Common use of Rebating Clause in Contracts

Rebating. If Broker/Dealer or any Registered Representative of Broker/Dealer rebates or offers to rebate all or any part of a premium on an Insurance Policy issued by the Insurance Company in violation of applicable state insurance laws or regulations, or if Broker/Dealer or any Registered Representative of Broker/Dealer shall withhold any premium on an Insurance Policy issued by the Insurance Company, the same may be grounds for termination of this agreement by Underwriter. If Broker/Dealer induces or attempts to induce any Insurance Policy owner to relinquish an Insurance Policy except under circumstances where there is reasonable grounds for believing the policy, contract or certificate is not suitable for such person, Broker-Dealers right to receive any compensation under this agreement shall cease and terminate. COMMISSION SCHEDULE FOR ANNUITY CONTRACTS This Schedule is attached to and is made a part of this agreement. In no event will FSL be liable for the payment of any compensation with respect to any solicitation made, in whole or in part, by any person not appropriately licensed to conduct such activities. The compensation arrangements described below shall govern commission payouts. Commission will be paid in accordance with instructions received from Broker/Dealer. 1. Commissions based on premium payments will be based only on premium actually received and accepted by the Insurance Company. 2. No commission will be earned on the initial exchange of any FSL contract. Subsequent premium payments will, as permitted by law be eligible for commission payments. 3. The Insurance Company reserves the right to reduce first year commissions and renewal commissions if necessary, on any annuity contracts sold to residents of any jurisdiction which imposes new, and/or additional premium or similar taxes or charge. In such event, the Insurance Company will notify Broker/Dealer.

Rebating. If Broker/Dealer Selling Entity or any Registered Representative of Broker/Dealer rebates or offers to rebate all or any part of a premium on an Insurance Policy issued by the Insurance Company in violation of applicable state insurance laws or regulations, or if Broker/Dealer Selling Entity or any Registered Representative of Broker/Dealer shall withhold any premium on an Insurance Policy issued by the Insurance Company, the same may be grounds for termination of this agreement by Underwriter. If Broker/Dealer Selling Entity induces or attempts to induce any Insurance Policy owner to relinquish an Insurance Policy except under circumstances where there is reasonable grounds for believing the policy, contract or certificate is not suitable for such person, Broker-Dealers Selling Entity's right to receive any compensation under this agreement shall cease and terminate. COMMISSION SCHEDULE FOR ANNUITY CONTRACTS This Schedule is attached to and is made a part of this agreement. In no event will FSL be liable for the payment of any compensation with respect to any solicitation made, in whole or in part, by any person not appropriately licensed to conduct such activities. The compensation arrangements described below shall govern commission payouts. Commission will be paid in accordance with instructions received from Broker/DealerSelling Entity. 1. Commissions based on premium payments will be based only on premium actually received and accepted by the Insurance Company. 2. No commission will be earned on the initial exchange of any FSL contract. Subsequent premium payments will, as permitted by law be eligible for commission payments. 3. The Insurance Company reserves the right to reduce first year commissions and renewal commissions if necessary, on any annuity contracts sold to residents of any jurisdiction which imposes new, and/or additional premium or similar taxes or charge. In such event, the Insurance Company will notify Broker/DealerSelling Entity.