WITH RESPECT ITS ACTIVITIES UNDER THIS AGREEMENT.
ALFS SHALL MAKE SUCH
RECORDS OF ACCOUNT AVAILABLE FOR INSPECTION BY THE SEC AND LBL SHALL HAVE THE
RIGHT TO INSPECT, MAKE COPIES OF OR TAKE POSSESSION OF SUCH RECORDS AND BOOKS OF
ACCOUNT AT ANY TIME UPON DEMAND.
3.02.
SUBJECT TO APPLICABLE SEC OR NASD RESTRICTIONS, LBL WILL SEND
CONFIRMATIONS OF CONTRACT TRANSACTIONS TO CONTRACT OWNERS.
LBL WILL MAKE SUCH
CONFIRMATIONS AND RECORDS OF TRANSACTIONS AVAILABLE TO ALFS UPON REQUEST.
LBL
WILL ALSO MAINTAIN CONTRACT OWNER RECORDS ON BEHALF OF ALFS TO THE EXTENT
PERMITTED BY APPLICABLE SECURITIES LAW.
3.03.
ALFS AND LBL SHALL KEEP CONFIDENTIAL THE RECORDS, BOOKS OF ACCOUNT
AND OTHER INFORMATION ("RECORDS") CONCERNING THE CONTRACT OWNERS, ANNUITANTS,
INSUREDS, BENEFICIARIES OR ANY PERSONS WHO HAVE RIGHTS ARISING OUT OF THE
CONTRACTS.
ALFS OR LBL MAY DISCLOSE THE RECORDS AND SUCH INFORMATION ONLY IF
THE OTHER HAS AUTHORIZED DISCLOSURE AND IF THE DISCLOSURE IS REQUIRED BY
APPLICABLE LAW.
IN THE EVENT ALFS OR LBL IS SERVED WITH A SUBPOENA, COURT ORDER
OR DEMAND FROM A REGULATORY ORGANIZATION WHICH MANDATES DISCLOSURE OF THE
RECORDS OR SUCH INFORMATION, SUCH PARTY MUST NOTIFY THE OTHER AND ALLOW SUCH
OTHER PARTY SUFFICIENT TIME TO AUTHORIZE DISCLOSURE OR TO INTERVENE IN THE
JUDICIAL PROCEEDING OR MATTER SO AS TO PROTECT ITS INTEREST.
3.04.
FOR THE PURPOSE OF DETERMINING THE OTHER PARTY'S COMPLIANCE WITH
THIS AGREEMENT, EACH PARTY TO THIS AGREEMENT SHALL HAVE REASONABLE ACCESS DURING
NORMAL BUSINESS HOURS TO ANY RECORDS WHICH ARE MAINTAINED BY THE OTHER PARTY.
3.05.
BOTH LBL AND ALFS AGREE TO KEEP ALL INFORMATION REQUIRED BY
APPLICABLE LAWS, TO MAINTAIN THE BOOKS, ACCOUNTS AND RECORDS AS TO CLEARLY AND
ACCURATELY DISCLOSE THE PRECISE NATURE AND DETAILS OF THE TRANSACTION AND TO
ASSIST ONE ANOTHER IN THE TIMELY PREPARATION OF ANY REPORTS REQUIRED BY LAW.
3.06.
ALFS AND LBL SHALL FURNISH TO THE OTHER ANY REPORTS AND INFORMATION
WHICH THE OTHER MAY REQUEST FOR THE PURPOSE OF MEETING REPORTING AND
RECORDKEEPING REQUIREMENTS UNDER THE LAWS OF NEBRASKA OR ANY OTHER STATE OR
JURISDICTION.
3
ARTICLE IV.
SALES MATERIALS
4.01.
ALFS WILL UTILIZE THE CURRENTLY EFFECTIVE PROSPECTUS RELATING TO
THE CONTRACTS IN CONNECTION WITH ITS UNDERWRITING, MARKETING AND DISTRIBUTION
EFFORTS.
AS TO OTHER TYPES OF SALES MATERIAL, ALFS HEREBY AGREES AND WILL
REQUIRE SELLING BROKER-DEALERS TO AGREE TO USE ONLY SALES MATERIALS WHICH HAVE
BEEN AUTHORIZED FOR USE BY LBL, WHICH CONFORM TO THE REQUIREMENTS OF FEDERAL AND
STATE LAWS AND REGULATIONS, AND WHICH HAVE BEEN FILED WHERE NECESSARY WITH THE
APPROPRIATE REGULATORY AUTHORITIES INCLUDING THE NASD.
4.02.
ALFS WILL NOT DISTRIBUTE ANY PROSPECTUS, SALES LITERATURE OR ANY
OTHER PRINTED MATTER OR MATERIAL IN THE UNDERWRITING AND DISTRIBUTION OF ANY
CONTRACT IF, TO THE KNOWLEDGE OF ALFS, ANY OF THE FOREGOING MISSTATES THE
DUTIES, OBLIGATION OR LIABILITIES OF LBL OR ALFS.
ARTICLE V.
COMPENSATION
5.01.
LBL AGREES TO REIMBURSE ALFS FOR DIRECT EXPENSES INCURRED BY ALFS
ON BEHALF OF LBL.
SUCH DIRECT EXPENSES SHALL INCLUDE, BUT NOT BE LIMITED TO,
(A) THE MARKETING