Common use of Risk Charge Clause in Contracts

Risk Charge. On a quarterly basis, with respect to each Index-Linked Deferred Annuity Policy, the Ceding Company shall be permitted in accordance with the applicable Plan of Operations to withdraw from the applicable Separate Account a risk charge fee in an amount equal to (a) thirty (30) basis points per annum multiplied by (b) the Statutory Reserves in respect of the applicable Index-Linked Deferred Annuity Policies (the “Risk Charge”). Each Risk Charge shall be withdrawn by the Ceding Company from the applicable Separate Account on a quarterly basis; provided, that the Quota Share of each Risk Charge may be withdrawn from the applicable Separate Account and transferred to the Reinsurer.