Common use of Continuing Allowances Clause in Contracts

Continuing Allowances. Pursuant to Section 21(b) hereof, with respect to the Reinsured Policies, the Second Amendment Additional Policies and the Third Amendment Additional Policies, in lieu of and notwithstanding (x) Section 14 of and Annex C to Amendment No. 2 or (y) provisions of the Reinsurance Agreement relating to continuing ceding and expenses allowances (including Exhibits C-4, C-6 and C-8 thereto) or the reciprocal policy fee allowances in respect to Other Reinsurance arrangements referred to in Section 2.4 thereof, for each calendar quarter commencing on or after the Second Amendment Effective Date (with respect to the Reinsured Policies and the Second Amendment Additional Policies) or the Third Amendment Effective Date (with respect to the Third Amendment Additional Policies), and in each case prior to any termination of the reinsurance hereunder in accordance with the terms hereof and the terms of the Reinsurance Agreement, the Reinsurer shall pay to the Ceding Company a continuing ceding and expense allowance equal to the sum of (a) an amount determined in accordance with Annex B-1 hereto plus (b) the Quota Share, the Second Amendment Quota Share or Third Amendment Quota Share, respectively, of the amounts necessary to pay renewal commissions with respect to the Reinsured Policies, the Second Amendment Additional Policies or Third Amendment Additional Policies for periods commencing after the Second Amendment Effective Date (with respect to the Reinsured Policies and the Second Amendment Additional Policies) or the Third Amendment Effective Date (with respect to the Third Amendment Additional Policies), plus (c) with respect to the Third Amendment Additional Policies only, prior to any termination of the Ceding Company’s provision of Hedge Administration and so long as the Ceding Company is in material compliance with the requirements of Section 11 hereof, the Third Amendment Quota Share of the reasonable amount of any and all direct third party costs and expenses incurred by the Ceding Company with respect to the management or administration of the ▇▇▇▇▇▇, Hedge Transactions or Hedge Agreements.