Common use of Commutation Clause in Contracts

Commutation. A. This Agreement shall be commuted at one hundred twenty (120) months from the expiration or termination of this Agreement, or earlier as mutually agreed by the Company and the Reinsurers (the “Commutation Date”). B. Upon the Commutation Date, 1. the Reinsurers shall pay to the Company the present value of ceded Ultimate Net Loss outstanding and Incurred But Not Reported Ultimate Net Loss and any Ceding Commission adjustment along with special interest, calculated in accordance with the Article entitled CEDING COMMISSION as of the Commutation Date, utilizing an annual effective interest rate of three percent (3%); 2. the Company shall pay to the Reinsurers one hundred percent (100%) of the balance of the Funds Held Account, which may be held in either a Segregated Account or Trust Account, as applicable, at the Commutation Date. If funds are held in a Segregated Account, any amount remaining in the Segregated Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be retained by the Company; if funds are held in a Trust Account, any amount remaining in the Trust Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be returned to the Company. C. If the Reinsurers and the Company are not able to agree on such present value determination, such calculation shall be performed by an independent actuarial firm as mutually agreed by the Company and the Reinsurers. If the parties cannot mutually agree on an independent actuarial firm, each party shall nominate one firm and the decision shall be made by drawing lots. The cost of such actuarial firm will be split evenly between the Company and the Reinsurers. D. Upon Commutation, the Company and the Reinsurers shall receive a full and final release of all current and future liability under this Agreement.

Commutation. (As respects Workers’ Compensation Claims) A. This Agreement shall be commuted at one hundred twenty No later than eighty four (12084) months from following the expiration or termination of this AgreementContract, or earlier the Company will submit a statement to the Reinsurers listing amounts paid, and reserves, in respect of the excess portion of all known Workers’ Compensation claims which occurred during the term of this Contract and which are not finally settled and are likely to result in claims under this Contract. This statement will form the basis of a final agreed present value for the excess portion of all such losses reinsured under this Contract should both parties mutually agree to commute the Workers’ Compensation coverage part of this Contract. B. In determining the present value of said losses in excess of the retention, the Company will first calculate the undiscounted value excess of the retention, subject to the maximum amount of liability as mutually agreed by provided in the Contract. The Company will then calculate the present value of that portion of the undiscounted Loss that exceeds the retention for those losses in accordance with generally accepted actuarial practices. C. If, upon receipt of such statement from the Company, there is mutual agreement between the Company and the Reinsurers (the “Commutation Date”). B. Upon the Commutation Date, 1. the Reinsurers shall pay as to the Company the present value of ceded Ultimate Net Loss outstanding said losses, the Reinsurers will pay the agreed amount in excess of the retention and Incurred But Not Reported Ultimate Net Loss subject to the maximum amount of liability as provided in each layer of coverage provided within this Contract. In the absence of mutual agreement as to the present value of said losses, the sole remedy to resolve disputes involving the determination of the present value of said losses will be as follows. D. The Reinsurers, or the Company, will request in writing that any difference be settled by a panel of three (3) actuaries, one to be chosen by each party and the third by the two (2) so chosen. E. If either party refuses or neglects to appoint an actuary within thirty (30) days after the Reinsurers’ or Company’s request in writing that the differences be settled by a panel of three (3) actuaries, the other party will appoint two (2) actuaries. All the actuaries will be regularly engaged in the evaluation of Workers’ Compensation claims and will be Fellows of the Casualty Actuarial Society or of the American Academy of Actuaries. None of the actuaries will be under the control of either party to this Contract. F. Each party will submit its case to the actuary within thirty (30) days of the appointment of the third actuary. The decision in writing of any Ceding Commission adjustment along with special interesttwo (2) actuaries, calculated in accordance when filed with the Article entitled CEDING COMMISSION as parties hereto, will be final and binding on both parties. The expense of the Commutation Date, utilizing an annual effective interest rate of three percent (3%); 2. the Company shall pay to the Reinsurers one hundred percent (100%) actuaries and of the balance of commutation will be equally divided between the Funds Held Accounttwo (2) parties. Said commutation will take place in Xxxxxx Barre, which may be held in either a Segregated Account or Trust AccountPennsylvania, as applicable, at the Commutation Date. If funds are held in a Segregated Account, any amount remaining in the Segregated Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be retained by the Company; if funds are held in a Trust Account, any amount remaining in the Trust Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be returned to the Company. C. If the Reinsurers and the Company are not able to agree on such present value determination, such calculation shall be performed by an independent actuarial firm as unless some other place is mutually agreed upon by the Company and the Reinsurers. If the parties cannot mutually agree on an independent actuarial firm, each party shall nominate one firm and the decision shall be made by drawing lots. The cost of such actuarial firm will be split evenly between the Company and the Reinsurers. D. Upon CommutationG. The Reinsurers’ proportion of the amounts so determined will be considered the amount of Loss hereunder, the Company and the payment thereof by the Reinsurers shall receive will constitute a full and final complete release of all current and future the Reinsurers of their liability under this Agreementfor such Loss or losses.

Commutation. A. By mutual agreement, after termination of the Agreement the Company shall submit a statement to the Reinsurer listing amounts paid, and reserves, in respect of all incurred losses known, and reported to the Company subject to this Agreement. This Agreement statement shall form the basis of a final agreed value for all such losses. The amounts of reserves contained therein shall be commuted at determined by employing one hundred twenty (120) months from or more of the expiration following alternatives: A. A calculation based on the following criteria: 1. In respect of all "index linked" benefits, annuity values shall be calculated based upon annual discount of 0%, and an annual escalation of 0%. 2. In respect of all un-indexed benefits, annuity values shall be calculated based upon annual discount of 4%. 3. In respect of all future medical costs, annuity calculation shall be based upon the Company's evaluation of long term medical care and rehabilitation requirements, using an annual discount of 0% and an annual escalation of 0%. 4. Where applicable, survivor's life expectancy as well as remarriage probability shall be reflected in the calculation by employing tables recommended by a mutually acceptable actuarial consultant. B. Any other method of calculating the agreed value of one or termination of this Agreementmore losses, or earlier as mutually agreed by between the Company and the Reinsurers (Reinsurer. Such calculation shall be considered the “Commutation Date”). B. Upon final and agreed value of all known losses subject to this Agreement and the Commutation Date, 1. the Reinsurers resulting loss, if any, shall pay to be accepted by the Company in full settlement of the Reinsurer's liability for all such losses. Notwithstanding, if the Reinsurer and the Company cannot reach a settlement by mutual agreement, then the Reinsurer and the Company shall mutually appoint an independent actuary who shall investigate, determine and capitalize the present value of ceded Ultimate Net Loss outstanding and Incurred But Not Reported Ultimate Net Loss and any Ceding Commission adjustment along with special interest, calculated in accordance with such unsettled claims under the Article entitled CEDING COMMISSION as excess layer. Cost of the Commutation Date, utilizing an annual effective interest rate of three percent (3%); 2. the Company shall pay to the Reinsurers one hundred percent (100%) of the balance of the Funds Held Account, which may be held in either a Segregated Account or Trust Account, as applicable, at the Commutation Date. If funds are held in a Segregated Account, any amount remaining in the Segregated Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, independent actuary shall be retained shared on an equal basis by the Company; if funds are held in a Trust Account, any amount remaining in the Trust Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be returned to Reinsurer and the Company. C. If . In the Reinsurers event the Reinsurer and the Company are not able to agree on such present value determination, such calculation shall be performed by an independent actuarial firm as mutually agreed by the Company and the Reinsurers. If the parties cannot mutually agree reach an agreement on an independent actuarial firmactuary, each party shall nominate one firm appoint an actuary. The two chosen actuaries shall then select a third actuary. If either party refuses or neglects to appoint an actuary within 30 days after settlement cannot be reached, the requesting party may appoint a second actuary. If the two actuaries fail to agree on the selection of a third actuary within 30 days after their appointment, each of them shall name three individuals, of whom the other shall decline two, and the decision shall be made by drawing lots. All actuaries selected by drawing lots shall be disinterested in the outcome of the commutation and shall be a Fellow of Society of Actuaries/Fellow of the Casualty Actuarial Society or an Associate of Society of Actuaries/Associate of Casualty Actuarial Society. The cost decision in writing of such actuarial firm any two actuaries, when filed with the parties hereto, will be split evenly final and binding on both parties. The expenses of the actuaries and of the commutation shall be equally divided between the Company and two parties. Any payment by the Reinsurers. D. Upon Commutation, the Company and the Reinsurers Reinsurer under this Article shall receive constitute a full and final complete release of all current and future the Reinsurer for their liability under this Agreementthe excess layer(s) commuted as respects such claim.

Commutation. A. This Agreement The Company and the Reinsurer may commute outstanding case reserves only by mutual consent. The Company shall submit a statement to the Reinsurer listing payments and case reserves in respect of all incurred losses reported to the Company subject to this Agreement. The statement shall form the basis of an agreed value for such case reserves. The net present value of case reserves contained therein shall be commuted at determined by employing one hundred twenty (120) months from or more of the expiration following alternatives: A. Calculation based on the following criteria: 1. In respect of all “index linked” benefits, annuity values shall be calculated based upon annual discount of 0%, and an annual escalation of 0%. 2. In respect of all un-indexed benefits, annuity values shall be calculated based upon annual discount of 4%. 3. In respect of all future medical costs, annuity calculation shall be based upon the Company’s evaluation of long term medical care and rehabilitation requirements, using an annual discount of 0% and an annual escalation of 0%. 4. Where applicable, survivor’s life expectancy as well as remarriage probability shall be reflected in the calculation by employing tables recommended by a mutually acceptable actuarial consultant. B. Any other method of calculating the agreed net present value of one or termination of this Agreementmore case reserves, or earlier as mutually agreed between the Company and the Reinsurer. Such calculation, if and when agreed by the Company and the Reinsurers (Reinsurer, shall be considered the “Commutation Date”). B. Upon final and agreed value of all commuted case reserves subject to this Agreement and the Commutation Date, 1. resulting payment by the Reinsurers Reinsurer shall pay to be accepted by the Company in full settlement of the Reinsurer’s liability for all such commuted case reserves. If agreement cannot be reached, the effort will be abandoned or, alternatively, if the Reinsurer and the Company agree to do so, then the Company shall mutually appoint an independent actuary who shall investigate, determine, and capitalize the net present value of ceded Ultimate Net Loss outstanding and Incurred But Not Reported Ultimate Net Loss and any Ceding Commission adjustment along with special interest, calculated in accordance with the Article entitled CEDING COMMISSION as such unsettled claims. The cost of the Commutation Date, utilizing an annual effective interest rate of three percent (3%); 2. the Company shall pay to the Reinsurers one hundred percent (100%) of the balance of the Funds Held Account, which may be held in either a Segregated Account or Trust Account, as applicable, at the Commutation Date. If funds are held in a Segregated Account, any amount remaining in the Segregated Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, independent actuary shall be retained shared on an equal basis by the Company; if funds are held in a Trust Account, any amount remaining in the Trust Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be returned to Reinsurer and the Company. C. If . In the Reinsurers event the Reinsurer and the Company are cannot able reach an agreement on an independent actuary but agree to arbitration of the net present value of outstanding losses, then each party shall appoint an actuary. If either party refuses or neglects to appoint an actuary within 30 days after settlement cannot be reached, the arbitration will be abandoned. The two chosen actuaries shall then select a third actuary. If the two actuaries fail to agree on such present value determination, such calculation shall be performed by an independent actuarial firm as mutually agreed by the Company and the Reinsurers. If the parties cannot mutually agree on an independent actuarial firmselection of a third actuary within 30 days after their appointment, each party of them shall nominate one firm name three individuals, of whom the other shall decline two, and the decision shall be made by drawing lots. All actuaries, selected by drawing lots, shall be regularly engaged in the valuation of Workers’ Compensation claims and shall be disinterested in the outcome of the commutation and shall be a Fellow of Society of Actuaries/Fellow of the Casualty Actuarial Society or an Associate of Society of Actuaries/Associate of Casualty Actuarial Society. The cost decision in writing of such actuarial firm any two actuaries, when filed with the parties hereto, will be split evenly final and binding on both parties. The expenses of the actuaries and of the commutation shall be equally divided between the Company and two parties. Any payment by the Reinsurers. D. Upon Commutation, the Company and the Reinsurers Reinsurer under this Article shall receive constitute a full and final complete release of all current and future the Reinsurer for their liability under this Agreementthe excess layer(s) commuted as respects such claim.

Commutation. A. This Agreement shall be commuted at one hundred twenty (120) months from Not later than two years after the expiration or termination of this AgreementContract, or earlier as mutually agreed by the Company shall advise the Reinsurer of all claims, both reported and unreported, for the term of this Contract not finally settled which are likely to result in a claim under this Contract. If both parties desire to commute all claims, then within 60 days after such agreement, the Company and the Reinsurers (Reinsurer or their respective representatives shall, by mutual agreement, determine and capitalize such claims. Payment by the “Commutation Date”)Reinsurer of its proportion of the amount or amounts, so mutually agreed, shall constitute a complete and final release of the Reinsurer of all claims, both reported and unreported, under this Contract, and the Reinsurer shall have no further liability for any claims under this Contract. B. Upon If agreement cannot be reached, the Commutation Date, 1Company and the Reinsurer shall mutually appoint an actuary or appraiser to investigate, determine and capitalize such claims. If both parties then agree, the Reinsurers Reinsurer shall pay its proportion of the amount so determined to be the Company the present capitalized value of ceded Ultimate Net Loss outstanding and Incurred But Not Reported Ultimate Net Loss and any Ceding Commission adjustment along with special interest, calculated in accordance with the Article entitled CEDING COMMISSION as of the Commutation Date, utilizing an annual effective interest rate of three percent (3%); 2. the Company shall pay to the Reinsurers one hundred percent (100%) of the balance of the Funds Held Account, which may be held in either a Segregated Account or Trust Account, as applicable, at the Commutation Date. If funds are held in a Segregated Account, any amount remaining in the Segregated Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be retained by the Company; if funds are held in a Trust Account, any amount remaining in the Trust Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be returned to the Companysuch claims. C. If the Reinsurers parties fail to agree, then any difference shall be settled by a panel of three actuaries, one to be chosen by each party and the Company are not able third by the two so chosen. If either party refuses or neglects to appoint an actuary within 60 days, the other party may appoint two actuaries. If the two actuaries fail to agree on such present value determination, such calculation shall be performed by an independent actuarial firm as mutually agreed by the Company and the Reinsurers. If the parties cannot mutually agree on an independent actuarial firmselection of a third actuary within 60 days of their appointment, each party of them shall nominate name two, of whom the other shall decline one firm and the decision shall be made by drawing lots. All the actuaries shall be regularly engaged in the valuation of Surety reinsurance claims and shall be Fellows of the Casualty Actuarial Society or of the American Academy of Actuaries. None of the actuaries shall be under the control of either party to this Contract. D. Each party shall submit its case to its actuary within 60 days of the appointment of the third actuary. The cost decision in writing of such actuarial firm will any two actuaries, when filed with the parties hereto, shall be split evenly final and binding on both parties. The expense of the actuaries and of the commutation shall be equally divided between the two parties. Said commutation shall take place in Los Angeles, California, unless some other place is mutually agreed upon by the Company and the ReinsurersReinsurer. D. Upon Commutation, E. This Commutation Clause shall survive the Company and the Reinsurers shall receive a full and final release termination of all current and future liability under this AgreementContract.

Commutation. A. This Agreement As respects all losses, known or unknown, that may cause a claim under this Contract, the losses shall be commuted at one hundred twenty (120) months from two years after the expiration or termination date of this AgreementContract. As promptly as possible after such date, or earlier as mutually agreed by the Company and shall submit a statement of valuation of the Reinsurers (outstanding claim or claims showing the “Commutation Date”)elements considered reasonable to establish the commutation amount, and, if the Reinsurer concurs with the Company’s calculation, it shall promptly pay the amount requested. B. Upon the Commutation Date, 1. the Reinsurers shall pay to the Company the present value of ceded Ultimate Net Loss outstanding and Incurred But Not Reported Ultimate Net Loss and any Ceding Commission adjustment along with special interest, calculated in accordance with the Article entitled CEDING COMMISSION as of the Commutation Date, utilizing an annual effective interest rate of three percent (3%); 2. the Company shall pay to the Reinsurers one hundred percent (100%) of the balance of the Funds Held Account, which may be held in either a Segregated Account or Trust Account, as applicable, at the Commutation Date. If funds are held in a Segregated Account, any amount remaining in the Segregated Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be retained by the Company; if funds are held in a Trust Account, any amount remaining in the Trust Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be returned to the Company. C. If the Reinsurers and the Company are not able parties fail to agree on such present value determinationthe commutation amount determined under paragraph A above, such calculation they shall be performed settle any difference by mutually selecting an independent actuarial firm as mutually agreed by actuary to determine the Company and the Reinsurerscommutation amount. If the parties cannot mutually agree on an independent actuarial firma single actuary within 15 days after the Reinsurer’s notice that it does not concur with the Company’s statement of valuation, the parties shall settle the difference by using a panel of three actuaries. In that event, each party shall nominate one firm appoint an actuary within 30 days after receipt of the written request for commutation. Upon such appointment, the two actuaries shall appoint a third actuary. If the two actuaries fail to agree on the selection of a third actuary within 30 days of their appointment, each of them shall name three individuals, of whom the other shall decline two, and the decision shall be made by drawing lots. The cost actuary or actuaries shall then investigate and capitalize such loss(es). All actuaries shall be fellows of such actuarial firm will the Casualty Actuarial Society or the American Academy of Actuaries, and shall be split evenly between disinterested in the Company outcome of the commutation. Effective: January 1, 2011 DOC: December 28, 2010 U4VT0004 15 of 36 C. The Reinsurer’s proportion of the amount so determined shall be considered the Reinsurer’s total liability for the losses, and the Reinsurers. D. Upon CommutationReinsurer shall pay the commutation amount promptly after execution by both parties of a commutation and release agreement. Payment of the commutation amount by the Reinsurer, and acceptance of that payment by the Company and the Reinsurers Company, shall receive constitute a full and final complete release of both parties from all current and future further liability under this Agreementhereunder.

Commutation. A. This Agreement As respects all losses, known or unknown, that may cause a claim under this Contract, the losses shall be commuted at one hundred twenty (120) months from two years after the expiration or termination date of this AgreementContract. As promptly as possible after such date, or earlier as mutually agreed by the Company and shall submit a statement of valuation of the Reinsurers (outstanding claim or claims showing the “Commutation Date”)elements considered reasonable to establish the commutation amount, and, if the Reinsurer concurs with the Company’s calculation, it shall promptly pay the amount requested. B. Upon the Commutation Date, 1. the Reinsurers shall pay to the Company the present value of ceded Ultimate Net Loss outstanding and Incurred But Not Reported Ultimate Net Loss and any Ceding Commission adjustment along with special interest, calculated in accordance with the Article entitled CEDING COMMISSION as of the Commutation Date, utilizing an annual effective interest rate of three percent (3%); 2. the Company shall pay to the Reinsurers one hundred percent (100%) of the balance of the Funds Held Account, which may be held in either a Segregated Account or Trust Account, as applicable, at the Commutation Date. If funds are held in a Segregated Account, any amount remaining in the Segregated Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be retained by the Company; if funds are held in a Trust Account, any amount remaining in the Trust Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be returned to the Company. C. If the Reinsurers and the Company are not able parties fail to agree on such present value determinationthe commutation amount determined under paragraph A above, such calculation they shall be performed settle any difference by mutually selecting an independent actuarial firm as mutually agreed by actuary to determine the Company and the Reinsurerscommutation amount. If the parties cannot mutually agree on an independent actuarial firma single actuary within 15 days after the Reinsurer’s notice that it does not concur with the Company’s statement of valuation, the parties shall settle the difference by using a panel of three actuaries. In that event, each party shall nominate one firm appoint an actuary within 30 days after receipt of the written request for commutation. Upon such appointment, the two actuaries shall appoint a third actuary. If the two actuaries fail to agree on the selection of a third actuary within 30 days of their appointment, each of them shall name three individuals, of whom the other shall decline two, and the decision shall be made by drawing lots. The cost actuary or actuaries shall then investigate and capitalize such loss(es). All actuaries shall be fellows of such actuarial firm will the Casualty Actuarial Society or the American Academy of Actuaries, and shall be split evenly between disinterested in the Company outcome of the commutation. C. The Reinsurer’s proportion of the amount so determined shall be considered the Reinsurer’s total liability for the losses, and the Reinsurers. D. Upon CommutationReinsurer shall pay the commutation amount promptly Effective: January 1, 2011 DOC: December 28, 2010 U4VT0004 15 of 36 after execution by both parties of a commutation and release agreement. Payment of the Company commutation amount by the Reinsurer, and acceptance of that payment by the Reinsurers Company, shall receive constitute a full and final complete release of both parties from all current and future further liability under this Agreementhereunder.

Commutation. A. This Agreement At any time the Company may submit a proposal to commute this Agreement. The effective date of the commutation shall be commuted at one hundred twenty (120) months from the expiration or termination month-end that immediately preceded the date of this Agreement, or earlier as mutually agreed by the Company and the Reinsurers (the “Commutation Date”)proposal. B. Upon the Commutation Date, 1. the Reinsurers shall pay to the Company the present value of ceded Ultimate Net Loss outstanding and Incurred But Not Reported Ultimate Net Loss and any Ceding Commission adjustment along with special interest, calculated in accordance with the Article entitled CEDING COMMISSION as As part of the Commutation Dateproposal, utilizing an annual effective interest rate of three percent (3%); 2. the Company shall pay to first calculate the Reinsurers one hundred percent (100%) of the balance of the Funds Held Account, which may be held in either a Segregated Experience Account or Trust Account, Balance as applicable, at the Commutation Date. If funds are held in a Segregated Account, any amount remaining in the Segregated Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be retained by the Company; if funds are held in a Trust Account, any amount remaining in the Trust Account, after payment of the Funds Held Account balance to the Reinsurers at the Commutation Date, shall be returned to the Companyset forth herein. C. If the Reinsurers Experience Account Balance calculation results in a positive balance, the Reinsurer will automatically accept the proposal and will pay the Cash Balance of the Experience Account to the Company are not able to agree on such present value determination, such calculation shall be performed by an independent actuarial firm as mutually agreed within twenty (20) days following the receipt by the Company and the Reinsurers. If the parties cannot mutually agree on an independent actuarial firm, each party shall nominate one firm and the decision shall be made by drawing lots. The cost of such actuarial firm will be split evenly between Reinsurer from the Company and the Reinsurers. D. Upon Commutation, the Company and the Reinsurers shall receive a of an executed full and final release of any and all current and future liability on the part of the Reinsurer under this Agreement. D. If the Experience Account Balance calculation results in a negative balance, the Company will submit to the Reinsurer this amount within the proposal. The Reinsurer shall then have a chance to review said amount. E. If the Experience Account Balance cannot be mutually agreed upon, then such amount shall be determined by an independent third party actuary who is mutually agreeable to both the Company and the Reinsurer. The third party actuary’s fees shall be divided in half. The Company is to pay one-half and the Reinsurer shall pay the second half proportionately. F. Once the Experience Account Balance has been mutually agreed upon, or determined via the independent third party, the following shall occur: 1. If the Experience Account Balance calculation results in a positive balance, the Reinsurer will automatically accept the proposal and will pay the Cash Balance of the Experience Account to the Company within twenty (20) days following the receipt by the Reinsurer from the Company of an executed full and final release of any and all future liability on the part of the Reinsurer under this Agreement. 2. If the Experience Account Balance calculation results in a negative balance, the Reinsurer may either: a. Reject the proposal, in which case the Agreement terms shall continue to apply as before the proposal. b. Accept the proposal, in which case the Reinsurer will pay the Cash Balance of the Experience Account plus the negative amount calculated via the Experience Account Balance calculation to the Company within twenty (20) days following the receipt by the Reinsurer from the Company of an executed full and final release of any and all future liability on the part of the Reinsurer under this Agreement. G. In the event that commutation takes effect on or before September 30, 2005, the Reinsurer agrees to reimburse the Company an additional 1.0% of Ceded Net Earned Premium in addition to amounts as set forth herein.