Level of Business. Subject to consummation of the Initial Closing, commencing as of January 1, 1998 and continuing during the term of the Marketing Agreement (the "Covered Period"), Allianz shall be entitled to thirty-seven and one-half percent (37.5%) (the "Production Goal") of the Life and Annuity Production (as defined below). The term "Life and Annuity Production" shall mean the first year and single premiums received from life insurance and fixed annuity products written during the Covered Period (a) by LifeUSA agents for LifeUSA (the "LifeUSA Business"), and (b) by LifeUSA agents for Allianz under the Marketing Agreement (the "Allianz Business"). The Production Goal shall be achieved as follows: (a) LifeUSA shall reinsure 25% of the Allianz Business pursuant to the LifeUSA Reinsurance Agreement; (b) Allianz shall reinsure 12.5% of the LifeUSA Business pursuant to the Allianz Reinsurance Agreement (commencing the first day of the calendar quarter following the Initial Closing); (c) Allianz shall retain 25% of the Allianz Business; (d) if necessary to achieve the Production Goal, Allianz shall retain up to an additional 50% of the Allianz Business (not to exceed the Production Goal); and (e) if the Production Goal has not been achieved and Allianz shall have retained 75% of the Allianz Business, Allianz shall reinsure up to an additional 25% of the LifeUSA business (not to exceed the Production Goal). Allianz agrees and the Company agrees to cause LifeUSA to adjust the percentage of the Allianz Business assumed by LifeUSA under the LifeUSA Reinsurance Agreement and the percentage of the LifeUSA Business assumed by Allianz under the Allianz Reinsurance Agreement semi-annually effective January 1st and July 1st on a prospective basis to achieve as reasonably as possible the Production Goal in good faith taking into account the Life and Annuity Production received by Allianz since January 1, 1998 and the reasonably anticipated levels of Allianz Business and LifeUSA Business for the six months following the adjustment in order to meet the Production Goal. In addition, during the term of the Marketing Agreement, Allianz shall have a right of first refusal to assume up to 37.5% of the premiums received from any other products written by LifeUSA if and to the extent (not to exceed 37.5%) LifeUSA reinsures any such products. So long as the provisions of this Section 7.8 are in effect, the Company agrees to cause LifeUSA not to, and Allianz agrees not to, terminate the LifeUSA Re...
Level of Business. The Participating Bodies named on this contract, nor Construction & Procurement Delivery can give any guarantee as to the level of business associated with this requirement. The Contractor should note that the pricing schedule provides an estimated annual consumption figure, which will be used for evaluation purposes only.
