Common use of Sale of Contracts Clause in Contracts

Sale of Contracts. Section 5.1 of the Participation Agreement is hereby replaced with the following: The Company shall be fully responsible as to the Trust and the Distributor for the sale and marketing of the Contracts. The Company shall provide Contracts, the Contracts’ and Trust’s Prospectuses, Contracts’ and Trust’s Statements of Additional Information, and all amendments or supplements to any of the foregoing to Contract Owners and prospective Contract [page break] Owners, all in accordance with federal and state laws. For the avoidance of doubt, the Company may provide Contract Owners and potential Contract Owners with a Summary Prospectus in lieu of a Statutory Prospectus in accordance with applicable law. The Company shall ensure that all persons offering the Contracts are duly licensed and registered under applicable insurance and securities laws. The Company shall ensure that each sale of a Contract satisfies applicable suitability requirements under insurance and securities laws and regulations, including without limitation the rules of the NASD. The Company shall adopt and implement procedures reasonably designed to ensure that information concerning the Trust and the Distributor that is intended for use only by brokers or agents selling the Contracts (i.e., information that is not intended for distribution to Contract Owners or offerees) is so used.