Document:

Exhibit 4.4

Matching Program

 

2013 Cycle

Rewarding the Sustainable Performance

 

This document constitutes part of a prospectus covering securities that have been registered under the Securities Act of 1933.

 

Important Notice: Participation in this program is completely optional and voluntary, once all of the eligibility criteria are met and all conditions accepted by the employee.  The purchase of shares is characterized as a risk investment, once it represents the investment of funds in variable income (i.e. publicly traded shares). Thus, while investing in shares, one is subject to several risks such as: capital market volatility, share liquidity and oscillation of their quotations in the stock exchange. These risks associated can result in earnings or losses.

 

The option of each Employee for the acquisition and, after certain period of time, after Vale share sale, as well as the profits (dividends, interests etc.) that are noticed by the Employee between the two events, may have tax consequences, especially the eventual incidence of income tax, if there is positive result in the sale of its shares. We clarify that tax legislation is dynamic, thus, being able to suffer interpretation changes or alterations. The Human Resources Centers shall provide generic and non-exhaustive information on the said tax consequences, and each Employee should be responsible for evaluating their specific individual condition, as well as consulting their own tax expert to make sure of the tax implications thereof.

 

 

Table of Contents

 

	
I.
    	
Purpose
    	
2
    
	
II.
    	
Eligibility
    	
3
    
	
III.
    	
Matching
    	
3
    
	
 
    	
a)   Acquisition Criteria of Shares
    	
4
    
	
 
    	
b)   Acquisition of Shares
    	
5
    
	
 
    	
c)   Dividends and Interests
    	
6
    
	
 
    	
d) Matching   of Shares
    	
6
    
	
 
    	
e) Special   Conditions
    	
7
    
	
IV.
    	
Timetable
    	
9
    
	
 
    	
a)   Enrollment to the Program and Opening of Account
    	
10
    
	
 
    	
b) Wire of Funds to Shares Acquisition
    	
11
    
	
 
    	
c)   Acquisition of Shares
    	
11
    
	
V.
    	
Questions &   Answers
    	
12
    
	
VI.
    	
Glossary
    	
15
    

 

1

 

I. Purpose

 

The purpose of Vale ́s Matching Program is to establish a reward mechanism for Vale with a view to:

 

·                                          Encouraging employee “ownership”;

·                                          Raising attraction and retention capacity of Employees by Vale;

·                                         Reinforcing the sustainable performance culture and the competencies development.

 

The following rules are exclusively valid for the 2013 Matching Program cycle; Entitlement to stock matching awards under this program shall be based on the employee’s performance in 2012.

 

The 2013 cycle shall commence on February/March, 2013 and ends on February/March, 2016.

 

The implementation of the 2013 Matching Program is a one-time discretionary benefit and Vale reserves its right to unilaterally alter, amend, change or modify the formula utilized to calculate the matching benefit awards, or to eliminate the Matching Program benefit, in whole or in part, at any time in subsequent years, with or without prior notice.

 

For greater clarity, employee’s participation in the 2013 Matching Program shall not generate an expectation of future entitlement, as Vale is not obliged to implement the Matching Program in the years to come.

 

2

 

II. Eligibility

 

Employees who meet all of the following conditions are eligible to participate in the Matching Program:

 

1.              Employees who worked at Vale or in one of its subsidiaries in 2012, in one of the below positions, based on the December 2012 hierarchical structure1 ( independent of local job title):

 

i.      CEO;

ii.     Executive Director;

iii.    Global Director;

iv.    Department Director, Technical Director;

v.     General Manager , Senior Technical Manager;

vi.    Manager, Technical Manager ;

vii.   Project Leaders (Executive Project Leader, Senior Project Leader and Project Leader).

 

2.                                    Be eligible to receive the short-term incentive (AIP-Annual Incentive Plan) award related to 2012 performance cycle, in one of the above positions;

 

3.                                    Be an active employee of Vale or an approved participant subsidiary (Appendix), in one of the above positions, on the acquisition date of shares;

 

4.                                     Be in accordance with the automatic payroll withholding from their net short-term incentive (AIP) award payment, sending the Enrollment Form signed within the deadline established.

 

III. Matching

 

Employees eligible to participate in the Program may acquire Vale preferred shares according to the criteria defined below, and shall be entitled, at the expiry of the term of the program, to a reward that matches one a one to one basis (1:1) the number of

 

(1)  Please confirm with your Local Human Resources or Global Compensation Team your eligibility to participate in the Matching Program. In order to be eligible the employee must have occupied one of the above noted positions in paragraph 1 as of December 31st 2012.

 

3

 

shares purchased by the Employee, provided that such shares are owned and retained in whole by the Employee entirety of the term of the Matching Program.

 

Executives who are active participants of Matching are prohibited from engaging in transactions involving derivatives, or not, that constitute short selling of Vale shares, including, not limited to share option selling, short selling, renting of shares, etc.

The primary purpose of the plan is the exposure and alignment of executives to Vale’s listed shares during the period of the plan.  Contracting derivatives, or any other transaction, constitutes a cancellation of this exposure and inhibits/cancels such alignment. The transactions described above are also prohibited for any Vale shares held by the executive, even if they were purchased outside the plan while he or she was an active participant. Any breach of this rule will be subject to consequences set out in Vale ́s Code of Ethics.

 

a)             Acquisition Criteria of Shares

 

Participation in the program is completely optional and will be based on employee’s position in the quadrants as per the Career & Succession matrix:

 

 

·                       The C & S-2011 will be the basis for establishing a ranking by hierarchical level as follows:

 

1)             The 30% best rated employees will be eligible to participate with 0%, 30% or 50% of the AIP;

2)             Employees positioned in Cluster 3 will not be eligible to participate in the Matching;

3)             The remaining employees will be eligible to participate with 0% or 30% of the variable remuneration

 

The approver will not necessarily be restricted to the C&S-2011 result. If the approver sees a significant change in the employee ́s performance in 2012, he

 

4

 

can make changes (inclusions and / or exclusions) in the ranking,   respecting the maximum  limit of 30% better positioned employees.

 

·                  For the 2013 Cycle, the approvers will be distributed according to the following scheme:

 

 

·                  The employees eligible to participate in the Program must observe and adhere strictly to the schedule established in this manual  to be an active participant in Matching.

 

b)             Acquisition of Shares

 

Vale is responsible for the definition and contracting of the brokerage firm that shall perform the opening of accounts, purchases and custody of shares and monitoring the balances of the employees until the end of the cycle. In addition to that, the Company shall also undertake, at the contracted brokerage firms, the expenses related to these provided services during the cycle.

 

·                  For the Employees receiving short-term incentive (AIP) in Brazil, a brokerage firm in Brazil will acquire the shares (VALE5) at “BM&FBOVESPA  S.A Bolsa de Valores, Mercadorias e Futuros” and monitor the accounts.

·                  For the Employees receiving short-term incentive (AIP) outside Brazil, a brokerage firm in USA will acquire the ADR’s (American Depositary Receipt) of Vale shares (VALE.PR) at the New York Stock Exchange (NYSE) and monitor the accounts.

 

To purchase the shares and to be entitled to the Program, the Employee shall provide the documentation required to open the account to the brokerage firm, according to the established schedule contained in this document. Once the

 

5

 

account is opened and the funds received, the brokerage firm shall perform the acquisition of shares at market prices on February/March, 2013.

 

c)              Dividends and Interests

 

In case of statement of dividends and/or interests by Vale:

 

·                  The Employees that use the brokerage firm in Brazil will have theirs funds deposited in their bank account.

·                  The Employees that use the brokerage firm in USA may choose to receive these amounts in check, or to use the funds for automatic reinvestment in new Vale shares.

 

However, Vale shares acquired with the amounts received as dividends and/or interests shall not increase the shares balance to be contemplated by the Matching Program at the end of the cycle.

 

d)             Matching of Shares

 

During the term of the Matching Program, participating Employees have the right to sell all or part of the shares purchased through this program. The Employee shall forfeit the right to the share Matching reward offered by Vale on all shares prior to the expiry of the term of the program, three years later, and shall also be responsible for any costs arising from such sale.

 

At the end of the cycle, that is, three years after the acquisition of shares, Vale shall check the Employees’ balances with the brokerage firms. Those who have not sold any of the acquired shares in the beginning of the cycle shall be eligible to the Matching reward receipt.

 

Example: Employee eligible to have 30% or 50% of the net value of its short-term incentive (AIP).

 

Moment I (cycle starts)

 

·      Net value received related to 2012 AIP = $100,000.00

·      Percentage chosen by the Employee to purchase the shares = 50% = $50,000.00

 

Hypothetical share price on the acquisition date = $ 25.00

 

6

 

# of acquired shares = 2,000

 

Moment II (cycle ends)

 

·                  3 years after the acquisition of shares, the brokerage firm informs Vale that the Employee did not sell any of the shares acquired in the beginning of the cycle. Thus, the Employee is eligible for the Matching reward.

·      # of shares acquired by the Employee and kept for three years = 2,000

·      Number of Matching shares = 2,000

 

Employee’s balance in the end of the Matching = equivalent to 4,000 shares (double of initial balance)

 

Vale will determine the form of payment (shares/ADRs/Cash) at the time of payout at its discretion. However, the total payment at the time the matching is due will be equivalent to the amount of shares initially purchased in the program.

 

e)              Special Conditions

 

i.                                         Termination of Employment

 

The conditions below define what shall happen in the case of the following employment related events:

 

·                  Resignation: An Employee shall not be eligible for the Matching reward if he or she resigns his/her employment and such resignation is effective during the term of the Matching Program. However, the Employee may sell or keep the shares that were acquired with his/her funds. Administration costs of the fund, where applicable, will be the responsibility of the individual as of the effective date of resignation.

 

·                  Dismissal by Vale (Without Cause) :  An Employee dismissed without just cause during the term of the Matching Program may sell or keep the shares acquired with his/her own funds and the Matching reward entitlement shall be prorated for the period of time from the commencement of the Matching Program cycle. Administration costs of the fund, where applicable, will be the responsibility of the individual as of the dismissal date.

 

7

 

·      Dismissal by Vale (For Cause): An Employee dismissed for just cause during the term of the Matching Program may sell or keep the shares acquired with his/her own funds, but shall not be entitled to any Matching reward from Vale. Administration costs of the fund, where applicable, will be the responsibility of the individual as of the date of termination.

 

·      Death or permanent disability:  In the event of death or the Employee becoming permanently disabled during the term of the Matching Program, the employee or his/her legal heirs may sell or keep the shares acquired with his/her own funds and shall receive the full Matching reward value upon death/disability date. Administration costs of the fund, where applicable, will be the responsibility of the individual as of the date of death or permanent disability.

 

·      Change of Control: An Employee dismissed without just cause following a Change of Control event may sell or keep the shares acquired with his/her own funds and the Matching reward entitlement shall be prorated for the number of months he/she participated in the Matching Program, to the date that the Change of Control occurs. Administration costs of the fund, where applicable, will be the responsibility of the individual as of the date that the Change of Control occurs.

 

For special conditions in which the Employee is eligible to receive a proportional or full Matching reward, the Vale share price for such a reward, which shall be paid in cash, shall be calculated based on the average share closing price over the 30 days prior to the termination date.

 

Any pendent payment related to Matching will be paid with the severance payment, in cash. In these cases, the stock price of Vale to be considered for the calculation of the payment to be made will be the average share price during the 30 trading days that precede the dates reported in the above item.

 

ii.                                     Recent Hires or Promotions

 

For this cycle, the cases of those who have been recently hired, promoted or laterally shifted, the Employee will be treated as follows:

 

8

 

	
#
    	
 
    	
Situations
    	
 
    	
Position in quadrant
    
	
1
    	
 
    	
Promoted to Manager/Technical Manager,   General Manager/ Senior Technical Manager, Department Director,  after July, 1st,   2012.
    	
 
    	
Eligible to   participate with 30% of the AIP
    
	
2
    	
 
    	
New Employees, hired after June 1st,  2012.
    	
 
    	
Eligible to   participate with 30% of the AIP
    
	
3
    	
 
    	
L2 and above lateral movement
    	
 
    	
Eligible in the   same cluster that the employee was positioned in the previous cycle.
    

 

Employees promoted to L2 /TT, L3/TS, L4/TM or hired prior to 01/07/2012 and that have not been evaluated in the C&S-2011, will have their eligibility to Matching analysed and defined by the Approver.

 

iii.                                 Participation Subject to Analysis

 

The Employee’s participation in the scenarios below shall be defined case-by-case by the Matching Management Committee:

 

·                  Those on a statutory leave of absence, such as sick leave, maternity leave, etc.;  eligibility to participate in the Matching Program and entitlement to any Matching rewards under the program shall be assessed according to the applicable labor, employment and social security laws of the jurisdiction in which the employee is employed;

·                  Those on non-remunerated leave;

·                  Employees assigned to entities in which Vale has participation;

·                  Other situation not provided above.

 

IV. Timetable

 

In order to be eligible to participate in the Program, the Employee shall observe the schedule below.

 

Summary:

 

	
Date
    	
 
    	
Evento
    
	
Jan 15th, 2013
    	
 
    	
Deadline to send to local HR the   enrollment form signed (Brazil and abroad)
    

 

9

 

	
Feb 15, 2013*
    	
 
    	
AIP Payment — Employee ́s paycheck   deduction
    
	
Feb or   Mar/2013
    	
 
    	
Acquisition   of shares — depending on the blackout period ( to be defined by the end of   the year)
    
	
Feb or Mar/2016
    	
 
    	
Calculation   of Matching for eligible Employees
    

 

*Date of AIP in Brazil.This date can vary according to the country

 

a)            Enrollment to the Program and Opening of Account

 

The enrollment to the Program assumes the forwarding of the “Enrollment Form” (totally filled in and signed) and the documents necessary to open the account, or update the existing account. In the Enrollment Form, the Employee shall opt for the percentage applicable to its reward range. If the Employee has participated in the last Matching cycle and already has an account for this purpose in the brokerage firm defined by Vale and if for this cycle he is still eligible to use the same brokerage firm, it will not be necessary to open a new account.

 

For those who do not meet the condition described above, please refer to the documents below:

 

1.                  Employees receiving short-term incentive (AIP) award in Brazil shall fill in the form of the brokerage firm in Brazil. Along with the completed form, the Employee shall send, to the Brokerage of his region, a copy of the following documents: ID card, CPF (Individual Taxpayer’s Roll) and proof of residence. Doubts related to the brokerage form and documentation should be sorted out directly with the brokerage of his region.

 

2.                  Employees receiving short-term incentive (AIP) award outside Brazil (including those on international assignments) shall fill in and send (electronically) the scanned form. After sending the form, the Employee shall send, to its HR Center, the original form. Doubts related to the brokerage form and documentation can be sorted out through your local HR.

 

10

 

b)             Wire of Funds to Shares Acquisition

 

After the enrollment, each employee shall transfer the funds according to his/her investment option, into a bank account designated by Vale, in each country. The funds will be remitted by wire transfer directed by Vale to the brokerage firms for the shares acquisition.

 

c)              Acquisition of Shares

 

Acquisition date of shares: February/March, 2013

 

On the date of acquisition, the brokerage firms shall purchase, at market value, the shares related to the Employees’ investment. The number of shares shall be allocated to each participant proportionally to their investment by the average acquisition price of the whole shares.

 

As soon as the shares have been purchased, the Employees will receive from the brokerage firm a communication: share price of the purchase, shares balance, site address, login and password (for online consultation).

 

11

 

V - Questions & Answers

 

1. Who shall I contact to perform the purchase of shares and which documents shall be necessary to carry out this operation?

 

You shall contact directly the brokerage firm responsible identified for your situation. The brokerage firm will also indicate the required documents.

 

2. The percentage used for the purchase of shares shall be calculated on the net or gross amount of the short-term incentive (AIP) referent to 2012?

 

The percentage to be used by the Employee for the purchase of shares shall be calculated on the net amount of the short-term incentive (AIP) award referent to 2012.

 

3. If I am expatriated to Brazil before a cycle completion what will happen to my shares purchased in other countries and how the “matching” will be paid in the end of the cycle if I’m still out of Brazil?

 

The shares purchased out of Brazil will remain in your account with the brokerage firm, as well as amounts received as dividends. As for the “matching” payment, when the cycle is concluded, it will be done by the country where you are. Vale will determine the form at the time of payment at its discretion.

 

4. If I start a cycle outside Brazil, as an expatriate, what will happen to my ADRs purchased at JP Morgan, and how will the Matching payment be processed, if I am already repatriated back to Brazil?

 

The ADRs purchased abroad will remain in your account in JP Morgan. As for the matching payment, it will be done either in Brazil (cash), or in JP Morgan (ADRs). Vale will determine the form of the payment.

 

5. If I am promoted before or after the purchase of shares, what shall happen?

 

The positions occupied on December 31st, 2012 shall be used as reference. Thus, promotions and admissions after such date shall not have effect on the reward program.

 

12

 

5. If I resign during the cycle, what shall my entitlement be?

 

If the Employee resigns from Vale voluntarily, he/she may sell or keep the shares that were acquired with his/her own funds, but shall not be eligible for any Matching reward. After resignation, the employee shall be responsible for any costs he/she may incur in the administration and/or disposition of the shares by the broker, if any.

 

6. If I am terminated during the cycle, what shall my entitlement be?

 

The Employee terminated without cause may sell or keep the shares acquired with its own funds and shall receive the prorated Matching value, according to the Program rules, based on the number of months he/she participated in the Matching Program up to the termination date. A terminated employee shall be responsible for any costs he/she may incur in the administration and/or disposition of the shares by the broker, if any.

 

7. Shall I receive the Matching in cash or shares?

 

Vale will determine the form of payment at the time of payout at its discretion. However, the total payment at the time the matching is due will be equivalent to the amount of shares/ADRs initially purchased in the program.

 

8. Can I purchase more shares with the amount that I shall receive as dividends and/or interests?

 

Each brokerage firm has a different process, enabling purchase preferred shares with the amount received as dividends, or making a deposit in the specified bank account. However, this shall not be considered for the Matching Program.

 

9. Can I acquire additional shares in the account opened for the Matching?

 

No. Only automatic investments made with amounts received as dividends and/or interests shall be performed. The Matching account shall be blocked for other share acquisitions.

 

10. In case of deployment/split of shares, how shall the Matching be calculated?

 

In case of share deployment/split of shares, the number of shares to be received shall also be adjusted in order to reflect the eventual deployment/split.

 

13

 

11. If the amount sent to the brokerage firm cannot buy a whole number of shares, what should happen?

 

For the Employees that acquire shares at BM&FBOVESPA, the brokerage firm in Brazil will purchase the largest number of whole shares and the remaining funds shall be wired to the Employee bank account as informed in the opening account form.

 

For the Employees that acquire shares at NYSE, the brokerage firm in USA has a procedure that allows the purchase of a factionary number of shares, therefore, no remaining funds will be returned.

 

Example:

 

a) Employee that has acquired shares at BM&FBOVESPA.

Funds remitted = $ 50,020.00

Hypothetical share price = $ 25.00

Number of shares purchased = 2,000

Remaining funds to be wired to the Employee’s bank account = $ 20.00

 

b) Employee that has acquired Vale ADR’s at NYSE.

Funds remitted = $ 25,020.00

Hypothetical share price = $ 12.50

Number of shares purchased = 2,001.60

 

12. What happens if I sell all or part of the shares before the cycle ends?

 

This reward was designed with the purpose of promoting ownership and vision among Vale Employees. Thus, the Company expects from participants, a shareowner attitude (that is, from that who shall have share ownership for a certain period for believing in the Company growth capacity) and not only a shareholder one (that is, that who temporarily owns the share, until it finds the adequate moment to sell it). For such reason, if you sell all or part of the shares acquired prior to the end of the cycle, you shall not receive any Matching reward amount, and any costs arising from the sale or custody by the broker of such shares shall be the sole responsibility of the Employee.

 

14

 

VI -  Glossary

 

Employees/Executives: Vale employees or subsidiaries approved (Appendix), who fill the positions eligible to participate in this program

 

Approver: Defines the positioning and eligibility to Matching of the Employees of his scope.

 

Matching Cycle: The 2013 cycle starts on February/March, and ends three years after its start date

 

Brokerage Firm: Firm that shall perform the opening of the account, share custody and purchase and monitoring of the Employees’ balance.

 

Short-term incentive (AIP - Annual Incentive Plan): Company Program, from which its employees receive, according to the performance combination of the Company, the Department and  the Individual, an amount as participation in the Company profits referent to the year considered as time interval for the performance evaluations.

 

Matching Management Committee: Committee composed of the CFO and the HR and Corporate Services Officer. This committee is responsible for the decision making related to the Matching reward program in situations not covered in this  document.

 

BM&FBOVESPA: São Paulo Stock Exchange (www.bmfBM&FBOVESPA.com.br).

 

NYSE: New York Stock Exchange (www.nyse.com).

 

ADR’s (American Depository Receipt): They represent the ownership of shares from foreign companies negotiated in the US financial market. ADR’s allow to foreign investors residing in the US the purchase of shares from foreign companies without remitting funds abroad. ADR’s have their value determined by the US dollar; their dividends are paid through the same currency and can be negotiated as US companies shares.

 

Career and Succession Matrix: Tool used by Vale to classify its employees according to the evaluation of the latter regarding the performance and competences observed throughout one year.

 

Dividends: Payments made by companies to the owners of their shares. When a company obtains profits, these can be managed mainly by two manners: reinvest in 

 

15

 

their own company (also called retained earnings) or paid to the shareholders as dividends.

 

Interests: A remuneration system alternative to the payment of dividends for the shareholder. The difference is in the tax effect of this measure, which is eligible for  some deductions for the company in the calculation of its income tax.

 

16Exhibit 10.1

 

 

Amended and Restatement Agreement

 

HCC Insurance Holdings, Inc
 as Borrower

 

and

 

Barclays Bank PLC and the Royal Bank of Scotland plc
 as Arranger

 

and

 

The Royal Bank of Scotland plc
 as Agent

 

and

 

The Royal Bank of Scotland plc

as Trustee

 

relating to a $90,000,000 Standby Letter of Credit Facility dated 26 November 2010 as amended and restated pursuant to an amendment and restatement agreement dated 23 November 2011

 

21 November 2012

 

 

CONTENTS

 

	
CLAUSE
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS AND INTERPRETATION
    	
3
    
	
2.
    	
REPRESENTATIONS
    	
4
    
	
3.
    	
RESTATEMENT
    	
4
    
	
4.
    	
CONTINUITY AND FURTHER ASSURANCE
    	
4
    
	
5.
    	
FEES, COSTS AND EXPENSES
    	
4
    
	
6.
    	
MISCELLANEOUS
    	
5
    
	
7.
    	
GOVERNING LAW
    	
5
    
	
SCHEDULE 1
    	
6
    
	
Conditions Precedent
    	
6
    
	
SCHEDULE 2
    	
8
    
	
Amended Facility Agreement
    	
8
    
				

 

 

THIS AGREEMENT is dated 21 November 2012

 

BETWEEN:

 

(1)                                     HCC INSURANCE HOLDINGS, INC (the “Borrower”);

 

(2)                                     BARCLAYS BANK PLC and THE ROYAL BANK OF SCOTLAND PLC as mandated lead arrangers (whether acting individually or together, the “Arranger”);

 

(3)                                     THE ROYAL BANK OF SCOTLAND PLC as the agent of the Finance Parties (the “Agent”);

 

(4)                                     THE ROYAL BANK OF SCOTLAND PLC as trustee for the Secured Parties (the “Trustee”); and

 

(5)                                    THE LENDERS (as defined in the Amended Facility Agreement).

 

THE PARTIES AGREE AS FOLLOWS:

 

1.                                          DEFINITIONS AND INTERPRETATION

 

1.1                                   Definitions

 

In this Agreement:

 

“Amended Facility Agreement” means the Original Facility Agreement, as amended and restated by this Agreement.

 

“Effective Date” means the date on which the Agent confirms to the Lenders and the Borrower that it has received, or has expressly waived in writing its requirement to receive, each of the documents and other evidence listed in schedule 1 (Conditions Precedent) in a form and substance satisfactory to the Agent.

 

“Fee Letter” means any letter or letters dated on or about the date of this Agreement between the Borrower and the Agent setting out any of the fees referred to in clause 5 (Fees, Costs and Expenses).

 

“Original Facility Agreement” means the $90,000,000 standby letter of credit facility agreement dated 26 November 2010 and entered into between the Borrower, the Arranger, the Agent, the Trustee and the Lenders as amended and restated pursuant to an amendment and restatement agreement dated 23 November 2011.

 

1.2                                   Incorporation of defined terms

 

(a)                           Unless a contrary indication appears, a term defined in the Original Facility Agreement has the same meaning in this Agreement.

 

(b)                           The principles of construction set out in the Original Facility Agreement shall have effect as if set out in this Agreement.

 

1.3                                   Clauses

 

In this Agreement any reference to a “clause” or a “schedule” is, unless the context otherwise requires, a reference to a clause in or a schedule to this Agreement.

 

3

 

1.4                                   Third party rights

 

A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement.

 

1.5                                   Designation

 

In accordance with the Original Facility Agreement, each of the Borrower and the Agent designates this Agreement as a Finance Document.

 

2.                                          REPRESENTATIONS

 

The Repeated Representations (as defined in the Amended Facility Agreement) are deemed to be made by the Borrower (by reference to the facts and circumstances then existing) on:

 

(a)                           the date of this Agreement; and

 

(b)                           the Effective Date,

 

and references to “this Agreement” in the relevant representations should be construed as references to this Agreement and to the Original Facility Agreement and the Amended Facility Agreement, as relevant.

 

3.                                          RESTATEMENT

 

3.1                                   Restatement of the Original Facility Agreement

 

With effect from the Effective Date the Original Facility Agreement shall be amended and restated so that it shall be read and construed for all purposes as set out in schedule 2 (Amended Facility Agreement).

 

4.                                          CONTINUITY AND FURTHER ASSURANCE

 

4.1                                   Continuing obligations

 

The provisions of the Original Facility Agreement shall, save as amended by this Agreement continue in full force and effect.

 

4.2                                   Further assurance

 

The Borrower shall, at the request of the Agent and at the Borrower’s own expense, do all such acts and things necessary or desirable to give effect to the amendments effected or to be effected pursuant to this Agreement.

 

5.                                         FEES, COSTS AND EXPENSES

 

5.1                                   Arrangement Fee

 

The Borrower shall pay to the Arranger, for its own account, the arrangement fee in the amounts and at the times agreed in a Fee Letter.

 

5.2                                   Agency Fee

 

The Borrower shall pay to the Agent, for its own account, the agency fees in the amounts and at the times agreed in a Fee Letter.

 

4

 

5.3                                   Transaction Expenses

 

Whether or not the Effective Date occurs, the Borrower shall, from time to time within five Business Days of demand of the Agent, reimburse the Finance Parties for all reasonable costs and expenses (including legal fees) together with any VAT thereon incurred by the Finance Parties in connection with the negotiation, preparation, printing, execution, syndication and implementation of this Agreement, any other document referred to in this Agreement and the completion of the transactions herein contemplated.  The Finance Parties agree to keep all costs incurred by them relating to the negotiation, preparation, printing, execution, syndication, enforcement and, implementation of this Agreement to a reasonable amount and shall notify the Borrower of any quotations it obtains in connection therewith.

 

6.                                          MISCELLANEOUS

 

6.1                                   Incorporation of terms

 

The provisions of clause 31 (Remedies and Waivers, Partial Invalidity), clause 32 (Notices) and clause 37 (Jurisdiction) of the Original Facility Agreement shall be incorporated into this Agreement as if set out in full in this Agreement and as if references in those clauses to “this Agreement” or “the Finance Documents” are references to this Agreement.

 

6.2                                   Counterparts

 

This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

 

7.                                          GOVERNING LAW

 

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

IN WITNESS whereof this Agreement has been duly executed and delivered on the above date first above written.

 

5

 

SCHEDULE 1

 

Conditions Precedent

 

1.                                          THE BORROWER

 

(a)                           A copy, certified as at the date of this Agreement to be a true and up-to-date copy by an Authorised Signatory of the Borrower, of the constitutional documents of the Borrower or a certificate (signed by an officer of such Borrower) confirming that the constitutional documents previously delivered to the Lenders for the purposes of the Original Facility Agreement have not been amended and remain in full force and effect.

 

(b)                           A copy of a written board resolution of the Borrower:

 

(i)                              approving the terms of, and the transactions contemplated by, this Agreement and resolving that it execute this Agreement;

 

(ii)                           authorising a specified person or persons to execute this Agreement;

 

(iii)                        authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request) to be signed and/or despatched; and

 

(iv)                       approving the execution, delivery and performance of this Agreement and the terms and conditions hereof and authorising a named person or persons to sign this Agreement and any documents to be delivered by the Borrower pursuant thereto.

 

(c)                            A specimen signature of each person authorised by the resolution referred to in paragraph (b) above.

 

(d)                           A certificate of an Authorised Signatory of the Borrower confirming that utilisation of the Facility and entry into and performance of its obligations under each of the Finance Documents would not cause any borrowing, guaranteeing or similar restriction binding on it to be exceeded.

 

(e)                            A certificate of an Authorised Signatory of the Borrower,  certifying that each copy document relating to it specified in this schedule 1 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

 

2.                                          LEGAL OPINIONS

 

(a)                           A legal opinion of Ashurst LLP, legal advisers to the Agent in respect of English law, substantially in the form distributed to the Agent prior to the signing of this Agreement.

 

(b)                           A legal opinion of Ashurst LLP, legal advisers to the Agent in respect of the corporate capacity of the Borrower and other matters relating to New York law, substantially in the form distributed to the Agent prior to the signing of this Agreement.

 

3.                                          OTHER DOCUMENTS AND EVIDENCE

 

(a)                           A copy of the U.S. Facility Agreement.

 

(b)                           A copy of a good standing certificate (including verification of tax status) with respect to the Borrower, issued as of a recent date by the Secretary of State or other appropriate official of:

 

6

 

(i)                              the Borrower’s jurisdiction of incorporation or organisation; and

 

(ii)                           the jurisdiction of the Borrower’s registered place of business.

 

(c)                            Evidence that the Account Party is authorised to underwrite business at Lloyd’s.

 

(d)                           The executed Fee Letters and evidence that the fees, costs and expenses then due from the Borrower pursuant to clause 5 (Fees, Costs and Expenses) of this Agreement have been paid or will be paid.

 

(e)                            A copy of a letter of substitution signed on behalf of Lloyd’s by an authorised signatory.

 

(f)                             A certificate of the Chief Financial Officer of the Borrower stating that it is and would be Solvent after complying with its obligations with respect to Letters of Credit set out in clause 5 of the Original Facility Agreement (Borrower’s Liabilities in relation to Letters of Credit) and the payment of all estimated legal and other fees related to this Agreement and the Amended Facility Agreement and the consummation of the other transactions contemplated by this Agreement and the Amended Facility Agreement. For purposes of such certificate, “Solvent” means with respect to the Borrower on any date of determination that:

 

(i)          the fair value of the property of such person is greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such person;

 

(ii)         the present fair saleable value of the assets of such person is not less than the amount which will be required to pay the probable liability of such person on its debts as they become absolute and mature;

 

(iii)        such person does not intend to, and does not believe that it will, incur debts or liabilities beyond such person’s ability to pay as such debts and liabilities mature; and

 

(iv)        such person is not engaged in a business or transaction, and is not about to engage in a business or transaction, for which such person’s property would constitute unreasonably small capital.

 

In computing the amount of contingent or unliquidated liabilities at any time, such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual and matured liability.

 

(g)                            Two certificates duly executed by an officer of the Borrower (one of whom shall be a Responsible Officer) confirming that, as at a date no earlier than the date of this Agreement:

 

(i)                              no Default has occurred under the Original Facility Agreement; and

 

(ii)                           no Default (as defined in the U.S. Facility Agreement) has occurred under the U.S. Facility Agreement.

 

7

 

SCHEDULE 2

 

Amended Facility Agreement

 

(SEE EXHIBIT 10.2)

 

8

 

SIGNATURES

 

	
The Borrower
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed   by:
    	
/s/ Brad   T. Irick
    	
 
    	
)
    
	
for and   on behalf of
    	
 
    	
)
    
	
HCC INSURANCE HOLDINGS, INC.
    	
 
    	
)
    
	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The Arranger
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed   by:
    	
/s/ J.V.   French
    	
 
    	
)
    
	
for and   on behalf of
    	
 
    	
)
    
	
BARCLAYS BANK PLC:
    	
 
    	
)
    
	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed   by:
    	
/s/   Barrie Davison
    	
 
    	
)
    
	
for and   on behalf of
    	
 
    	
)
    
	
THE ROYAL BANK OF SCOTLAND PLC
    	
 
    	
)
    
	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed   by:
    	
/s/   Anthony O’Flynn
    	
 
    	
)
    
	
for and   on behalf of
    	
 
    	
)
    
	
THE ROYAL BANK OF SCOTLAND PLC
    	
 
    	
)
    
	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The Trustee
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed   by:
    	
/s/   Anthony O’Flynn
    	
 
    	
)
    
	
for and   on behalf of
    	
 
    	
)
    
	
THE  ROYAL BANK OF SCOTLAND   PLC
    	
 
    	
)
    
	
 
    	
 
    	
)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The Lenders
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed   by:
    	
/s/   Barrie Davison
    	
 
    	
)
    
	
THE ROYAL BANK OF SCOTLAND PLC
    	
 
    	
)
    
	
as agent   for
    	
 
    	
)
    
	
NATIONAL WESTMINSTER BANK PLC:
    	
 
    	
)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed   by:
    	
/s/ J.V.   French
    	
 
    	
)
    
	
for and   on behalf of
    	
 
    	
)
    
	
BARCLAYS BANK PLC
    	
 
    	
)
    
	
 
    	
 
    	
)
    

 

9

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