Common use of DAC TAX Clause in Contracts

DAC TAX. A. The Parties are making a joint election under Treas. Reg. Section 1.848-2(g)(8) under which: 1. The Party with the net positive consideration under this Agreement is required to capitalize specified policy acquisition expenses with respect to such Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Internal Revenue Code. 2. This election shall be effective with the effective date of this Agreement. 3. Each party shall attach a schedule to its federal income tax return for its first taxable year ending after the election becomes effective which identifies the Agreement for which this joint election under Treas. Reg. Section 1.848-2(g)(8) has been made. B. The Parties agree to exchange information pertaining to the amount of net consideration as determined under Treas. Reg. Section 1. 848-2(f) for this Agreement to insure consistency as to amount and timing or as is otherwise required by the Internal Revenue Service. C. The exchange of information described in section B above shall follow the procedures set forth below: 1. the Ceding Company shall submit its calculation of the "net consideration" as defined under the above referenced regulation to the Reinsurer not later than April 1 for each and every tax year for which this Agreement is in effect; 2. the Reinsurer may challenge such calculation within thirty (30) calendar days of receipt of the Ceding Company's calculation; and 3. if the Reinsurer contests the Ceding Company's calculation of the net consideration, the parties shall act in good faith to reach an agreement as to the correct amount within thirty (30) days of the date the Reinsurer submits its alternative calculation. If the Ceding Company and the Reinsurer reach an agreement on an amount of net consideration, each party shall report the agreed upon amount in their respective tax returns for the preceding taxable year. D. The Parties represent and warrant that they are subject to U.S. taxation under Subchapter L of Chapter 1 of the Internal Revenue Code or Subpart F of Part III of Subchapter N of chapter 1 of the Internal Revenue Code.

DAC TAX. A. The Parties are making a joint election under Treas. Reg. Section 1.848Section1.848-2(g)(8) under which: 1. The Party with the net positive consideration under this Agreement is required to capitalize specified policy acquisition expenses with respect to such Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Internal Revenue Code. 2. This election shall be effective with the effective date of this Agreement. 3. Each party shall attach a schedule to its federal income tax return for its first taxable year ending after the election becomes effective which identifies the Agreement for which this joint election under Treas. Reg. Section 1.848Section1.848-2(g)(8) has been made. B. The Parties agree to exchange information pertaining to the amount of net consideration as determined under Treas. Reg. Section 1. 848Section1.848-2(f) for this Agreement to insure consistency as to amount and timing or as is otherwise required by the Internal Revenue Service. C. The exchange of information described in section B above shall follow the procedures set forth below: 1. the Ceding Company shall submit its calculation of the "net consideration" as defined under the above referenced regulation to the Reinsurer not later than April 1 for each and every tax year for which this Agreement is in effect; 2. the Reinsurer may challenge such calculation within thirty (30) calendar days of receipt of the Ceding Company's calculation; and 3. if the Reinsurer contests the Ceding Company's calculation of the net consideration, the parties shall act in good faith to reach an agreement as to the correct amount within thirty (30) days of the date the Reinsurer submits its alternative calculation. If the Ceding Company and the Reinsurer reach an agreement on an amount of net consideration, each party shall report the agreed upon amount in their respective tax returns for the preceding taxable year. D. The Parties represent and warrant that they are subject to U.S. taxation under Subchapter L of Chapter 1 of the Internal Revenue Code or Subpart F of Part III of Subchapter N of chapter 1 of the Internal Revenue Code.

DAC TAX. A. The Parties are making a joint election under Treas. Reg. Section 1.848-(S)1.848- 2(g)(8) under which: 1. The Party with the net positive consideration under this Agreement is required to capitalize specified policy acquisition expenses with respect to such Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Internal Revenue Code. 2. This election shall be effective with the effective date of this Agreement. 3. Each party shall attach a schedule to its federal income tax return for its first taxable year ending after the election becomes effective which identifies the Agreement for which this joint election under Treas. Reg. Section 1.848(S)1.848-2(g)(8) has been made. B. The Parties agree to exchange information pertaining to the amount of net consideration as determined under Treas. Reg. Section 1. 848(S)1.848-2(f) for this Agreement to insure ensure consistency as to amount and timing or as is otherwise required by the Internal Revenue Service. C. The exchange of information described in section B above shall follow the procedures set forth below: 1. the Ceding Company shall submit its calculation of the "net consideration" as defined under the above referenced regulation to the Reinsurer not later than April 1 for each and every tax year for which this Agreement is in effect; 2. the Reinsurer may challenge such calculation within thirty (30) calendar days of receipt of the Ceding Company's calculation; and 3. if the Reinsurer contests the Ceding Company's calculation of the net consideration, the parties shall act in good faith to reach an agreement as to the correct amount within thirty (30) days of the date the Reinsurer submits its alternative calculation. If the Ceding Company and the Reinsurer reach an agreement on an amount of net consideration, each party shall report the agreed upon amount in their respective tax returns for the preceding taxable year. D. The Parties represent and warrant that they are subject to U.S. taxation under Subchapter L of Chapter 1 of the Internal Revenue Code or Subpart F of Part III of Subchapter N of chapter 1 of the Internal Revenue Code.

DAC TAX. A. The Parties are making a joint election under Treas. Reg. Section 1.848-2(g)(8) under which: (1. ) The Party with the net positive consideration under this Agreement is required to capitalize specified policy acquisition expenses with respect to such Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Internal Revenue Code. (2. ) This election shall be effective with the effective date of this Agreement. (3. ) Each party shall attach a schedule to its federal income tax return for its first taxable year ending after the election becomes effective which identifies the Agreement for which this joint election under Treas. Reg. Section 1.848-2(g)(8) has been made. B. The Parties agree to exchange information pertaining to the amount of net consideration as determined under Treas. Reg. Section 1. 848-2(f) for this Agreement to insure consistency as to amount and timing or as is otherwise required by the Internal Revenue Service. C. The exchange of information described in section B above shall follow the procedures set forth below: (1. ) the Ceding Company shall submit its calculation of the "net consideration" as defined under the above referenced regulation to the Reinsurer not later than April 1 for each and every tax year for which this Agreement is in effect; (2. ) the Reinsurer may challenge such calculation within thirty (30) calendar days of receipt of the Ceding Company's calculation; and (3. if ) If the Reinsurer contests the Ceding Company's calculation of the net consideration, the parties shall act in good faith to reach an agreement as to the correct amount within thirty (30) days of the date the Reinsurer submits its alternative calculation. If the Ceding Company and the Reinsurer reach an agreement on an amount of net consideration, each party shall report the agreed upon amount in their respective tax returns for the preceding taxable year. D. The Parties represent and warrant that they are subject to U.S. taxation under Subchapter L of Chapter 1 of the Internal Revenue Code or Subpart F of Part III of Subchapter N of chapter 1 of the Internal Revenue Code.

DAC TAX. A. The Parties are making a joint election under Treas. Reg. Section 1.848-Reg.(s)1.848- 2(g)(8) under which: 1. The Party with the net positive consideration under this Agreement is required to capitalize specified policy acquisition expenses with respect to such Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Internal Revenue Code. 2. This election shall be effective with the effective date of this Agreement. 3. Each party shall attach a schedule to its federal income tax return for its first taxable year ending after the election becomes effective which identifies the Agreement for which this joint election under Treas. Reg. Section 1.848Reg.(s)1.848-2(g)(8) has been made. B. The Parties agree to exchange information pertaining to the amount of net consideration as determined under Treas. Reg. Section 1. 848Reg.(s)1.848-2(f) for this Agreement to insure ensure consistency as to amount and timing or as is otherwise required by the Internal Revenue Service. C. The exchange of information described in section B above shall follow the procedures set forth below: 1. the Ceding Company shall submit its calculation of the "net consideration" as defined under the above referenced regulation to the Reinsurer not later than April 1 for each and every tax year for which this Agreement is in effect; 2. the Reinsurer may challenge such calculation within thirty (30) calendar days of receipt of the Ceding Company's calculation; and 3. if the Reinsurer contests the Ceding Company's calculation of the net consideration, the parties shall act in good faith to reach an agreement as to the correct amount within thirty (30) days of the date the Reinsurer submits its alternative calculation. If the Ceding Company and the Reinsurer reach an agreement on an amount of net consideration, each party shall report the agreed upon amount in their respective tax returns for the preceding taxable year. D. The Parties represent and warrant that they are subject to U.S. taxation under Subchapter L of Chapter 1 of the Internal Revenue Code or Subpart F of Part III of Subchapter N of chapter 1 of the Internal Revenue Code.

DAC TAX. A. The Parties are making parties will make a joint election under election, in accordance with Treas. Reg. 1.848- 2(g)(8), issued December 28, 1992, under Section 1.848-2(g)(8) under which: 1. The Party 848 of the Internal Revenue Code and the party with the net positive consideration under this Agreement is required to will capitalize specified policy acquisition expenses with respect to such this Agreement without regard to the general deductions limitation limitations of Section 848(c)(1) of the Internal Revenue Code.; 1. the election will take effect on the Effective Date and will remain in effect for all subsequent years that this Agreement remains in effect; and 2. This election shall be effective with the effective date of this Agreement. 3. Each each party shall attach a schedule to its federal income tax return for its first taxable year ending after the election becomes effective which that identifies the Agreement agreements (including this Agreement) for which joint elections have been made under this joint election under Treas. Reg. Section 1.848-2(g)(8) has been madeRegulation. B. The Parties agree Pursuant to this joint election: 1. each party will exchange information pertaining to the amount of net consideration as determined under Treas. Reg. Section 1. 848-2(f) for this Agreement to insure assure consistency as to amount and timing or as is may otherwise be required by the Internal Revenue Service.; C. The exchange of information described in section B above shall follow the procedures set forth below: 12. the Ceding Company shall Cedent will submit its calculation of the "net consideration" as defined under the above referenced regulation to the Reinsurer not later than April May 1 for each and every tax year for which this Agreement is in effect; 23. the Reinsurer may challenge such calculation within thirty ten (3010) calendar working days of receipt of the Ceding CompanyCedent's calculation; and 34. if the Reinsurer contests the Ceding Company's calculation of the net consideration, the parties shall will act in good faith to reach an agreement as to the correct amount within thirty (30) days of net consideration whenever there is disagreement as to the date the Reinsurer submits its alternative calculation. If the Ceding Company and the Reinsurer reach an agreement on an amount of net consideration, each party shall report the agreed upon amount in their respective tax returns for the preceding taxable yearconsideration as determined under Treas. Reg. 1.848-2(f). D. The Parties represent C. Each party represents and warrant warrants that they are it is subject to U.S. U. S. taxation under Subchapter L of Chapter 1 of the Code. D. Within ten (10) Business Days following the final determination of the net consideration, as defined in U.S. Internal Revenue Code or Subpart F of Part III of Subchapter N of chapter 1 Section 848 and the Treasury Regulations thereunder, for a given calendar year (including the calendar year in which this Agreement terminates), the party that had negative net consideration shall pay the other party an amount equal to .22% of the net consideration to cover, on a present value basis, the liability for the deferred acquisition cost (DAC) tax under Section 848 of the U.S. Internal Revenue Code. The parties shall equitably adjust the formula for the charge or credit to take into account future changes in tax laws, including, without limitation, changes in tax rates and changes in the U.S. Internal Revenue Code Section 848(c)(1) factor applicable to this Agreement.

DAC TAX. A. The Parties are making a joint election under Treas. Reg. Section 1.848(S)1.848-2(g)(8) under which: 1. The Party with the net positive consideration under this Agreement is required to capitalize specified policy acquisition expenses with respect to such Agreement without regard to the general deductions limitation of Section 848(c)(1) of the Internal Revenue Code. 2. This election shall be effective with the effective date of this Agreement. 3. Each party shall attach a schedule to its federal income tax return for its first taxable year ending after the election becomes effective which identifies the Agreement for which this joint election under Treas. Reg. Section 1.848(S)1.848-2(g)(8) has been made. B. The Parties agree to exchange information pertaining to the amount of net consideration as determined under Treas. Reg. Section 1. 848(S)1.848-2(f) for this Agreement to insure ensure consistency as to amount and timing or as is otherwise required by the Internal Revenue Service. C. The exchange of information described in section B above shall follow the procedures set forth below: 1. the Ceding Company shall submit its calculation of the "net consideration" as defined under the above referenced regulation to the Reinsurer not later than April 1 for each and every tax year for which this Agreement is in effect; 2. the Reinsurer may challenge such calculation within thirty (30) calendar days of receipt of the Ceding Company's calculation; and 3. if the Reinsurer contests the Ceding Company's calculation of the net consideration, the parties shall act in good faith to reach an agreement as to the correct amount within thirty (30) days of the date the Reinsurer submits its alternative calculation. If the Ceding Company and the Reinsurer reach an agreement on an amount of net consideration, each party shall report the agreed upon amount in their respective tax returns for the preceding taxable year. D. The Parties represent and warrant that they are subject to U.S. taxation under Subchapter L of Chapter 1 of the Internal Revenue Code or Subpart F of Part III of Subchapter N of chapter 1 of the Internal Revenue Code.