Exhibit 10.2.2

 

[EXECUTION COPY]

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

This SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of July 22, 2008 (this
“Amendment”), among (i) WHITE MOUNTAINS INSURANCE GROUP, LTD., a company
existing under the laws of Bermuda (the “Borrower”), (ii) the undersigned
Lenders, and (iii) BANK OF AMERICA, N.A., as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”), amends certain
provisions of the Credit Agreement, dated as of June 19, 2007 (as amended, the
“Credit Agreement”), among the Borrower, the Lenders, Bank of America, N.A., as
Administrative Agent, Swing Line Lender and the Issuing Lender, and Lehman
Brothers Inc., as Syndication Agent.  Capitalized terms used herein without
definition shall have the meanings assigned to such terms in the Credit
Agreement.

 

RECITALS

 

WHEREAS, the Borrower has requested that the undersigned Lenders and the
Administrative Agent agree to amend certain of the terms and provisions of the
Credit Agreement, as specifically set forth in this Amendment; and

 

WHEREAS, the undersigned Lenders and the Administrative Agent are prepared to
amend the Credit Agreement on the terms, subject to the conditions and in
reliance on the representations set forth herein.

 

NOW THEREFORE, in consideration of the mutual agreements contained in the Credit
Agreement and herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

 

Section 1.                                          Amendment to Credit
Agreement.

 

(a)                                  Amendments to Section 7.2(b) (Limitation on
Indebtedness).  Section 7.2(b) of the Credit Agreement is hereby amended by
restating such Section in its entirety as follows:

 

“At any time when OneBeacon Limited is required to be consolidated on the
balance sheet of the Borrower in accordance with GAAP, the Borrower will not
permit OneBeacon Limited to create, incur or assume any Indebtedness, which, at
the time such Indebtedness is created, incurred or otherwise assumed, would
cause the OneBeacon Limited Debt to Capitalization Ratio, on a pro forma basis
as of the end of the most recently completed fiscal quarter for which financial
statements have been delivered to the Administrative Agent pursuant to
Section 6.1(b) (giving effect to such Indebtedness and all other Indebtedness
created, incurred or otherwise assumed by OneBeacon Limited since the end of
such fiscal quarter), to be greater than thirty-seven and one half of one
percent (37.5%).”

 

Section 2.                                          Conditions Precedent.  This
Amendment shall become effective as of the date first written above upon
(a) execution hereof by the Borrower, the Guarantors, the Administrative Agent
and the Majority Lenders, and (b) the Administrative Agent’s receipt from

 

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all required parties of counterparts to the First Amendment to that certain
Credit Agreement, dated as of November 14, 2006, among (i) Fund American
Companies, Inc., a Delaware corporation, (ii) OneBeacon Insurance Group, Ltd., a
company existing under the laws of Bermuda, (iii) the lenders party thereto, and
(iv) Bank of America, N.A., as administrative agent for such lenders.

 

Section 3.                                          Continued Validity of Loan
Documents.  Except for the amendments to the Credit Agreement set forth in
Section 1 hereof, this Amendment shall not, by implication or otherwise, limit,
impair, constitute a waiver of or otherwise affect any rights or remedies of the
Administrative Agent or any Lender under any of the Loan Documents, nor alter,
modify, amend or in any way affect any of the rights, remedies, obligations or
any covenants of the Borrower or any Guarantor contained in any of the other
Loan Documents, all of which are ratified and confirmed in all respects and
shall continue in full force and effect.

 

Section 4.                                          Representations and
Warranties.  Each of the Borrower and the Guarantors (each, a “Loan Party”)
hereby represents and warrants to the Administrative Agent and the Lenders as
follows:

 

(a)                                  Due Execution and Authorization; Legal,
Valid and Binding Obligation.  This Amendment has been duly executed and
delivered by such Loan Party.  The execution and delivery and performance by
such Loan Party of this Amendment is within such Person’s corporate powers and
has been duly authorized by all necessary action on its part.  This Amendment,
the Credit Agreement as amended hereby and all other Loan Documents to which
such Person is a party constitute the legal, valid and binding obligations of
such Person, enforceable against such Person in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar Laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

(b)                                 No Legal Bar.  The execution and delivery by
such Loan Party of this Amendment and the performance by such Person of this
Amendment and the Credit Agreement as amended hereby, will not violate any
Requirement of Law or any Contractual Obligation of such Loan Party or any of
its Subsidiaries and will not result in, or require, the creation or imposition
of any Lien on any of their respective properties or revenues pursuant to any
Requirement of Law or any such Contractual Obligation, except to the extent such
violation or Lien could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

(c)                                  Representations and Warranties in Loan
Documents.  All representations and warranties of each Loan Party set forth in
the Credit Agreement and in any other Loan Document are true and correct in all
material respects on and as of the date hereof to the same extent as though made
on and as of such date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and
warranties shall have been true and correct in all material respects on and as
of such earlier date.

 

(d)                                 No Default.  No Default or Event of Default
has occurred and is continuing.

 

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Section 5.                                          Ratification.  Except as
expressly amended or waived hereby, the Credit Agreement, the other Loan
Documents and all documents, instruments and agreements related thereto, are
hereby ratified and confirmed in all respects and shall continue in full force
and effect.  The Credit Agreement, together with this Amendment, shall be read
and construed as a single agreement.  All references in the Loan Documents to
the Credit Agreement or any other Loan Document shall hereafter refer to the
Credit Agreement or any other Loan Document as amended hereby.

 

Section 6.                                          Counterparts; Integration;
Effectiveness.  This Amendment may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract.  Delivery of an executed counterpart of a signature page to this
Amendment by telecopier (or electronic mail (in PDF format)) shall be effective
as delivery of a manually executed counterpart of this Amendment.

 

Section 7.                                          Miscellaneous.  This
Amendment constitutes the entire agreement of the parties with respect to the
subject matter hereof and supersedes any prior understandings or agreements
which may have existed with respect thereto.  Except as expressly provided
herein, this Amendment shall not, by implication or otherwise, limit, impair,
constitute a waiver of or otherwise affect any rights or remedies of the
Administrative Agent or any Lender under the Credit Agreement or the other Loan
Documents, nor alter, modify, amend or in any way affect any of the obligations
or covenants contained in the Credit Agreement or any of the other Loan
Documents, all of which are ratified and confirmed in all respects and shall
continue in full force and effect.  To the extent there is any inconsistency
between the terms and provisions of any Loan Document and the terms and
provisions of this Amendment, the terms and provisions of this Amendment shall
govern.  The headings used in this Amendment are for convenience of reference
only and shall not in any way be deemed to limit, define or describe the scope
and intent of this Amendment or any provision hereof.  This Amendment shall be
binding upon and inure to the benefit of the Administrative Agent, each of the
Lenders and each of the Loan Parties, and to each of their respective successors
in title and assigns.  This Amendment may not be modified or amended except in a
manner permitted by Section 10.1 of the Credit Agreement.  In making proof of
this Amendment, it shall not be necessary to produce or account for more than
one such counterpart.

 

Section 8.                                          Costs and Expenses. 
Pursuant to Section 10.5 of the Credit Agreement, all reasonable out-of-pocket
costs and expenses incurred or sustained by the Administrative Agent in
connection with this Amendment, including all Attorney Costs of the
Administrative Agent in producing, reproducing and negotiating this Amendment,
will be for the account of the Borrower whether or not this Amendment is
consummated.

 

Section 9.                                          Governing Law.  THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE
OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY).

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
and delivered as of the date first above written.

 

 

Borrower:

 

 

 

WHITE MOUNTAINS INSURANCE GROUP,
LTD.

 

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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BANK OF AMERICA, N.A., as

 

Administrative Agent

 

 

 

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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BANK OF AMERICA, N.A., as

 

a Lender, Issuing Lender and Swing Line Lender

 

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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LEHMAN BROTHERS BANK, FSB, as

 

a Lender

 

 

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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BNP PARIBAS, as

 

a Lender

 

 

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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THE BANK OF NEW YORK, as

 

a Lender

 

 

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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THE BANK OF TOKYO-MITSUBISHI UFJ.
LTD., NEW YORK BRANCH, as a Lender

 

 

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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DEUTSCHE BANK AG NEW YORK
BRANCH, as a Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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HSBC BANK USA, N.A., as

 

a Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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JP MORGAN CHASE BANK, N.A., as

 

a Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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MELLON BANK, N.A., as

 

a Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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PNC BANK, as

 

a Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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THE ROYAL BANK OF SCOTLAND,
PLC, as a Lender

 

 

 

By: GREENWICH CAPITAL MARKETS,
INC., as agent for The Royal Bank of
Scotland plc

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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STATE STREET BANK AND TRUST
COMPANY, as a Lender

 

 

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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WELLS FARGO BANK, NATIONAL
ASSOCIATION, as a Lender

 

 

 

By:

 

 

Name:

 

Title:

 

Second Amendment to Credit Agreement

 

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RATIFICATION OF GUARANTY

 

Each of the undersigned Guarantors hereby (a) acknowledges and consents to the
foregoing Amendment and the Borrower’s execution thereof, (b) joins the
foregoing Amendment for the sole purpose of consenting to and being bound by the
provisions of Sections 4 and 5 thereof and (c) ratifies and confirms all of
their respective obligations and liabilities under the Loan Documents to which
any of them is a party and ratifies and confirms that such obligations and
liabilities extend to and continue in effect with respect to, and continue to
guarantee the obligations of the Borrower under the Loan Documents.

 

 

WHITE MOUNTAINS HOLDINGS
BERMUDA LTD.

 

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

LONE TREE INSURANCE GROUP LTD.

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

LONE TREE HOLDINGS LTD.

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

Second Amendment to Credit Agreement

 

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