Common use of INTERNAL REPLACEMENTS Clause in Contracts

INTERNAL REPLACEMENTS. The Company shall request, on five (5) Business Days' written notice to the Reinsurer, the right to issue an Internal Replacement upon exchange of Reinsured SPDAs. Any Reinsured SPDA that is surrendered or exchanged in connection with an Internal Replacement shall be treated as surrendered and the Reinsurer shall pay to the Company, in accordance with Sections 7.01(a)(ii) and 8.01(b), an amount equal to 99% of the Surrender Value as of the date of such exchange in respect of such Reinsured SPDA. The other annuity or insurance contract to which a Reinsured SPDA is converted or for which it is exchanged as an Internal Replacement, shall not be a Reinsured SPDA under this Agreement." 6. This Amendment No. 2 shall be effective when executed and delivered by the parties hereto. 7. Except as amended and modified by this Amendment No. 2, all other terms of the Coinsurance Agreement shall remain unchanged. 8. This Amendment No. 2 may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument. 9. This Amendment No. 2 shall be governed by the laws of the State of Maryland, without giving effect to principles of conflicts of law thereof.