Document:

EX-10.2

Exhibit 10.2

FAIRFAX News Release

Stock Symbol: FFH (TSX and NYSE)

TORONTO, September 4, 2009

FAIRFAX PROPOSES TO ACQUIRE MINORITY STAKE IN ODYSSEY RE FOR $60 PER SHARE

(Note: All dollar amounts in this press release are expressed in U.S. dollars)

Fairfax Financial Holdings Limited (TSX and NYSE: FFH) announced today that it is proposing to
acquire all of the outstanding shares of common stock of Odyssey Re Holdings Corp. (“Odyssey Re”)
(NYSE: ORH) that it does not currently own for $60 per share in cash, representing a 19.8% premium
over today’s closing price and a 23.2% premium over the 30-day average closing price. The purchase
price represents a multiple of 1.16x Odyssey Re’s book value per share as of June 30, 2009 as
compared to an average multiple of approximately 0.91x for a group of reinsurance peers as of the
same date. Based on Odyssey Re’s initial public offering price of $18.00 per share in June 2001,
the purchase price represents a compounded annual return of 16.2%. Fairfax currently owns
approximately 72.6% of all outstanding shares of common stock of Odyssey Re.

Fairfax intends to issue new equity under its existing shelf prospectus, the proceeds of which
would be used to fully fund the proposed acquisition of Odyssey Re shares. Following completion of
the proposed acquisition of Odyssey Re and the proposed Fairfax new equity issuance, Fairfax
expects to continue to have in excess of $1 billion in cash and marketable securities at the
holding company level.

“Our offering price, which is well above any price at which Odyssey Re shares have ever traded,
represents an attractive opportunity for Odyssey Re shareholders to obtain liquidity at a
significant premium to the market price and to the valuation of Odyssey Re’s peer group,” said Prem
Watsa, Chairman and CEO of Fairfax. Mr. Watsa added, “Following completion of the transaction,
Odyssey Re would have the benefit of the strong financial position and financial flexibility of
Fairfax as its business continues to move forward.”

Prior to this announcement, Fairfax previously advised the board of directors of Odyssey Re that it
wished to explore a potential transaction in which Fairfax would acquire all of the outstanding
shares of Odyssey Re common stock it did not already own. Fairfax has been advised that the board
of directors of Odyssey Re has formed a special committee of independent directors to evaluate
Fairfax’s proposal and that the special committee has engaged independent financial and legal
advisors. Directors of Odyssey Re affiliated with Fairfax will not participate in the evaluation
of the proposal.

Following completion of the proposed offer, there would be no changes in Odyssey Re’s strategic or
operating philosophy. Under the leadership of Andy Bernard, President and CEO, Odyssey Re will
continue to operate its business exactly as it has always been run, on an independent and
decentralized basis.

Fairfax has advised Odyssey Re that Fairfax’s sole interest is in acquiring the shares of common
stock of Odyssey Re that it does not currently own and that it has no interest in a disposition of
its controlling interest in Odyssey Re.

Odyssey Re stockholders and other interested parties are urged to read material that will be filed
with the SEC and Canadian provincial securities regulators by Fairfax and Odyssey Re in connection
with the proposed transaction when they become available because they will contain important
information. Odyssey Re

FAIRFAX FINANCIAL HOLDINGS LIMITED

95 Wellington Street West, Suite 800, Toronto Ontario M5J 2N7 Telephone 416/367 4941 Telecopier 367 4946

 

 

stockholders will be able to obtain such documents free of charge at the SEC’s web site,
www.sec.gov, or www.sedar.com, or from Fairfax at 95 Wellington Street West, Suite 800, Toronto,
Canada, M5J 2N7. This release is not a solicitation of any proxy.

BofA Merrill Lynch is serving as Fairfax’s financial advisor and Shearman & Sterling LLP and Torys
LLP are acting as its legal counsel.

Fairfax Financial Holdings Limited is a financial services holding company which, through its
subsidiaries, is engaged in property and casualty insurance and reinsurance and investment
management.

This press release include certain forward-looking statements. Such forward-looking statements are
subject to known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Fairfax to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements. Such factors
include, but are not limited to the risks and uncertainties are described in our most recently
issued Annual Report which is available at www.fairfax.ca and in our Base Shelf Prospectus (under
“Risk Factors”) filed with the securities regulatory authorities in Canada and the United States,
which is available on SEDAR and EDGAR. Fairfax disclaims any intention or obligation to update or
revise any forward-looking statements, except as required by law.

-30-

	 	 	 
	For further information contact:

	 	Greg Taylor, Chief Financial Officer, at (416) 367-4941
	 

	 	Media Contact: Paul Rivett, Chief Legal Officer, at (416) 367-4941

FAIRFAX FINANCIAL HOLDINGS LIMITED

95 Wellington Street West, Suite 800, Toronto Ontario M5J 2N7 Telephone 416/367 4941 Telecopier 367 4946exh101.htm

     

    Exhibit 10.1

    

    CONVERTIBLE DEMAND NOTE
entered into Liechtenstein

    

    

    BETWEEN

    

    

    CARNAVON
TRUST REG, a trust legally constituted, having its head office at Aeulestrasse
5, FL-9490 Vaduz, Liechtenstein  herein represented by Werner Keicher,
Director of the trust, duly authorized as he so declares;

    

    

    (the
“Lender”)

    

    AND:

    

    ECOLOCAP SOLUTIONS INC.,
corporation legally constituted under the State of Nevada Laws, having
its head office at 740 St-Maurice, suite 102, Montreal, Quebec, H3C 1L5, herein
represented by Dr. Tri Vu Truong, duly authorized as he so
declares;

    

    

    (the
“Borrower”)

    

    

    

    Make the
following declarations and covenants:

    

     

    LOAN

     

    1)           The
Lender has agreed to advance to the Borrower during the year 2008, a total of
Two Hundred and Fifty Thousand Dollars American ($250,000.00US) (the
“Loan”).

     

    2)           The
said Loan was granted as monetary advances;

     

    3)           The
Borrower recognises that the terms and conditions of the Loan are for the
exclusive benefit of the Lender, and the latter may renounce to it, in whole or
in part, at its sole discretion.

     

    4)           If
the Borrower defaults on any obligation whatsoever in favour of the Lender and,
if at the time of the default, the Lender has not yet paid out the entire
capital amount of the Loan, the Lender may, at its sole discretion and without
prior notice, temporarily delay or definitively cease to pay out any other
amount whatsoever to the Borrower, subject to its other rights and
recourses.

     

     

    INTERESTS, TERM AND REIMBURSEMENT

     

    5)           The
interest rate for the Loan is 10% year, and the amount of accrued interest as of
June 30th, 2009
is 37,500.00USD, said interests being capitalized and is part of the
Loan.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    6)           Interest
shall be calculated monthly, from the first disbursement, on the total capital
amount advance, as well after as before maturity, default or judgment, from the
date of full payment.  Such interest rate is determined upon the basis
of a three hundred and sixty-five (365) day year, the Lender's usual
practice.

     

    7)           The
Loan shall be reimbursable on demand (the “Loan Term”).

     

    8)           All
the payments required under the terms of the present Agreement that have not
been made on schedule shall be subject to the aforesaid interest rate from the
expiry date of all such payments and shall be payable on demand.

     

     

    LOCATION
OF THE PAYMENT

     

    9)           Any
payment to the Lender must be made in American currency at the address of the
Lender or to any other location that the Lender may designate in
writing.

     

     

    ASSIGNMENT OR TRANSFER

     

    10)          The  Borrower
shall  not assign, transfer,  hypothec or otherwise dispose
of the rights it has or may have in relation to the Loan.

    

    11)          The
Lender is allowed to assign, transfer, hypothec or otherwise dispose of the
rights it has or may have in relation to the Loan.

    

     

    TIME

     

    12)          Time
shall be of the essence of this Agreement and the agreement created by the
acceptance thereof.

     

     

    ELECTION
OF DOMICILE

     

    13)          Any
notice given to the Borrower shall be sent at the last address provided in
writing to the Lender.  If the Lender does not find the Borrower at
this address, the may serve or produce any notice or communication addressed to
him at the office of the Superior Court of the District of Montreal where the
Borrower has elected domicile.

     

     

    CONVERSION
OF LOAN

    

    14)          In
the next 90 days the Lender, or any beneficiary of the present agreement, will
have the exclusive right to convert the Loan or a portion of the Loan in
restricted shares of Common Stock (the “Shares”) of the Borrower at a fix
price.

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    15)          The
Conversion will process following the reception by the Borrower of a notice of
Conversion as provided in schedule 14, send by the Lender at the last known
address of the Borrower (the “Conversion Event”).

    

    16)          The
price for the Shares of the Borrower is equal to the average market closing
price of the Shares of the Borrower during the last 30 days, minus a 10%
discount.

    

    17)          Upon
the Conversion Event, the Borrower shall take all necessary actions to convert
the Loan into Restricted Shares of Common Stock of the Borrower.

     

     

    EFFECTIVE

    

    18)         
The present shall be effective as of its final execution by the
parties.

     

     

    GOVERNING LAW

    

    19)          The
present, as well as the interpretation or construction thereof, the execution or
performance thereof, the application and validity thereof, as well as the
effects thereof, are subject to the applicable laws in force and in effect in
the Liechtenstein, which govern all or part of the provisions
hereof.

     

     

    GENERAL

    

    20)          The
present hereby cancels all prior agreements between the parties relating to the
subject hereof.

    

    

     

    THE
PARTIES HAVE SIGNED THE PRESENT AGREEMENT AS OF ________, 2009.

     

     

    
      
        
          	 	 	 
	 	 	For
      the Borrower	 
	 	 	By:
      TRI VU TRUONG	 
	 	 	Dr.
      Tri Vu Truong, Chief Executive officer 	 
	 	 	 	 

        

      

    

    
      
        
          	 	 	 
	 	 	For
      the Lender	 
	 	 	By:
      WERNER
    KEICHER 	 
	 	 	Werner
      Keicher	 
	 	 	Representative
      of the Lender. 	 

        

      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    SCHEDULE
14

    NOTICE OF
CONVERSION

    

    

               The
undersigned hereby irrevocably elects, as of ______________,  200_
to
convert $__________ of Convertible Loan into Common Stock of EcoloCap Solutions
Inc. (the "Company") according to the conditions set forth in the Memorandum of
Convertible Loan Agreement dated __________________, and issued by the
Company.

    

    Date of
Conversion________________________________________________

    

    Applicable
Conversion Price________________________________________

    

    Number of
Shares Issuable upon this conversion_______________________

    

    Name
(Print) ______________________________________________________

    

    Address__________________________________________________________

    

    _________________________________________________________________

    

    Phone______________________   Fax_________________________________

    

    

    

    By:
_______________________________

    

    

     

     

     

     

     

    
 

    
      
         

      

      
        4

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