
         contract termination.

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     e.   Continuation

          1.)  Spousal

               Upon spousal  election of policy  continuation at  contractholder
               death, the contract  continues with the spouse becoming the owner
               and  measuring  life.  The  rates  to be  applied  following  the
               effective  date of  continuation  will be the rates  currently in
               effect for new business.  The Reinsurer will be  responsible  for
               both  the  Reinsured  Obligation,  if any,  upon  First  Golden's
               receipt  of due proof of death of the  contractholder  as well as
               the  Reinsured  Obligation,  if any,  due upon  ReliaStar of NY's
               receipt of due proof of death of the surviving spouse.

          2.)  Non-Spousal

               Upon  non-spousal   continuation  at  contractholder  death,  the
               Reinsurer will be responsible  for the Reinsured  Obligation,  if
               any,  upon  First  Golden's  receipt of due proof of death of the
               contractholder. The Reinsurer's liability will cease upon payment
               of this Reinsured Obligation.

2.   The   Reinsured   Obligations   will  be  reinsured   with  the   Reinsurer
     automatically.  ReliaStar  of NY  hereby  cedes  to the  Reinsurer  and the
     Reinsurer hereby accepts all Reinsured Obligations.

3.   Reinsurance  shall  not be in force and  binding  respecting  any  Contract
     unless the issuance and delivery of such Contract  constituted the doing of
     business lawfully  permitted in the state of New York in which ReliaStar of
     NY was properly  licensed  and the Contract was issued on or after  January
     1st , 2000.

4.   The liability of the Reinsurer with respect to the Reinsured Obligations of
     each  Contract  shall  begin  simultaneously  with the  liability  of First
     Golden, but in no event prior to the effective date of this Agreement.  The
     Reinsurer's liability for reinsurance will terminate when ReliaStar of NY's
     liability  terminates  with the exception of non-spousal  continuation,  as
     outlined in B.1.e above.

5.   Annually,  within 30 days  following  the end of any calendar  year period,
     First  Golden  will  provide,  in  writing,  information  to the  Reinsurer
     regarding   changes  made  to  the  terms  of  the  Contract  Forms  and/or
     Prospectuses  covered  under  this  Agreement  including  any fund  related
     changes,  occurring  over the prior year.  At such time,  the Reinsurer may
     elect to change premium rates as outlined in Section E.6.

6.   This  Agreement  reinsures  First  Golden  only for  Reinsured  Obligations
     payable under the  Contracts  and in no event shall the Reinsurer  have any
     liability or make any payment hereunder on account of other amounts awarded
     to  Contractholders,  including  but not  limited to  punitive,  exemplary,
     aggravated, consequential and/or exemplary damages.

                          C. PAYMENTS BY RELIASTAR OF NY
                          ==============================

Upon the  execution of this  Agreement,  ReliaStar of NY shall pay the Reinsurer
fifty percent (50%) of the reinsurance premium due on reinsured business written
from

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January 1st, 2000 to the effective  date of the  Agreement,  accumulated at 6.5%
per annum, payable fifteen (15) days after this Agreement has been duly executed
by both  parties.  The payment  will be  calculated  for each month prior to the
effective date of this Agreement per the calculation  specified  below.  Each so
calculated  prior monthly  premium  payment will be accumulated to the effective
date of this Agreement at the stated rate of interest.

Subject  to the  terms  of this  Agreement,  ReliaStar  of NY  shall  pay to the
Reinsurer the monthly reinsurance premiums for the Reinsured Contracts,  payable
fifteen  (15) days after the end of each month (i.e.  payable in  arrears).  The
monthly reinsurance premium for a Reinsured Contract shall be the Quota Share of
the sum of (i) the fixed  portion of the  monthly  reinsurance  premium  ("Fixed
Portion")  plus (ii) the  variable  portion of the monthly  reinsurance  premium
("Variable  Portion").  The Fixed Portion shall be the Fixed Reinsurance Premium
Rate in effect for that Contract in accordance  with Schedule I, or variation(s)
thereof, at the end of that month times one half of the sum of (iii) the portion
of the Account Value in the fixed  subaccounts of such Contract on the first day
of the month and (iv) the portion of the Account Value in the fixed  subaccounts
of such Contract on the last day of the month. The Variable Portion shall be the
Variable Reinsurance Premium Rate in effect for that Contract in accordance with
Schedule I, or variation(s)  thereof, at the end of that month times one half of
the sum of (v) the portion of the Account Value in the variable  subaccounts  of
such  Contract on the first day of the month and (vi) the portion of the Account
Value in the variable subaccounts of such Contract on the last day of the month.

"Month" as used in this paragraph shall mean calendar month.

                            D. PAYMENTS BY REINSURER
                            ========================

1.   Subject to the terms of this  Agreement,  the Reinsurer  shall pay to First
     Golden, payable fifteen (15) days after the end of each calendar month, the
     claim amount equaling the Reinsured  Obligations  paid during that calendar
     month on the Reinsured Contracts, if any.

2.   The Reinsurer  shall not be responsible for claims incurred by ReliaStar of
     NY prior to the effective date of this  Agreement.  For purposes of Section
     D.2, incurred shall mean the date of ReliaStar of NY's receipt of due proof
     of  death  of  the   contractholder   and  not  the  actual   date  of  the
     contractholder's death.

3.   ReliaStar of NY will calculate and report the claim amount to the Reinsurer
     along with the monthly reports.  Upon the Reinsurer's  request, the Company
     shall provide to the Reinsurer any  information  for calculating the claims
     or any portion  thereof as the Reinsurer may  reasonably  require to assess
     and  satisfy  itself as to the  validity of such  claims.  In the event the
     Reinsurer  requests  such  information,   then  notwithstanding  any  other
     provision of this Agreement, the Reinsurer shall be entitled within 15 days
     from  the  date  of  the  provision  by  First  Golden  of  such  requested
     information to contest any such claim or portion thereof that the Reinsurer
     considers to be invalid or excessive.

4.   The amount  payable by the Reinsurer in the event of a reduced  settlement,
     if  the  Reinsurer  agrees  to  take  part  in  the  settlement,  shall  be
     proportional to the reinsured portion of the claim.

5.   Expenses  incurred  by the  full-time  employees  of First  Golden  and any
     routine investigation costs are borne entirely by ReliaStar of NY. Expenses
     incurred by the full-time employees of the Reinsurer are borne entirely by

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     the Reinsurer.  Extraordinary  costs incurred by ReliaStar of NY in respect
     of any claim  shall be charged  to the  Reinsurer  and First  Golden in the
     respective  proportions  that the  portion  of the claim  payable  by First
     Golden is of the total of such  portion plus the  Obligation  in respect of
     the claim that is reinsured hereunder, provided, in the case of a contested
     claim,  that the Reinsurer  has agreed  previously  to  participate  in the
     settlement  of the claim in  accordance  with the  procedure  described  in
     Paragraph E.5.

6.   Subject to the receipt by the Reinsurer of reasonable advance (fifteen (15)
     days)  written  notice  from First  Golden of  estimated  claims  under the
     Contract,  the Reinsurer will take such steps as are reasonably required to
     fund the immediate payment of such claims.

                            E. TERMS OF REINSURANCE
                            =======================

1 AMOUNTS DUE TO RELIASTAR OF NY OR REINSURER
------------------------------------------

          Except as otherwise  specifically  provided herein, all payments to/or
          by the Reinsurer or ReliaStar of NY shall be determined on a net basis
          as of the last day of the  calendar  month to  which  such  amount  is
          attributable.  All  amounts  shall be due and accrued as of such date.
          The payment of such amounts shall be submitted in accordance  with the
          provisions of Paragraph E.2. All  settlements  of account  between the
          Reinsurer and ReliaStar of NY shall be made in cash or its equivalent.

2 REPORTS AND PAYMENT DATES
---------------------------

     a)   Not later than fifteen (15) days after the end of each calendar month,
          ReliaStar of NY  shall  submit Monthly Reports by electronic or other
          suitable means in accord with Schedule IV to the Reinsurer.

     b)   Not  later  than  fifteen  (15) days  after  the end of each  calendar
          quarter,  ReliaStar of NY shall submit Quarterly Reports by electronic
          or other suitable means in accord with Schedule IV to the Reinsurer.

     c)   Not later  than  fifteen  (15) days after the  receipt of any  Monthly
          Report,  any net amounts indicated in such Monthly Report as being due
          to ReliaStar of NY shall be paid by the  Reinsurer and any net amounts
          indicated as being due to the Reinsurer  shall be paid by ReliaStar of
          NY.

     d)   Not later than thirty (30) days after the end of each  calendar  year,
          ReliaStar  of NY shall  provide to the  Reinsurer a listing of changes
          made  to  the  contract  forms  and/or  funds  (including   additions,
          deletions, revisions, and manager changes) over the past year.

          In the  event  that  actual  numbers  are  not  available,  reasonable
          estimates will be used and appropriate adjustments will be made within
          30 days or on the  next  report  and  payment  date set  forth  above,
          whichever is sooner.

3 OFFSET
--------

          Any  debts  or   credits,   matured  or   unmatured,   liquidated   or
          unliquidated, regardless of when they arose or were incurred, in favor
          of or against either  ReliaStar of NY or the Reinsurer with respect to
          this Agreement are

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         deemed  mutual  debts or credits,  as the case may be, and shall be set
         off,  and only  the  balance  shall be  allowed  or paid.  This  offset
         provision,  to the extent  permitted  by law,  shall not be modified or
         reconstrued  due  to  the  insolvency,   liquidation,   rehabilitation,
         conservatorship, or receivership of either party.

4 LIABILITY AND PAYMENT
-----------------------

          Unless the Reinsurer  has made the election  provided in Paragraph E.5
          to  participate  in the contest,  compromise or litigation of a claim,
          and subject to Paragraph  D.2, the Reinsurer  will accept the decision
          of ReliaStar  of NY on payment of any claim.  The  Reinsurer  will pay
          Reinsured Obligations attributable to the Contract.

5 CONTESTED CLAIMS
------------------

          ReliaStar of NY will provide  notice to the Reinsurer of its intention
          to contest,  compromise,  or litigate a claim (including  interpleader
          actions) under the Contract. Within fifteen (15) days after receipt of
          such notice,  the Reinsurer may elect to participate in contesting the
          claim by  submitting a notice of such  election to First  Golden.  The
          Reinsurer  shall be deemed to have elected to not  participate in such
          contest if it fails to make such election within fifteen (15) business
          days after  delivery by  ReliaStar of NY of notice.  If the  Reinsurer
          elects  not to  participate  in such  contest,  it may  discharge  its
          liability by payment to ReliaStar  of NY of the  Reinsured  Obligation
          relating  to such  claim.  First  Golden  and the  Reinsurer  agree to
          cooperate  in the  prosecution  of any  claim  contest  in  which  the
          Reinsurer  elects to participate.  If the Reinsurer  agrees with First
          Golden to dispute or  compromise  a claim,  ReliaStar  of NY agrees to
          give copies to the Reinsurer of all other pertinent documents received
          later so that the Reinsurer may follow up on the contestation.

6 REINSURANCE PREMIUM RATES
---------------------------

          The  reinsurance  premium rates  applicable to any Contract or deposit
          shall  remain in force from the date such  Contract  is issued or such
          deposit is made until Contract termination by maturity,  death (except
          in the case of spousal  continuation),  surrender,  annuitization,  or
          termination  of  reinsurance  coverage  in  the  case  of  non-spousal
          continuation.  In the event  that  First  Golden  makes  changes  that
          materially affect the risks underlying the Contracts,  ReliaStar of NY
          shall notify the Reinsurer in writing within 30 days of the end of the
          calendar year in which the change  occurred.  The Reinsurer then shall
          notify  ReliaStar of NY of any change in  reinsurance  premium rate no
          later than 30 days after receipt of such notice.  The new  reinsurance
          premium rates,  effective on the date of the premium rate change,  may
          be applied to  subsequent  new  issues  and to any  inforce  contracts
          effected  by the  material  change.  The revised  premium  rates shall
          reasonably  reflect the increase or decrease in risk  attributable  to
          the material changes.

         For new business,  the Reinsurer  reserves the right to change  premium
         rates upon one hundred eighty (180) days notice to ReliaStar  of NY.

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                      F. UNUSUAL EXPENSES AND ADJUSTMENTS
                      ===================================

The  Reinsurer  shall  not  participate  in any  expenses,  usual or  otherwise,
incurred by ReliaStar of NY in administering, defending or investigating a claim
except as otherwise specifically provided by this Agreement.

                               G. RESERVE CREDIT
                               =================

The Reinsurer shall establish adequate net reinsurance  reserves pursuant to the
requirements of any regulatory  authority having  jurisdiction over ReliaStar of
NY and comply with any other statutory  requirements  necessary for ReliaStar of
NY to take full  statutory  credit for  reinsurance  ceded up to the full amount
that ReliaStar of NY would have  established  for the risks reinsured under this
Agreement.

                            H. ERRORS AND OVERSIGHTS
                            ========================

If either  ReliaStar of NY or the Reinsurer  shall fail to perform an obligation
under  this  Agreement  and  such  failure  shall  be the  result  of an  error,
oversight, delay, omission or misunderstanding (collectively, an "error") on the
part of  First  Golden  or the  Reinsurer,  such  error  shall be  corrected  by
restoring  both  ReliaStar of NY and the Reinsurer to the  positions  they would
have occupied had no such error occurred and the reinsurance  provided hereunder
shall  not be  invalidated.  The  party  first  discovering  such  error  or act
resulting  from the error will notify the other party in writing  promptly  upon
discovery thereof, and the parties shall act to correct such error within thirty
(30)  days of  receipt  of such  notice.  This  Section,  however,  shall not be
construed  as a waiver by either party of its right to enforce the terms of this
Agreement in the event the failure to perform an  obligation is determined to be
the result of something other than an "error".

                       I. AUDIT OF RECORDS AND PROCEDURES
                       ==================================

Upon 7 days written  notice,  the  Reinsurer and ReliaStar of NY each shall have
the right to  examine,  at the office of the other,  during the normal  business
hours of the party  being  audited,  all  records  and  procedures  relating  to
reinsurance  under this Agreement.  The expenses of any such audit shall be born
by the party  initiating  the audit.  The  information  obtained by the auditing
party shall be treated as  confidential  material and  proprietary  to the other
party and shall be used only for purposes relating to the reinsurance under this
Agreement.  The  terms  of  this  Section  shall  survive  termination  of  this
Agreement.

                                 J. ARBITRATION
                                 ==============

If  ReliaStar of NY and the  Reinsurer  cannot  mutually  resolve a dispute that
arises out of or relates to this Agreement, the dispute shall be decided through
arbitration as set forth in Schedule V. The  arbitrators  shall be impartial and
shall base their decision on the terms and conditions of this Agreement.  In the
event that an  interpretation of the terms and conditions of this Agreement does
not  explicitly  or by  reasonable  implication  dispose  of an issue in dispute
between the parties, then the arbitrators may base their decision on the customs
and practices of the insurance and reinsurance  industry rather than solely on a
strict interpretation of applicable law. There shall be no appeal from the

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arbitrators' decision. Any court having jurisdiction over the subject matter and
the parties may reduce the arbitrators' decision to judgment.

The obligations of the parties to arbitrate  disputes hereunder pursuant to this
Section shall survive the termination of this Agreement.

                                 K. INSOLVENCY
                                 =============

1.   The portion of any risk or  obligation  assumed by the  Reinsurer  shall be
     payable by the  Reinsurer on the basis of the  liability of ReliaStar of NY
     without  diminution  because of the  insolvency  of ReliaStar of NY. In the
     event of insolvency and the  appointment of a conservator,  liquidator,  or
     statutory  successor of  ReliaStar of NY, such portion  shall be payable to
     such  conservator,  liquidator,  or statutory  successor  immediately  upon
     demand, with reasonable provision for verification,  on the basis of claims
     allowed against  ReliaStar of NY by any court of competent  jurisdiction or
     by any conservator,  liquidator,  or statutory successor of ReliaStar of NY
     having authority to allow such claims,  without  diminution because of such
     insolvency or because such conservator,  liquidator, or statutory successor
     has failed to pay all or a portion of any claims.

2.   ReliaStar of NY's  conservator,  liquidator,  or statutory  successor shall
     give the  Reinsurer  written  notice  of the  pendency  of a claim  against
     ReliaStar of NY,  within a reasonable  time after such claim is filed.  The
     Reinsurer may interpose,  at its own expense,  in the proceeding where such
     claim is to be adjudicated, any defense or defenses that Reinsurer may deem
     available to ReliaStar of NY, or its conservator,  liquidator, or statutory
     successor.

3.   Any expense  incurred by the Reinsurer  pursuant to paragraph  K.2,  above,
     shall be payable  subject to court  approval out of the estate of ReliaStar
     of NY as part of the expense of  conservation  or liquidation to the extent
     of the Reinsurer's  quota share of the benefit that may accrue to ReliaStar
     of NY in  conservation  or  liquidation,  solely as a result of the defense
     undertaken by the Reinsurer. Where two or more Reinsurers are participating
     in the same claim and a majority  interest  elects to interpose  defense to
     such claim,  the expense shall be apportioned in accordance  with the terms
     of this  Agreement as though such expense had been incurred by ReliaStar of
     NY.

4.   This reinsurance shall be payable directly by the Reinsurer to ReliaStar of
     NY or ReliaStar of NY's conservator,  liquidator,  or statutory  successor,
     except as expressly required otherwise by applicable insurance law.

                                  L. AGREEMENT
                                  ============

1.   This Agreement constitutes the entire agreement between ReliaStar of NY and
     the Reinsurer with respect to the business being  reinsured  hereunder;  it
     supersedes  any  prior  oral or  written  agreements  with  respect  to the
     business  being  reinsured  hereunder  other  than  as  expressed  in  this
     Agreement.  Any change or  modification to this Agreement shall be null and
     void unless made by amendment to the Agreement  signed by both ReliaStar of
     NY and the Reinsurer.

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2.   This is an agreement for indemnity  reinsurance solely between ReliaStar of
     NY and the Reinsurer. No third party may benefit from any right of any kind
     in respect of this agreement. The acceptance of reinsurance hereunder shall
     not create any right or legal  relationship  whatever between the Reinsurer
     and the  Contractholder  or any  beneficiary  under any Contract  reinsured
     hereunder,  and First  Golden  shall be and  remain  solely  liable to such
     Contractholder or beneficiary under any such Contract.

                                 M. ASSIGNMENT
                                 =============

Rights or obligations arising under this Agreement may not be assigned by either
ReliaStar of NY or the Reinsurer, without the prior written consent of the other
party. Such consent will not be withheld unreasonably.

                  N. IMPROPER SOLICITATION OF CONTRACT OWNERS
                  ===========================================

The parties  agree not to contact the owners of the Contracts for the purpose of
soliciting  surrender  of the  Contracts.  However,  First  Golden  specifically
reserves the right to allow  conversion  of the Contracts  reinsured  under this
Agreement  to  other  programs  to  meet  the  changing  business  needs  in the
marketplace of ReliaStar  of NY. To the extent ReliaStar  of NY offers such a
conversion program, ReliaStar of NY will offer to the Reinsurer the opportunity
to reinsure the death benefits of the new program.

                   O. DAC TAX - SECTION 1.848-2(G)(8) ELECTION
                   ===========================================

ReliaStar  of NY and the  Reinsurer  hereby agree to the  following  pursuant to
Section  1.848-2(g)(8) of the Income Tax Regulations issued December 1992, under
Section 848 of the Internal  Revenue  Code of 1986,  as amended.  This  election
shall be effective for all  subsequent  taxable  years for which this  Agreement
remains in effect.

1.   The term  "party"  will refer to either  First  Golden or the  Reinsurer as
     appropriate.

2.   The terms used in this  Article  are  defined by  reference  to  Regulation
     Section 1.848-2(g)(8) in effect December 1992.

3.   The party with the net positive  consideration  for this Agreement for each
     taxable year will capitalize  specified Contract  acquisition expenses with
     respect  to  this  Agreement  without  regard  to  the  general  deductions
     limitation of Section 848(c)(1).

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

5.   The  Reinsurer  will submit a schedule to  ReliaStar of NY by May 1 of each
     year of its calculation of the net consideration for the preceding calendar
     year.  This schedule of  calculations  will be  accompanied  by a statement
     signed by an officer of the Reinsurer  stating that  Reinsurer  will report
     such net consideration in its tax return for the preceding calendar year.

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6.   ReliaStar of NY may contest such  calculation  by providing an  alternative
     calculation  to the  Reinsurer in writing  within thirty (30) days of First
     Golden's  receipt of the Reinsurer's  calculation.  If ReliaStar of NY does
     not  so  notify  the  Reinsurer,  ReliaStar  of  NY  will  report  the  net
     consideration  as  determined  by the  Reinsurer  in  ReliaStar of NY's tax
     return of the previous calendar year.

7.   If  ReliaStar  of NY  contests  the  Reinsurer's  calculation  of  the  net
     consideration,  the parties will act in good faith to reach an agreement as
     to the correct  amount  within  thirty  (30) days of the date First  Golden
     submits its alternative  calculation.  If ReliaStar of NY and the Reinsurer
     reach agreement on an amount of net consideration,  each party shall report
     such amount in their respective tax returns for the previous calendar year.

                               P. EFFECTIVE DATE
                               =================

The effective date of this Agreement is November 1, 2000.

                            Q. DURATION OF AGREEMENT
                            ========================

1.   Except as otherwise  provided herein,  this Agreement shall be unlimited in
     duration.

2.   This Agreement may be terminated  with respect to new Contracts at any time
     by either  company by giving one hundred  eighty (180) days' written notice
     of termination to the other company. The day the notice is deemed given per
     Section  T.2 will be the  first  day of the one  hundred  eighty  (180) day
     period.

3.   ReliaStar  of NY shall  have the  right to  terminate  this  Agreement  and
     recapture all  reinsurance  hereunder if the  Reinsurer  fails to pay, when
     due, any amounts due under this  Agreement,  provided that  ReliaStar of NY
     has given at least  sixty (60) days prior  written  notice of its intent to
     terminate for that reason. The Reinsurer may avoid termination  pursuant to
     this  Paragraph Q.3 by paying all amounts that are delinquent and then due,
     including  any interest  owing  thereon on or before the  termination  date
     specified in the written  notice.  In the event  ReliaStar of NY terminates
     and  recaptures  reinsurance  pursuant to this Paragraph Q.3, the Reinsurer
     shall pay  ReliaStar of NY cash or cash  equivalent  equaling the statutory
     liability of the business reinsured hereunder at the time of recapture.

4.   ReliaStar  of NY shall  have the  right to  terminate  this  Agreement  and
     recapture  existing  inforce  business  after  fifteen  (15) years from the
     effective  date  of this  Agreement.  If  ReliaStar  of NY  terminates  and
     recaptures  reinsurance  pursuant to this  Paragraph Q.4, the Reinsurer and
     ReliaStar of NY agree to negotiate  the terms of the  recapture of eligible
     reinsured  Contracts  in good  faith  recognizing  both  parties'  business
     interests.  Under no  circumstance,  under  this  paragraph  Q.4,  will the
     Reinsurer pay an amount to ReliaStar of NY.

5.   The Reinsurer shall have the right to terminate this Agreement if ReliaStar
     of NY  fails  to  pay,  when  due,  reinsurance  premiums  due  under  this
     Agreement,  provided  that the Reinsurer has given at least sixty (60) days
     prior written notice of its intent to terminate for that reason.  ReliaStar
     of NY may avoid termination pursuant to this Paragraph Q.5 by paying all

                                                                        11 of 23

<PAGE>

     reinsurance  premiums  that are  delinquent  and then  due,  including  any
     interest owing thereon on or before the  termination  date specified in the
     written notice. In the event Reinsurer  terminates this Agreement  pursuant
     to this Paragraphs  Q.5, the Reinsurer shall  thereafter be relieved of all
     liability  under this  Agreement,  including  any and all liability for any
     Reinsured  Obligation that as of such  termination date was not yet due and
     payable under the terms of this Agreement.

6.   Except  as  specifically  provided  otherwise,   the  termination  of  this
     Agreement or of the  reinsurance in effect under this  Agreement  shall not
     extend to or affect any of the rights or  obligations  of First  Golden and
     the Reinsurer  applicable to any period prior to the effective date of such
     termination.  In the event  that,  subsequent  to the  termination  of this
     Agreement,  an  adjustment  is made that is  necessary  with respect to any
     accounting  hereunder,  a supplementary  accounting  shall take place.  Any
     amount  owed to either  party by reason  of such  supplementary  accounting
     shall be paid promptly upon the completion thereof.

7.   This  Agreement  shall  automatically  terminate  if,  at  the  end  of any
     accounting period contemplated under this Agreement, all coverage under the
     Contracts has terminated.

          R. REPRESENTATIONS. WARRANTIES AND COVENANTS OF RELIASTAR  OF NY
          ================================================================

1.   ReliaStar  of  NY is a  life  insurance  company  duly  organized,  validly
     existing and in good standing under the laws of the state of New York.

2.   ReliaStar of NY has all  requisite  corporate  power and authority to enter
     into this Agreement and to perform its obligations hereunder. The execution
     and delivery by ReliaStar of NY of this  Agreement,  and the performance by
     ReliaStar of NY of its  obligations  under this  Agreement,  have been duly
     authorized by all necessary  corporate  action.  This Agreement,  when duly
     executed and delivered by ReliaStar of NY, subject to the due execution and
     delivery  by the  Reinsurer,  will be a valid  and  binding  obligation  of
     ReliaStar of NY, enforceable against ReliaStar of NY in accordance with its
     terms.

3.   The  execution,   delivery  and  performance  of  this  Agreement  and  the
     consummation of the transactions contemplated hereby in accordance with the
     respective  terms and conditions  hereof will not (a) violate any provision
     of the  Articles  of  Incorporation  or Bylaws of  ReliaStar  of NY, or (b)
     violate  any  order,  judgment,  injunction,  award or decree of any court,
     arbitrator or governmental or regulatory body against,  or binding upon, or
     any agreement with, or condition imposed by, any governmental or regulatory
     body, foreign or domestic, binding upon ReliaStar  of NY.

4.   No  consent,  waiver,  license,  approval,  order or  authorization  of, or
     registration, filing or declaration with, or notices to, any person, entity
     or governmental  authority is required to be obtained,  made or given by or
     with respect to ReliaStar of NY in  connection  with (i) the  execution and
     delivery of this Agreement by ReliaStar of NY, or (ii) the  consummation by
     ReliaStar of NY of the transactions contemplated hereby.

5.   To the best of ReliaStar of NY's  knowledge,  the  Contracts  comply in all
     material  respects with all laws and regulations that are applicable in the
     relevant jurisdictions governing the Contracts, and benefits thereunder are
     payable in accordance with the terms of such Contracts.

                                                                        12 of 23

<PAGE>

         S. REPRESENTATIONS. WARRANTIES AND COVENANTS OF THE REINSURER
         =============================================================

1.   The Reinsurer is a life insurance company duly organized,  validly existing
     and in good standing under the laws of the Commonwealth of Pennsylvania.

2.   The Reinsurer has all requisite corporate power and authority to enter into
     this Agreement and to perform its obligations hereunder.  The execution and
     delivery by the Reinsurer of this  Agreement,  and the  performance  by the
     Reinsurer  of  its  obligations  under  this  Agreement,   have  been  duly
     authorized by all necessary  corporate  action.  This Agreement,  when duly
     executed and delivered by the  Reinsurer,  subject to the due execution and
     delivery by First  Golden,  will be a valid and binding  obligation  of the
     Reinsurer, enforceable against the Reinsurer in accordance with its terms.

3.   The  execution,   delivery  and  performance  of  this  Agreement  and  the
     consummation of the transactions  contemplated  hereby will not (a) violate
     any provision of the Articles of Incorporation,  Bylaws or other charter or
     organizational  document  of the  Reinsurer,  or  (b)  violate  any  order,
     judgment,   injunction,  award  or  decree  of  any  court,  arbitrator  or
     governmental or regulatory body against,  or binding upon, or any agreement
     with, or condition imposed by, any governmental or regulatory body, foreign
     or domestic, binding upon the Reinsurer.

4.   No  consent,  waiver,  license,  approval,  order or  authorization  of, or
     registration, filing or declaration with, or notices to, any person, entity
     or governmental  authority is required to be obtained,  made or given by or
     with respect to the  Reinsurer in  connection  with (i) the  execution  and
     delivery of this Agreement by the Reinsurer,  or (ii) the  consummation  by
     the Reinsurer of the transactions contemplated hereby.

                                T. MISCELLANEOUS
                                ================

1.   HEADINGS  AND  SCHEDULES.  Headings  used  herein  are  not a part  of this
     Agreement and shall not affect the terms. The attached Schedules are a part
     of this Agreement.

2.   NOTICES.  All notices and communications  hereunder shall be in writing and
     shall be delivered by either certified or registered  mail,  return receipt
     requested,  or overnight  delivery service (providing for delivery receipt)
     or delivered by hand (or by email in the case of the monthly and  quarterly
     reports).  Such notices and communications  shall be deemed given three (3)
     days after mailing, or if sent by telefax or delivered by hand (or by email
     in the case of the monthly and quarterly reports), when received, and if by
     overnight mail, on the next day.

     All notices or communications with the Reinsurer under this Agreement shall
     be addressed as follows:

                                                                        13 of 23

<PAGE>

     London Life Reinsurance Company
     1787 Sentry Parkway West, Suite 420
     Blue Bell, PA 19422
     Attention:   Senior Vice President, Life & Annuity

     Fax:         (215)-542-1295
     Email:       jeff.poulin@lrgus.com

     All notices and  communications  with  ReliaStar of NY under this Agreement
     shall be addressed as follows:

     ReliaStar Life Insurance Company of New York
     1475 Dunwoody Drive
     West Chester, PA 19380
     Attention:   Dave Jacobson, Senior Vice President

     Fax:         (610) 425-3404
     Email:       djacobson@ingva.com

     Changes in notice  addresses or recipients  may be made by the Reinsurer or
     ReliaStar  of NY, by following the procedure specified in this section.

3.   SEVERABILITY;  GOVERNING  LAW. If any term or provision  of this  Agreement
     shall  be  held  void,  illegal,  or  unenforceable,  the  validity  of the
     remaining  portions  or  provisions  shall not be  affected  thereby.  This
     Agreement  shall  be  governed  by the laws of the the  State of New  York,
     without giving effect to principles of conflicts of law thereof.

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

5.   CURRENCY  AND  INTEREST.  All  payments  and  accounts  shall be made in US
     Dollars,  and all fractional  amounts shall be rounded to the nearest whole
     dollar. Any payment not made when due and payable hereunder, shall from the
     date such  payment was due bear  interest at a rate equal to the 3 month US
     Treasury rate in effect on such date plus 100 bps. In the event any payment
     due  hereunder  is not made within  three  months of the date it is due and
     payable,  the rate will be reset every 3 months to the US Treasury  rate in
     effect on each 3 month  anniversary of the date such payment was due, until
     such payment is made.

6.   INTERPRETATION.  For  purposes  of  this  Agreement,  the  words  "hereof",
     "herein",  "hereby",  and  other  words  of  similar  import  refer to this
     Agreement  as a  whole  unless  otherwise  indicated.  Whenever  the  words
     "include",  "includes",  or "including"  are used in this  Agreement,  they
     shall be deemed to be followed by the words "without limitation".  Whenever
     the  singular  is used  herein,  the same shall  include  the  plural,  and
     whenever the plural is used herein,  the same shall  include the  singular,
     where appropriate.

7.   SURVIVAL OF  REPRESENTATIONS.  WARRANTIES AND AGREEMENTS.  The Reinsurer or
     First  Golden,  as the case may be,  has the right to rely  fully  upon the
     representations, warranties, covenants and agreements of ReliaStar of NY or

                                                                        14 of 23

<PAGE>

     the  Reinsurer,  as the  case  may be,  contained  in this  Agreement.  All
     representations  and warranties made by ReliaStar of NY or the Reinsurer in
     this Agreement shall survive the execution and delivery hereof.

                                                                        15 of 23

<PAGE>

                                  U. EXECUTION
                                  ============

                           IN WITNESS WHEREOF THE SAID
                           ===========================

            RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
            ========================================================

                                       and

                LONDON LIFE REINSURANCE COMPANY OF PENNSYLVANIA,
                ================================================

have by their  respective  officers  executed this Agreement in duplicate on the
dates shown below.

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK

By:    Frank Scott Rocco                   By:      David L. Jacobson
       ----------------------------                 --------------------------

Title: Assistant Vice President            Title:   Senior Vice President
       ----------------------------                 --------------------------

Date:  December 21, 2000                   Date:    December 21, 2000
       ----------------------------                 --------------------------

LONDON LIFE REINSURANCE COMPANY

By:    Jean-Francois Poulin                 Witness: Duc Xuan Ho
       ----------------------------                  -------------------------

Title: Senior Vice President                Title:   Director ALM
       ----------------------------                  -------------------------

Date:  December 29, 2000                    Date:    December 29, 2000
       ----------------------------                  -------------------------

                                                                        16 of 23

<PAGE>

                           SCHEDULE I - PREMIUM RATES
                           ==========================

The Reinsurance Premium Rate, expressed in basis points per annum and applied at
a rate of 1/12th per month to the Quota Share of the Accumulation  Value,  shall
vary  depending on the  investment  type  (variable or fixed) and death  benefit
option as follows:

-------------------------------------------------------
|                                | Variable | Fixed   |
|--------------------------------|----------|---------|
| Annual Ratchet Enhanced Death  |  29 bps  | 11 bps  |
| Benefit Option                 |          |         |
|--------------------------------|----------|---------|
| Standard Death Benefit Option  |  19 bps  | 7 bps    |
-------------------------------------------------------

                                                                        17 of 23

<PAGE>

                           SCHEDULE II - THE CONTRACT
                           ==========================

FORM NAME AND TYPE                                              FORM NUMBER
------------------                                              -----------
Deferred Combination Variable and Fixed Annuity Contract        FG-IA-1000-12/95
Deferred Combination Variable and Fixed Annuity Certificate     FG-CA-1000-08/97

NOTE:
     The attached forms are the most recent specimen forms available.  The forms
     do not reflect the  addition of several new funds added with the October 2,
     2000  Prospectus  (Schedule  III - DVA Plus).  The funds are  reflected  in
     Schedule VI.

                                                                        18 of 23

<PAGE>

                         SCHEDULE III - FUND PROSPECTUS
                         ===============================

Incorporated  by reference to the  prospectus  for The GCG Trust last updated on
Form N-1 and filed with the Securitites  and Exchange  Commission on December 1,
2000 (File Numbers: 33-23512, 811-5629) .

                                                                        19 of 23

<PAGE>

                     SCHEDULE IV - MONTHLY PERIODIC REPORTS
                     ======================================

                            MONTHLY PERIODIC REPORTS

Monthly reports to be sent  electronically  or by other suitable means within 15
days following each month end:

(a)  Inventory and Transaction  Report in an electronic format to be provided on
     a seriatim basis for each contract:

     1.  Contract Number
     2.  Issue Date
     3.  Sex
     4.  Date of Birth
     5.  Beginning Account Value
     6.  Beginning Death Benefit
     7.  Premium Production
     8.  Amount purchased for each Contract
     9.  Terminations for each Contract - Death and Total Withdrawals
     10. Ending Account Value
     11. Ending Death Benefit
     12. Reinsurance Premium Rate
     13. Reinsurance Premium Amount
     14. Net Asset Value of each fund (Beginning and End of Month)

(b)  Claim Report which includes information for each death:

     1.  Contract Number
     2.  Contract Issue Date
     3.  Date of Birth
     4.  Death Benefit
     5.  Account Value
     6.  Claim Amount
     7.  Copy of the death certificate

(c) Reinsurance premium report showing, for each reinsurance premium rate group,
(i) total beginning  reinsured account value (ii) ending reinsured account value
(iii) reinsurance premium rate (iv) reinsurance premium due.

Quarterly Reports to be sent electronically or by other suitable means within 15
days following each quarter end:

(a)  Statutory  Reserve Report which includes  account value,  death benefit and
     reserve level information grouped by year of birth, sex and month of issue.

                                                                        20 of 23

<PAGE>

                        SCHEDULE V - ARBITRATION SCHEDULE
                        =================================

To initiate  arbitration,  either  ReliaStar of NY or the Reinsurer shall notify
the other party in writing of its desire to arbitrate, stating the nature of its
dispute  and the  remedy  sought.  The party to which the  notice is sent  shall
respond to the notification in writing within ten (10) days of its receipt.

The arbitration  hearing shall be before a panel of three  arbitrators,  each of
whom must be a present or former officer of an insurance or reinsurance company.
An arbitrator may not be a present or former officer, attorney, or consultant of
ReliaStar  of NY or the Reinsurer or either's affiliates.

ReliaStar of NY and the Reinsurer  shall each name five (5)  candidates to serve
as an  arbitrator.  ReliaStar  of NY and the  Reinsurer  shall  each  choose one
candidate from the other party's list,  and these two candidates  shall serve as
the first two arbitrators.  If one or more candidates so chosen shall decline to
serve as an  arbitrator,  the  party  that  named  such  candidate  shall add an
additional  candidate  to its list,  and the other party shall again  choose one
candidate from the list. This process shall continue until two arbitrators  have
been chosen and have  accepted.  ReliaStar  of NY and the  Reinsurer  shall each
present their initial lists of five (5)  candidates by written  notification  to
the other party within  twenty-five  (25) days of the date of the mailing of the
notification  initiating the arbitration.  Any subsequent  additions to the list
that are required shall be presented within ten (10) days of the date the naming
party receives notice that a candidate that has been chosen declines to serve.

The two  arbitrators  shall then select the third  arbitrator from the eight (8)
candidates  remaining  on the lists of First  Golden  and the  Reinsurer  within
fourteen (14) days of the acceptance of their positions as  arbitrators.  If the
two arbitrators cannot agree on the choice of a third, then this choice shall be
referred  back  to  ReliaStar  of NY and the  Reinsurer.  First  Golden  and the
Reinsurer shall take turns striking the name of one of the remaining  candidates
from the initial eight (8) candidates until only one candidate  remains.  If the
candidate  so  chosen  shall  decline  to serve  as the  third  arbitrator,  the
candidate  whose  name  was  stricken  last  shall  be  nominated  as the  third
arbitrator.  This process shall  continue  until a candidate has been chosen and
has accepted. This candidate shall serve as the third arbitrator. The first turn
at striking the name of a candidate shall belong to the party that is responding
to the other party's initiation of the arbitration. Once chosen, the arbitrators
are empowered to decide all substantive  and procedural  issues by a majority of
votes.

It is agreed that each of the three  arbitrators  should be impartial  regarding
the  dispute  and  should  resolve  the  dispute on the basis  described  in the
"ARBITRATION" section of this Agreement. Therefore, at no time will either First
Golden or the Reinsurer contact or otherwise  communicate with any person who is
to be or has been designated as a candidate to serve as an arbitrator concerning
the dispute, except upon the basis of jointly drafted communications provided by
both  ReliaStar  of NY and the  Reinsurer to inform  those  candidates  actually
chosen as  arbitrators  of the nature and facts of the  dispute.  Likewise,  any
written or oral  arguments  provided to the  arbitrators  concerning the dispute
shall be coordinated  with the other party and shall be provided  simultaneously
to the other  party or shall  take  place in the  presence  of the other  party.
Further,  at no time shall any  arbitrator be informed that the  arbitrator  has
been named or chosen by one party or the other.

The arbitration  hearing shall be held on the date fixed by the arbitrators.  In
no event shall this date be later than six (6) months after the  appointment  of
the third  arbitrator.  As soon as possible,  the  arbitrators  shall  establish
prearbitration procedures as warranted by the facts and issues of the particular
case. In establishing  such procedures the arbitrators  shall make provision for
reasonable  pre-hearing  examinations  of  officers,  employees or agents of the
parties and for the production of relevant documentation. At least ten (10) days
prior to the arbitration  hearing,  each party shall provide the other party and
the  arbitrators  with a detailed  statement of the facts and  arguments it will
present at the  arbitration  hearing.  The arbitrators may consider any relevant
evidence;  they shall give the evidence  such weight as they deem it entitled to
after consideration of any objections raised concerning it. The party initiating

                                                                        21 of 23

<PAGE>

the arbitration  shall have the burden of proving its case by a preponderance of
the  evidence.  Each party shall be entitled to call as witnesses  any officers,
employees or agents of the other party and such other party shall do  everything
reasonable to ensure the  attendance and  cooperation of any such witness.  Each
party may examine any witnesses who testify at the arbitration  hearing.  Within
twenty (20) days after the end of the arbitration hearing, the arbitrators shall
issue a written decision that sets forth their findings and any award to be paid
as a result  of the  arbitration,  except  that the  arbitrators  may not  award
punitive or exemplary  damages.  In their decision,  the arbitrators  shall also
apportion the costs of arbitration,  which shall include, but not be limited to,
their own fees and expenses,  on such basis as they consider  appropriate having
regard  to  the  relative  merits  of  the  positions  of  the  parties  to  the
arbitration, the conduct of the parties and the reasonableness of any settlement
offers  put  forward  in  writing  by either  party to the other in an effort to
resolve  such  dispute  and any  other  factors  that the  arbitrators  consider
appropriate.

                                                                        22 of 23

<PAGE>

                      SCHEDULE VI - LIST OF ELIGIBLE FUNDS
                      ====================================

         THE GCG TRUST                      THE PIMCO VARIABLE INSURANCE TRUST
         -------------                      ----------------------------------
         Liquid Asset Series                PIMCO High Yield Bond Fund
         Limited Maturity Bond Series       PIMCO StocksPLUS Growth and Income
         Global Fixed Income Series
         Fully Managed Series               ING VARIABLE INSURANCE TRUST
         Total Return Series                ----------------------------
         Asset Allocation Growth            ING Global Brand Names Fund
         Equity Income Series
         Investors Series                   THE PRUDENTIAL SERIES FUND INC.
         Value Equity Series                -------------------------------
         Rising Dividends Series            Prudential Jennison
         Diversified Mid-Cap                SP Jennison International Growth
         Managed Global Series
         Large Cap Value Series             THE GALAXY VIP FUND
         All Cap Series                     -------------------
         Research Series                    Equity
         Capital Appreciation Series        Growth and Income
         Growth and Income                  Small Company Growth
         Capital Growth Series              Asset Allocation
         Strategic Equity Series            High Quality Bond
         Special Situations
         Mid-Cap Growth Series              FIXED INTEREST ALLOCATIONS
         Small Cap Series                   --------------------------
         Growth Series                      One Year Guarantee w/ MVA
         Real Estate Series                 Three Year Guarantee w/ MVA
         Hard Assets Series                 Five Year Guarantee w/ MVA
         Developing World Series            Seven Year Guarantee w/ MVA
         Emerging Markets Series            Ten Year Guarantee w/ MVA

                                                                        23 of 23FY2001 10K Exhibit 10.16

                                                              Exhibit 10.16

AMENDMENT NUMBER THREE TO LOAN AND SECURITY AGREEMENT

 

This Amendment Number Three to Loan and Security
Agreement ("Amendment") is entered into as of January __, 2000, by and
between FOOTHILL CAPITAL CORPORATION, a California corporation
("Foothill"), and SILICON STORAGE TECHNOLOGY, INC., a California
corporation ("Borrower"), in light of the following:

A.Borrower and Foothill have previously entered into
that certain Loan and Security Agreement, dated as of September 22, 1998 as
amended on December 8, 1998  and September 30, 1999 (the
"Agreement").

B.Borrower and Foothill desire to further amend the
Agreement as provided for and on the conditions herein.

NOW, THEREFORE, Borrower and Foothill hereby amend and
supplement the Agreement as follows:

	DEFINITIONS.  All initially capitalized
terms used in this Amendment shall have the meanings given to them in the
Agreement unless specifically defined herein.

	AMENDMENTS.

	Section 1.1 of the Agreement is amended to add or
amend the following definitions:

"L/C" has the meaning set forth in
Section 2.2(a).

"L/C Guaranty" has the meaning set
forth in Section 2.2(a).

"Letter of Credit" means an L/C or
an L/C Guaranty, as the context requires.

	The definition of Maximum Revolving Amount in Section 1.1
of the Agreement is amended to read as follows:

"Maximum Revolving Amount" means the
following, as applicable:

"(a)$35,000,000 minus the amount of the
outstanding balance of all undrawn or unreimbursed Letters of Credit, and minus
the amount of the outstanding Capital Expenditure Loans from October 1, 1999
through the earlier to occur of (i) timely receipt by Foothill of financial
statements for the period ending November 30, 1999 or the period ending
December 31, 1999 reflecting, to Foothill's satisfaction,  that Borrower has
achieved the Minimum Cumulative EBIT for such period then ending (in either
case, the "Initial EBIT Compliance Documentation"), or (ii) failure of
Borrower to timely deliver financial statements for any period ending on or
after December 31, 1999 evidencing that  Borrower has  achieved the Minimum
Cumulative EBIT for such period (an "EBIT Noncompliance Event");

(b)$50,000,000 minus the amount of the
outstanding balance of all undrawn or unreimbursed Letters of Credit, and minus
the amount of the outstanding Capital Expenditure Loans from January 1, 2000
through March 31, 2000 so long as Borrower has timely delivered the Initial EBIT
Compliance Documentation to Foothill;

(c)In the event that the Maximum Revolving Amount
has been increased to $50,000,000 pursuant to (b) above, such amount shall be
reduced to $40,000,000 minus the amount of the outstanding balance of all
undrawn or unreimbursed Letters of Credit, and minus the amount of the
outstanding Capital Expenditure Loans from April 1, 2000 through May 31,
2000;

(d)$25,000,000 minus the amount of the
outstanding balance of all undrawn or unreimbursed Letters of Credit, and minus
the amount of the outstanding Capital Expenditure Loans at all times on or after
the earlier to occur of (i) July 1, 2000, and (ii) an EBIT Noncompliance
Event."

	Section 2.1(a) of the Agreement is amended to read as
follows:

"(a)Subject to the terms and conditions of
this Agreement, Foothill agrees to make advances ("Advances") to
Borrower in an amount outstanding not to exceed at any one time the lesser of
(i) the Maximum Revolving Amount less the outstanding balance of all undrawn or
unreimbursed Letters of Credit, or (ii) the Borrowing Base less the aggregate
amount of all undrawn or unreimbursed Letters of Credit.  For purposes of this
Agreement, "Borrowing Base", as of any date of determination, shall
mean the result of:

(x)the lesser of (i) 80% of the value of
Eligible Accounts, less the amount, if any, of the Dilution Reserve, or (ii) an
amount equal to Borrower's Collections with respect to Accounts for the
immediately preceding 90 day period, minus

(y)the aggregate amount of reserves, if
any, established by Foothill under Sections 2.1(b), 6.15, and
10."

	The Agreement is amended to add Section 2.2 as
follows:

"2.2Letters of
Credit.

(a)Subject to the terms and conditions of
this Agreement, Foothill agrees to issue letters of credit for the account of
Borrower (each, an "L/C") or to issue guarantees of payment (each such
guaranty, an "L/C Guaranty") with respect to letters of credit issued
by an issuing bank for the account of Borrower.  Foothill shall have no
obligation to issue a Letter of Credit if any of the following would result:

(i)the sum of 100% of the aggregate
amount of all undrawn and unreimbursed Letters of Credit, would exceed the
Borrowing Base less the amount of outstanding Advances; or

(ii)the aggregate amount of all undrawn
or unreimbursed Letters of Credit would exceed the lower of: (x) the Maximum
Revolving Amount less the amount of outstanding Advances; or (y) $10,000,000
through March 31, 2000, $8,000,000 from April 1, 2000 through May 31,
2000, $7,000,000 from June 1, 2000 through June 30, 2000 and
$5,000,000 at all times on or after July 1, 2000.

Borrower expressly understands and agrees that Foothill shall
have no obligation to arrange for the issuance by issuing banks of the letters
of credit that are to be the subject of L/C Guarantees.  Borrower and Foothill
acknowledge and agree that certain of the letters of credit that are to be the
subject of L/C Guarantees may be outstanding on the Closing Date.  Each Letter
of Credit shall have an expiry date no later than 60 days prior to the date on
which this Agreement is scheduled to terminate under Section 3.4 (without
regard to any potential renewal term) and all such Letters of Credit shall be in
form and substance acceptable to Foothill in its sole discretion.  If Foothill
is obligated to advance funds under a Letter of Credit, Borrower immediately
shall reimburse such amount to Foothill and, in the absence of such
reimbursement, the amount so advanced immediately and automatically shall be
deemed to be an Advance hereunder and, thereafter, shall bear interest at the
rate then applicable to Advances under Section 2.6.

(b)Borrower hereby agrees to indemnify, save,
defend, and hold Foothill harmless from any loss, cost, expense, or liability,
including payments made by Foothill, expenses, and reasonable attorneys fees
incurred by Foothill arising out of or in connection with any Letter of Credit.
Borrower agrees to be bound by the issuing bank's regulations and
interpretations of any letters of credit guarantied by Foothill and opened to or
for Borrower's account or by Foothill's interpretations of any Letter of Credit
issued by Foothill to or for Borrower's account, even though this interpretation
may be different from Borrower's own, and Borrower understands and agrees that
Foothill shall not be liable for any error, negligence, or mistake, whether of
omission or commission, in following Borrower's instructions or those contained
in the Letter of Credit or any modifications, amendments, or supplements
thereto.  Borrower understands that the L/C Guarantees may require Foothill to
indemnify the issuing bank for certain costs or liabilities arising out of
claims by Borrower against such issuing bank.  Borrower hereby agrees to
indemnify, save, defend, and hold Foothill harmless with respect to any loss,
cost, expense (including reasonable attorneys fees), or liability incurred by
Foothill under any L/C Guaranty as a result of Foothill's indemnification of any
such issuing bank. 

(c)Borrower hereby authorizes and directs any
bank that issues a letter of credit guaranteed by Foothill to deliver to
Foothill all instruments, documents, and other writings and property received by
the issuing bank pursuant to such letter of credit, and to accept and rely upon
Foothill's instructions and agreements with respect to all matters arising in
connection with such letter of credit and the related application.  Borrower may
or may not be the "applicant" or "account party" with
respect to such letter of credit.

(d)Any and all charges, commissions, fees,
and costs incurred by Foothill relating to the letters of credit guaranteed by
Foothill shall be considered Foothill Expenses for purposes of this Agreement
and immediately shall be reimbursable by Borrower to Foothill.

(e)Immediately upon the termination of this
Agreement, Borrower agrees to either (i) provide cash collateral to be held by
Foothill in an amount equal to 105% of the maximum amount of Foothill's
obligations under outstanding Letters of Credit, or (ii) cause to be delivered
to Foothill releases of all of Foothill's obligations under outstanding Letters
of Credit.  At Foothill's discretion, any proceeds of Collateral received by
Foothill after the occurrence and during the continuation of an Event of Default
may be held as the cash collateral required by this Section 2.2(e).

(f)If by reason of (i) any change in any
applicable law, treaty, rule, or regulation or any change in the interpretation
or application by any governmental authority of any such applicable law, treaty,
rule, or regulation, or (ii) compliance by the issuing bank or Foothill with any
direction, request, or requirement (irrespective of whether having the force of
law) of any governmental authority or monetary authority including, without
limitation, Regulation D of the Board of Governors of the Federal Reserve System
as from time to time in effect (and any successor thereto):

(A)any reserve, deposit, or similar
requirement is or shall be imposed or modified in respect of any Letters of
Credit issued hereunder, or

(B)there shall be imposed on the issuing
bank or Foothill any other condition regarding any letter of credit, or Letter
of Credit, as applicable, issued pursuant hereto;

and the result of the foregoing is to increase, directly or
indirectly, the cost to the issuing bank or Foothill of issuing, making,
guaranteeing, or maintaining any letter of credit, or Letter of Credit, as
applicable, or to reduce the amount receivable in respect thereof by such
issuing bank or Foothill, then, and in any such case, Foothill may, at any time
within a reasonable period after the additional cost is incurred or the amount
received is reduced, notify Borrower, and Borrower shall pay on demand such
amounts as the issuing bank or Foothill may specify to be necessary to
compensate the issuing bank or Foothill for such additional cost or reduced
receipt, together with interest on such amount from the date of such demand
until payment in full thereof at the rate set forth in Section 2.6(a)(i)
or (c)(i), as applicable.  The determination by the issuing bank or
Foothill, as the case may be, of any amount due pursuant to this Section
2.2(f), as set forth in a certificate setting forth the calculation thereof
in reasonable detail, shall, in the absence of manifest or demonstrable error,
be final and conclusive and binding on all of the parties hereto."

	Sections 2.6(a), (b), (c) and (e) of the Agreement are
amended to read as follows:

"(a)Interest Rate.  Except as provided in
Section 2.6(c), below, all Obligations shall bear interest on the Daily
Balance as follows:

(i)each Eurodollar Rate Loan shall bear
interest at a per annum rate of 3.00 percentage points above the Adjusted
Eurodollar Rate; and

(ii)all other Obligations (except for undrawn
Letters of Credit) shall bear interest at a per annum rate of 0.50 percentage
points above the Reference Rate.

(b)Letter of Credit Fee.  Borrower shall pay
Foothill a fee (in addition to the charges, commissions, fees, and costs set
forth in Section 2.2(d)) equal to 1.00% per annum times the aggregate undrawn
amount of all Letters of Credit outstanding as of the end of each day."

(c)Default Rate.  Upon the occurrence and during the
continuation of an Event of Default, (i) all Obligations (except for undrawn
Letters of Credit) shall bear interest on the Daily Balance at a per annum rate
equal to 4.50 percentage points above the Reference Rate, and (ii) the Letter of
Credit fee provided in Section 2.6(b) shall be increased to 5.00% per
annum times the aggregate undrawn amount of all Letters of Credit outstanding as
of the end of each day."

"(e)Payments.  Letter of Credit fees and
interest in respect of Reference Rate Loans payable hereunder shall be due and
payable, in arrears, on the first day of each month during the term hereof.
Interest in respect of each Eurodollar Rate Loan shall be due and payable, in
arrears, on (i) the last day of the applicable Interest Period, and (ii) the
first day of each month occurring during the term thereof. Borrower hereby
authorizes Foothill, at its option, without prior notice to Borrower, to charge
such interest and Letter of Credit fees, all Foothill Expenses (as and when
incurred), the charges, commissions, fees, and costs provided for in
Section 2.2(d) (as and when accrued or incurred), the fees and
charges provided for in Section 2.11 (as and when accrued or incurred),
and all installments or other payments due under the Capital Expenditure Loans,
or any Loan Document to Borrower's Loan Account, which amounts thereafter shall
accrue interest at the rate then applicable to Advances hereunder.  Any interest
not paid when due shall be compounded and shall thereafter accrue interest at
the rate then applicable to Advances hereunder."

	Section 2.11(b) of the Agreement is amended to read as
follows:

	Unused Line Fee.  On the first day of each month during
the term of this Agreement, an unused line fee, in an amount equal to 0.25% per
annum times the difference between the average daily balance of the Advances and
undrawn Letters of Credit that were outstanding during the immediately preceding
month and the Maximum Revolving Amount for the period commencing October 1, 1999
through June 30, 2000.  Thereafter, the unused line fee shall an amount
equal to 0.25% per annum times the difference between the average Daily Balance
of the Advances and undrawn Letters of Credit, there were outstanding during the
immediately preceding month and $5,000,000.

	The introduction to Section 3.2 of the Agreement is
amended to read as follows:

"3.2Conditions Precedent to all Advances and
Letters of Credit.  The following shall be conditions
precedent to all Advances and all Letters of Credit, hereunder:"

	REPRESENTATIONS AND WARRANTIES.
Borrower hereby affirms to Foothill that all of Borrower's representations and
warranties set forth in the Agreement are true, complete and accurate in all
respects as of the date hereof.

	NO DEFAULTS.  Borrower hereby affirms to
Foothill that no Event of Default has occurred and is continuing as of the date
hereof.

	CONDITION PRECEDENT.  The effectiveness of
this Amendment is expressly conditioned upon receipt by Foothill of an executed
copy of this Amendment.

	COSTS AND EXPENSES.  Borrower shall pay to
Foothill all of Foothill's out-of-pocket costs and expenses (including, without
limitation, the fees and expenses of its counsel, which counsel may include any
local counsel deemed necessary, search fees, filing and recording fees,
documentation fees, appraisal fees, travel expenses, and other fees) arising in
connection with the preparation, execution, and delivery of this Amendment and
all related documents.

	LIMITED EFFECT.  In the event of a conflict
between the terms and provisions of this Amendment and the terms and provisions
of the Agreement, the terms and provisions of this Amendment shall govern.  In
all other respects, the Agreement, as amended and supplemented hereby, shall
remain in full force and effect.

	COUNTERPARTS; EFFECTIVENESS.  This
Amendment may be executed in any number of counterparts and by different parties
on separate counterparts, each of which when so executed and delivered shall be
deemed to be an original.  All such counterparts, taken together, shall
constitute but one and the same Amendment.  This Amendment shall become
effective upon the execution of a counterpart of this Amendment by each of the
parties hereto.

IN WITNESS WHEREOF, the parties hereto have executed this
Amendment as of the date first set forth above.

FOOTHILL CAPITAL CORPORATION,

a California corporation

 

By:  /s/  Thomas Sigurdson

Title:  Vice President

 

SILICON STORAGE TECHNOLOGY, INC.,

a California corporation

 

By:  /s/  Jeffrey L. Garon

Title:  VP/CFO

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