Document:

EX-10.1

Exhibit 10.1

October 30, 2006

Mr. W. Marston Becker

1234 Stanton Road

Charleston, West Virginia 25314

USA

Dear Mr. Becker:

Re: Consulting Agreement

This letter agreement (“Agreement”) will confirm the understanding between Max Re Capital Ltd. (the
“Company”) and you, pursuant to which you have been engaged by the Company to provide services as
its Chairman of the Board of Directors and Acting Chief Executive Officer.

	(1)	 	You shall perform the duties and activities customarily associated with the Chairman and
Chief Executive Officer of the Company and you shall have full authority to conduct the
affairs of the Company during the term of this Agreement. Your duties shall include but not
be limited to the ability to enter into contracts and other agreements binding the Company,
hiring and dismissal of employees, engagement of independent contractors to work for the
Company, and representation of the Company before regulatory authorities and rating agencies.

	(2)	 	The term of this Agreement and your engagement hereunder shall extend from October 30, 2006
through the earliest of (a) your death or disability, (b) the mutual agreement of you and the
Board of Directors of the Company or (c) thirty calendar days following delivery of written
notice of termination of this Agreement by you or the Board of Directors of the Company.

Notwithstanding expiration or termination of this Agreement, it is agreed that the
provisions concerning confidentiality (Section 6), indemnification (Section 5 and 8),
ownership of work product (Section 7), dispute resolution (Section 10) and the Company’s
obligations to pay fees and reimburse expenses earned or incurred prior to the termination
of this Agreement (Section 3) shall survive any such expiration or termination.

	(3)	 	As base compensation for the services hereunder, the Company will pay you a monthly fee of
$75,000, which shall be paid in advance at the beginning of each calendar month.

In addition to the foregoing, the Company will pay you incentive compensation in accordance
with the provisions of Schedule A which is attached hereto and is incorporated in all
respects into and as part of this Agreement.

The Company shall reimburse you monthly for your reasonable out-of-pocket expenses incurred
or accrued, including private air charter as needed in your reasonable discretion, during
the period of or in connection with your engagement. You shall report and account for your
expenses monthly on the Company’s standard expense account forms and be reimbursed by the
Company within 30 calendar days of submission of such expense account forms to the Company.
In addition, you shall provide to the Company’s Audit and Risk Management Committee a
monthly accounting of your use of private air charter.

	(4)	 	You shall not be entitled to any Company benefits or other benefits as may accrue to a full
or part-time employee of the Company.

	(5)	 	In performing services and duties hereunder, you shall do so as an independent contractor and
you are not, and are not to be deemed, an employee of the Company or any other person acting
on behalf of the Company. You shall be responsible for meeting any legal requirements imposed
on you or any person acting on your behalf as a result of this Agreement, including but not
limited to the filing of income tax returns and the payment of taxes; and you agree to
indemnify the Company for the failure to do so, if the Company is required to make any such
payment otherwise due by you.

	(6)	 	To the extent that you obtain non-public information about the Company’s or its affiliates’
business practices and plans, including but not limited to, business strategies, marketing
strategies, technical information, systems information, product development, service
development and customers (“Confidential Information”), then all such Confidential Information
disclosed to you shall be received by you in confidence for purposes of this Agreement. You
shall not disclose, disseminate, publish, communicate or divulge any Confidential Information
to anyone outside the Company, or to any employee of the Company not having reasonable need
for access to such information, except in the performance of your duties hereunder or unless
the Company expressly consents to such disclosure in writing or as may be required by law.
You agree that all Confidential Information within your possession upon termination of this
Agreement shall be returned promptly to the Company. You understand and agree that money
damages will not be sufficient as a remedy for any breach of this Section and that the
Company shall be entitled to equitable relief, including injunction and specific performance,
as a remedy for any breach of this Section.

	(7)	 	All work product created by you on behalf of the Company during the term of this Agreement
shall be the sole property of the Company, and you shall not have any license or other right,
express or implied, to such work product.

	(8)	 	In consideration for your work on behalf of the Company and its subsidiaries, the Company and
its subsidiaries shall indemnify and hold you harmless from and against any and all claims,
damages or liabilities arising out of your engagement as Chairman and Acting Chief Executive
Officer, unless a judgment or other final adjudication establishes that your acts or omissions
were in bad faith or involved intentional misconduct or a knowing violation of law. Costs and
expenses (including attorney’s fees) incurred by you in defending or investigating any action,
suit, proceeding or investigation shall be paid by the Company, in advance of final
disposition of such matter, upon receipt of your written undertaking to repay any such amounts
if it is ultimately determined that you are not entitled to indemnification hereunder. The
Company’s subsidiaries shall also confirm their agreement to be jointly and severally liable
to you for the obligations set forth in this paragraph 8.

	(9)	 	For the purposes of this Agreement, notices, demands and all other communications shall be in
writing and shall be deemed to have been duly given when delivered to the recipient at one of
the following addresses:

If to you:

1234 Stanton Road

Charleston, West Virginia 25314

If to the Company:

Max Re Capital Ltd.

Max Re House

2 Front Street

Hamilton HM 11

Bermuda

Attention: General Counsel

or to such other address as any party may have furnished to the other in writing.

	(10)	 	Except as otherwise set forth in Section 6 herein with respect to the Company’s remedy for
any breach of Section 6, all controversies, claims, or disputes arising out of or related to
this Agreement, shall be settled by arbitration in Bermuda, as the sole and exclusive remedy
of either party, and judgment upon such award rendered by the arbitrator(s) may be entered in
any court of competent jurisdiction. In the event that a court of competent jurisdiction
determines that arbitration is not appropriate for the adjudication of any claim, you hereby
waive your right to a jury trial.

One arbitrator shall be chosen by you, the other by the Company, and an umpire shall be
chosen by the two arbitrators, all of whom shall be active or retired disinterested
executive officers of insurance or reinsurance companies. In the event that either party
shall fail to choose an arbitrator within 30 days following a written request by the other
party to do so, the requesting party may choose two arbitrators who shall in turn choose an
umpire. If the two arbitrators fail to agree on the selection of an umpire within 30 days
following their appointment, each arbitrator shall name three nominees, of whom the other
shall decline two, and the decision shall be made by drawing lots.

Each party shall bear the expense of its own arbitrator, and shall jointly and equally bear
with the other the expense of the umpire.

	(11)	 	If any provision of this Agreement shall, to any extent, now or hereafter be or become
invalid or unenforceable, the remainder of this Agreement shall not be affected thereby and
every other provision of this Agreement shall be valid and enforceable, to the fullest extent
permitted by law.

	(12)	 	No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing by the parties. No waiver by either party
at any time of any breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

	(13)	 	This Agreement (including Schedule A hereto) sets forth the entire agreement of the parties
hereto in respect of the subject matter contained herein and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or warranties, whether oral
or written, by any officer, employee or representative of any party hereto.

	(14)	 	Neither party to this Agreement can assign his or its rights or obligations under this
Agreement without the prior written consent of the other party to this Agreement.

	(15)	 	This Agreement shall be governed by and construed in accordance with the laws of The State of
New York without regard to the conflicts of law provisions thereof. This Agreement may be
signed in any number of counterparts, each of which shall be an original, but all which
together shall constitute one and the same instrument.

If the foregoing correctly sets forth the understanding and agreement between you and the Company,
please sign and return one original executed copy of this Agreement.

Max Re Capital Ltd.

	 	 	 	_/s/      Zack H. Bacon III 

	 	 	By: Zack H. Bacon III

Director

	 	 	Confirmed and Agreed as of the date first written above:

/s/ W. Marston Becker 

W. Marston Becker

Schedule A

	1.	 	Cash Incentive Bonus: As determined by the Company’s Compensation Committee of the
Board of Directors

	2.	 	Common Shares: 7,500 per month at the end of each month subject to a maximum of
50,000 shares while this Agreement is in force.Exhibit 4.1

RHODIA

10.50% EURO-DENOMINATED SENIOR NOTES DUE 2010

SUPPLEMENTAL INDENTURE

dated as of October 17, 2006

among

Rhodia 

and 

The Bank of New York

as Trustee, Paying Agent and Transfer Agent

 

 

THIS SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of October 17, 2006, is entered into between Rhodia, a société anonyme organized under the laws of France (the “Company”), and The Bank of New York, as trustee, paying agent and transfer agent (the “Trustee”).

WITNESSETH

WHEREAS, the Company and the Trustee entered into the Indenture, dated as of May 17, 2004 (as amended or otherwise modified to date, the “Indenture”), relating to the issuance of the Company’s 10.50% Senior Notes due 2010 (the “Notes”);

WHEREAS, under the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated as of October 2, 2006 (as it may be amended, modified or supplemented, the “Offer Materials”), the Company has offered to purchase for cash any and all of the Notes and has requested the consents of Holders of at least a majority in principal amount of the Notes to effect certain modifications to the provisions of the Indenture; 

WHEREAS, Section 9.02 of the Indenture provides that with the written consent of the Holders of at least a majority in principal amount of the Notes then outstanding (the “Requisite Consents”), the Company and the Trustee may enter into an indenture supplemental to the Indenture for the purpose of adding provisions to the Indenture or of modifying or amending the rights of Holders under the Indenture, subject to certain exceptions specified in Section 9.02 of the Indenture; 

WHEREAS, the Company has obtained the Requisite Consents to amend the Indenture in certain respects; and

WHEREAS, this Supplemental Indenture has been duly authorized by all necessary corporate action on the part of the Company. 

NOW, THEREFORE, in consideration of the premises and agreements herein contained, the parties to this Supplemental Indenture hereby covenant and agree for the equal and proportionate benefit of all Holders of Notes as follows:

Section 1.     Definitions. Capitalized terms used herein and not otherwise defined herein are used as defined in the Indenture.

Section 2.     Amendments. Upon the Company’s purchase of and payment for all of the Notes validly tendered (and not validly withdrawn) pursuant to the Offer Materials following the Consent Deadline (as defined in the Offer Materials) (the “Amendment Condition”), automatically and without further act by any person:  

  	
         
 	
        2.1
 	
        Section 1.01. Definitions shall be amended in the following manner:
 

2.1.1  Each of the following defined terms shall be deleted in their entirety:  “Acquired Debt,” “Affected Facilities,” “Asset Sale,” “Attributable Debt,” “Cash Equivalents,” “Change of Control,” “Consolidated Cash Flow,” “Consolidated Interest

 

 

Expense,” “Consolidated Net Income,” “Consolidated Net Tangible Assets,” “Credit Facilities,” “Existing Debt,” “Fixed Charges,” “Fixed Charge Coverage Ratio,” “Investment Grade Rating,” “Investments,” “Moody’s,” “Net Income,” “Net Proceeds,” “Parent Company,” “Permitted Business,” “Permitted Investments,” “Permitted Liens,” “Permitted Refinancing Debt,” “Principal Property,” “Rating Agency,” “Receivables Fees,” “Replacement Assets,” “Restricted Investment,” “Sale and Leaseback Transaction,” “S&P,” “Senior Financial Officer,” “Subordinated Debt,” “U.S. GAAP,” “Weighted Average Life to Maturity,”
“Wholly-Owned Subsidiary” and “Wholly-Owned Restricted Subsidiary.”

2.1.2
    The following defined term shall be inserted in its proper alphabetical location:

 

“Additional Amounts” are not applicable to the Notes. 

2.1.3  The defined term “Additional Notes” shall be amended by deleting the phrase “Sections 2.13 and 4.09” an inserting the phrase “Section 2.13” in lieu thereof. 

2.1.4  The defined term “Board of Directors” shall be amended by deleting the following phrase appearing therein:  “or, except in the context of the definition of ‘Change of Control.’”

2.1.5  The defined term “Disqualified Stock” shall be amended by deleting the second sentence thereof in its entirety. 

2.1.6  The defined term “GAAP” shall be amended by deleting the text of subsection (C) in its entirety and replacing such text with the following:  “[intentionally omitted].”

2.1.7  The following defined term shall be inserted in its proper alphabetical location:

 

“Relevant Tax Jurisdiction” means (1) any jurisdiction where the Payer on the Notes is organized, engaged in business or otherwise considered to be a resident for tax purposes, (2) any jurisdiction from or through which the Payer makes a payment on the Notes or (3) any political subdivision or governmental authority of any of the foregoing having the power to tax. 

2.1.8  The defined term “Unrestricted Subsidiary” shall be amended by amending and restating the last paragraph thereof in its entirety as follows:

Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced to the Trustee by filing with the Trustee a certified copy of the Board Resolution giving effect to such designation. If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it will thereafter cease to be an Unrestricted Subsidiary

 

 

 

 

 

for purposes of this Indenture and any Debt of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary of the Company as of such date. The Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary;  provided  that such designation will be deemed to be an incurrence of Debt by a Restricted Subsidiary of the Company of any outstanding Debt of such Unrestricted Subsidiary and such designation shall only be permitted if no Default or Event of Default would be in existence following such designation.

2.2     References to the following defined terms in Section 1.02 shall be deleted in their entirety:  “Additional Amounts,” “Affiliate Transaction,” “Asset Sale Offer,” “Change of Control Offer,” “Change of Control Payment,” “Change of Control Payment Date,” “Excess Proceeds,” “Incur,” “Offer Amount,” “Offer Period,” “Payment Default,” “Permitted Debt,” “Purchase Date,” “Relevant Tax Jurisdiction,” “Restricted Payments” and “Suspension Event.”

2.3      Section 2.06(i)(v) shall be amended by deleting the text of subsection (D) in its entirety and replacing such text with the following:  “[intentionally omitted].”

2.4      Section 2.13(a) shall be amended by deleting the following phrase appearing therein:  “Subject to compliance with Section 4.09 hereof.”

2.5      Section 3.02 shall be amended by deleting the following phrase appearing therein:  “, provided that in connection with a purchase arising from an Asset Sale such selection shall be made on a pro rata basis pursuant to Section 4.10 hereof.” 

2.6     The text appearing in each of Sections 3.10, 4.03, 4.04, 4.05, 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, 4.18, 4.20, 4.21, 4.22 and 5.01 shall be deleted in its entirety and, in each case, replaced with the following: “[intentionally omitted].”

2.7      Section 5.02 shall be amended by deleting the following phrase in each location it appears:  “in a transaction that is subject to, and that complies with the provisions of, Section 5.01 hereof.” 

2.8      Section 6.01(a) shall be amended by deleting the text of subsections (3), (4), (5), (6) and (7) appearing therein and, in each case, replacing such text with the following:  “[intentionally omitted].”

2.9      Section 6.01 shall be amended by deleting the text of subsection (b) appearing therein and replacing such text with the following:  “[intentionally omitted].”

2.10   Section 8.04 shall be amended by deleting the text of subsections (2), (3), (6) and (7) appearing therein and, in each case, replacing such text with the following:  “[intentionally omitted].”

2.11   Section 9.01 shall be amended by deleting the following phrase appearing in subsection (6) thereof:  “under Section 4.21.”

 

 

 

 

 

 

2.12   Section 9.04 shall be amended by deleting the second sentence thereof.
  

2.13   Section 12.08 shall be amended by deleting the defined terms “Purchase Date” and “Change of Control Payment Date” in each location such terms appear. 

Section 3.     Corresponding Amendments to the Notes. Pursuant to Section (6) of each Global Note, upon satisfaction of the Amendment Condition and subject to Section 4 hereof, each Global Note shall be deemed supplemented, modified and amended in such manner as necessary to make the terms of such Global Note consistent with the terms of the Indenture, as amended by this Supplemental Indenture. The Company shall, as soon as practicable after the date hereof, deliver to the relevant Clearing System (as defined in the Offer Materials) a conformed copy of this Supplemental Indenture which shall be annexed to each Global Note.

Section 4.     Effect. This Supplemental Indenture will become effective immediately upon its execution and delivery by each of the Company and the Trustee; provided, however, that the Company will continue to comply with and be subject to the provisions of the Indenture deleted or modified by Section 2 of this Supplemental Indenture (as such provisions exist in the Indenture prior to the effectiveness of the Supplemental Indenture) unless and until the Amendment Condition is satisfied. If (i) the Amendment Condition is not satisfied on or prior to the Final Settlement Date or (ii) the Offer (as defined in the Offer Materials) is terminated pursuant to and in accordance with the Offer Materials, then
the Company shall notify the Trustee in writing forthwith and this Supplemental Indenture shall terminate immediately without having given effect to any amendment contained in Section 2 hereof and without the need for further action hereunder. 

Section 5.     Trustee’s Acceptance. The Trustee hereby accepts this Supplemental Indenture and agrees to perform the same under the terms and conditions set forth in the Indenture.

Section 6.     Conflict with Trust Indenture Act. If any provision of this Supplemental Indenture limits, qualifies or conflicts with any provision of the TIA that is required or deemed under the TIA to be part of and govern any provision of this Supplemental Indenture, such provision of the TIA shall control. If any provision of this Supplemental Indenture modifies or excludes any provision of the TIA that may be so modified or excluded, the provision of the TIA shall be deemed to apply to the Indenture as so modified or to be excluded by this Supplemental Indenture, as the case may be.

Section 7.     Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 Section 8.     Counterparts. This Supplemental Indenture may be signed in various counterparts, which together will constitute one and the same instrument.

 

 

Section 9.     Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound thereby.

Section 10.     Recitals. The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness and makes no representations as to the validity or sufficiency of this Supplemental Indenture.

Section 11.     Severability. In case any provision in this Supplemental Indenture is invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 12.     Benefits of Supplemental Indenture. Nothing in this Supplemental Indenture, express or implied, shall give to any Person, other than the parties hereto and thereto and their successors hereunder and thereunder and the Holders of the Notes, any benefit of any legal or equitable right, remedy or claim under the Indenture or this Supplemental Indenture.

Section 13.     Successors. All agreements of the parties hereunder shall bind their respective successors. 

Section 14.     Headings. The Article and Section headings herein are inserted for convenience of reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions hereof.

[signature page follows]

 

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written. 

 

	

 
 	

 
 	

RHODIA
 
	

 
 	

 
 	

 
 	

By: 
 	

 /s/ Pascal Bouchiat
 
	

 
 	

 
 	

 
 	

 
 	

Name: Pascal Bouchiat
 
	

 
 	

 
 	

 
 	

 
 	

Title: Chief Financial Officer
 

 

	

 
 	

 
 	

THE BANK OF NEW YORK,
 as Trustee, Paying Agent and Transfer Agent
 
	

 
 	

 
 	

 
 	

By: 
 	

 /s/ Emma Wilkes
 
	

 
 	

 
 	

 
 	

 
 	

Name: Emma Wilkes
 
	

 
 	

 
 	

 
 	

 
 	

Title: Vice President

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