Document:

Amendment Agreement

 Exhibit 10.2 
 

 
 Amendment Agreement 
 PMI Mortgage Insurance Co. 
 QBE Holdings (AAP) Pty Limited 
 QBE Insurance Group Limited 
 Share Sale
Agreement 
 Australia 
 Allens
Arthur Robinson 
 Deutsche Bank Place 
 Corner Hunter and Phillip Streets 
 Sydney NSW 2000 Australia 
 Tel +61 2 9230 4000 
 Fax +61 2 9230 5333 
 www.aar.com.au 
 © Copyright Allens Arthur Robinson, Australia 2008 

			
	Amendment	  	

 Table of Contents 
  

			
	 1.      Definitions and Interpretation
	  	1
		
	 2.      Amendments
	  	1
		
	 3.      Effective Date
	  	2
		
	 4.      Remaining Provisions Unaffected
	  	2
		
	 5.      Governing Law and Jurisdiction
	  	2
		
	 6.      Counterparts
	  	3
		
	 Schedule
	  	4
		
	 Schedule 11 – Adjustment to Value of the Note for the HK Sale Agreement
	  	4

  

 Page (i) 

			
	Amendment	  	

  

			
	Date	  	29 August 2008
		
	 Parties
	  	
		
	 1.
	  	PMI Mortgage Insurance Co. of 3003 Oak Road, Walnut Creek, CA 94597, United States of America (the Vendor).
		
	 2.
	  	QBE Holdings (AAP) Pty Limited ABN 26 000 005 881 of Level 2, 82 Pitt Street, Sydney NSW 2000, Australia (the Purchaser).
		
	 3.
	  	QBE Insurance Group Limited ABN 28 008 485 014 of Level 2, 82 Pitt Street, Sydney NSW 2000, Australia (the Note Issuer).
		
	 Recitals
	  	
		
	 A
	  	The Vendor, the Purchaser and the Note Issuer are parties to a Share Sale Agreement dated 14 August 2008 (the Principal Share Sale Agreement) under which the Vendor
has agreed to sell to the Purchaser all of the issued shares in PMI Mortgage Insurance Australia (Holdings) Pty Limited on the terms set out in the Principal Share Sale Agreement.
		
	 B
	  	The parties wish to amend the Principal Share Sale Agreement in the manner set out in this Agreement.

 It is agreed as follows. 
  

	1.	Definitions and Interpretation 

  

	 	(a)	Words which are defined in the Principal Share Sale Agreement and which are used in this Agreement have the same meaning in this Agreement as in the Principal Share Sale Agreement,
unless the context requires otherwise. 

  

	 	(b)	The provisions of clauses 1.2 and 1.3 of the Principal Share Sale Agreement form part of this Agreement as if set out in full in this Agreement. 

  

	2.	Amendments 

 The Principal Share Sale Agreement is
amended as follows. 
  

	 	(a)	Clause 6 

 In clause 6, the following
paragraph is inserted after paragraph (b). 
 (c) The parties agree to comply with Schedule 11. 
  

 Page 1 

			
	Amendment	  	

  

	 	(b)	Schedule 4 – Form of Note Deed 

 In the form of
Note Deed which is set out in Schedule 4: 
  

	 	(i)	In clause 1.1, after the definition of Governmental Entity, the following definition is inserted. 

 HK Note means the note deed issued pursuant to and in accordance with the HK Sale Agreement between the Note Issuer and The PMI Group, Inc.

  

	 	(ii)	In clause 1.1, after the definition of HK Note, the following definition is inserted. 

 HK Sale Agreement means the share sale deed dated on or around 29 August 2008 between The PMI Group, Inc., QBE Holdings (AAP) Pty
Limited and QBE Insurance Group Limited in relation to the sale of the shares in PMI Mortgage Insurance Asia Limited. 
  

	 	(iii)	the following paragraph is inserted after paragraph 7(b). 

  

	 	(c)	subject to completion of the transaction under the HK Sale Agreement in accordance with and subject to its terms (including without limitation the issuing of the HK Note), and to
the extent that there is an Australian Note Shortfall as defined in the Share Sale Agreement, then the Principal and Interest will be reduced to the extent and in accordance with the mechanism provided for in Schedule 11 of the Share Sale Agreement.

  

	 	(c)	New Schedule 11 

 The schedule to this
Agreement is inserted as Schedule 11. 
  

	3.	Effective Date 

 This Agreement takes effect, and
the parties agree to be bound by the Principal Share Sale Agreement as amended by this Agreement, from the date of this Agreement (the Effective Date). 
  

	4.	Remaining Provisions Unaffected 

 Except as
specifically amended by this Agreement, all terms and conditions of the Principal Share Sale Agreement remain in full force and effect. With effect from the Effective Date (as defined in clause 3), the Principal Share Sale Agreement as amended
by this Agreement is to be read as a single integrated document incorporating the amendments effected by this Agreement. 
  

	5.	Governing Law and Jurisdiction 

  

	 	(a)	This Agreement is governed by the laws of the State of New South Wales. 

  

	 	(b)	Each party irrevocably and unconditionally: 

  

	 	(i)	submits to the non-exclusive jurisdiction of the courts of New South Wales in connection with any suit, action or proceeding arising out of or relating to this Agreement;

  

	 	(ii)	waives, to the fullest extent it may legally and effectively do so, any defence or objection based on absence of jurisdiction or inconvenient forum; and 

  

 Page 2 

			
	Amendment	  	

  

	 	(iii)	consents to service of process in the manner provided for Notices in clause 33 of the Principal Share Sale Agreement, provided that nothing in this Agreement will affect the
right of any party to serve process in any other manner permitted by law. 

  

	 	(c)	The Vendor appoints Allens Arthur Robinson or their successor in Australia as its agent for service. 

  

	6.	Counterparts 

 This Agreement may be executed in any
number of counterparts. All counterparts together will be taken to constitute one instrument. 
  

 Page 3 

			
	Amendment	  	

 Schedule 
 Schedule 11 – Adjustment to Value of the Note for the HK Sale Agreement 
  

	1.	Subject to completion of the transaction under the HK Sale Agreement in accordance with and subject to its terms (including without limitation the issuing of the HK Note) and
subject to paragraph 2 below, if the value of the HK Note has been reduced to nil, the Note Issuer is entitled to reduce the value of the Note (principal and interest) by an amount equal to the Australian Note Shortfall. 

  

	2.	The Purchaser shall not make a claim under the Reinsurance Cover in respect of any portion of the Australian Note Shortfall which has been applied as a reduction to the Note in
accordance with this Schedule 11. 

  

	3.	In this Schedule 11: 

 Australian Note
Shortfall means any excess described in paragraph 6 of Schedule 3 of the HK Sale Agreement in respect of which: 
  

	 	(a)	the Note Issuer has not made a reduction under the HK Note; and 

  

	 	(b)	the Note Issuer has not made a reduction under the Note in accordance with this Schedule 11. 

 HK Note means the note deed issued pursuant to and in accordance with the HK Sale Agreement between the Note Issuer and The PMI Group, Inc.

 Reinsurance Cover has the meaning given in Schedule 6. 
  

 Page 4 

			
	Amendment	  	

 Executed as an agreement 
  

					
	Executed by PMI Mortgage Insurance Co:	 		 	
			
	/s/ Donald P. Lofe, Jr.	 		 	/s/ Andrew Cameron
	Director Signature	 		 	Director/Secretary Signature
			
	Donald P. Lofe, Jr.	 		 	Andrew Cameron
	Print Name	 		 	Print Name

  

					
	Executed in accordance with section 127 of the Corporations Act 2001 by QBE Holdings (AAP) Pty Limited:	 		 	
			
	/s/ Frank O’Halloran	 		 	/s/ Duncan Ramsay
	Director Signature	 		 	Director/Secretary Signature
			
	Frank O’Halloran	 		 	Duncan Ramsay
	Print Name	 		 	Print Name

  

					
	Executed in accordance with section 127 of the Corporations Act 2001 by QBE Insurance Group Limited:	 		 	
			
	/s/ Frank O’Halloran	 		 	/s/ Duncan Ramsay
	Director Signature	 		 	Director/Secretary Signature
			
	Frank O’Halloran	 		 	Duncan Ramsay
	Print Name	 		 	Print Name

  

 Page 5Form of Amendment No. 3 to Customer Agreement

 Exhibit 10.06(c) 
 FORM OF 
 AMENDMENT NO. 3 
 TO 
 CUSTOMER AGREEMENT 
 WHEREAS, MORGAN STANLEY CHARTER ASPECT L.P., formerly known as Morgan Stanley Charter MSFCM L.P., a Delaware limited partnership (the “Customer”), and MORGAN STANLEY & CO. INCORPORATED, formerly
Morgan Stanley DW Inc., a Delaware corporation (the “Commodity Broker”), have agreed to amend the Customer Agreement, dated as of the 19th day of May 2000, as amended and supplemented from time to time, (the “Customer
Agreement”), by and between the Customer and the Commodity Broker, to reflect the merger of Morgan Stanley DW Inc. into Morgan Stanley & Co. Incorporated, and to amend the rate of interest income credited to the Customer’s account
by the Commodity Broker. Terms used and not otherwise defined herein have the meanings ascribed to such terms in the Customer Agreement. 
 WHEREAS, all provisions contained in the Customer Agreement remain in full force and effect and are modified only to the extent necessary to provide for the amendments set forth below. 
 NOW, THEREFORE, the parties hereto hereby amend the Customer Agreement as follows: 
  

	 	1.	Morgan Stanley DW Inc. has been merged into Morgan Stanley & Co. Incorporated and any references to “DEAN WITTER REYNOLDS, INC.”, the predecessor to Morgan
Stanley DW Inc., shall mean “MORGAN STANLEY & CO. INCORPORATED”. 

  

	 	2.	The third sentence of Section 7 Investment of Customer Funds is deleted in its entirety and replaced with the following: 

 “The Commodity Broker will credit the Customer with interest income on the Customer’s funds on deposit with the Commodity Broker and its
affiliates at each month-end. Funds held by the Commodity Broker and its affiliates to meet the margin requirements on the Customer’s futures, forward, and option contracts will be credited with interest income at a rate approximately
equivalent to the rate the Commodity Broker and its affiliates pay other customers on margin deposits. Funds not required to meet such margin requirements will be credited with interest income at a rate equal to the monthly average of the 4-Week
U.S. Treasury bill discount rate during such month.” 
  

	 	3.	This Amendment No. 3 shall be governed and construed under the laws of the State of New York. 

 IN WITNESS WHEREOF, this Amendment No. 3 to the Customer Agreement has been executed for and on behalf of the undersigned as of the
[    ] day of [                ] 2008. 
  

			
	MORGAN STANLEY CHARTER ASPECT L.P.
		
	By:	 	Demeter Management Corporation,
		 	General Partner
		
	By:	 	 
		 	Name:
		 	Title:
	
	MORGAN STANLEY & CO. INCORPORATED
		
	By:	 	 
		 	Name:
		 	Title:

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