<Page>


                                                                  Exhibit 10.26

                                    AGREEMENT

         AGREEMENT made as of the 1st day of August, 1999, by and between
Allstate Insurance Company, an Illinois insurance company, (" Allstate") and LSA
Securities, Inc., an Oregon Corporation, ("LSA") and an indirect wholly owned
subsidiary of Allstate Insurance Company;

         WHEREAS, LSA desires to offer to the public certain variable insurance
products and mutual funds ("Products"). The products will be issued by life
insurance subsidiaries of Allstate ("Life Insurers") and offered through LSA' s
Registered Representatives ("Representatives"). For purposes of this Agreement,
the term Representative is limited to those LSA Registered Representatives in
the Allstate Agent Division who are also licensed and appointed agents of such
Life Insurers and Allstate; and

         WHEREAS, Allstate currently acts as paymaster for compensation relating
to the sale of certain fixed products payable by the Life Insurers to certain
Allstate Agents.

         WHEREAS, Allstate Life Insurance Company, an Illinois insurance company
and wholly owned subsidiary of Allstate ("Allstate Life") and Lincoln Benefit
Life Company have obtained no-action relief from the staff of the Securities and
Exchange Commission ("SEC") in a letter dated September 12, 1988, (the "ALIC
No-Action Letter") in which the SEC staff indicated it would not recommend
enforcement action if, subject to certain conditions, each of them acted as
paymaster for an affiliated broker/dealer with respect to contracts issued by
them;

         WHEREAS, Allstate and Allstate Life shall be directed by essentially
the same management.

         NOW, THEREFORE, in consideration of their mutual promises, Allstate and
LSA hereby agree as follows:

1.       PAYMENT OF COMPENSATION AND EXPENSES

         A.       COMPENSATION FOR SALE OF PRODUCTS. Allstate shall act as
                  "paying agent" on behalf of LSA for all commissions and other
                  compensation payable by LSA for the sale of Products effected
                  through Representatives.

         B.       COMPENSATION TO ALLSTATE. Allstate shall be compensated for
                  actual costs and expenses incurred in performing services
                  under the terms and conditions of this Agreement. Payments for
                  services provided hereunder shall be remitted through the
                  intercompany settlement process. Allstate shall not be
                  entitled to any share of the commission (s) paid as a result
                  of the services provided hereunder.


                                       1
<Page>

2.       PERFORMANCE OF SERVICES

         A.       RATE OF COMPENSATION. The rate of compensation payable to
                  Representative(s) shall be paid in accordance with the
                  instructions set forth in Exhibit A, which may be amended from
                  time to time pursuant to further written agreement between the
                  parties. Allstate and LSA acknowledge that Representatives
                  shall have no interest in this Agreement or right to any
                  compensation to be paid by or on behalf of LSA hereunder prior
                  to their receipt thereof. LSA may, from time to time, provide
                  Allstate with updated instructions in accordance with the
                  format provided in Exhibit A. Said request shall be in writing
                  and shall be provided to Allstate no less than thirty (30)
                  days prior to the date on which said revised instructions
                  shall take effect. In making payments hereunder, Allstate is
                  providing a clerical and ministerial service to LSA, and
                  Allstate shall not exercise any discretion over the amount or
                  allocation of the payments.

         B.       IDENTIFICATION OF COMPENSATION. Compensation to be paid on
                  behalf of LSA under the terms and conditions of this
                  Agreement, may be included with other compensation paid by
                  Allstate, but any compensation attributable to LSA shall be
                  identified as such on supporting statements provided to
                  payees.

         C.       NO RIGHT TO SETTLE. Allstate shall have no right to settle any
                  claim(s) brought by Representative(s) with regard to
                  compensation payable by LSA, except as specifically directed
                  in writing by LSA.

         D.       BOOKS AND RECORDS. During the term of this Agreement, and for
                  a period of three (3) years after its expiration, Allstate
                  shall maintain and preserve books and records relating to
                  compensation paid hereunder on behalf of, and as agent for,
                  LSA in compliance with Rules 17a-3 and 17a-4 under the
                  Securities Exchange Act of 1934 (the "1934 Act") and Rule 2820
                  of the Conduct Rules adopted by the National Association of
                  Securities Dealers, Inc. In addition, compensation payments
                  shall be reflected on the books and records maintained by LSA.
                  Allstate represents that any books or records it maintains on
                  behalf of LSA belong solely to LSA and, at the request of LSA,
                  shall be made available to LSA for its use or for inspection
                  by any state, federal, or other regulator with jurisdiction
                  over LSA. Upon reasonable notice to Allstate, LSA shall have
                  the right during normal business hours and at its own expense,
                  to inspect the books and records relating to the compensation
                  paid hereunder.

         E.       SECURITIES ACTIVITIES. LSA has and assumes full responsibility
                  for the securities activities of all persons engaged directly
                  and indirectly in the securities operations, each such person
                  being an "associated person" of LSA, as defined in Section
                  3(a)(18) of the 1934 Act and, therefore, a person for whom LSA
                  has full responsibility with regard to training, supervision
                  and control, as contemplated by Section 15(b)(4 )(E) of the
                  1934 Act.

                                       2
<Page>

         F.       ADDITIONAL REQUIREMENTS. In all dealings with or on behalf of
                  LSA, Allstate shall comply with all applicable provisions of
                  Exchange Act Release No. 8389, the applicable terms and
                  conditions of the ALIC No Action Letter, and the applicable
                  terms and conditions of the TIME INSURANCE CO. No-Action
                  Letter dated October 17, 1989. Copies of these materials are
                  attached as Exhibit B to this Agreement.

         G.       RIGHT TO SUBCONTRACT. Subject to LSA's consent, Allstate may
                  subcontract to a Third Party Subcontractor ("Subcontractor")
                  any or all of the services required of it under this
                  Agreement. Prior to any such subcontracting, Allstate shall
                  enter into a written Agreement with Subcontractor in which
                  Subcontractor accepts responsibility for all obligations that
                  would otherwise be performed by Allstate in accordance with
                  the terms of this Agreement.

3.       MISCELLANEOUS

         A.       INDEMNIFICATION. Allstate shall be responsible for and
                  indemnify, defend and hold LSA harmless for any damages,
                  claims, and/or causes of action brought by third parties
                  arising out of or due to Allstate's failure to perform in
                  accordance with the terms and conditions of this Agreement.
                  Allstate, however, shall not be responsible for any loss of
                  profits, or any other loss, which is indirect, special,
                  incidental or consequential, or punitive damages.

         B.       TERM OF AGREEMENT. This Agreement shall become effective as of
                  the date of its execution and shall continue in full force and
                  effect until terminated pursuant to no less than one hundred
                  and twenty (120) days written notice thereof. This Agreement,
                  however, may terminate automatically if Allstate and LSA cease
                  to be affiliated. This Agreement may be amended at any time by
                  mutual written agreement between the parties hereto.

         C.       APPLICABLE LAW. This Agreement shall be construed in
                  accordance with the laws of the state of Illinois without
                  regard to conflict of law principles.

         D.       COOPERATION WITH REGULATORY AUTHORITIES. The parties agree to
                  cooperate fully in any regulatory examination, investigation,
                  or proceeding or any judicial proceeding arising in connection
                  with the securities activities of LSA and the Representatives.
                  The parties shall furnish applicable federal, state and self-
                  regulatory authorities with jurisdiction over LSA with any
                  information or reports in connection with the payments made
                  under this Agreement that such authorities may request in
                  order to ascertain whether the securities activities described
                  herein are being conducted in a manner consistent with any
                  applicable law or regulation.

         E.       ASSIGNMENT. This Agreement and any rights pursuant hereto are
                  not subject to assignment by either party hereto without the
                  prior written consent of the other party, except by operation
                  of law. The representations, warranties, covenants, and
                  agreements contained in this Agreement shall be binding upon,
                  extend to an inure


                                       3
<Page>

                  to the benefit of the parties hereto, and each of their,
                  successors and assigns respectively.

         F.       RELATIONSHIP OF PARTIES. Allstate employees performing duties
                  hereunder at all times during the term of this Agreement shall
                  be in the employment, under the supervision and control of
                  Allstate and shall not be deemed employees of LSA or Allstate
                  Life.


IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their authorized officers designated below as of the date specified
above.

ALLSTATE INSURANCE COMPANY                     LSA SECURITIES, INC.


By:      /s/ James P. Zils                     By:     /s/Carol S. Watson
         -----------------                             ------------------
Name:    James P. Zils                         Name:    Carol S. Watson
Title:   Vice President and Treasurer          Title:   President


                                       4
<Page>

                                    EXHIBIT A
                        [LSA Securities, Inc. Letterhead]
                  [Letter of Instruction from LSA to Allstate]

Allstate Insurance Company


To Whom It May Concern:

         With reference to the Agreement between you and the undersigned
regarding the payment of commissions for securities transactions to our
registered persons ("Representatives") {DRAFTING NOTE: PREVIOUS REFERENCE HAD
BEEN TO "REPS"-I CHANGED TO 'REPRESENTATIVES', IN ORDER TO BE CONSISTENT WITH
THE AGREEMENT}, you are hereby directed to follow these instructions:

o        You shall pay commissions to Representatives for the sale of securities
         affected on behalf of LSA in accordance with the compensation schedule
         attached as Attachment A hereto.
o        You will be furnished information regarding compensation payable to
         each Representative for each processing period through downloads into
         the Ralie system.
o        Funds will be transferred to you via wire or the inter-company process.
o        Payments made to Representatives may be aggregated with other
         compensation payable for other products and services for which you act
         as payor.
o        You must furnish a statement to each Representative detailing the
         compensation paid on behalf of LSA and indicating that such portion is
         paid on behalf of LSA.
o        You may make deductions from commissions that have been authorized by
         LSA or by the Representative.
o        In the case of a Representative who is your common law employee, you
         are authorized to include securities compensation in the base of
         compensation payable to the Representative, and to make deductions for
         fringe benefits from such base so long there is no differential in the
         proportionate amount of securities compensation earned by the
         Representative that is allocated to fringe benefits as compared with
         the amount of non- securities compensation earned by the Representative
         that is allocated to the same fringe benefits.
o        You are authorized to make any deductions from compensation payable to
         a Representative for wage garnishments ordered by a court of competent
         jurisdiction against such Representative.
o        You will furnish us on a monthly basis with a report concerning
         compensation paid by you during the month pursuant to the Agreement.


Signed:  LSA Securities, Inc.]


                                       5
<Page>

                                  ATTACHMENT A
                            LSA COMPENSATION SCHEDULE

1.       WHAT IS THE COMPENSATION STRUCTURE FOR NEW PRODUCTS?

         The compensation structure is as follows:

<Table>
<Caption>


------------------------------------------------------------------------------------------------------------------
                           LBL VARIABLE UNIVERSAL LIFE
---------------------------------------------------------- ------------------ --------------------- --------------
                        AGREEMENT                              1ST YEAR          RENEWAL YEARS        1ST YEAR
                                                                                      2-5              EXCESS
---------------------------------------------------------- ------------------ --------------------- --------------
<S>                    <C>                                     <C>               <C>                  <C>

Employee Agents (R830, R1500, R3000)                              35%                  2%                2%
---------------------------------------------------------- ------------------ --------------------- --------------
Non employee Agents (R3001)                                       40%                  2%                2%
---------------------------------------------------------- ------------------ --------------------- --------------
Life Specialists (Countrywide excluding California and            40%                  2%                2%
New York)
---------------------------------------------------------- ------------------ --------------------- --------------
Life Specialists (California)                                     34%                  2%                2%
---------------------------------------------------------- ------------------ --------------------- --------------
</Table>
**Compensation is not paid on the premium for the Primary Insured Term Rider.

<Table>
<Caption>


                    ----------------------------------------------------------------------------------
                                           ALLSTATE VARIABLE ANNUITY OPTION A
                    ----------------------------------------------------------------------------------

                                  AGREEMENT                INITIAL AND SUBSEQUENT PAYMENTS
                    -------------------------------------- -------------------------------------------
<S>                               <C>                      <C>

                                     All                                      2.5%
                    -------------------------------------- -------------------------------------------
</Table>


<Table>
<Caption>


                    ----------------------------------------------------------------------------------
                                   ALLSTATE VARIABLE ANNUITY OPTION B WITH 25 BP TRAIL
                    ----------------------------------------------------------------------------------
                           AGREEMENT                   INITIAL AND                 POLICY VALUE
                                                   SUBSEQUENT PAYMENTS
                    ------------------------- ------------------------------- ------------------------
<S>                        <C>                     <C>                             <C>

                              All                          1.5%                        .25%
                    ------------------------- ------------------------------- ------------------------
</Table>



<Table>
<Caption>

                    ----------------------------------------------------------------------------------
                                                      MUTUAL FUNDS
                    ----------------------------------------------------------------------------------
                           AGREEMENT                      FUNDS                    COMPENSATION
                    ------------------------- ------------------------------- ------------------------
<S>                        <C>                            <C>                      <C>

                              All                          All                      35% of the
                                                                                   Broker-Dealer
                                                                                    Commission
                    ------------------------- ------------------------------- ------------------------
</Table>


2.       IS COMPENSATION ANNUALIZED?

         No. For LBL Variable Universal Life, compensation is paid as premiums
         are collected. And, for Allstate Variable Annuity, Option A and Option
         B compensation is paid as payments are received.

3.       HOW IS POLICY VALUE COMPENSATION PAID?

         Policy value compensation is paid quarterly, beginning with the first
         quarter following the policy Anniversary.


                                       6
<Page>

                 FOR EXAMPLE:       POLICY ISSUED MAY 01, 1999
                                    POLICY ANNIVERSARY IS MAY 01, 2000
                                    THE FIRST POLICY VALUE COMPENSATION IS PAID
                                    OUT IN AUGUST 2000

4.       IS THE POLICY VALUE PERCENTAGE OF .25% A QUARTERLY PERCENTAGE?

         No. Policy value compensation paid is 25 Basis Points which equals .25%
         annually (.00063 Quarterly).

5.       WHAT DOES 35% OF THE BROKER-DEALER COMMISSION REPRESENT ON THE SALE OF
         MUTUAL FUNDS?

         Broker-dealer commissions vary within a Fund family and generally range
         from 3% -5% for Class A and B shares. Broker-dealer commissions on
         purchases over $250,000 and Class C shares generally range from 1% -2%.
         Agent compensation is 35% of the broker- dealer percentage.

                           FOR EXAMPLE:     CUSTOMER PURCHASES $100,000.00 OF
                                            MUTUAL FUNDS BROKER-DEALER EARNS
                                            $4000.00 (4%)
                                            AGENT EARNS $1400.00
                                            ($100,000.00 X 4% = $4000.00 X 35%
                                            = $1400.00)

6.       WHAT DO I RECEIVE FOR PRODUCTION CREDIT?

         On the LBL Variable Universal Life, production credit is 100% of the
         First Year Commission Target Premium. Production Credit is not given on
         the premium for the Primary Insured Term Rider.

         On the Allstate Variable Annuity Option A and Option B, production
         credit is 4% of initial and subsequent payments.

         On the Mutual Funds, production credit is 2% on all purchases.

7.       DO I RECEIVE PRODUCTION CREDIT IF MY CUSTOMER PAYS IN MORE THAN THE
         COMMISSION TARGET PREMIUM WITHIN THE FIRST YEAR?

         Yes. On the LBL Variable Universal Life product, production credit is
         given at 4% on any first year payment in excess of the First Year
         Commission Target Premium.

8.       IS PRODUCTION CREDIT ANNUALIZED?

         For the LBL Variable Universal Life products, production credit is
         annualized; however, for the Allstate Variable Annuity and Mutual
         Funds, production credit is not annualized.


                                       7
<Page>

9.       CAN AN ALLSTATE AGENT PARTNER WITH A LIFE SPECIALIST RECEIVE FULL
         PRODUCTION CREDIT?

         It depends. As long as the Allstate Agent meets state licensing
         requirements as well as Allstate requirements for eligibility to sell.

10.      CAN TWO ALLSTATE AGENTS PARTNER ON A POLICY?

         Perhaps. Two Allstate Agents can partner on a policy as long as both
         Agents meet state licensing requirements as well as Allstate
         requirements for eligibility to sell. Licensed Allstate Agents can
         split commissions on a policy based on the current split percentages.
         Only the writing Agent receives production credit.

11.      ARE THE NEW PRODUCTS INCLUDED IN MY OFFICE EXPENSE ALLOWANCE?

         The LBL Variable Universal Life, the Allstate Variable Annuity, and the
         Mutual Funds are included in Office Expense Allowance.

12.      ARE THE NEW PRODUCTS INCLUDED IN MY PRODUCTION ALLOWANCE?

         The LBL Variable Universal Life, the Allstate Variable Annuity, and the
         Mutual Funds are included in Production Allowance.

13.      AM I ABLE TO TRACK THESE POLICIES ON MY ALSTAR?

         The Allstate Variable Annuity is included in ALSTAR Inquiry and
         Endorsement; however, the LBL Variable Universal Life and the Mutual
         Funds are not.

 14.     IF MY CUSTOMER ALREADY HAS A UNIVERSAL LIFE PRODUCT AND WISHES TO
         TERMINATE THAT POLICY AND APPLY FOR AN LBL VARIABLE UNIVERSAL LIFE, DO
         I RECEIVE PRODUCTION CREDIT AND COMPENSATION?

         The Allstate replacement guidelines apply for the new products. Any
         production credit given is based on the difference between the old
         policy's first year premium (MAP) and the new policy's first year
         premium (Commission Target premium).

         Compensation is paid on the difference in premium at the existing
         replacement rates. (Life Specialists are paid on the regular new
         business rates since they are lower than the replacement rates.)
         Surrender charges may apply.

15.      WHAT IF THE PREMIUM ON THE OLD POLICY IS MORE THAN THE PREMIUM ON THE
         NEW POLICY?

         No new production credit or compensation is given.


                                       8
<Page>

16.      IF I HAVE A CUSTOMER WHO ALREADY HAS AN ALLSTATE OR LBL ANNUITY AND
         WISHES TO TRANSFER THE PREMIUM FROM THE EXISTING ANNUITY AND APPLY FOR
         AN ALLSTATE VARIABLE ANNUITY, DO I RECEIVE PRODUCTION CREDIT OR
         COMPENSATION? (SURRENDER CHARGES MAY APPLY.)

         Production credit and compensation is not paid on the amount
         transferred from an existing Allstate or LBL Annuity to any other
         Allstate or LBL Annuity (including the Allstate Variable Annuity).
         Production credit and compensation is paid on any new payments to the
         policy.

17.      AM I ABLE TO EARN A BONUS ON THE NEW PRODUCTS?

         Each of the new products can help you to qualify for a bonus and bonus
         is paid out on each of the new products as long as you have a valid
         Series 6 and 63 (if required) NASD license.

18.      HOW MUCH CREDIT IS APPLIED TOWARDS THE QUALIFYING PREMIUM AND BONUS
         BASE?

         On the LBL Variable Universal Life product, 100% of the First Year
         Commission Target Premium is applied to both the qualifying premium and
         the bonus base.

         On the Allstate Variable Annuity, the production credit (4% of initial
         and subsequent payments) is applied to the qualifying premium and 100%
         of the initial and subsequent payments are applied to the bonus base.

         On the Mutual Funds, the production credit (2% of the payments) is
         applied to the qualifying purchase and 100% of the broker-dealer
         commission is applied to the bonus base.

19.      WHAT IS THE DIFFERENCE BETWEEN BONUS BASE AND QUALIFYING PREMIUM?

         The qualifying premium is the premium that helps you achieve a bonus
         level. The bonus base is the premium that bonus is paid out on.

20.      HOW DO I DETERMINE WHAT BONUS LEVEL I ACHIEVE?

         The Bonus Level is determined by your TOTAL qualifying premium.
         Qualifying premium is the production credit earned on all products
         (Permanent, Term, Variable Universal Life, Variable Annuity, and Mutual
         Funds)

21.      DID BONUS LEVELS CHANGE AS A RESULT OF INCLUDING THESE NEW PRODUCTS?

         No. These new products will increase the potential for earning a higher
         bonus.


                                       9
<Page>

22.      WHAT ARE THE BONUS RATES FOR THE NEW PRODUCTS?

         The bonus rates are as follows:

<Table>
<Caption>

         -----------------------------------------------------------------------------------------------------------
                                            VARIABLE UNIVERSAL LIFE BONUS RATES
         -----------------------------------------------------------------------------------------------------------
             Level              Plan C             Plan E / Plan I          Countrywide            California
                                                                          Life Specialist        Life Specialist
         -------------- ----------------------- ---------------------- ---------------------- ----------------------
<S>          <C>                <C>                <C>                    <C>                    <C>

               1                 10%                     12%                    5%                     6%
         -------------- ----------------------- ---------------------- ---------------------- ----------------------
               2                 16%                     20%                    8%                     10%
         -------------- ----------------------- ---------------------- ---------------------- ----------------------
               3                 24%                     28%                    13%                    14%
         -------------- ----------------------- ---------------------- ---------------------- ----------------------
               4                 32%                     40%                    19%                    21%
         -------------- ----------------------- ---------------------- ---------------------- ----------------------
</Table>


<Table>
<Caption>


         -----------------------------------------------------------------------------------------------------------
                                           ALLSTATE VARIABLE ANNUITY BONUS RATES
         -----------------------------------------------------------------------------------------------------------
             Level                    Plan C / Life Specialists                           Plan E / Plan I
         -------------- ------------------------------------------------------- ------------------------------------
<S>          <C>                      <C>                                                 <C>

               1                                 .3%                                            .5%
         -------------- ------------------------------------------------------- ------------------------------------
               2                                 .5%                                           1.0%
         -------------- ------------------------------------------------------- ------------------------------------
               3                                 .8%                                           1.5%
         -------------- ------------------------------------------------------- ------------------------------------
               4                                 1.2%                                          2.0%
         -------------- ------------------------------------------------------- ------------------------------------
</Table>



<Table>
<Caption>


         -----------------------------------------------------------------------------------------------------------
                                                  MUTUAL FUND BONUS RATES*
         -----------------------------------------------------------------------------------------------------------
             Level                    Plan C / Life Specialists                           Plan E / Plan I
         -------------- ------------------------------------------------------- ------------------------------------
<S>          <C>                      <C>                                                 <C>

               1                                  4%                                            6%
         -------------- ------------------------------------------------------- ------------------------------------
               2                                  8%                                            12%
         -------------- ------------------------------------------------------- ------------------------------------
               3                                 12%                                            18%
         -------------- ------------------------------------------------------- ------------------------------------
               4                                 16%                                            24%
         -------------- ------------------------------------------------------- ------------------------------------
</Table>

         *NOTE: Bonus rates are a percentage of the broker-dealer commission for
         the Mutual Funds only.

                        LIFE SPECIALIST PRODUCTION BONUS
                                     EXAMPLE

QUALIFYING PREMIUM:
--------------------

VARIABLE UNIVERSAL LIFE          =        100% of Commission Target Premium
                                          plus 4 % of Excess

VARIABLE ANNUITY                 =        4% of Initial and Subsequent Payments


MUTUAL FUNDS                     =        2% of Purchases


                                       10
<Page>

            EXAMPLE BASED ON LIFE SPECIALIST QUALIFYING FOR LEVEL = 3

                (Qualifying Premium between $34,000 and $39,999)
<Table>
<Caption>


------------------------------- -------------------------- --------------------------- -------------------------------
PRODUCT                         PREMIUM/                    % APPLIED TO PRODUCTION     PRODUCTION CREDIT/QUALIFYING
                                PURCHASE                             CREDIT                       PREMIUM
------------------------------- -------------------------- --------------------------- -------------------------------
<S>                             <C>                         <C>                         <C>

Variable Universal Life                  $15,000                      100%                        $15,000
------------------------------- -------------------------- --------------------------- -------------------------------
Variable Annuity                        $400,000                      4.0%                        $16,000
------------------------------- -------------------------- --------------------------- -------------------------------
Mutual Fund                             $300,000                      2.0%                         $6,000
------------------------------- -------------------------- --------------------------- -------------------------------
                                                                                        Total:  $37,000
</Table>

BONUS BASE:
----------

VARIABLE UNIVERSAL LIFE = 100% of Commission Target Premium plus 4% of Excess
VARIABLE ANNUITY = 100% of Initial and Subsequent Payments
MUTUAL FUNDS = 100% of Broker-dealer commissions

<Table>
<Caption>

---------------------------- ------------------- --------------------- ---------------- --------------- --------------
          PRODUCT                 PREMIUM/          BROKER-DEALER        BONUS BASE       BONUS RATE        BONUS
                                  PURCHASE         COMMISSION RATE                                          PAID
---------------------------- ------------------- --------------------- ---------------- --------------- --------------
<S>       <C>                     <C>              <C>                   <C>              <C>              <C>

Variable Universal Life           $15,000                N/A               $15,000          13.0%          $1,950
---------------------------- ------------------- --------------------- ---------------- --------------- --------------
Variable Annuity                  $400,000               N/A              $400,000           0.8%          $3,200
---------------------------- ------------------- --------------------- ---------------- --------------- --------------
Mutual Fund                       $300,000              5.0%*             $15,000**         12.0%          $1,800
---------------------------- ------------------- --------------------- ---------------- --------------- --------------
                                                                                                     Total $6,950
</Table>


* Broker-dealer commission rates vary within Funds. The 5.0% shown is strictly
an example
** Deposit x broker-dealer commission rate ($300,000 x 5.0%)

NOTE: IF THE LIFE SPECIALIST QUALIFIED FOR CONSISTENCY, THE BONUS PAID WOULD
INCREASE BY $3,100, BECAUSE PAYOUTS ARE AT LEVEL 4 BONUS RATES.

23.      CAN I EARN A CONSISTENCY BONUS ON THE NEW PRODUCTS?

         Yes. Life Specialists and agents, on Quarterly Bonus, who achieve bonus
         level production on a consistent basis, are rewarded with a Consistency
         Incentive as part of the Quarterly Bonus payout. To qualify for a
         consistency bonus, you must earn a bonus in the current quarter, have
         achieved a bonus in at least two of the last three quarters.


                                       11
<Page>

24.      WHAT ARE THE CONSISTENCY BONUS RATES?

         When you achieve a consistency bonus, your bonus payout is calculated
         utilizing the next level bonus rates. If you achieve level 4 and the
         consistency bonus, your bonus payout is based on the following:

         LBL VARIABLE UNIVERSAL LIFE IS AN EXTRA 5%.
         ALLSTATE VARIABLE ANNUITY IS AN EXTRA .3% FOR PLAN C AND LIFE
         SPECIALISTS AND .5% FOR PLAN E AND PLAN I. MUTUAL FUNDS ARE AN EXTRA 4%
         FOR PLAN C AND LIFE SPECIALISTS AND 6% FOR PLAN E AND PLAN I.

25.      ARE THE NEW\V PRODUCTS INCLUDED IN MY PERSISTENCY?

         The LBL Variable Universal Life product is included in the 48-month
         Life Persistency (LPF); however, the Allstate Variable Annuity and
         Mutual Funds are not included.

26.      IF I AM ON THE COMPENSATION OPTION FOR BONUS, IS MY COMP RATE THE SAME
         AS IT IS ON ALL OTHER PRODUCTS?

         Yes. Your comp rate on the LBL Variable Universal Life is as follows:
<Table>
<Caption>

                      ------------------------------------ --------------------
                            AGREEMENT                         LS COMP OPTION
                      ------------------------------------ --------------------
                      <S>                                     <C>

                      R830 and R1500                                6%
                      ------------------------------------ --------------------
                      R3000 and R3001                               8%
                      ------------------------------------ --------------------
</Table>

         NOTE: Annuities and Mutual Funds do not apply.

27.      ARE THE NEW PRODUCTS INCLUDED IN MY RETENTION BONUS?

         The LBL Variable Universal Life product is eligible for Retention
         Bonus; however, the Allstate Variable Annuity and Mutual Funds are not.

28.      DO THE NEW PRODUCTS COUNT TOWARDS CROSS LINE SALES?

         Yes. The LBL Universal Life, the Allstate Variable Annuity, and the
         Mutual Funds are included in Cross Line Sales.

29.      CAN THE NEW PRODUCTS HELP ME TO ACHIEVE MY YEAR END AWARDS?

         Yes. The LBL Universal Life, the Allstate Variable Annuity, and the
         Mutual Funds are included in all current awards.

30.      WHAT IS THE "FAST START BONUS"?

         The "Fast Start Bonus" is an additional bonus paid on sales of
         registered products (variable annuities, mutual funds, and variable
         universal life) during the first two full


                                       12
<Page>

         calendar quarters after a region completes their rollout for AFA.
         The "Fast Start Bonus" is paid only to agents who produce at the
         quarterly bonus qualification levels. It does not matter whether you
         elected the annual or quarterly life production bonus option. If you
         produce at the quarterly qualification level, the bonus paid on
         registered products will be increased by 50%!

         BONUS EXAMPLE:

<Table>
<Caption>


                                                               Fast                        Fast          Total
                                                 Qtr 1         Start         Qtr 2         Start       Fast Start
                                                 Bonus         Bonus         Bonus         Bonus         Bonus
                                                 -----         -----         -----         -----         -----
<S>                                              <C>           <C>           <C>           <C>         <C>

         Registered Products                     $1,200         $600         $1,800         $900          $1,500
         Non-Registered Products                  1,200          ---          1,300          ---             ---
         Total                                    2,400          600          3,100          900           1,500
</Table>

         The "Fast Start Bonus" will be paid at the end of each quarter. Agents
         on the annual bonus option will continue to receive their regular
         production bonus in July.

31.      AS A REGISTERED REP CAN I PURCHASE MUTUAL FUNDS AT NAV?

         Yes, registered reps can purchase mutual funds at NAV (net asset
         value). Commissions and production credit will not be calculated on
         funds purchased at NAV.

32.      WILL I STILL RECEIVE COMMISSIONS ON THE LBL INVESTOR'S SELECT VARIABLE
         ANNUITIES THAT WERE SOLD PRIOR TO THE INTRODUCTION OF AFA REGISTERED
         PRODUCTS?

         You will continue to receive commissions from LBL for the existing LBL
         VA business that was sold prior to AF A registered products becoming
         available for sale in your region. As in the past, these commissions
         will not be included in production credit, awards, or benefit
         calculations.

33.      CAN EXISTING SECURITIES BUSINESS THAT WAS WRITTEN PRIOR TO AFFILIATION
         WITH ALLSTATE BE TRANSFERRED TO LSA?

         We will allow transfers of existing business with which LSA has a
         selling agreement, however, there is no guarantee that the transferring
         firm will release the funds. There may also be a transfer fee assessed
         and the registered rep will be responsible for payment. We are
         providing this opportunity to our registered representative in order to
         assist them in servicing their existing customer block.

         NOTE THAT NO NEW CUSTOMERS CAN BE SOLD PRODUCTS OUTSIDE OF THE AFA
         GROUP OF PRODUCT OFFERINGS. COMPENSATION ON TRANSFERRED BUSINESS
         EXCLUDING THE AFA MUTUAL FUND FAMILIES WILL BE PAID AT 50% OF THE
         AMOUNT RECEIVED BY LSA AND NO PRODUCTION CREDIT WILL BE GIVEN.
         TRANSFERS WITHIN OUR FIVE MUTUAL FUND FAMILIES WILL RECEIVE TRAILING
         COMMISSIONS UNDER THE COMMISSION RATE ESTABLISHED FOR AFA. NEW PAYMENTS
         WILL RECEIVE PRODUCTION CREDIT FOR AWARDS AND BONUS.


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<Page>

AS OF AUGUST 1, 1999, THERE ARE 19 INSURANCE CARRIERS WHO HAVE SELLING
AGREEMENTS WITH LSA SECURITIES, INC. THEY ARE AS FOLLOWS:

<Table>
<Caption>

<S>                                           <C>                                           <C>

Allstate Life Insurance Company               Allianz Life                                  American Scandia
Fortis Financial                              Glenbrook Life                                Guardian Life
Harford Life Ins.                             Jackson National                              Life of Virginia
Security Life of Denver                       Pacific Life                                  Phoenix Home Life
Transamerica Life and Annuity                 Sun Life Assurance Life & Annuity             Sun America Life
Mass Mutual (formerly Conn. Mutual)


THE FOLLOWING FUND FAMILIES ALSO HAVE SELLING AGREEMENTS WITH LSA SECURITIES,
INC.:

<Caption>
<S>                                   <C>                                   <C>

AIM Funds                             Alger Funds                           Alliance Funds
Aquila Management                     Calvert Group                         American Funds
Chase Vista Funds                     Colonial Mutual Funds                 Davis Funds
Delaware Funds                        Dreyfus Funds                         Eaton Vance Funds
Evergreen Funds/Keystone              Federated/Liberty                     Fidelity Advisor
Fortis Investors                      FPA Funds                             Franklin/Templeton
GAM Funds                             Guardian Park Avenue                  John Hancock
IDEX Funds                            Kemper Funds                          Lord Abbett
MFS Funds                             Morgan Stanley/Dean Witter            Phoenix Funds
Pilgrim American                      Pioneer Funds                         Putnam Funds
Seligman Funds                        Sun America                           Thornburg Funds
Van Eck Funds                         Van Kampen
</Table>


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