Common use of Annualization Clause in Contracts

Annualization. The Company may, at its option, pay first year annualized commissions on the following basis: a) When a policy is put in effect on the records of the Company and the first premium has been paid, the Company will calculate the first year commission according to Section 1a) assuming the full annual premium for the first policy year has been paid, and pay such commission to the Broker provided that total annualized commissions on all policies on the same life do not exceed $5,000. b) In the event that any policy goes out of effect, according to the records of the Company, before the full 24-months premium for the policy has been paid, the Broker will refund immediately to the Company the first year commission according to the chargeback schedule in Section 5 arising from such part of the first full 24-months premium as has not been paid. Immediate non-repayment of an outstanding commission amount is a debt to the Company and is subject to the debt recovery procedures as stated in the Compensation Manual. c) In the event of the termination of your Broker Agreement, any excess of the annualized first year commissions paid under this Section over the total amount of the first year commissions which would have been paid as earned under Section 1a) will immediately become payable by the Broker to the Company. Immediate non-repayment of any outstanding commission amount is a debt to the Company and is subject to the debt recovery procedures as outlined in the Compensation Manual. d) The Company may decline to annualize commissions for a particular policy or policies, and may at any time discontinue in whole or part the practice of annualizing commissions.

Annualization. The Company may, at its option, pay first year annualized commissions on the following basis: (a) When a policy is put in effect inforce on the records of the Company and the first premium has been paid, the Company will shall calculate the first year commission according to Section 1a1 (a) assuming the full annual premium for the first policy year has been paid, and pay such commission to the Broker provided (provided, however, that total annualized commissions on all policies on the same life do shall not exceed $5,000). (b) In the event that any policy goes out of effectforce, according to the records of the Company, before the full 24-months annual premium for the first policy year has been paid, the Broker will shall refund immediately to the Company the first year commission according to the chargeback schedule in Section 5 arising from such part of the first full 24-months annual premium as has not been paid. Immediate non-non‐ repayment of an any outstanding commission amount is a debt to the Company and is subject to the debt recovery procedures as stated in the Compensation Manual. (c) In the event of the termination of your Broker Agreement, any excess of the annualized first year commissions paid under this Section over the total amount of the first year commissions which would have been paid as earned under Section 1a1(a) will shall immediately become payable by the Broker to the Company. Immediate non-repayment non‐repayment of any outstanding commission amount is a debt to the Company and is subject to the debt recovery procedures as outlined in the Compensation Manual. (d) The Company may decline to annualize commissions for a in respect of any particular policy or policies, and may at any time discontinue in whole or part the practice of annualizing commissions.