Document:

exv10w5

Exhibit 10.5

THE WESTERN UNION COMPANY

2006 NON-EMPLOYEE DIRECTOR EQUITY COMPENSATION PLAN

NONQUALIFIED STOCK OPTION GRANT — TERMS AND CONDITIONS

	1.	 	These Terms and Conditions form part of the Stock Option Agreement (the “Agreement”) pursuant
to which you have been granted a Nonqualified Stock Option (“Stock Option”) under The Western
Union Company 2006 Non-Employee Director Equity Compensation Plan (the “Plan”). A copy of the
Plan is enclosed for your convenience. The terms of the Plan are hereby incorporated in this
Agreement by reference and made a part hereof. Any capitalized terms used in this
Agreement that are not defined herein shall have the meaning set forth in the Plan.
	 
	2.	 	The number of common shares of The Western Union Company (the “Company”) subject to the Stock
Option, and the option exercise price, are specified in the attached Award Notice (which forms
part of the Agreement).
	 
	3.	 	Subject to the other provisions of this Agreement and the terms of the Plan, at any time or
times on or after the Date of Grant specified in the attached Award Notice, but not later than
the tenth anniversary of such Date of Grant, you may exercise this Stock Option as to the
number of shares of common stock of the Company (“Common Stock”) which, when added to the
number of shares of Common Stock as to which you have theretofore exercised under this Stock
Option, if any, will not exceed the total number of shares of Common Stock covered hereby.
This Stock Option may not be exercised for a fraction of a share of Common Stock of the
Company.
	 
	4.	 	This Stock Option may not be exercised unless the following conditions are met:

	 	(a)	 	Legal counsel for the Company must be satisfied at the time of exercise that
the issuance of shares upon exercise will comply with applicable U.S. federal, state,
local and foreign laws.
	 
	 	(b)	 	You pay the exercise price as follows: (i) by giving notice to the Company or
its designee of the number of whole shares of Common Stock to be purchased and by
making payment therefor in full (or arranging for such payment to the Company’s
satisfaction) either (A) in cash, (B) by delivery (either actual delivery or by
attestation procedures established by the Company) of previously owned whole shares of
Common Stock (which you have held for at least six months or which you have purchased
on the open market) having an aggregate Fair Market Value, determined as of the date of
exercise, equal to the aggregate purchase price payable by reason of such exercise, (C)
except as may be prohibited by applicable law, in cash by a broker-dealer acceptable to
the Company to whom you have submitted an irrevocable notice of exercise (i.e., also
known as “cashless exercise”) or (D) by a combination of (A) and (B) and (ii) by
executing such documents as the Company may reasonably request.

	5.	 	In the event that you cease to be a Non-Employee Director for any reason, you will continue
to have the right to exercise this Stock Option in accordance with the other provisions of
this Agreement and the applicable provisions of the Plan until and including the tenth
anniversary of the Date of Grant specified in the attached Award Notice.
	 
	6.	 	As long as you continue service to the Company, you may transfer Stock Options to a Family
Member or Family Entity without consideration; provided, however, in the case of a transfer of
Stock Options to a limited liability company or a partnership which is a Family Entity, such
transfer may be for consideration consisting solely of an entity interest in the limited
liability company or partnership to which the transfer is made. Any transfer of Stock Options
shall be in a form acceptable to the Committee, shall be signed by you and shall be effective
only upon written acknowledgement by the Committee of its receipt and acceptance of such
notice. If a Stock Option is transferred to a Family

 

 

	 	 	Member or Family Entity, the Stock
Option may not thereafter be sold, assigned, transferred, pledged, hypothecated or otherwise
disposed of by such Family Member or Family Entity except by will or the laws of descent and
distribution.
	 
	7.	 	Regardless of any action the Company takes with respect to any or all income tax, social
insurance, payroll tax, payment on account or other tax-related items related to your
participation in the Plan and legally applicable to you (“Tax-Related Items”), you acknowledge
that the ultimate liability for all Tax-Related Items is and remains your responsibility and
may exceed the amount actually withheld by the Company. You further acknowledge that the
Company (i) makes no representations or undertakings regarding the treatment of any
Tax-Related Items in connection with any aspect of the Stock Option, including but not limited
to, the grant, vesting, exercise of the Stock Option, the issuance of shares of Common Stock
upon exercise, the subsequent sale of shares of Common Stock acquired pursuant to the exercise
of the Stock Option and the receipt of any dividends; and (ii) do not commit to and are under
no obligation to structure the terms of the grant or any aspect of the Stock Option to reduce
or eliminate your liability for the Tax-Related Items or achieve any particular tax result.
Further, if you have become subject to tax in more than one jurisdiction between the Grant
Date and the date of any relevant taxable or tax withholding event (“Tax Date”), as
applicable, you acknowledge that the Company may be required to withhold or account for
Tax-Related Items in more than one jurisdiction.
	 
	 	 	Prior to the Tax Date, you will pay or make adequate arrangements satisfactory to the
Company to satisfy all Tax-Related Items. In this regard, you authorize the Company or its
agent, at its discretion, to satisfy the obligations with regard to all Tax-Related Items by
one or a combination of the following: (A) accept a cash payment in U.S. dollars in the
amount of Tax-Related Items, (B) withhold whole shares of Common Stock which would otherwise
be delivered to you having an aggregate Fair Market Value, determined as of the Tax Date, or
withhold an amount of cash from any cash compensation which would otherwise be payable to
you by the Company equal to the amount necessary to satisfy the Tax-Related Items, or (C)
withhold from proceeds of the sale of shares of Common Stock acquired pursuant to the
exercise of the Stock Option either through
a voluntary sale or through a mandatory sale arranged by the Company (on your behalf
pursuant to this authorization).
	 
	 	 	To avoid any negative accounting treatment, the Company may withhold or account for
Tax-Related Items by considering applicable minimum statutory withholding amounts or other
applicable withholding rates. If the obligation for Tax-Related Items is satisfied by
withholding in shares of Common Stock, for tax purposes, you are deemed to have been issued
the full number of shares of Common Stock subject to the exercised Stock Option,
notwithstanding that a number of shares of Common Stock are held back solely for the purpose
of paying the Tax-Related Items due as a result of any aspect of Director’s participation in
the Plan. Finally, you shall pay to the Company any amount of Tax-Related Items that the
Company may be required to withhold or account for as a result of your participation in the
Plan that cannot be satisfied by the means previously described. The Company may refuse to
issue or deliver the shares of Common Stock or the proceeds of the sale of shares of Common
Stock to the Director, if Director fails to comply with his or her obligations in connection
with the Tax-Related Items.
	 
	8.	 	The Board or Committee may amend or terminate the Plan and the Committee may amend (or its
delegate may amend) these Terms and Conditions. No amendment may impair your rights as an
option holder without your consent. The determination of such impairment shall be made by the
Committee in its sole discretion.

2

 

	9.	 	The Committee (or its delegate) administers the Plan and has discretion to interpret the Plan
and this Agreement. Any decision or interpretation rendered by the Committee or its delegate
shall be final, conclusive and binding on you and all persons claiming under or through you.
By accepting this grant or other benefit under the Plan, you and each person claiming under or
through you shall be conclusively deemed to have indicated acceptance and ratification of, and
consent to, any action taken under the Plan by the Committee or its delegate
	 
	10.	 	This Award is discretionary, non-binding for future years and there is no promise or
guarantee that such grants will be offered to the Director in future years.
	 
	11.	 	The Company is not providing any tax, legal or financial advice, nor is the Company making
any recommendations regarding your participation in the Plan, or your acquisition or sale of
the shares of Common Stock acquired pursuant to the exercise of the Stock Option. You are
hereby advised to consult with your own personal tax, legal and financial advisors regarding
your participation in the Plan before taking any action related to the Plan.
	 
	12.	 	The validity, construction, interpretation, administration and effect of the Plan and this
Agreement and rights relating to the Plan and to this Agreement, shall be governed by the
substantive laws, but not the choice of law rules, of the State of Delaware in the United
States of America, as provided in the Plan. For purposes of litigating any dispute that
arises directly or indirectly under the Stock Option or the Agreement, the parties hereby
submit to and consent to the jurisdiction of the State of Colorado in the United States of
America, and agree that such litigation shall be conducted only in the courts of Arapahoe
County in the State of Colorado in
the United States of America, or the federal courts for the United States of America for the
District of Colorado, and no other courts, where this grant is made and/or to be performed.
	 
	13.	 	If one or more provisions of this Agreement shall be held invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining provisions shall
not in any way be affected or impaired thereby and the invalid, illegal or unenforceable
provisions shall be deemed null and void; however, to the extent permissible by law, any
provisions which could be deemed null and void shall first be construed, interpreted or
revised retroactively to permit this Agreement to be construed as to foster the intent of this
Agreement and the Plan.
	 
	14.	 	The Company may, in its sole discretion, decide to deliver any documents related to current
or future participation in the Plan by electronic means. Director hereby consents to receive
such documents by electronic delivery and agrees to participate in the Plan through an online
or electronic system established and maintained by the Company or a third party designated by
the Company.
	 
	15.	 	The Company reserves the right to impose other requirements on your participation in the
Plan, on the Stock Option and on any shares of Common Stock purchased upon exercise of the
Stock Option under the Plan, to the extent the Company determines it is necessary or advisable
in order to comply with local law or facilitate the administration of the Plan, and to require
you to sign any additional agreements or undertakings that may be necessary to accomplish the
foregoing.

3exv10w28

EXHIBIT
10.28

REVOLVING LINE OF CREDIT AGREEMENT

Effective as of May 1, 2010

     This Revolving Line of Credit Agreement is entered into by and between ODYSSEY RE HOLDINGS
CORP., a Delaware corporation (the “Subsidiary”), and FAIRFAX, INC., a Wyoming corporation
(the “Parent”, and collectively with the Subsidiary, the “Parties”, and each
individually, a “Party”).

NOW, THEREFORE, in consideration of the mutual covenants and undertakings herein contained, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereby agree, as follows:

			
	SECTION 1. 	COMMITMENTS OF THE PARTIES; TERMINATION DATE; BORROWING PROCEDURES AND CONDITIONS.

     SECTION 1.1 Subsidiary Commitment. Subject to the terms and conditions
of this Agreement, the Subsidiary agrees to make loans to the Parent on a revolving
basis (herein collectively called “Parent Loans” and individually each
called a “Parent Loan”) from time to time before the Termination Date (as
hereinafter defined) in such amounts as the Parent may from time to time request,
but not exceeding in the aggregate the amount of Three Hundred Million Dollars
($300,000,000) outstanding at any one time.

     SECTION 1.2 Parent Commitment. Subject to the terms and conditions of
this Agreement, the Parent agrees to make loans to the Subsidiary on a revolving
basis (herein collectively called “Subsidiary Loans” and individually each
called a “Subsidiary Loan”) from time to time before the Termination Date
(as hereinafter defined) in such amounts as the Subsidiary may from time to time
request, but not exceeding in the aggregate the amount of Three Hundred Million
Dollars ($300,000,000) outstanding at any one time. Parent Loans and Subsidiary
Loans are sometimes collectively referred to herein as “Loans.”

     SECTION 1.3 Termination Date. The commitments of the Parent and the
Subsidiary to make Loans hereunder shall be in effect until a demand is made by
either party to terminate them. All principal outstanding with respect to the Loans
and any accrued and unpaid interest shall be due and payable on the Termination
Date.

     SECTION 1.4 Borrowing Procedures. The Parties agree to cooperate in
good faith with respect to the requesting and funding of Loans.

     SECTION 1.5 Conditions to Each Loan. Notwithstanding any other
provision of this Agreement, no Loan shall be required to be made hereunder if the
conditions precedent to the making of such Loan specified in Section 8 have
not been satisfied.

Page 1 of 10 

 

SECTION 2. EVIDENCE OF DEBT.

     SECTION 2.1 Revolving Line of Credit. The date and amount of each Loan
and of each repayment of principal thereof received by a Lending Party shall be
recorded by such Lending Party in its books and records. The aggregate unpaid
principal amount so recorded shall be rebuttable presumptive evidence of the
principal amount of the Loans made by such Lending Party owing and unpaid. The
failure by any Lending Party to so record any such amount or any error in so
recording any such amount shall not, however, limit or otherwise affect the
obligations of the applicable Borrowing Party hereunder to repay the principal
amount of such Loans, together with all interest accruing thereon.

     SECTION 2.2 Due Date Alteration. If any payment of principal under
this Agreement falls due on any day of the year that is not a Business Day, then
such due date shall be extended to the next succeeding Business Day, and interest
shall accrue for the period of such extension.

SECTION 3. INTEREST.

     SECTION 3.1 Interest on Loans. The unpaid principal amount of the
Loans from time to time outstanding shall bear interest at the rate of 7.5% per
annum. Overdue interest shall bear interest at a rate that is 2% per annum in the
excess of the rate of this Agreement.

     SECTION 3.2 Interest Payment Dates. Accrued interest shall be paid
under this Agreement with respect to any Loan on the 15th day of January, April,
July and October of each year, at the Termination date or at any Optional Prepayment
date, beginning with the first such date to occur after the date of such Loan.

     SECTION 3.3 Basis of Computation. Interest on all Loans shall be
computed daily on the outstanding principal balance at given month end on the basis
of a year consisting of 365 days.

SECTION 4. PREPAYMENTS.

     SECTION 4.1 Optional Prepayment. Each Borrowing Party may from time to
time prepay the Loans and any accrued and unpaid interest, in whole or in part,
without premium or penalty. The prepayment of the Loans will not require
restatement of this Agreement.

SECTION 5. MAKING OF PAYMENTS.

     SECTION 5.1 Making of Payments. All payments of principal of, or
interest on, the Loans made to any Borrowing Party shall be made in immediately
available funds by such Borrowing Party to the applicable Lending Party. All such
payments shall be made to the applicable Lending Party not later than noon, local
time, on the date due; and funds received after that hour shall be deemed to

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have been received by the applicable Lending Party on the next following
Business Day. To the extent both parties have borrowed funds outstanding during the
lending period, the interest payments should be netted into a single payment to the
party accruing the most interest.

     SECTION 5.2 Withholding. If any Borrowing Party shall be required by
law to deduct any taxes from or in respect of any sum payable hereunder to the
applicable Lending Party, (a) such Borrowing Party shall make such deductions and
(b) such Borrowing Party shall pay the full amount deducted to the relevant
authority in accordance with applicable law. Each Borrowing Party hereby agrees to
indemnify the applicable Lending Party for the full amount of any taxes paid by such
Lending Party as a result of any failure by such Borrowing Party to fulfill its
obligations under the immediately preceding sentence. All amounts remitted by any
Borrowing Party to any Lending Party shall be remitted net of any taxes required to
be deducted under applicable law.

     SECTION 5.3 Payment in Dollars. All payments hereunder shall be made
in United States Dollars.

SECTION 6. WARRANTIES.

     SECTION 6.1 Subsidiary’s Warranties. To induce the Parent to enter
into this Agreement, the Subsidiary warrants to the Parent that:

     SECTION 6.1.1. Organization, etc. The Subsidiary is a corporation duly
existing and in good standing under the laws of the State of Delaware; and the
Subsidiary is duly qualified and in good standing as a foreign corporation
authorized to do business in each jurisdiction where, because of the nature of its
activities or properties, such qualification is required.

     SECTION 6.1.2. Authorization No Conflict. The execution and delivery
of this Agreement, the borrowings by the Subsidiary hereunder and the performance by
the Subsidiary of its obligations under this Agreement, are within the Subsidiary’s
corporate powers, have been duly authorized by all necessary corporate action, have
received all necessary governmental approval (if any shall be required), and do not
and will not contravene or conflict with any provision of law or of the charter or
by-laws of the Subsidiary or of any agreement binding upon the Subsidiary.

     SECTION 6.1.3. Validity and Binding Nature. This Agreement is the
legal, valid and binding obligation of the Subsidiary enforceable against the
Subsidiary in accordance with its terms.

     SECTION 6.1.4. Pari Passu Indebtedness. The indebtedness of the
Subsidiary represented by this Agreement ranks at least pari passu with all
other unsecured indebtedness of the Subsidiary.

Page 3 of 10 

 

     SECTION 6.2 Parent’s Warranties. To induce the Subsidiary to enter
into
this Agreement, the Parent warrants to the Subsidiary that:

     SECTION 6.2.1. Organization, etc. The Parent is a corporation duly
existing and in good standing under the laws of the State of Wyoming; and the Parent
is duly qualified and in good standing as a corporation authorized to do business in
each jurisdiction where, because of the nature of its activities or properties, such
qualification is required.

     SECTION 6.2.2. Authorization No Conflict. The execution and delivery
of this Agreement, the borrowings by the Parent hereunder and the performance by the
Parent of its obligations under this Agreement, are within the Parent’s corporate
powers, have been duly authorized by all necessary corporate action, have received
all necessary governmental approval (if any shall be required), and do not and will
not contravene or conflict with any provision of law or of its constituent documents
or of any agreement binding upon the Parent.

     SECTION 6.2.3. Validity and Binding Nature. This Agreement is the
legal, valid and binding obligation of the Parent enforceable against the Parent in
accordance with its terms.

     SECTION 6.2.4. Pari Passu Indebtedness. The indebtedness of the Parent
represented by this Agreement ranks at least pari passu with all other
unsecured indebtedness of the Parent.

SECTION 7. COVENANTS.

     SECTION 7.1 Subsidiary’s Covenants. Until the termination of the
Parent’s commitment to make loans hereunder and thereafter until all obligations of
the Subsidiary, in its capacity as the Borrowing Party, hereunder are paid in full,
the Subsidiary agrees that it will:

     SECTION 7.1.1. Notice of Default. Forthwith upon learning of the
occurrence of a Subsidiary Default (as hereinafter defined) or an Unmatured
Subsidiary Default (as hereinafter defined), deliver a written notice thereof to the
Parent, describing the same and the steps being taken by the Subsidiary with respect
thereto.

     SECTION 7.1.2. Other Information. Deliver to the Parent from time to
time such other information concerning the Subsidiary as the Parent may reasonably
request related to its financial position.

     SECTION 7.1.3. Books, Records and Inspections. Maintain complete and
accurate books and records; permit access by the Parent to the books and records of
the Subsidiary; and permit the Parent to inspect the properties and operations of
the Subsidiary.

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     SECTION 7.2 Parent’s Covenants. Until the termination of the
Subsidiary’s commitment to make loans hereunder and thereafter until all
obligations of the Parent, in its capacity as the Borrowing Party, hereunder
are paid in full, the Parent agrees that it will:

     SECTION 7.2.1. Notice of Default. Forthwith upon learning of the
occurrence of a Parent Default (as hereinafter defined) or an Unmatured Parent
Default (as hereinafter defined), deliver a written notice thereof to the
Subsidiary, describing the same and the steps being taken by the Parent with respect
thereto.

     SECTION 7.2.2. Other Information. Deliver to the Subsidiary from time
to time such other information concerning the Parent as the Subsidiary may
reasonably request.

     SECTION 7.2.3. Books, Records and Inspections. Maintain complete and
accurate books and records; permit access by the Subsidiary to the books and records
of the Parent; and permit the Subsidiary to inspect the properties and operations of
the Parent.

SECTION 8. CONDITIONS OF LENDING.

     SECTION 8.1 Parent Loans. The obligation of the Subsidiary to make
Parent Loans is subject to the conditions precedent that: (a) no Parent Default, or
Unmatured Parent Default, has occurred and is continuing or will result from the
making of such Parent Loan, (b) the warranties of the Parent contained in
Section 6 are true and correct as of the date of such requested Parent Loan,
with the same effect as though made on the date of such Parent Loan and (c) the
Subsidiary continues to be a direct or indirect subsidiary of the Parent.

     SECTION 8.2 Subsidiary Loans. The obligation of the Parent to make
Subsidiary Loans is subject to the conditions precedent that: (a) no Subsidiary
Default, or Unmatured Subsidiary Default, has occurred and is continuing or will
result from the making of such Subsidiary Loan, (b) the warranties of the Subsidiary
contained in Section 6 are true and correct as of the date of such requested
Subsidiary Loan, with the same effect as though made on the date of such Subsidiary
Loan and (c) the Subsidiary continues to be a direct or indirect subsidiary of the
Parent.

SECTION 9. EVENTS OF DEFAULT AND THEIR EFFECT.

     SECTION 9.1 Subsidiary Defaults

     SECTION 9.1.1. Subsidiary Defaults. Each of the following shall
constitute a Subsidiary Default under this Agreement:

     (a) Non-Payment of Principal or Interest. Default, and continuance thereof for
30 days, in the payment when due of any principal of or interest on the Subsidiary Loans.

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     (b) Bankruptcy, Insolvency, etc. The Subsidiary becomes insolvent or
generally fails to pay, or admits in writing its inability to pay, debts as they become
due; or the Subsidiary applies for, consents to, or acquiesces in the appointment of, a
trustee, receiver or other custodian for the Subsidiary, or makes a general assignment for
the benefit of creditors; or, in the absence of such application, consent or acquiescence, a
trustee, receiver or other custodian is appointed for the Subsidiary or for a substantial
part of its property and is not discharged within 90 days; or any bankruptcy,
reorganization, debt arrangement, or other case or proceeding under any bankruptcy or
insolvency law, or any dissolution or liquidation proceeding is commenced in respect of the
Subsidiary, and if such case or proceeding is not commenced, consented to or acquiesced in
by the Subsidiary, it remains for 90 days undismissed; or the Subsidiary takes any corporate
action to authorize, or in furtherance of, any of the foregoing.

     (c) Non-Compliance with this Agreement. Failure by the Subsidiary to comply
with or to perform any provision of this Agreement (and not constituting a Subsidiary
Default under any of the preceding provisions of this Section 9.1.1) and continuance
of such failure for 60 days after notice thereof to the Subsidiary from the Parent.

     (d) Warranties. Any warranty made by the Subsidiary herein is breached or is
false or misleading in any material respect.

     SECTION 9.1.2. Effect of Subsidiary Default. If any Subsidiary Default
described in Section 9.1.1 shall occur, the Parent may declare its
commitment to make Subsidiary Loans (if it has not theretofore terminated) to be
terminated and all amounts owing under its line of credit to the Subsidiary to be
due and payable, whereupon such commitment (if it has not theretofore terminated)
shall immediately terminate and all amounts owing under its line of credit to the
Subsidiary shall become immediately due and payable, all without notice, protest,
presentment or demand of any kind. The Parent shall promptly advise the Subsidiary
of any such declaration, but failure to do so shall not impair the effect of such
declaration.

     SECTION 9.2 Parent Defaults

     SECTION 9.2.1. Parent Defaults. Each of the following shall constitute
a Parent Default under this Agreement:

     (a) Non-Payment of Principal or Interest. Default, and continuance thereof for
30 days, in the payment when due of any principal of or interest on the Parent Loans.

     (b) Bankruptcy, Insolvency, etc. The Parent becomes insolvent or generally
fails to pay, or admits in writing its inability to pay, debts as they become due; or the
Parent applies for, consents to, or acquiesces in the appointment of, a trustee, receiver or
other custodian for the Parent, or makes a general assignment for the benefit of creditors;
or, in the absence of such application, consent or acquiescence, a trustee, receiver or
other custodian is appointed for the Parent or for a substantial part of its property and is
not

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discharged within 90 days; or any bankruptcy, reorganization, debt arrangement, or other
case or proceeding under any bankruptcy or insolvency law, or any dissolution or
liquidation proceeding is commenced in respect of the Parent, and if such case or proceeding
is not commenced, consented to or acquiesced in by the Parent, it remains for 90 days
undismissed; or the Parent takes any corporate action to authorize, or in furtherance of,
any of the foregoing.

     (c) Non-Compliance with this Agreement. Failure by the Parent to comply with
or to perform any provision of this Agreement (and not constituting a Parent Default under
any of the preceding provisions of this Section 9.2.1) and continuance of such
failure for 60 days after notice thereof to the Parent from the Subsidiary.

     (d) Warranties. Any warranty made by the Parent herein is breached or is false
or misleading in any material respect.

     SECTION 9.2.2. Effect of Parent Default. If any Parent Default
described in Section 9.2.1 shall occur, the Subsidiary may declare its
commitment to make Parent Loans (if it has not theretofore terminated) to be
terminated and all amounts owing under its line of credit to the Parent to be due
and payable, whereupon such commitment (if it has not theretofore terminated) shall
immediately terminate and all amounts owing under its line of credit to the Parent
shall become immediately due and payable, all without notice, protest, presentment
or demand of any kind. The Subsidiary shall promptly advise the Parent of any such
declaration, but failure to do so shall not impair the effect of such declaration.

SECTION 10. CERTAIN DEFINITIONS.

When used herein, the following terms shall have the following meanings:

     “Agreement” means this amended and restated Revolving Line of Credit Agreement.

     “Borrowing Party” means either Party in its capacity as borrower.

     “Business Day” means any day of the year (other than a Saturday or Sunday) on which
the banks are open for business in Chicago, Illinois.

     “Dollars” and the sign “$” mean lawful money of the United States of America.

     “Lending Party” means either Party in its capacity as lender.

     “Termination Date” means the earlier of (i) the date the commitments of the Parent and
the Subsidiary to make Loans terminate pursuant to Section 1.3, (ii) with respect to the
commitment of the Parent to make Loans hereunder and the Subsidiary Loans, the date such commitment
terminates pursuant to Section 9.1.2 or (iii) with respect to the commitment of the
Subsidiary to make Loans hereunder and the Parent Loans, the date such commitment terminates
pursuant to Section 9.2.2.

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     “Unmatured Parent Default” means any event which if it continues uncured will, with
lapse of time or notice or lapse of time and notice, constitute a Parent Default.

     “Unmatured Subsidiary Default” means any event which if it continues uncured will,
with lapse of time or notice or lapse of time and notice, constitute a Subsidiary Default.

SECTION 11. GENERAL.

     SECTION 11.1 Waiver; Amendments. No delay by any Lending Party in the
exercise of any right or remedy shall operate as a waiver thereof, nor shall any
single or partial exercise by any Lending Party of any right or remedy preclude
other or further exercise thereof, or the exercise of any other right or remedy. No
amendment, modification or waiver of, or consent with respect to, any provision of
this Agreement shall in any event be effective unless the same shall be in writing
and signed and delivered by the Lending Party against whom enforcement thereof is to
be charged.

     SECTION 11.2 Confirmations. The Parties agree from time to time, upon
written request received by one Party from the other Party, to confirm to the other
in writing the aggregate outstanding principal amount of the Loans.

     SECTION 11.3 Notices. All notices and other communications provided to
either Party under this Agreement shall be in writing and mailed, delivered or
transmitted to the other Party at its address or facsimile number or electronic mail
address set forth below its signature hereto or at such other address or facsimile
number or electronic mail address as may be designated in a notice given in the
aforesaid manner. Any notice, if mailed and properly addressed, shall be deemed
given five days after the date when sent by registered or certified mail, postage
prepaid; any notice, if transmitted by electronic mail or facsimile, shall be deemed
given when transmitted.

     SECTION 11.4 Costs and Expenses. Each Borrowing Party agrees to pay on
demand all out-of-pocket costs and expenses (including reasonable attorneys’ fees
and legal expenses) incurred by the applicable Lending Party in connection with the
enforcement by such Lending Party of this Agreement or any other instruments or
documents provided for herein or to be delivered hereunder or in connection
herewith. All obligations provided for in this Section 11.4 shall survive
any termination of this Agreement.

     SECTION 11.5 Governing Law. This Agreement shall be a contract made
under and governed by the internal laws of the State of New York. All obligations of
each Borrowing Party and rights of each Lending Party expressed herein shall be in
addition to and not in limitation of those provided by applicable law.

     SECTION 11.6 Successors and Assigns. This Agreement shall be binding
upon the Subsidiary and the Parent and their respective successors and assigns, and
shall inure to the benefit of the Subsidiary and the Parent and the

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successors and assigns of the Subsidiary and the Parent. No Party may assign
its rights or obligations hereunder without the consent of the other Party.

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     IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective
signatories thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 	 

	 	 	FAIRFAX, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Cassil
 

John Cassil
	 	 
	 

	 	 	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	ODYSSEY RE HOLDINGS CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Andrew A. Barnard
 

Andrew A. Barnard
	 	 
	 

	 	 	 	President & CEO	 	 

Page 10 of 10

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