EXHIBIT (8)(i)(ii) AMENDMENT TO FUND PARTICIPATION AGREEMENT American General Life Insurance Company, Templeton Variable Products Series Fund, and Franklin Templeton Distributors, Inc. hereby amend their Fund Participation Agreement dated as of April 1, 1999, ("Agreement"), by: 1. Adding Franklin Templeton Variable Insurance Products Trust ("VIP"), an open-end management investment company organized as a business trust under Massachusetts law, as a party to the Agreement between and among Templeton Variable Products Series Fund ("TVP"), an open- end management investment company organized as a business trust under Massachusetts law (both Templeton Variable Products Series Fund and Franklin Templeton Variable Insurance Products Trust shall hereinafter be referred to as the "Trust"), Franklin Templeton Distributors, Inc., a California corporation, the Trust's principal underwriter (the "Underwriter") and American General Life Insurance Company, a life insurance company organized as a corporation under Texas law (the "Company"). 2. Adding Article IX, "Agreement" AGREEMENT 9.1 Form of Agreement. This Agreement shall create a separate agreement for each Trust and the Underwriter as though each Trust and the Underwriter had separately executed an identical Fund Participation Agreement with the Company. No rights, responsibilities or liabilities arising under the Agreement as it pertains to one Trust shall be enforceable by or against any party to the Agreement as it pertains to another Trust. 3. Adding Franklin Templeton Variable Insurance Products Trust to Article VII, "Notices" If to the Trust: Franklin Templeton Variable Insurance Products Trust 777 Mariners Island Boulevard San Mateo, CA 94404 Attention: Karen L. Skidmore, Assistant Vice President & Assistant Secretary 4. Replacing Schedules A, B, and C with amended Schedule A-C, attached; 5. Replacing Schedule D with amended Schedule D, attached; 6. Replacing Schedule E with amended Schedule E, attached. 1 IN WITNESS WHEREOF, the parties have caused their duly authorized officers to execute this Amendment to Fund Participation Agreement, to be effective as of [ ], 1999. American General Life Insurance Company Templeton Variable Products Series Fund - --------------------------------------- --------------------------------------- By its authorized officer By its authorized officer By:____________________________________ By:______________________________ Name: Name: Karen L. Skidmore Title: Title: Assistant Vice President and Assistant Secretary Franklin Templeton Variable Insurance Products Trust ------------------------------------------------------- By its authorized officer By:_______________________________ Name: Karen L. Skidmore Title: Assistant Vice President and Assistant Secretary Franklin Templeton Distributors, Inc. ------------------------------------- By its authorized officer By:__________________________________ Name: Deborah Gatzek Title: Senior Vice President 2 SCHEDULE A-C Contracts Issued by American General Life Insurance Company ----------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- CONTRACT 1 CONTRACT 2 CONTRACT 3 - ----------------------------------------------------------------------------------------------------------- CONTRACT/PRODUCT NAME Platinum Investor Legacy Plus VUL Key Legacy Plus VUL AND TYPE Variable Annuity - ----------------------------------------------------------------------------------------------------------- REGISTERED (Y/N) Yes Yes Yes - ----------------------------------------------------------------------------------------------------------- SEC REGISTRATION 333-70667 333-53909 333-89897 NUMBER -1933 ACT - ----------------------------------------------------------------------------------------------------------- REPRESENTATIVE FORM 98020 98615 99616 NUMBERS - ----------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT American General Life American General Life American General Life NAME/DATE ESTABLISHED Insurance Company Insurance Company Insurance Company Separate Account D Separate Account VL-R - Separate Account VL-R - May 6, 1997 May 6, 1997 - ----------------------------------------------------------------------------------------------------------- SEC REGISTRATION 811-02441 811-08561 811-08561 NUMBER - 1940 ACT - ----------------------------------------------------------------------------------------------------------- TEMPLETON VARIABLE TVP - Templeton Asset TVP - Templeton TVP - Templeton PRODUCTS SERIES FUND Allocation Fund - Developing Markets Fund - International Fund - ("TVP"), FRANKLIN Class 2 (Templeton Class 2 (Templeton Asset Class 2 (Templeton TEMPLETON VARIABLE Investment Counsel, Management Ltd.) Investment Counsel, Inc.) INSURANCE PRODUCTS Inc.) TRUST ("VIP") TVP - Templeton VIP - Franklin Small Cap -PORTFOLIOS, CLASSES TVP - Templeton International Fund - Fund - Class 2 (Franklin AND ADVISER International Fund - Class 2 (Templeton Advisers, Inc.) Class 2 (Templeton Investment Counsel, Inc.) Investment Counsel, Inc.) TVP - Franklin Small Cap Investments Fund - Class 2 (Franklin Advisers, Inc.) - ----------------------------------------------------------------------------------------------------------- 3 SCHEDULE A-C Contracts Issued by American General Life Insurance Company ----------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------- CONTRACT 4 CONTRACT 5 CONTRACT 6 - ---------------------------------------------------------------------------------------------------------- CONTRACT/PRODUCT NAME The One Solution VUL AND TYPE - ----------------------------------------------------------------------------------------------------------- REGISTERED (Y/N) Yes - ----------------------------------------------------------------------------------------------------------- SEC REGISTRATION 333-87307 NUMBER -1933 ACT - ----------------------------------------------------------------------------------------------------------- REPRESENTATIVE FORM 99615 NUMBERS - ----------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT American General Life NAME/DATE ESTABLISHED Insurance Company Separate Account VL-R - May 6, 1997 - ----------------------------------------------------------------------------------------------------------- SEC REGISTRATION 811-08561 NUMBER - 1940 ACT - ----------------------------------------------------------------------------------------------------------- TEMPLETON VARIABLE TVP - Templeton PRODUCTS SERIES FUND Developing Markets ("TVP"), FRANKLIN Fund - Class 2 TEMPLETON VARIABLE (Templeton Asset INSURANCE PRODUCTS Management Ltd.) TRUST ("VIP") -PORTFOLIOS, CLASSES VIP - Franklin Small AND ADVISER Cap Fund - Class 2 (Franklin Advisers, Inc.) - ----------------------------------------------------------------------------------------------------------- 4 SCHEDULE D OTHER PORTFOLIOS AVAILABLE UNDER THE CONTRACTS ---------------------------------------------- Platinum Investor Variable Annuity: Legacy Plus VUL: - ----------------------------------- ---------------- AIM Variable Insurance Funds, Inc. AIM Variable Insurance Funds, Inc. AIM V.I. International Equity Fund V.I. International Equity Fund AIM V.I. Value Fund V.I. Value Fund American General Series Portfolio Company American General Series Portfolio Company International Equities Fund Money Market Fund MidCap Index Fund Money Market Fund Stock Index Fund Dreyfus Variable Investment Fund BT Insurance Funds Trust Quality Bond Portfolio Equity 500 Index Small Cap Portfolio EAFE Equity Index Dreyfus Socially Responsible Growth Fund, Inc. MFS Variable Insurance Trust Morgan Stanley Universal Funds, Inc. MFS Emerging Growth Series Equity Growth Morgan Stanley Universal Funds, Inc. MFS Variable Insurance Trust Equity Growth Portfolio MFS Emerging Growth Series High Yield Portfolio SAFECO Resource Series Trust Putnam Variable Trust Equity Portfolio Putnam VT Diversified Income Fund Growth Portfolio Putnam VT Growth & Income Fund Van Kampen American Capital Life Investment Trust Strategic Stock Portfolio Oppenheimer Variable Account Funds Oppenheimer High Income 5 SCHEDULE D OTHER PORTFOLIOS AVAILABLE UNDER THE CONTRACTS ---------------------------------------------- (CONTINUED) Key Legacy Plus The One VUL Solution - --------------- -------------------- AIM Variable Insurance Funds, Inc. AIM Variable Insurance Funds, Inc. - ---------------------------------- ----------------------------------- AIM V.I. International Equity Fund AIM V.I. Capital Appreciation Fund -------------------------------------------- AIM V.I. Government Securities Fund --------------------------------------------- AIM V.I. High Yield Fund ---------------------------------- AIM V.I. International Equity Fund -------------------------------------------- American Century Variable Portfolios, Inc. American General Series Portfolio Company - ------------------------------------------ ----------------------------------------- VP Value Fund Money Market Fund American General Series Portfolio Company Kemper Variable Series - ----------------------------------------- ---------------------- Money Market Fund Kemper International Portfolio Kemper Small Cap Value Portfolio MFS Variable Insurance Trust MFS Variable Insurance Trust - ---------------------------- ---------------------------- MFS Total Return Series MFS Growth With Income Series Neuberger Berman Advisers Management Trust Oppenheimer Variable Account Funds - ------------------------------------------ ---------------------------------- Partners Portfolio Oppenheimer High Income Fund/VA Oppenheimer Variable Account Funds One Group Investment Trust - ---------------------------------- -------------------------- Oppenheimer High Income Fund/VA One Group Investment Trust Diversified Equity Portfolio One Group Investment Trust Equity Index Portfolio One Group Investment Trust Government Bond Portfolio One Group Investment Trust Large Cap Growth Portfolio One Group Investment Trust Mid Cap Growth Portfolio Putnam Variable Trust Putnam Variable Trust - --------------------- -------------------------------------------------------------- Putnam VT Diversified Income Fund Putnam VT Vista Fund Van Kampen Life Investment Trust Van Kampen Life Investment Trust - -------------------------------- -------------------------------------------------------------- Emerging Growth Portfolio Emerging Growth Portfolio Victory Variable Insurance Funds - -------------------------------- Diversified Stock Fund Investment Quality Bond Fund Small Cap Opportunity Fund 6 SCHEDULE E RULE 12B-1 PLANS Compensation Schedule --------------------- Each Portfolio named below shall pay the following amounts pursuant to the terms and conditions referenced below under its Class 2 Rule 12b-1 Distribution Plan, stated as a percentage per year of Class 2's average daily net assets represented by shares of Class 2. Trust and Portfolio Maximum Annual Payment Rate - --------------------------------------------------------------------------- TVP - FRANKLIN SMALL CAP INVESTMENTS FUND 0.25% TVP - TEMPLETON ASSET ALLOCATION FUND 0.25% TVP - TEMPLETON DEVELOPING MARKETS FUND 0.25% TVP - TEMPLETON INTERNATIONAL FUND 0.25% VIP - FRANKLIN SMALL CAP FUND 0.25% Agreement Provisions -------------------- If the Company, on behalf of any Account, purchases Trust Portfolio shares ("Eligible Shares") which are subject to a Rule 12b-1 Plan adopted under the 1940 Act (the "Plan"), the Company may participate in the Plan. To the extent the Company or its affiliates, agents or designees (collectively "you") you provide administrative and other services which assist in the promotion and distribution of Eligible Shares or Variable Contracts offering Eligible Shares, the Underwriter, the Trust or their affiliates (collectively, "we") may pay you a Rule 12b-1 fee. "Administrative and other services" may include, but are not limited to, furnishing personal services to owners of Contracts which may invest in Eligible Shares ("Contract Owners"), answering routine inquiries regarding a Portfolio, coordinating responses to Contract Owner inquiries regarding the Portfolios, maintaining such accounts or providing such other enhanced services as a Trust Portfolio or Contract may require, maintaining customer accounts and records, or providing other services eligible for service fees as defined under NASD rules. Your acceptance of such compensation is your acknowledgment that eligible services have been rendered. All Rule 12b-1 fees, shall be based on the value of Eligible Shares owned by the Company on behalf of its Accounts, and shall be calculated on the basis and at the rates set forth in the Compensation Schedule stated above. The aggregate annual fees paid pursuant to each Plan shall not exceed the amounts stated as the "annual maximums" in the Portfolio's prospectus, unless an increase is approved by shareholders as provided in the Plan. These maximums shall be a specified percent of the value of a Portfolio's net assets attributable to Eligible Shares owned by the Company on behalf of its Accounts (determined in the same manner as the Portfolio uses to compute its net assets as set forth in its effective Prospectus). You shall furnish us with such information as shall reasonably be requested by the Trust's Boards of Trustees ("Trustees") with respect to the Rule 12b-1 fees paid to you pursuant to the Plans. We shall furnish to the Trustees, for their review on a quarterly basis, a written report of the amounts expended under the Plans and the purposes for which such expenditures were made. The Plans and provisions of any agreement relating to such Plans must be approved annually by a vote of the Trustees, including the Trustees who are not interested persons of the Trust and who have no financial interest in the Plans or any related agreement ("Disinterested Trustees"). Each Plan may be terminated at any time by the vote of a majority of the Disinterested Trustees, or by a vote of a majority of the outstanding shares 7 as provided in the Plan, on sixty (60) days' written notice, without payment of any penalty. The Plans may also be terminated by any act that terminates the Underwriting Agreement between the Underwriter and the Trust, and/or the management or administration agreement between Franklin Advisers, Inc. or Templeton Investment Counsel, Inc. or their affiliates and the Trust. Continuation of the Plans is also conditioned on Disinterested Trustees being ultimately responsible for selecting and nominating any new Disinterested Trustees. Under Rule 12b-1, the Trustees have a duty to request and evaluate, and persons who are party to any agreement related to a Plan have a duty to furnish, such information as may reasonably be necessary to an informed determination of whether the Plan or any agreement should be implemented or continued. Under Rule 12b-1, the Trust is permitted to implement or continue Plans or the provisions of any agreement relating to such Plans from year-to- year only if, based on certain legal considerations, the Trustees are able to conclude that the Plans will benefit each affected Trust Portfolio and class. Absent such yearly determination, the Plans must be terminated as set forth above. In the event of the termination of the Plans for any reason, the provisions of this Schedule E relating to the Plans will also terminate. Any obligation assumed by the Trust pursuant to this Agreement shall be limited in all cases to the assets of the Trust and no person shall seek satisfaction thereof from shareholders of the Trust. You agree to waive payment of any amounts payable to you by Underwriter under a Plan until such time as the Underwriter has received such fee from the Fund. The provisions of the Plans shall control over the provisions of the Participation Agreement, including this Schedule E, in the event of any inconsistency. You agree to provide complete disclosure as required by all applicable statutes, rules and regulations of all rule 12b-1 fees received from us in the prospectus of the contracts. 8