Common use of Pro Forma Statements Clause in Contracts

Pro Forma Statements. (i) Sellers have previously delivered to Purchaser pro forma financial statements (consisting of balance sheets and statements of income) of each of Lincoln Life and Lincoln Barbados with respect to the Business as of and for the year ended December 31, 2000 (respectively, the “Lincoln Life Pro Forma Statements” and the “Lincoln Barbados Pro Forma Statements” and together, the “Pro Forma Statements”) in each case, accompanied by supporting documentation. (ii) Except as set forth on Schedule 3.12(b), the Pro Forma Statements present fairly, in all material respects, the financial condition and results of operations of the Business within Lincoln Life, LAL and Lincoln Barbados as of and for the year ended December 31, 2000 in accordance with SAP and in a manner consistent with the methodologies utilized in preparing Lincoln Life’s, LAL’s and Lincoln Barbados’s 2000 Statutory Statements. (iii) The reserves reflected on the Pro Forma Statements as of the date specified in such statements (A) were determined in accordance with generally accepted actuarial principles, consistently applied, (B) were based on actuarial assumptions that were reasonable in relation to relevant policy and contract provisions, (C) are in compliance with SAP, (D) were prepared using methodologies consistent with those utilized in the preparation of the 2000 Statutory Statements of Lincoln Life, LAL and Lincoln Barbados (it being understood by Purchaser that in making the representation and warranty in this Section 3.12(b)(iii) Sellers are not representing and warranting that the reserves referred to therein have been or will be sufficient or adequate for the purposes for which they were established or that reinsurance recoverables taken into account in determining the amount of such reserves will be collectible).