Exhibit 10.8

 

AMENDMENT III

 

TERMINATION AND RECAPTURE AMENDMENT

 

TO THE ANNUITY RETROCESSION AGREEMENT

 

BETWEEN

 

THE AMERICAN LIFE & ANNUITY COMPANY, INC.

(referred to herein as the “Retrocessionaire”)

 

AND

 

REASSURANCE COMPANY OF HANNOVER

(now known as Hannover Life Reassurance Company of America,

and referred to herein as the “Retrocedent”)

 

This Amendment is to be attached to and made a part of the Annuity Retrocession
Agreement (HA-ALAC-50) effective as of April 1, 1998 (the “Retrocession
Agreement”). All provisions of the Retrocession Agreement not in conflict with
the provisions of this Amendment shall remain unchanged.

 

The Retrocessionaire and the Retrocedent entered into the Retrocession
Agreement, under which the Retrocedent ceded to the Retrocessionaire and the
Retrocessionaire assumed from the Retrocedent on a quota share coinsurance funds
withheld basis certain insurance policies (collectively referred to herein as
the “Retroceded Business”);

 

The Retrocessionaire and the Retrocedent have agreed that the Retrocedent will
recapture all of the Retroceded Business ceded under the Retrocession Agreement;

 

The Retrocessionaire and the Retrocedent have agreed to terminate the
Retrocession Agreement and amend the Retrocession Agreement to reflect their
agreement of such recapture and termination.

 

NOW, THEREFORE, in consideration of the mutual and several promises and
undertakings herein contained, and for other good and valuable consideration,
the receipt and adequacy of which is hereby acknowledged, the Retrocessionaire
and the Retrocedent agree as follows:

 

1.

Recapture and Termination. The Retrocedent shall recapture the Retroceded
Business in its entirety effective as of October 31, 2007 (the “Effective
Date”). The Retrocession Agreement shall be terminated as of the Effective Date.

 

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2.

Payment. The Retrocedent shall pay to the Retrocessionaire the amount of
$8,382.00 [in accordance with the attached final accounting statement] within
ten (10) days from date of the execution of this Amendment by all parties.
Payment of this amount by the Retrocedent will extinguish all liabilities under
the Retrocession Agreement for the Retrocedent and the Retrocessionaire. The
parties agree and acknowledge that this amount has been negotiated by the
parties at arms’ length and has been calculated in accordance with accepted
accounting and actuarial standards.

 

3.

Mutual Releases.

 

 

a.

Effective as of October 31, 2007, subject to the terms of this Amendment, the
Retrocessionaire shall release and discharge the Retrocedent from any and all
present and future obligations (including without limitation, obligations
associated with the Reserve Credit Account under the Retrocession Agreement),
adjustments, executions, offsets, actions, causes of action, suits, debts, sums
of money, accounts, reckonings, bonds, bills, covenants, contracts,
controversies, agreements, promises, damages, judgments, claims demands,
liabilities, and/or losses whatsoever, all whether known or unknown, which the
Retrocessionaire, and its successors and assigns ever had, now have, or
hereafter may have, whether grounded in law or in equity, in contract or in
tort, against the Retrocedent, or any of them, by reason of any matter
whatsoever arising out of the Retrocession Agreement and the recapture and
termination thereof, it being the intention of the parties that this irrevocable
release operates as a full and final settlement and release of the Retrocedent’s
past, current, and future liabilities to the Retrocessionaire in connection with
the Retrocession Agreement and the recapture and termination thereof.

 

 

b.

Effective as of October 31, 2007, subject to the terms of this Amendment, the
Retrocedent shall release and discharge the Retrocessionaire from any and all
present and future obligations (including without limitation, obligations
associated with the Reserve Credit Account under the Retrocession Agreement),
adjustments, executions, offsets, actions, causes of action, suits, debts, sums
of money, accounts, reckonings, bonds, bills, covenants, contracts,
controversies, agreements, promises, damages, judgments, claims demands,
liabilities, and/or losses whatsoever, all whether known or unknown, which the
Retrocedent, and its successors and assigns ever had, now have, or hereafter may
have, whether grounded in law or in equity, in contract or in tort, against the
Retrocessionaire , or any of them, by reason of any matter whatsoever arising
out of the Retrocession Agreement and the recapture and termination thereof, it
being the intention of the parties that this irrevocable release operates as a
full and final settlement and release of the Retrocessionaire’s past, current,
and future liabilities to the Retrocedent in connection with the Retrocession
Agreement and the recapture and termination thereof.

 

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c.

The rights, duties, and obligations set forth herein shall be final and binding
upon, and inure to the benefit of the parties hereto, and any and all of their
respective officers, directors, employees, affiliated companies, stockholders,
attorneys, parents, subsidiaries, predecessors, successors, liquidators,
receivers, agents, and assigns.

 

4.         Representations and Warranties. Each party hereby respectively
warrants and represents that (a) it is a company in good standing in its
respective places of domicile; (b) execution of this Amendment is duly
authorized; (c) the person or persons executing this Amendment have the
necessary and appropriate authority to do so; (d) none of the claims being paid
or settled hereunder have been transferred or assigned; (e) no further consents,
including any consents of creditors of a party or other third parties, are
necessary prior to the execution of this Amendment by such party; and (f) each
party has entered into this Amendment freely, voluntarily, without duress, in
good faith, at arm’s length, in the regular course of business and in reliance
on its own independent investigations and analyses of the facts underlying the
subject matter of this Amendment.

 

In witness of the above, this Amendment is signed in duplicate at the dates and
places indicated with an effective date of October 31, 2007.

 

HANNOVER LIFE REASSURANCE COMPANY OF AMERICA

 

Date:

____________________________________________

 

By:

____________________________________________

 

Name:

____________________________________________

 

Title:

____________________________________________

 

Witness

____________________________________________

 

 

THE AMERICAN LIFE & ANNUITY COMPANY, INC.

 

Date:

____________________________________________

 

By:

____________________________________________

 

Name:

____________________________________________

 

Title:

____________________________________________

 

Witness:

____________________________________________

 

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