Common use of Net Amounts Clause in Contracts

Net Amounts. 7.1 Notwithstanding the references in Clauses 2 (Reinsurance), 3 (Reinsurance Premiums) and 4 (Reinsurance Claims) to any Premium Payment or Claim Amount and Clauses 5 (Expenses Cashflow) and 6 (Recoveries) to any Expenses Cashflow Amount and Recoveries, becoming due for payment by one party to the other party, the payments to be made by the parties in respect of such amounts shall be determined on a net basis in accordance with Clause 7.2 and, subject to Clauses 3.1 and 8.2, paid in accordance with Clause 7.3 by the last Business Day of each month (the "Netting Day"). The relevant payment obligations of each of PLAE and PLL under Clauses 3 (Reinsurance Premiums), 4 (Reinsurance Claims), 5 (Expenses Cashflow) and 6 (Recoveries) shall be deemed satisfied and discharged by the payment by the relevant party of any such net amount. 7.2 The net amount due (the "Net Amount") on each Netting Day shall be an amount equal to "P", where: P = Q plus R *minus s minus t; Q = the Premium Payment due for payment on the relevant Netting Day from PLAE to PLL under Clause 3 (Reinsurance Premiums); R = amounts Recovered by PLAE and notified to PLL in respect of the relevant Netting Day in accordance with Clause 6 (Recoveries); s = Expenses Cashflow Amount (as determined by PLAE and notified to PLL) arising in respect of the relevant Netting Day; and t = the Claim Amount due for payment on the relevant Netting Day from PLL to PLAE under Clause 4 (Reinsurance Claims). 7.3 Where, in relation to that Netting Day, the Net Amount is: 7.3.1 a positive number, PLAE shall pay PLL; or 7.3.2 a negative number, PLL shall pay PLAE, 7.4 Notwithstanding the provisions in Clauses 2 (Reinsurance), 3 (Reinsurance Premiums), 4 (Reinsurance Claims), 5 (Expenses Cashflow), 6 (Recoveries) or the other provisions of this Clause 7, PLL shall have the right to review the Net Amount and its constituent elements and request from PLAE reasonable supporting evidence of the same. In the event that, following its review under this Clause, PLL disagrees with the Net Amount or any of its constituent elements, the parties shall use reasonable endeavours to agree the correct amounts. If the amounts cannot be agreed within five (5) Business Days, the matter shall be escalated to the parties' respective chief executive officers, who will seek (acting in good faith) to agree the amounts due. For the avoidance of doubt, nothing in this Clause 7.4 shall affect PLL's obligation to first pay the Net Amount in accordance with the other provisions of this Clause 7 (Net Amounts). 7.5 Where the Net Amount paid on a Netting Day in accordance with Clause 7.3 was: 7.5.1 a positive number and the new Net Amount agreed in accordance with Clause

Net Amounts. 7.1 Notwithstanding the references in Clauses 2 (Reinsurance), 3 (Reinsurance Premiums) and 4 (Reinsurance Claims) to any Premium Payment or Claim Amount and Clauses 5 (Expenses Cashflow) and 6 (Recoveries) to any Expenses Cashflow Amount and Recoveries, becoming due for payment by one party to the other party, the payments to be made by the parties in respect of such amounts shall be determined on a net basis in accordance with Clause 7.2 and, subject to Clauses 3.1 and 8.2, paid in accordance with Clause 7.3 by the last Business Day of each month (the "Netting Day"). The relevant payment obligations of each of PLAE and PLL under Clauses 3 (Reinsurance Premiums), 4 (Reinsurance Claims), 5 (Expenses Cashflow) and 6 (Recoveries) shall be deemed satisfied and discharged by the payment by the relevant party of any such net amount. 7.2 The net amount due (the "Net Amount") on each Netting Day shall be an amount equal to "P", where: P = Q plus R *minus s minus t; Q = the Premium Payment due for payment on the relevant Netting Day from PLAE to PLL under Clause 3 (Reinsurance Premiums); R = amounts Recovered by PLAE and notified to PLL in respect of the relevant Netting Day in accordance with Clause 6 (Recoveries); s = Expenses Cashflow Amount (as determined by PLAE and notified to PLL) arising in respect of the relevant Netting Day; and t = the Claim Amount due for payment on the relevant Netting Day from PLL to PLAE under Clause 4 (Reinsurance Claims). 7.3 Where, in relation to that Netting Day, the Net Amount is: 7.3.1 a positive number, PLAE shall pay PLL; or 7.3.2 a negative number, PLL shall pay PLAE, 7.4 Notwithstanding the provisions in Clauses 2 (Reinsurance), 3 (Reinsurance Premiums), 4 (Reinsurance Claims), 5 (Expenses Cashflow), 6 (Recoveries) or the other provisions of this Clause 7, PLL shall have the right to review the Net Amount and its constituent elements and request from PLAE reasonable supporting evidence of the same. In the event that, following its review under this Clause, PLL disagrees with the Net Amount or any of its constituent elements, the parties shall use reasonable endeavours to agree the correct amounts. If the amounts cannot be agreed within five (5) Business Days, the matter shall be escalated to the parties' respective chief executive officers, who will seek (acting in good faith) to agree the amounts due. For the avoidance of doubt, nothing in this Clause 7.4 shall affect PLL's obligation to first pay the Net Amount in accordance with the other provisions of this Clause 7 (Net Amounts). 7.5 Where the Net Amount paid on a Netting Day in accordance with Clause 7.3 was: 7.5.1 a positive number and the new Net Amount agreed in accordance with Clause

Net Amounts. 7.1 Notwithstanding the references in Clauses 2 (Reinsurance), 3 (Reinsurance Premiums) and 4 (Reinsurance Claims) to any Premium Payment or Claim Amount and Clauses 5 (Expenses Cashflow) and 6 (Recoveries) to any Expenses Cashflow Amount and Recoveries, becoming due for payment by one party to the other party, the payments to be made by the parties in respect of such amounts shall be determined on a net basis in accordance with Clause 7.2 and, subject to Clauses 3.1 and 8.2, paid in accordance with Clause 7.3 by the last Business Day of each month (the "Netting Day"). The relevant payment obligations of each of PLAE and PLL under Clauses 3 (Reinsurance Premiums), 4 (Reinsurance Claims), 5 (Expenses Cashflow) and 6 (Recoveries) shall be deemed satisfied and discharged by the payment by the relevant party of any such net amount. 7.2 The net amount due (the "Net Amount") on each Netting Day shall be an amount equal to "P", where: P = Q plus R *minus s minus t; Q = the Premium Payment due for payment on the relevant Netting Day from PLAE to PLL under Clause 3 (Reinsurance Premiums); R = amounts Recovered by PLAE and notified to PLL in respect of the relevant Netting Day in accordance with Clause 6 (Recoveries); s = Expenses Cashflow Amount (as determined by PLAE and notified to PLL) arising in respect of the relevant Netting Day; and t = the Claim Amount due for payment on the relevant Netting Day from PLL to PLAE under Clause 4 (Reinsurance Claims). 7.3 Where, in relation to that Netting Day, the Net Amount is: 7.3.1 a positive number, PLAE shall pay PLL; or 7.3.2 a negative number, PLL shall pay PLAE, 7.4 Notwithstanding the provisions in Clauses 2 (Reinsurance), 3 (Reinsurance Premiums), 4 (Reinsurance Claims), 5 (Expenses Cashflow), 6 (Recoveries) or the other provisions of this Clause 7, PLL shall have the right to review the Net Amount and its constituent elements and request from PLAE reasonable supporting evidence of the same. In the event that, following its review under this Clause, PLL disagrees with the Net Amount or any of its constituent elements, the parties shall use reasonable endeavours to agree the correct amounts. If the amounts cannot be agreed within five (5) Business Days, the matter shall be escalated to the parties' respective chief executive officers, who will seek (acting in good faith) to agree the amounts due. For the avoidance of doubt, nothing in this Clause 7.4 shall affect PLL's obligation to first pay the Net Amount in accordance with the other provisions of this Clause 7 (Net Amounts). 7.5 Where the Net Amount paid on a Netting Day in accordance with Clause 7.3 was: 7.5.1 a positive number and the new Net Amount agreed in accordance with Clause