Common use of Exercise of Recapture Rights Clause in Contracts

Exercise of Recapture Rights. To effect a recapture under Section 10.3(e), Ceding Company must provide Reinsurer with at least ninety (90) days prior written notice of its election to recapture all of the Reinsured Liabilities. The effective date of the recapture must be coincident with the end of a calendar quarter. On or before the effective date of the recapture, Reinsurer shall return to Ceding Company all books, records, statements, correspondence, reports and other documents relating to the Annuity Contracts, the Reinsured Liabilities and the administration of the same pursuant to this Agreement and the Administrative Services Agreement. Following the consummation of any recapture of Reinsured Liabilities pursuant to Section 10.3(e), no additional premiums or business shall be ceded by Ceding Company to Reinsurer. Upon recapture, Reinsurer shall pay Ceding Company an amount equal to the then current reserves related to the Business maintained by Reinsurer plus a recapture fee in the amount of the lesser of (i) One Million Dollars ($1,000,000) or (ii) five percent (5%) of the Security Trust Base Amount.