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l <br /> <br />present value of the benefits to be provided, the nature of the <br />company's investments, and the degree to which each company is <br />motivated to be successful in this bid selection. <br />12. Insurance companies typically do not extend <br />guaranteed price quotations for more than one or two hours at a <br />time, once they have delivered the bids. <br />13. Towers Perrin expects that on the date of the <br />annuity purchase, the selected insurance company will require <br />CF&I to sign an agreement which commits CF&I, as plan sponsor, to <br />the purchase. This is required since the insurance company, at <br />time of purchase, will alter its financial position and <br />immediately acquire securities so as to honor its price <br />guarantee. Towers Perrin also expects this agreement to contain <br />a provision requiring CFLI to agree to pay damages to the <br />insurance company in the event that the contract is not <br />ultimately executed for any reason. <br />ld. All of the Insurance companies will adjust their <br />prices as of the actual annuity purchase date to reflect market <br />investment opportunities available to them on that later date. <br />15. Insurance companies typically require the Plan <br />Administrator to pay for the annuity contract in cash as opposed <br />to paying In kind. Payment typically is made within a short <br />5 <br />