Common use of RECAPTURE CHARGE Clause in Contracts

RECAPTURE CHARGE. In the event this Agreement is terminated in accordance with Paragraphs 3 and 4 above, or Paragraph 6 below, a Termination Value shall be calculated in good faith by the Reinsurer as of the effective date of termination according to "best practices" that are appropriate to valuing variable annuities and related cash flows and consistent with the terms of this Agreement. The Ceding Company shall have sixty (60) calendar days to either accept the Termination Value as calculated or raise objections. The parties shall cooperate with each other in order to resolve any disagreement with respect to the Termination Value. If the parties cannot mutually agree on the Termination Value, then the calculation will be submitted to a nationally recognized, independent actuarial firm or the actuarial group of a nationally recognized, independent accounting firm (hereinafter the "Actuarial Firm"), that is mutually acceptable to the parties for determination of a Termination Value which is reasonably consistent with the terms of this Agreement. If the parties cannot reach agreement as to the Actuarial Firm, then such appointment will be decided by the President of the Society of Actuaries. The decision of the Actuarial Firm with respect to the Termination Value will be final and binding upon the parties. The parties will share equally in the costs and expenses, if any, incurred by the Actuarial Firm and the Society of Actuaries. It is recognized and acknowledged by both parties that "best practices" for valuing cash flows linked to variable annuities include: