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Standby Letter of Credit Agreement

(Committed/Secured) 

STANDBY LETTER OF CREDIT AGREEMENT (the “Agreement”),
dated as of October 8, 2021,
by and between Everest Reinsurance
(Bermuda), Ltd., an exempted company incorporated and existing under the
laws of Bermuda and registered as a Class 4 and Class C insurer pursuant to the
Bermuda Insurance Act (as defined below) (the “Account Party”), and
LLOYDS BANK CORPORATE MARKETS PLC (“Bank”). 

  

1.                 
Defined Terms.  

(a)               
Definitions.   For purposes of this Agreement, in
addition to the terms defined elsewhere herein, the following terms have the
meanings set forth below (such meanings to be equally applicable to the
singular and plural forms thereof):

“Accordion Upfront Fee” has the
meaning specified in Section 2(i). 

“A.M. Best” means A.M. Best Company,
Inc.

“Anti-Corruption Laws” means all
laws, rules, and regulations of any jurisdiction applicable to the Account
Party from time to time concerning or relating to bribery or corruption,
including, to the extent applicable, the United States Foreign Corrupt
Practices Act of 1977
and the rules and regulations thereunder and the U.K. Bribery Act 2010 and the rules and
regulations thereunder.

“Anti-Money Laundering Laws” means
any and all laws, rules and regulations applicable to the Account Party from
time to time concerning or relating to terrorism financing or money laundering,
including any applicable provision of the PATRIOT Act and The Currency and
Foreign Transactions Reporting Act (also known as the “Bank Secrecy Act,” 31 U.S.C. §§ 5311-5330
and 12 U.S.C. §§ 1818(s), 1820(b) and 1951-1959).

“Application”
has the meaning set forth in Section 2(a). 

“Annual Statement” means,
with respect to the Account Party for any fiscal year, the annual financial
statements of the Account Party as required to be filed with the Insurance
Regulatory Authority of its jurisdiction of domicile and in accordance with the
laws of such jurisdiction, together with all exhibits, schedules, certificates
and actuarial opinions required to be filed or delivered therewith.

“Auto-Extension Letter of
Credit” has the meaning given to such term in Section 2(g).  

“Bankruptcy Law” means
the United States Bankruptcy Code (11 U.S.C. § 101 et seq.), as amended,
modified, succeeded or replaced from time to time, and all other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization or similar debtor
relief laws of the United States or any state thereof, Bermuda or any other
foreign or other applicable jurisdictions from time to time in effect and
affecting the rights of creditors generally.

“Bermuda Insurance Act”
means the Insurance Act 1978 of Bermuda and its related rules and regulations,
each as amended.

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"Bermuda
Private Act" means separate legislation enacted in Bermuda with the
intention that such legislation apply specifically to the Account Party, in
whole or in part.

“Business
Day” means any day (other than a Saturday, Sunday or legal holiday) on
which banks in Hamilton, Bermuda, New York City, New York and London, England
are open for the conduct of their commercial banking business.

“Capital Stock” means (i)
with respect to any Person that is a corporation, any and all shares, interests
or equivalents in capital stock (whether voting or nonvoting, and whether
common or preferred) of such corporation, and (ii) with respect to any Person
that is not a corporation, any and all partnership, membership, limited
liability company or other equity interests of such Person; and in each case,
any and all warrants, rights or options to purchase any of the foregoing.

“Change in Law” means the occurrence after the date
of this Agreement of: (a) the adoption or effectiveness of any law,
rule, regulation, judicial ruling, judgment or treaty, (b) any change in any law, rule, regulation or
treaty or in the administration, interpretation, implementation or application
by any Governmental Authority of any law, rule, regulation or treaty, or (c) the making or
issuance by any Governmental Authority of any request, rule, guideline or
directive, whether or not having the force of law; provided that
notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, guidelines or directives thereunder or
issued in connection therewith and (ii) all requests, rules, guidelines or directives
concerning capital adequacy promulgated by Bank for International Settlements,
the Basel Committee on Banking Supervision (or any successor or similar
authority) or the U.S. federal or foreign regulatory authorities shall, in each
case, be deemed to be a “Change in Law,” regardless of the date enacted,
adopted or issued.

“Change in Control” means
(a) the acquisition of ownership, directly or indirectly, beneficially or of
record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the SEC thereunder as in effect on the date
hereof), other than Everest Re Group, Ltd. and any of its direct or indirect
Subsidiaries, of Capital Stock representing 25% or more of the aggregate
ordinary voting power represented by the issued and outstanding Capital Stock
of the Account Party; or (b) the acquisition of direct or indirect Control
of the Account Party by any Person or group, other than Everest Re Group, Ltd.
and any of its direct or indirect Subsidiaries.

“Closing Date” means the first date on which all the
conditions precedent set forth in Section 4(a) are satisfied or waived
by Bank.

“Code” means the Internal
Revenue Code of 1986,
and the rules and regulations promulgated thereunder.

“Collateral” means all the assets, property and
interests in property that shall from time to time be pledged or be purported
to be pledged as direct or indirect security for the Obligations pursuant to
any one or more of the Security Documents.

“Collateral Value” for any Business Day shall be
calculated as set forth on Attachment A to Exhibit B. 

“Collateral Value Certificate”  means a
certificate substantially in the form attached as Exhibit B. 

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“Commitment” means the
obligation of Bank to Issue Letters of Credit for the account of the Account
Party hereunder in an aggregate principal amount at any time outstanding not to
exceed $50,000,000, as such amount may be adjusted from time to time pursuant
to the terms hereof.

“Commitment Fee” has the meaning specified in Section
2(i). 

“Commitment Termination Date” means the earliest to
occur of (a)
subject to any extension agreed pursuant to Section 2(k), the date that
is three years after the Closing Date, (b) the date of termination of the entire
Commitment by the Account Party pursuant to Section 2(h), and (c) the date
of termination of the Commitment pursuant to Section 11(a). 

“Consolidated Net Income” means, for any period, the
consolidated net income of the Account Party and its Subsidiaries for that
period, as determined on a consolidated basis in accordance with GAAP.

“Consolidated Tangible Net Worth” means, as of any
date of determination, the Shareholders’ Equity of the Account Party less (a)
any minority interest in Subsidiaries of the Account Party, (b) any treasury
stock, and (c) (to the extent included) any amount shown in respect of goodwill
arising only on consolidation or other intangible assets of the Account Party
and its Subsidiaries and interests of non-members of the Account Party and its
Subsidiaries in the Account Party’s Subsidiaries.

“Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise.  “Controlling” and “Controlled” have the
meanings correlative thereto.

“Control Agreement” means the control agreement among
Custodian, Bank and the Account Party, as amended, supplemented or restated
from time to time, pursuant to which a lien on one or more Custodial Accounts
and the contents thereof and all security entitlements related thereto securing
the Obligations is perfected in favor of Bank.

“Covenant Compliance Worksheet” means a fully
completed worksheet in the form of Annex A to Exhibit A. 

“Credit Documents” means, collectively, this
Agreement, the Letter of Credit Documents and each Security Document.

“Custodial Account” means each custodial, brokerage
or similar account of the Account Party maintained by the Custodian as a
“securities account” within the meaning of Section 8-501(a) of the UCC for the Account Party as the
“entitlement holder” within the meaning of Section 8-102(7) of the UCC pursuant to a custodial
agreement, on which (and on the contents of which) a lien has been granted as
security for the Obligations.

“Custodian” means The Bank of New York Mellon (in
its capacity as custodian of the Custodial Accounts).

“Default” means any of the events specified in Section 10 which with the passage of time, the giving of notice or any other
condition, would constitute an Event of Default.

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“Disqualified Capital Stock”
means, with respect to any Person, any Capital Stock of such Person that, by
its terms (or by the terms of any security into which it is convertible or for
which it is exchangeable), or upon the happening of any event or otherwise, (i)
matures or is mandatorily redeemable or subject to any mandatory repurchase
requirement, pursuant to a sinking fund obligation or otherwise, (ii) is
redeemable or subject to any mandatory repurchase requirement at the sole
option of the holder thereof, or (iii) is convertible into or exchangeable for
(whether at the option of the issuer or the holder thereof) (A) debt securities
or (B) any Capital Stock referred to in clause (i) or (ii) above, in each case
under clause (i), (ii) or (iii) above at any time on or prior to the Final
Maturity Date; provided, however, that only the portion of
Capital Stock that so matures or is mandatorily redeemable, is so redeemable at
the option of the holder thereof, or is so convertible or exchangeable on or
prior to such date shall be deemed to be Disqualified Capital Stock.

“Dollars” or “$” means dollars of the United
States of America.

“Draw Date” has the meaning specified in Section 2(b)(i). 

“Due Date” has the meaning specified in Section 2(b)(i). 

“ERISA”  means  the  Employee  Retirement  Income  Security  Act  of  1974, as amended.

 

“ERISA
Affiliate” means any trade or business (whether or not incorporated) that,
together with the Account Party, is treated as a single employer under
Section 414(b) or (c) of the Code or Section 4001(14) of ERISA or, solely for purposes of Section 302 of
ERISA and Section 412 of the Code, is treated as a single employer
under Section 414(m)
or (o) of the Code.

 

“ERISA Event” means (a) any
“reportable event”, as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan (other than an event for which the 30 day
notice period is waived); (b) the failure to satisfy the “minimum
funding standard” (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived with respect to any Plan; (c) the filing
pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of
an application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Account Party or any of its ERISA Affiliates
of any liability under Title IV of ERISA with respect to the termination
of any Plan; (e) the receipt by the Account Party or any of its ERISA
Affiliates from the PBGC or a plan administrator of any notice relating to an
intention to terminate any Plan or Plans or to appoint a trustee to administer
any Plan; (f) the incurrence by the Account Party or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial
withdrawal of the Account Party or any of its ERISA Affiliates from any Plan or
Multiemployer Plan; or (g) the receipt by the Account Party or any of its
ERISA Affiliates of any notice, or the receipt by any Multiemployer Plan from,
the Account Party, or any of its ERISA Affiliates of any notice, concerning the
imposition upon the Account Party, or any of its ERISA Affiliates of Withdrawal
Liability or a determination that a Multiemployer Plan is, or is expected to
be, insolvent within the meaning of Title IV of ERISA.  

“Event of Default” has the meaning
specified in Section 10. 

“Exchange Act” means the
Securities Exchange Act of 1934.

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“Extension Fee” has the
meaning specified in Section 2(k)(v). 

“FATCA” means (a) Sections 1471 through 1474 of the Code, as of the date of this Agreement
(or any amended or successor version that is substantively comparable and not
materially more onerous to comply with), any current or future regulations or
official interpretations thereof, and any agreements entered into pursuant to
Section 1471(b)(1)
of the Code, (b)
any treaty, law, regulation or other official guidance enacted in any other
jurisdiction, or relating to an intergovernmental agreement between the United
States and any other jurisdiction with the purpose (in either case) of
facilitating the implementation of (a) above, or (c) any agreement pursuant to the implementation
of paragraphs (a)
or (b) above with
the IRS, the United States government or any governmental or taxation authority
in the United States.

“Final Expiry Date” means the date
when the Final Maturity Date has occurred, all Letters of Credit have expired
or terminated and all Obligations owing hereunder and in the other Credit
Documents have been paid in full. 

“Final Maturity Date” means the date that is one year
following the Commitment Termination Date (as it may be extended pursuant to
and in accordance with Section 2(k)); provided, however,
that if such date is not a Business Day, the Final Maturity Date shall be the
next preceding Business Day. 

“Financial Strength Rating” means,
as to any Person, the rating that has been most recently announced by A.M. Best
as the “financial strength rating” of such Person.

“GAAP” means generally accepted
accounting principles in the United States set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a
significant segment of the accounting profession in the United States, that are
applicable to the circumstances as of the date of determination, consistently
applied.

“Governmental
Authority” means the government of any nation or any political subdivision
thereof, whether at the national, state, territorial, provincial, municipal or
any other level, and any agency, authority, instrumentality, regulatory body,
court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of, or
pertaining to, government (including any supra-national bodies such as the
European Union or the European Central Bank).   

“Hedge Agreement” means any
interest or foreign currency rate swap, cap, collar, option, hedge, forward
rate or other similar agreement or arrangement designed to protect against
fluctuations in interest rates or currency exchange rates, including any swap
agreement (as defined in 11 U.S.C. § 101).

“Hedge Termination Value” means,
in respect of any one or more Hedge Agreements, after taking into account the
effect of any legally enforceable netting agreement relating to such Hedge
Agreements, (a) for
any date on or after the date such Hedge Agreements have been closed out and
termination value(s) determined in accordance therewith, such termination
value(s), and (b) for
any date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Hedge Agreements, as determined based upon one
or more mid-market or other readily available quotations 

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provided by any
recognized dealer in such Hedge Agreements (which may include Bank or any
affiliate of Bank).

“Increase Effective Date” has the
meaning specified in Section 2(j)(ii). 

“Indebtedness” means, with respect
to any Person (without duplication), (i) all indebtedness of such Person for
borrowed money or in respect of loans or advances, (ii) all obligations of such
Person evidenced by notes, bonds, debentures or similar instruments, (iii) all
reimbursement obligations of such Person with respect to surety bonds, letters
of credit and bankers’ acceptances (in each case, whether or not drawn or
matured and in the stated amount thereof), (iv) all obligations of such Person
to pay the deferred purchase price of property or services, (v) all
indebtedness created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person, (vi) all
obligations of such Person as lessee under leases that are or are required to
be, in accordance with GAAP, recorded as capital or finance leases, to the
extent such obligations are required to be so recorded, (vii) all obligations
and liabilities of such Person incurred in connection with any transaction or
series of transactions providing for the financing of assets through one or
more securitizations or in connection with, or pursuant to, any synthetic lease
or similar off-balance sheet financing, (viii) all Disqualified Capital Stock
issued by such Person, with the amount of Indebtedness represented by such
Disqualified Capital Stock being equal to the greater of its voluntary or
involuntary liquidation preference and its maximum fixed repurchase price, but
excluding accrued dividends, if any (for purposes hereof, the “maximum fixed
repurchase price” of any Disqualified Capital Stock that does not have a fixed
repurchase price shall be calculated in accordance with the terms of such
Disqualified Capital Stock as if such Disqualified Capital Stock were purchased
on any date on which Indebtedness shall be required to be determined pursuant
to this Agreement, and if such price is based upon, or measured by, the fair
market value of such Disqualified Capital Stock, such fair market value shall
be determined reasonably and in good faith by the board of directors or other
governing body of the issuer of such Disqualified Capital Stock), (ix) the
Hedge Termination Value of such Person under any Hedge Agreements, calculated
as of any date as if such agreement or arrangement were terminated as of such
date, (x) all contingent obligations of such Person in respect of Indebtedness
of other Persons and (xi) all indebtedness referred to in clauses (i) through
(x) above secured by any Lien on any property or asset owned or held by such
Person regardless of whether the indebtedness secured thereby shall have been
assumed by such Person or is nonrecourse to the credit of such Person.

“Instructions” has the meaning set
forth in Section 2(a). 

“Insurance Regulatory Authority”
means, with respect to the Account Party, the insurance department or similar
Governmental Authority charged with regulating insurance companies or insurance
holding companies, in its jurisdiction of domicile and, to the extent that it
has regulatory authority over the Account Party, in each other jurisdiction in
which the Account Party conducts business or is licensed to conduct business.

“Investment Company Act” means the
Investment Company Act of 1940 (15 U.S.C. § 80(a)(1), et seq.). 

“IRS” means the United States
Internal Revenue Service.

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“Issue” means, with respect
to any Letter of Credit, to issue, to amend or to extend the expiry of, or to
renew or increase the stated amount of, such Letter of Credit.  The terms “Issued”,
“Issuing” and “Issuance” have corresponding meanings.

“Letter of Credit Documents” means, with respect to
any Letter of Credit, collectively, any Applications, agreements, instruments,
guarantees or other documents (whether general in application or applicable
only to such Letter of Credit) governing or providing for the rights and
obligations of the parties concerned or at risk with respect to such Letter of
Credit.   

“Letter of Credit Fee” has the meaning specified in Section
2(i)(iv). 

“Letters of Credit” means the collective reference to
standby letters of credit Issued pursuant to Section 2. 

“Lien” means any mortgage, pledge,
hypothecation, assignment, security interest, lien (statutory or otherwise),
preference, priority, charge or other encumbrance of any nature, whether
voluntary or involuntary, including the interest of any vendor or lessor under
any conditional sale agreement, title retention agreement, capital lease or any
other lease or arrangement having substantially the same effect as any of the
foregoing.

“Material Adverse Effect” means a material
adverse effect upon (i) the financial condition, operations, business,
properties or assets of the Account Party, (ii) the ability of the Account
Party to perform its payment or other material obligations under this Agreement
or any of the other Credit Documents or (iii) the legality, validity or
enforceability of this Agreement or any of the other Credit Documents or the
rights and remedies of Bank hereunder and thereunder.

“Maximum Total Facility Amount” means $250,000,000.

“Multiemployer
Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

“Minimum
CTNW Amount” means, as of any date of determination, the sum of (i)
$1,905,373,600 plus (ii) 25.0% of the Consolidated Net Income during the period
from September 30, 2021 through the last day of the most recently ended fiscal
quarter of the Account Party (if positive).

“Multiple
Employer Plan” means an employee pension benefit plan with respect to which
the Account Party or any of its ERISA Affiliates is a contributing sponsor, and
that has two (2) or more contributing sponsors at least two (2) of whom are not
under common control, as such a plan is described in Section 4064 of ERISA.

“Notice of Non-Extension” has the
meaning given to such term in Section 2(g). 

“Obligations” means all obligations and
liabilities (including any interest and fees accruing after the filing of a
petition or commencement of a case by or with respect to the Account Party
seeking relief under any applicable Bankruptcy Laws, whether or not the claim
for such interest or fees is allowed in such proceeding), including without
limitation, reimbursement and other payment obligations and liabilities, of the
Account Party to Bank arising under, or in connection with, the applicable
Credit Document, including, without 

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limitation, Section 5  below, any Application or any Letter of Credit,
in each case whether matured or unmatured, absolute or contingent, now existing
or hereafter incurred.

“OFAC” means the U.S. Department of the Treasury’s Office of
Foreign Assets Control.

“Officer’s Compliance Certificate”
means a certificate of the chief executive officer, the chief financial
officer, vice president—finance, principal accounting officer, treasurer or
assistant treasurer of the Account Party substantially in the form attached as Exhibit
A, together with a Covenant Compliance Worksheet.

“Other Taxes” has the meaning
specified in Section 2(c). 

“Outstanding Letters of Credit” means, as of any
date, the sum of (a)
the Stated Amount of all outstanding Letters of Credit at such time and, without
duplication, (b)
all reimbursement obligations in respect of Letters of Credit at such time.

“Parent” means Everest Re Group,
Ltd., a Bermuda exempted company.

“PATRIOT Act” means the USA
PATRIOT Act (Title III
of Pub. L. 107-56 (signed into law October 26, 2001)).

“Payment Date” has the meaning specified in Section
2(b)(i). 

“PBGC” means the Pension Benefit Guaranty Corporation
referred to and defined in ERISA and any successor entity performing similar
functions.

“Person” means any natural person,
corporation, limited liability company, trust, joint venture, association,
company, partnership, governmental authority or other entity.

“Plan” means any employee
pension benefit plan (including a Multiple Employer Plan, but other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Account
Party or any ERISA Affiliate thereof is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

 “Pledge Agreement” means the Pledge and
Security Agreement, dated as of the date hereof, made by the Account Party in
favor of Bank, as amended, supplemented or restated from time to time.

“Prime Rate”
means the rate of interest last quoted by the Wall Street Journal as the
"Prime Rate" in the U.S. or, if The Wall Street Journal ceases to
quote such rate, the highest per annum interest rate published by the Board of
Governors of the Federal Reserve System of the United States in Federal Reserve
Statistical Release H.15 (519) (Selected Interest Rates) as the "bank
prime loan" rate or, if such rate is no longer quoted therein, any similar
rate quoted therein (as determined reasonably by Bank) or any similar release
by the Board of Governors of the Federal Reserve System of the United States
(as determined reasonably by Bank); provided that if the Prime Rate as so
determined would be less than zero, such rate shall be deemed to be zero for
the purposes of this Agreement.

“Quarterly Statement”
means, with respect to the Account Party for any fiscal quarter, the quarterly
financial statements of the Account Party as required to be filed with the 

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Insurance
Regulatory Authority of its jurisdiction of domicile, together with all
exhibits, schedules, certificates and actuarial opinions required to be filed
or delivered therewith.

 “Responsible Officer” means, as
to any Person, the chief executive officer, president, chief financial officer,
controller, treasurer or assistant treasurer of such Person or any other
officer of such Person designated in writing by the Account Party and
reasonably acceptable to Bank; provided that, to the extent requested thereby,
Bank shall have received a certificate of such Person certifying as to the
incumbency and genuineness of the signature of each such officer.  Any document
delivered hereunder or under any other Credit Document that is signed by a
Responsible Officer of a Person shall be conclusively presumed to have been
authorized by all necessary corporate, limited liability company, partnership
and/or other action on the part of such Person and such Responsible Officer
shall be conclusively presumed to have acted on behalf of such Person.

“Sanctions” means any and all
economic or financial sanctions, sectoral sanctions, secondary sanctions, trade
embargoes and anti-terrorism laws, including but not limited to those imposed,
administered or enforced from time to time by the U.S. government (including
those administered by OFAC or the U.S. Department of State), the United Nations
Security Council, the European Union, Her Majesty’s Treasury, or other relevant
sanctions authority. 

“Sanctioned Country” means at any
time, a country, territory or region which is itself the subject or target of
any Sanctions.

“Sanctioned
Person” means, at any time, (a) any Person listed in any
Sanctions-related list of designated Persons maintained by OFAC (including,
without limitation, OFAC’s Specially Designated Nationals and Blocked Persons
List and OFAC’s Consolidated Non-SDN List), 
the U.S. Department of State, the United Nations Security Council, the European
Union, Her Majesty’s Treasury, or other relevant sanctions authority, (b) any Person
located, operating, organized or resident in a Sanctioned
Country or (c) any
Person owned or controlled by any such Person or Persons described in clauses (a) and (b), including
a Person that is deemed by OFAC to be a Sanctions target based on the ownership
of such legal entity by Sanctioned Peron(s). 

“Security Documents” means, collectively, (a) the Pledge
Agreement and (b)
the Control Agreement and (c) each other document, agreement, certificate
and/or financing statement, executed, delivered, made or filed pursuant to the
terms of the documents specified in foregoing clauses (a) and (b).

“Shareholders’ Equity”
means, as of any date of determination, the consolidated shareholders’ equity
of the Account Party and its Subsidiaries as of that date determined on a
consolidated basis in accordance with GAAP.

“Standard Letter of Credit
Practice” means, for Bank, any U.S. federal or state or foreign law or
letter of credit practices applicable in the city in which Bank Issued the
applicable Letter of Credit or for its branch or correspondent banks, such laws
and practices applicable in the city in which it has advised, confirmed or
negotiated such Letter of Credit, as the case may be.  Such practices shall be (i) of banks that
regularly issue letters of credit in the particular city, and (ii) required or
permitted under the ISP (as defined below) or UCP (as defined below), as chosen
in the applicable Letter of Credit.  “ISP” means, International Standby
Practices 1998
(International Chamber of Commerce Publication No. 590) and any subsequent revision thereof adopted
by the International Chamber of 

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Commerce
on the date such Letter of Credit is issued.  “UCP” means, Uniform
Customs and Practice for Documentary Credits 2007 Revision, International Chamber of Commerce
Publication No. 600
and any subsequent revision thereof adopted by the International Chamber of
Commerce on the date such Letter of Credit is issued.

“Stated Amount” means,
with respect to any Letter of Credit at any time, the aggregate amount
available to be drawn thereunder at such time (regardless of whether any
conditions for drawing could then be met).

“Subsidiary” means as to any
Person, any corporation, partnership, limited liability company or other entity
of which more than fifty percent (50%) of the outstanding Capital Stock having ordinary
voting power to elect a majority of the board of directors (or equivalent
governing body) or other managers of such corporation, partnership, limited
liability company or other entity is at the time owned by (directly or
indirectly) such Person (irrespective of whether, at the time, Capital Stock of
any other class or classes of such corporation, partnership, limited liability
company or other entity shall have or might have voting power by reason of the
happening of any contingency).  Unless otherwise qualified, references to
“Subsidiary” or “Subsidiaries” herein shall refer to those of the Account
Party.

                        “Taxes”
has the meaning specified in Section 2(c). 

“Threshold Amount” means $15,000,000.

“UCC” means the Uniform Commercial Code as
in effect from time to time in the State of New York.

“Upfront Fee” has the meaning specified in Section
2(i). 

“U.S.” means United States of America.

2.                 
LETTER OF CREDIT FACILITY.   

(a)               
General.  At the request of the Account Party, Bank
agrees, on and subject to the terms and conditions of this Agreement, to issue
standby Letters of Credit for the account of the Account Party in Dollars from
time to time during the period from the Closing Date to but not including the
Commitment Termination Date.  Letters of Credit may only be issued on Business
Days.  The request to issue a Letter of Credit (an “Application”) shall
be in the form of Exhibit C or such other form as Bank shall from time
to time require or agree to accept (including any type of electronic form or
means of communication acceptable to Bank) and, upon the receipt of any
Application, Bank shall process such Application in accordance with its
customary procedures and shall, subject to Section 4,
promptly issue the Letter of Credit requested thereby (but in no event shall
Bank be required to issue any Letter of Credit earlier than three Business Days
after its receipt of the Application therefor) by issuing the original of such
Letter of Credit to the beneficiary thereof or as otherwise may be agreed by
Bank and the Account Party.  Inquiries, communications and instructions
(whether written, facsimile or in other electronic form approved by Bank)
regarding a Letter of Credit, an Application and this Agreement are each
referred to herein as “Instructions”.  Bank’s records of the content of
any Instruction will be conclusive, absent manifest error.  

 

 

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(b)               
General Payment Obligations.  For each Letter of Credit,
the Account Party shall, as to clause (i) below, reimburse Bank, and as to all other
clauses below, pay Bank, in each case in Dollars:

(i)                
with respect to a drawing under any Letter of Credit, the amount
of each drawing paid by Bank thereunder (such date of payment hereinafter
referred to as the “Draw Date”) no later than the first succeeding
Business Day after the Account Party’s receipt of notice of such payment by
Bank (the “Due Date”), with interest as provided below on the amount so
paid by Bank (to the extent not reimbursed prior to 2:00 p.m. Eastern Time on
the Draw Date) for the period from the Draw Date to the date the reimbursement
obligation created thereby is satisfied in full (the “Payment Date”). 
If the Payment Date is on or prior to the Due Date, such interest shall be
payable at the Prime Rate as in effect from time to time during the period from
the Draw Date to the Payment Date.  If the Payment Date is after the Due Date,
such interest shall be payable (x) as provided in the preceding sentence during
the period from and including the Draw Date to and not including the Due Date,
and (y) at the
Prime Rate as in effect from time to time plus 2% from and including the Due Date to and not
including the Payment Date; 

(ii)              
the fees payable by the Account Party at such times and in such
amounts as are set forth in Section 2(i). 

(iii)            
except as otherwise provided in clause (i) above and clause (iv) below, interest on each amount payable by the
Account Party under the applicable Credit Documents for each day from and
including the date such payment is due to and not including the date of
payment, on demand, at a rate per annum equal to the Prime Rate as in effect
from time to time plus 2%;

(iv)             
within ten (10) days of demand, Bank’s reasonable and
documented out-of-pocket costs and expenses (including the reasonable and
documented legal fees, charges and disbursements of outside counsel to Bank
incurred in connection with the protection or enforcement of Bank’s rights
against the Account Party under this Agreement and the other applicable Credit
Documents and any correspondent bank’s documented charges related thereto),
with interest from the date of demand by Bank to and not including the date of
payment by the Account Party, at a rate per annum equal to the Prime
Rate as in effect from time to time plus 2%;

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(v)               
if as a result of any Change in Law, Bank determines that the
cost to Bank of Issuing or maintaining any Letter of Credit is increased
(excluding, for purposes of this clause (a)(v), any such increased costs resulting from (A) income taxes,
franchise taxes and similar taxes imposed on Bank by any taxing authority, any
U.S. federal withholding taxes imposed under FATCA and Other Taxes (in each
case as to which Section 2(c) shall govern) and (B) changes in the
basis of taxation of overall net income or overall gross income by the U.S. or
by the foreign jurisdiction or state under the laws of which Bank is organized
or has its lending office or any political subdivision thereof), then the
Account Party will pay to Bank, from time to time, within ten (10) days after
demand by Bank, which demand shall include a statement of the basis for such
demand and a calculation in reasonable detail of the amount demanded,
additional amounts sufficient to compensate Bank for such increased cost.  A
certificate as to the amount of such 

 

 

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increased cost, submitted to the Account Party by Bank,
shall be conclusive and binding for all purposes, absent manifest error; and

(vi)             
if Bank determines that any Change in Law affecting Bank or any
lending office of Bank or Bank’s holding company regarding capital or liquidity
requirements has or would have the effect of reducing the rate of return on
Bank’s capital or on the capital of Bank’s holding company as a consequence of
this Agreement or the Letters of Credit issued by Bank to a level below that
which Bank or Bank’s holding company could have achieved but for such Change in
Law (taking into consideration Bank’s or its holding company’s policies with
respect to capital adequacy), then from time to time the Account Party will pay
to Bank within ten (10) days after demand by Bank, which demand shall
include a statement of the basis for such demand and a calculation in
reasonable detail of the amount demanded, such additional amount or amounts as
will compensate Bank or Bank’s holding company for any such reduction
suffered.  A certificate as to such amounts submitted to the Account Party by
Bank shall be conclusive and binding for all purposes, absent manifest error.

Bank shall use reasonable
efforts to designate a different lending office if such designation will avoid
(or reduce the cost to the Account Party of) any event described in the
preceding sentence and such designation will not, in Bank’s good faith
judgment, subject Bank to any unreimbursed cost or expense and would not
otherwise be disadvantageous to Bank.

Notwithstanding the provisions
of clause (v) or (vi) above or Section
2(c) below (and without limiting the immediately preceding
paragraph), Bank shall not be entitled to compensation from the Account Party
for any amount arising prior to the date which is 180 days before the date on which Bank notifies
the Account Party of such event or circumstance (except that if such event or
circumstance is retroactive, then such 180-day period shall be extended to
include the period of retroactive effect thereof).

Any payments received by Bank
pursuant to the Credit Documents after 2:00 p.m. Eastern shall be deemed to
have been made on the next succeeding Business Day for all purposes under the
Credit Documents.

(c)               
Immediately Available Funds; No Withholding.  All
reimbursements and payments by or on behalf of the Account Party shall be made
in immediately available funds, free and clear of and without deduction for any
present or future Taxes, set-off or other liabilities, to such location as Bank
may reasonably designate from time to time.  The Account Party shall pay all
withholding taxes and Other Taxes imposed by any taxing authority on
reimbursement or payment under any Letter of Credit and any Credit Document,
and shall indemnify Bank against all liabilities, costs, claims and expenses
resulting from Bank having to pay or from any omission to pay or delay in
paying any such taxes, except to the extent that such taxes are determined by a
court of competent jurisdiction by a final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of Bank.  Any such
indemnification payment shall be made within ten (10) days from the date Bank makes written demand
therefor.  “Taxes” means all taxes, fees, duties, levies, imposts, deductions,
charges or withholdings of any kind (other than income taxes, franchise taxes
and similar taxes imposed on Bank by any taxing authority and any U.S. federal
withholding taxes imposed under FATCA).  “Other Taxes” means all present
or future stamp, documentary, excise, property or similar taxes, charges or
levies that arise 

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from any payment made
hereunder or from the execution, delivery or registration of, performance
under, or otherwise with respect to, this Agreement or any other Credit Document.

(d)               
Automatic Debit and Set-Off.  Upon the occurrence and
during the continuance of any Event of Default with respect to the Account
Party, Bank may (but shall not be required to), without demand for
reimbursement or payment or notice to the Account Party, and in addition to any
other right of set-off that Bank may have, debit any account or accounts
maintained by the Account Party with any office of Bank (now or in the future)
and set-off and apply (i) any balance or deposits (general, special,
time, demand, provisional, final, matured or absolute) in the account(s) and (ii) any sums due or
payable from Bank, to the payment of any and all Obligations owed by the
Account Party to Bank, irrespective of whether Bank shall have made any demand
under this Agreement and although such Obligations may be contingent or
unmatured.  Bank agrees promptly to notify the Account Party after any such
set-off and application; provided, however, that the failure to
give such notice shall not affect the validity of such set-off and application. 

(e)               
Obligations Absolute.  The Account Party’s
reimbursement and payment obligations under this Section 2  are absolute, unconditional and irrevocable and
shall be performed strictly in accordance with the terms of this Agreement
under any and all circumstances whatsoever, including, without limitation:

(i)                
any lack of validity, enforceability or legal effect of any
Letter of Credit or any Credit Document or any term or provision therein; 

(ii)              
payment against presentation of any draft, demand or claim for
payment under any Letter of Credit or other document presented for purposes of
drawing under any Letter of Credit (individually, a “Drawing Document”
and collectively, the “Drawing Documents”) that does not comply in whole
or in part with the terms of the applicable Letter of Credit or which proves to
be fraudulent, forged or invalid in any respect or any statement therein
proving to be untrue or inaccurate in any respect, or which is signed, issued
or presented by a Person or a transferee of such Person purporting to be a
successor or transferee of the beneficiary of such Letter of Credit; 

(iii)            
Bank or any of its branches or affiliates being the beneficiary
of any Letter of Credit;

(iv)             
Bank or any correspondent bank honoring a drawing against a
Drawing Document up to the amount available under any Letter of Credit even if
such Drawing Document claims an amount in excess of the amount available under
such Letter of Credit; 

(v)               
the existence of any claim, set-off, defense or other right that
Account Party or any other Person may have at any time against any beneficiary
or any assignee of proceeds, Bank or any other Person; or

(vi)             
any other event, circumstance or conduct whatsoever, whether or
not similar to any of the foregoing that might, but for this Section 2(e), constitute a legal or equitable defense to or discharge of, or provide a
right of set-off against, the Obligations, whether against Bank, the
beneficiary or any other Person;

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provided, however, that subject to Section
0 below, the foregoing shall not release Bank from such liability to
the Account Party as may be determined by a court of competent jurisdiction by
a final and nonappealable judgment against Bank following reimbursement and/or
payment of the Obligations.  

 

(f)                
Computation of Interest and Fees; Maximum Rate.  All
computations of interest and fees to be made hereunder and under any other
Credit Document shall be made on the basis of a year consisting of (i) in the case of
interest determined with reference to the Prime Rate, 365/366 days, as the case
may be, or (ii)
in all other instances, 360 days; and in each case under (i) and (ii), for the
actual number of days elapsed (including the first day but excluding the last
day) occurring in the period for which such interest or fee is payable.  In no
contingency or event whatsoever shall the aggregate of all amounts deemed
interest under this Agreement charged or collected pursuant to the terms of
this Agreement exceed the highest rate permissible under any applicable law
which a court of competent jurisdiction shall, in a final determination, deem
applicable hereto.  In the event that such a court determines that Bank has
charged or received interest hereunder in excess of the highest applicable
rate, the rate in effect hereunder shall automatically be reduced to the
maximum rate permitted by applicable law and Bank shall at its option (i) promptly
refund to the Account Party any interest received by Bank in excess of the
maximum lawful rate or (ii) apply such excess to any outstanding
Obligations.  It is the intent hereof that the Account Party not pay or
contract to pay, and that Bank not receive or contract to receive, directly or
indirectly in any manner whatsoever, interest in excess of that which may be
paid by the Account Party under applicable law.

(g)               
Expiry Date of Letters of Credit.  Each Letter of
Credit shall expire at or prior to the earlier of (i) the close of business on the date one year
after the date of the Issuance of such Letter of Credit (or, in the case of any
renewal or extension thereof, one year after such renewal or extension), or (ii) the Final
Maturity Date; provided, however, if the Account Party so
requests in any applicable Application, Bank agrees to issue a Letter of Credit
that has automatic extension provisions (each, an “Auto-Extension Letter of
Credit”); provided  that any such Auto-Extension Letter of Credit (1)
must permit Bank to prevent any such extension at least once in each
twelve-month period (commencing with the date of issuance of such Letter of
Credit) by giving prior notice to the beneficiary thereof (any such notice, a “Notice
of Non-Extension”) not later than a day in each such twelve-month period to
be agreed upon at the time such Letter of Credit is issued, and (2) shall
expire on or before the Final Maturity Date.

(h)               
Permanent Reduction of Commitment. The Account Party
shall have the right at any time and from time to time, upon at least three
Business Days’ prior irrevocable written notice to Bank, to permanently reduce,
without premium or penalty, (i) the entire Commitment at any time or (ii) portions
of the Commitment, from time to time, in an aggregate principal amount not less
than $3,000,000 or any whole multiple of $1,000,000 in excess thereof.  All
Commitment Fees accrued until the effective date of any termination of the
Commitment shall be paid on the effective date of such termination.  

(i)                
Fees. The Account Party agrees to pay the following
amounts:

(i)                
a non-refundable upfront fee (the “Upfront Fee”), in an
aggregate amount equal to 0.025% of the Commitment.  The entire amount of the
Upfront Fee will be fully earned and shall be due and payable in full in cash
on the Closing Date;

 

 

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(ii)              
a non-refundable upfront fee (the “Accordion Upfront Fee”),
in an aggregate amount equal to 0.025% of Bank's increase in its Commitment
pursuant to Section 2(j) on each Increase Effective Date.  The entire amount of
each Accordion Upfront Fee will be fully earned and shall be due and payable in
full in cash on such Increase Effective Date;

(iii)            
a non-refundable commitment fee (a “Commitment Fee”), for
each calendar quarter (or portion thereof) at a per annum rate equal to 0.125%
of the daily aggregate unused portion of the Commitment, payable in arrears (A) on the last
Business Day of each calendar quarter, beginning with the first such day to
occur after the Closing Date through the Commitment
Termination Date and (B) on the
Commitment Termination Date; and

(iv)             
a non-refundable letter of credit fee (the “Letter of Credit
Fee”) for each calendar quarter (or portion thereof) in respect of all
Letters of Credit issued for the account of the Account Party and outstanding
during such quarter, at a per annum rate equal to 0.375% of the daily aggregate
Stated Amount of such Letters of Credit.  The Letter of Credit Fee shall be due
and payable quarterly in arrears (A) on the last Business Day of each calendar
quarter, commencing with the first such date to occur after the Closing Date
through the Final Maturity Date, (B) on the Commitment Termination Date, (C) on
the Final Maturity Date and (D) on the Final Expiry Date.

(j)                
Accordion Facility. 

(i)                
The Account Party may, from time to time during the period from
the Closing Date to but not including the Commitment Termination Date, by
written notice to Bank, request an increase of the Commitment; provided that
Bank shall not have any obligation to agree to increase the Commitment pursuant
to this Section 2(j) and any election to do so shall be in the sole
discretion of Bank; provided, further, that in no event shall the Commitment
exceed the Maximum Total Facility Amount.

(ii)              
If Bank agrees to increase the Commitment pursuant to Section
2(j)(i), Bank and the Account Party shall determine the effective date for
the increase of the Commitment pursuant to this Section 2(j) (the "Increase
Effective Date"). 

(iii)            
Notwithstanding the foregoing, the increase in the Commitment
pursuant to this Section 2(j) shall not be effective unless:

(A)             
No Default or Event of Default shall have occurred and be continuing on
the Increase Effective Date and after giving effect to such increase on such
date; 

(B)             
The representations and warranties contained in this Agreement and the
other Credit Documents shall be true and correct in all material respects,
except for any representation and warranty that is qualified by materiality or
reference to Material Adverse Effect, which such representation and warranty
shall be true and correct in all respects, on and as of the Increase Effective
Date with the same effect as if made on and as of such date (except for any
such representation and warranty that by its terms is made only as of an
earlier date, which representation and warranty shall remain true and correct
in all material respects as of such earlier date, except for any representation
and warranty that is qualified by materiality or reference to Material Adverse
Effect, which such representation and warranty shall be true and correct in all
respects as of such earlier date);

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(C)             
The Account Party shall have paid to Bank all fees and all reasonable
and documented expenses of Bank required hereunder or under any other Credit
Document to be paid on or prior to the Increase Effective Date (including
reasonable fees and expenses of counsel) in connection with this Agreement, the
other Credit Documents and the transactions contemplated hereby; and

(D)             
Bank shall have received copies of all documents, certificates and
instruments reasonably requested thereby, with respect to the transactions
contemplated by this Agreement.

(k)               
Extension of Commitment. 

(i)                
The Account Party may, on one occasion, by written notice to Bank
following the second anniversary of the Closing Date, request that Bank extend
the Commitment Termination Date for an additional year from the initial
Commitment Termination Date.

(ii)              
Bank may, acting in its sole discretion, determine whether to
agree to such extension of the Commitment Termination Date.  If (and only if)
Bank has agreed in writing to so extend the Commitment Termination Date, then,
effective as of the initial Commitment Termination Date, the Commitment Termination
Date shall be extended to the date falling one year after the initial
Commitment Termination Date (except that, if such date is not a Business Day,
such Commitment Termination Date as so extended shall be the next preceding
Business Day).

(iii)            
Notwithstanding the foregoing, the extension of the Commitment
Termination Date pursuant to this Section 2(k) shall not be effective
unless Bank receives a non-refundable extension fee (the “Extension Fee”),
in an aggregate amount equal to 0.025% of the Commitment.  The entire amount of
the Extension Fee will be fully earned and shall be due and payable in full in
cash as a condition precedent to the effectiveness of the extension of the
Commitment Termination Date pursuant to this Section 2(k). 

3.                 
Account Party’s Responsibility. 
The Account Party is responsible for approving the final text of any Letter of
Credit Issued by Bank for its account, irrespective of any assistance Bank may
provide such as drafting or recommending text or by Bank’s use or refusal to
use text submitted by the Account Party.  The Account Party is solely
responsible for the suitability of the Letter of Credit for the Account Party’s
purposes.  The Account Party will examine the copy of each Letter of Credit
Issued for its account and any other documents sent by Bank in connection with
such Letter of Credit and shall promptly notify Bank of any non-compliance with
the Account Party’s Instructions and of any discrepancy in any document under
any presentment or other irregularity.  The Account Party understands that the
final form of any Letter of Credit may be subject to such revisions and changes
as are deemed necessary or appropriate by Bank in accordance with standard
industry practice and the Account Party hereby consents to such revisions and
changes.   

4.                 
CONDITIONS OF CLOSING AND ISSUANCE.  

(a)               
Conditions Precedent to Closing. The effectiveness of this
Agreement and the obligation of the Bank to Issue any Letters of Credit on the
Closing Date is subject to the satisfaction of each of the following
conditions:

(i)                
Executed Credit Documents.  This Agreement, together with
any other applicable Credit Documents, shall have been duly authorized,
executed and 

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delivered to Bank by the parties thereto, shall be in
full force and effect and no Default or Event of Default shall exist hereunder
or thereunder.

(ii)              
Closing Certificates; Etc.  Bank shall have received each
of the following in form and substance reasonably satisfactory to Bank:

(A)             
Officer’s Certificate.  A certificate from a Responsible
Officer of the Account Party to the effect that (A) all representations and warranties of
the Account Party contained in this Agreement and the other Credit Documents
are true, correct and complete in all material respects (except to the extent
any such representation and warranty is qualified by materiality or reference
to Material Adverse Effect, in which case, such representation and warranty
shall be true, correct and complete in all respects); and (B) as of the
Closing Date, no Default or Event of Default has occurred and is continuing.

(B)             
Certificate of Secretary of the Account Party.  A certificate
of a Responsible Officer of the Account Party certifying as to the incumbency
and genuineness of the signature of each officer of the Account Party executing
Credit Documents to which it is a party and certifying that attached thereto is
a true, correct and complete copy of (A) the memorandum of association (or
equivalent), as applicable, of the Account Party and all amendments thereto,
certified as of a recent date by the appropriate Governmental Authority in its
jurisdiction of incorporation, organization or formation (or equivalent), as
applicable, (B) the
bye-laws or other governing document of the Account Party as in effect on the
Closing Date, (C) resolutions
duly adopted by the board of directors (or other governing body) of the Account
Party authorizing and approving the transactions contemplated hereunder and the
execution, delivery and performance of this Agreement and the other Credit
Documents to which it is a party, and (D) each certificate required to be
delivered pursuant to Section 4(a)(ii)(C). 

(C)             
Certificates of Good Standing.  Certificates as of a recent
date of the good standing of the Account Party under the laws of its
jurisdiction of incorporation, organization or formation (or equivalent), as
applicable, and, to the extent requested by Bank, each other jurisdiction where
the Account Party is qualified to do business.

(D)             
Opinions of Counsel.  Opinions of counsel to the Account
Party addressed to Bank with respect to the Account Party, the Credit Documents
and such other matters as Bank shall request (which such opinions shall
expressly permit reliance by permitted successors and assigns of Bank).

(iii)            
Consents; Defaults. 

(A)             
Governmental and Third Party Approvals.  The Account
Party shall have received all material governmental, shareholder and third
party consents and approvals necessary (or any other material consents as
determined in the reasonable discretion of Bank) in connection with the
transactions contemplated by this Agreement and the other Credit Documents and
all applicable waiting periods shall have expired without any action being
taken by any Person that would reasonably be expected to restrain, prevent or
impose any material adverse conditions on the Account Party or such
transactions or that could seek or threaten any of the foregoing, and no law or
regulation shall be applicable which in the reasonable judgment of Bank would
reasonably be expected to have such effect.

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(B)             
No Injunction, Etc.  No action, proceeding or
investigation shall have been instituted, threatened in writing or proposed in
writing before any Governmental Authority to enjoin, restrain, or prohibit, or
to obtain substantial damages in respect of, or which is related to or arises
out of this Agreement or the other Credit Documents or the consummation of the
transactions contemplated hereby or thereby, or which, in Bank’s sole
discretion, would make it inadvisable to consummate the transactions
contemplated by this Agreement or the other Credit Documents or the
consummation of the transactions contemplated hereby or thereby.

(iv)          
Payments at Closing.  The Account Party shall have
paid to Bank (i)
the Upfront Fee, and (ii) all other fees and reasonable and documented expenses
of Bank required hereunder or under any other Credit Document to be paid on or
prior to the Closing Date (including reasonable and documented fees and
expenses of counsel) in connection with this Agreement, the other Credit
Documents and the transactions contemplated hereby.

(v)               
Miscellaneous. 

(A)             
PATRIOT Act, etc.  The Account Party shall have
provided to Bank, at least five Business Days prior to the Closing Date to the
extent requested at least 10 Business Days prior to the Closing Date, the
documentation and other information requested by Bank in order to comply with
requirements of any Anti-Money Laundering Laws, including, without limitation,
the PATRIOT Act and any applicable “know your customer” rules and regulations.

(B)             
Other Documents.  All opinions, certificates and other
instruments and all proceedings in connection with the transactions
contemplated by this Agreement shall be satisfactory in form and substance to
Bank.  Bank shall have received copies of all other documents, certificates and
instruments reasonably requested thereby, with respect to the transactions
contemplated by this Agreement.

(b)               
Conditions Precedent to Issuance of Letters of Credit.
The obligation of Bank to Issue Letters of Credit (including any Letters of
Credit Issued on the Closing Date) is subject to the satisfaction of each of
the following conditions:

(i)             
Continuation of Representations and Warranties.  The
representations and warranties contained in this Agreement and the other Credit
Documents shall be true and correct in all material respects, except for any
representation and warranty that is qualified by materiality or reference to
Material Adverse Effect, which such representation and warranty shall be true
and correct in all respects, on and as of such issuance with the same effect as
if made on and as of such date (except for any such representation and warranty
that by its terms is made only as of an earlier date, which representation and
warranty shall remain true and correct in all material respects as of such
earlier date, except for any representation and warranty that is qualified by
materiality or reference to Material Adverse Effect, which such representation
and warranty shall be true and correct in all respects as of such earlier
date).

(ii)              
No Existing Default.  No Default or Event of Default shall
have occurred and be continuing on the Issuance date with respect to such
Letter of Credit or after giving effect to the issuance of such Letter of
Credit on such date.

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(iii)            
Notice and Collateral Value Certificate.  Bank shall have
received an Application from the Account Party and a Collateral Value
Certificate pursuant to Section 7(d)(iii). 

(iv)             
Miscellaneous.  In addition to the foregoing, Bank
shall be under no obligation to Issue any Letter of Credit if:

(A)             
any order, judgment or decree of any Governmental Authority or
arbitrator having jurisdiction over Bank shall by its terms enjoin or restrain
the Issuance of such Letter of Credit or any law applicable to Bank, Bank or
any request or directive (whether or not having the force of law) from any Governmental
Authority with jurisdiction over it shall prohibit, or request that it refrain
from, the Issuance of letters of credit generally or such Letter of Credit in
particular or shall impose upon it with respect to such Letter of Credit any
restriction or reserve or capital requirement (for which Bank is not otherwise
compensated) not in effect on the Closing Date, or any unreimbursed loss, cost
or expense which was not applicable or in effect as of the Closing Date and
which Bank in good faith deems material to it;

(B)             
Bank shall have delivered a Notice of Non-Extension with respect
to such Letter of Credit;

(C)             
the expiry date of such Letter of Credit would occur more than
twelve months after the date of issuance or last extension unless Bank has
approved such expiry date in writing;

(D)             
the expiry date of such Letter of Credit occurs after the Final
Maturity Date, unless Bank has approved such expiry date in writing;

(E)              
such Letter of Credit is not substantially in form and substance
reasonably acceptable to Bank; or

(F)              
immediately after giving effect thereto,  the amount of
Outstanding Letters of Credit would exceed the Commitment or the Collateral
Value of the Collateral at such time.

5.                 
Indemnification; Limitation of Liability; Expenses.   

(a)               
Indemnification.   The Account Party agrees to
indemnify and hold harmless Bank (including its branches and affiliates), its
correspondent banks and each of their respective directors, officers,
employees, attorneys and agents (each, including Bank, an “Indemnified
Person”) from and against any and all claims, suits, judgments,
liabilities, losses, fines, damages, penalties, interest, costs and expenses
(including expert witness fees and reasonable out-of-pocket legal fees, charges
and disbursements of any counsel (including outside counsel fees and expenses),
and all expenses of arbitration or litigation and in preparation thereof), in
each case, which are documented and may be incurred by or awarded against any
Indemnified Person (collectively, the “Costs”), and which arise out of
or in connection with or by reason of this Agreement, the other Credit
Documents, the actual or proposed use of the proceeds of the Letters of Credit
or any of the transactions contemplated thereby, including, without limitation,
any Costs which arise out of or in connection with, or as a result of:  

 

 

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(i)                
any Letter of Credit or any pre-advice of its Issuance; 

(ii)              
any transfer, sale, delivery, surrender or endorsement of any
Drawing Document at any time(s) held by any Indemnified Person in connection
with any Letter of Credit; 

(iii)            
any actual or prospective action or proceeding arising out of, or
in connection with, any Letter of Credit or any Credit Document (whether administrative,
judicial or in connection with arbitration, whether based on contract, tort or
any other theory, and whether brought by a third party or by the Account Party
or any Subsidiary thereof, and regardless of whether any Indemnified Person is
a party thereto), including any action or proceeding to compel or restrain any
presentation or payment under any Letter of Credit, or for the wrongful
dishonor of, or honoring a presentation under, any Letter of Credit; 

(iv)             
any independent undertakings issued by the beneficiary of any
Letter of Credit;

(v)               
any unauthorized Instruction or error in computer or electronic
transmission in connection with any Letter of Credit Issued hereunder; 

(vi)             
an adviser, confirmer or other nominated person seeking to be
reimbursed, indemnified or compensated in connection with any Letter of Credit
Issued hereunder;

(vii)           
any third party seeking to enforce the rights of the Account
Party, beneficiary, nominated person, transferee, assignee of Letter of Credit
proceeds or holder of an instrument or document in connection with any Letter
of Credit Issued hereunder; 

(viii)         
the fraud, forgery or illegal action of parties other than any
Indemnified Person in connection with any Letter of Credit Issued hereunder;

(ix)             
Bank’s performance of the obligations of a confirming institution
or entity that wrongfully dishonors a confirmation in connection with any
Letter of Credit Issued hereunder; or

(x)               
the acts or omissions, whether rightful or wrongful, of any
present or future de jure or de facto Governmental Authority or
cause or event beyond the control of such Indemnified Person in connection with
any Letter of Credit Issued hereunder;

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in each case, including that resulting from Bank’s own
negligence; provided, however,  that such
indemnity shall not be available to any Person claiming indemnification under
this Section 5(a) to the extent that such Costs (A) are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Person, (B) are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted from a
claim by the Account Party against an Indemnified Person for breach in bad
faith of the obligations of such Indemnified Person hereunder or under any
other Credit Document, or (C) result from any dispute solely between or
among Indemnified Parties.  The Account Party hereby agrees to pay Bank within
thirty (30)  days after demand from time to time all amounts owing under this Section
5(a).    This indemnity provision shall survive termination of this Agreement and
all Letters of Credit.

 

 

 

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(b)               
Direct Damages; No Punitive Damages.  The liability of
Bank (or any other Indemnified Person) under, in connection with and/or arising
out of any Credit Document or any Letter of Credit (or pre-advice), regardless
of the form or legal grounds of the action or proceeding, shall be limited to
direct damages suffered by the Account Party that are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted
from Bank’s gross negligence or willful misconduct or breach in bad faith of
its obligations hereunder or under any Letter of Credit (including pre-advice)
or other Credit Document.  Bank shall be deemed to have acted with due
diligence and reasonable care if Bank’s conduct is in accordance with Standard
Letter of Credit Practice or in accordance with any Credit Document.  No
Indemnified Person shall be liable for any damages arising from any errors,
omissions, interruptions or delays in transmission or delivery of any message,
advice or document (regardless of how sent or transmitted) in connection with this
Agreement or the other Credit Documents, except to the extent that any losses,
claims, damages, liabilities or expenses result from the gross negligence or
willful misconduct of such Indemnified Person in making any such transmission
as determined by a final nonappealable judgment of a court of competent
jurisdiction.

Notwithstanding anything to
the contrary in this Agreement or in any other Credit Document, no Indemnified
Person shall be liable in contract, tort or otherwise for any punitive,
exemplary, consequential, indirect or special damages or losses regardless of
whether or not such party or Indemnified Person shall have been advised of the
possibility thereof or the form of action in which such damages or losses may
be claimed.  The Account Party shall take commercially reasonable action to
avoid and mitigate the amount of any damages claimed against Bank or any other
Indemnified Person, including by enforcing its rights in appropriate
proceedings diligently pursued in the underlying transaction. 

(c)               
No Responsibility or Liability.   Without limiting any
other provision of this Agreement or any other Credit Document, Bank and each
other Indemnified Person (if applicable) shall not be responsible to the
Account Party for, and/or Bank’s rights and remedies against the Account Party
and the Obligations shall not be impaired by:  

(i)                
honor of a presentation under any Letter of Credit that on its
face substantially complies with the terms and conditions of such Letter of
Credit, even if the Letter of Credit requires strict compliance by the
beneficiary;

(ii)              
acceptance as a draft of any written or electronic demand or
request for payment under a Letter of Credit, even if nonnegotiable or not in
the form of a draft; 

(iii)            
the identity or authority of any presenter or signer of any
Drawing Document or the form, accuracy, genuineness or legal effect of any
Drawing Document (other than Bank’s determination that such Drawing Document
appears on its face to substantially comply with the terms and conditions of
the Letter of Credit); 

(iv)             
acting upon any Instruction that it in good faith believes to
have been given by a Person authorized to give such Instructions;

(v)               
any errors in interpretation of technical terms or in
translation;

 

 

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(vi)             
any acts, omissions or fraud by, or the solvency of, any
beneficiary, any nominated person or entity or any other Person, other than an
Indemnified Person; 

(vii)           
any breach of contract between the beneficiary and the Account
Party or any of the parties to the underlying transaction;

(viii)         
payment to any paying or negotiating bank (designated or
permitted by the terms of the applicable Letter of Credit) claiming that it
rightfully honored or is entitled to reimbursement or indemnity under Standard
Letter of Credit Practice applicable to it; 

(ix)             
acting as required or permitted, or failing to act as permitted,
in each case under Standard Letter of Credit Practice applicable to where it
has issued, confirmed, advised or negotiated such Letter of Credit, as the case
may be; 

(x)               
honor of a presentation after the expiration date of any Letter
of Credit notwithstanding that a presentation was made prior to such expiration
date and dishonored by Bank if subsequently Bank or any court or other finder
of fact determines such presentation should have been honored; 

(xi)             
dishonor of any presentation that does not strictly comply or
that is fraudulent, forged or otherwise not entitled to honor; or

(xii)           
honor of a presentation that is subsequently determined by Bank
to have been made in violation of international, federal, state or local restrictions
on the transaction of business with certain prohibited Persons.

provided,
however,  that such limitation of liability shall not be available to
the extent that such actions in (i) – (xii) (A) are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Indemnified Person or
(B) are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted from a claim by the Account Party
against an Indemnified Person for breach in bad faith of the obligations of
such Indemnified Party hereunder or under any other Credit Document.

(d)               
Costs and Expenses.  Within thirty (30) days of receipt of
an invoice from Bank, the Account Party shall pay (i) all reasonable and
documented costs and expenses incurred by Bank and its affiliates (including
the reasonable and documented fees, charges and disbursements of counsel for
Bank) in connection with the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Credit Documents or any
amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable and documented costs and expenses incurred by
Bank in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all costs and
expenses incurred by Bank (including the fees, charges and disbursements of any
counsel for Bank) during the existence of an Event of Default in connection
with the enforcement or protection of its rights (A) in connection with this
Agreement and the other Credit Documents, including its rights under this
Section 5, or (B) in connection with the Letters of Credit issued
hereunder, including all such costs and expenses incurred during any workout,
restructuring or negotiations in respect of such Letters of Credit.

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6.                 
Representations and Warranties.  The
Account Party hereby represents and warrants to Bank (all of which
representations and warranties will be repeated as of the date of each new
Application submitted by the Account Party to Bank and as of the date of
Issuance of any Letter of Credit requested in each such Application) as
follows:

(a)               
Organization, etc.  The Account Party is duly
organized or formed, validly existing and (to the extent applicable under the
laws of the relevant jurisdiction) in good standing under the laws of the
jurisdiction of its organization or formation, and is duly qualified or
licensed to do business (and in good standing as a foreign corporation or
entity, if applicable) in all jurisdictions in which such qualification or
licensing is required or in which the failure to so qualify or to be so
licensed would have a Material Adverse Effect. The Account Party does not have
any Subsidiaries.

(b)               
Power and Authority.  The Account Party has the
requisite power and authority to execute and deliver this Agreement and each
other Credit Document to which it is a party and to perform and observe the
terms and conditions stated herein and therein, and the Account Party has taken
all necessary corporate or other action to authorize its execution, delivery
and performance of each such Credit Document.

(c)               
Valid and Binding Obligation.  This Agreement
constitutes, and each other Credit Document when signed and delivered by the
Account Party to Bank will constitute, its legal, valid and binding obligation,
enforceable against it in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting creditors’ rights against the Account Party generally,
by general equitable principles or by principles of good faith and fair
dealing, and assuming that this Agreement and each such other Credit Document
have been validly executed and delivered by each party thereto other than the
Account Party.

(d)               
No Violation or Breach.  The Account Party’s
execution, delivery and performance of each Credit Document to which it is a
party and the payment of all sums payable by it under each such Credit Document
do not and will not: (i) violate or contravene its memorandum of
association, bye-laws or other organizational documents; (ii) to its
knowledge, violate or contravene any order, writ, law, treaty, rule, regulation
or determination of any Governmental Authority, in each case applicable to or
binding upon it or any of its property, the violation or contravention of which
would have a Material Adverse Effect; or (iii) result in the breach of any provision of, or
in the imposition of any lien or encumbrance (except for liens or encumbrances
created under the Credit Documents) under, or constitute a default or event of
default under, any agreement or arrangement to which it is a party or by which
it or any of its property is bound, the contravention of which agreement or
arrangement would have a Material Adverse Effect.

(e)               
Approvals.   No authorization, approval or consent of,
or notice to or filing with, any Governmental Authority is required to be made
by the Account Party in connection with the execution and delivery by the
Account Party of any Credit Document to which it is a party or the Issuance by
Bank of any Letter of Credit for the account of the Account Party pursuant to
this Agreement and the related Application, except for those which have been
duly obtained, taken, given or made and are in full force and effect, and
except where failure to obtain the foregoing could not reasonably be expected
to have a Material Adverse Effect.

 

 

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(f)                
Compliance with Laws.  The Account Party is in compliance
with all applicable laws and regulations, except where the noncompliance with
which would not have a Material Adverse Effect, and no Application, Letter of
Credit or transaction of the Account Party under any Credit Document to which
it is a party will in any material respect contravene any laws, treaties, rules
or regulations of any Governmental Authority, including, without limitation,
any foreign exchange control laws or regulations, U.S. foreign assets control
laws or regulations or currency reporting laws and regulations, now or
hereafter applicable to it.

(g)               
No Default Under Other Agreements.  The Account Party
is not in default under any agreement, obligation or duty to which it is a
party or by which it or any of its property is bound, which would have a
Material Adverse Effect.

(h)               
No Arbitration Proceeding or Litigation.  There is no
pending or, to the knowledge of the Account Party, threatened arbitration
proceeding, litigation or action against it which (i) is reasonably likely to have a Material
Adverse Effect or (ii)
may affect the legality, validity or enforceability of this Agreement or the
other Credit Documents.

(i)                
Anti-Corruption Laws; Anti-Money Laundering Laws and Sanctions. 

(i)                
None of (i)
the Account Party or, to its knowledge, any of its respective directors,
officers, or employees, or (ii) any agent or representative of the Account
Party that will act in any capacity in connection with this Agreement, (A) is a Sanctioned
Person or currently the subject or target of any Sanctions, (B) is controlled
by or is acting on behalf of a Sanctioned Person or (C) is located, organized or resident in a
country or territory that is, or whose government is, the subject of Sanctions,
in a manner that would result in the violation of applicable Sanctions by any
party hereto.

(ii)              
The Account Party has implemented and maintains in effect policies and
procedures designed to ensure compliance by the Account Party and its
respective directors, officers and employees with all applicable
Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions.

(iii)            
The Account Party and, to the knowledge of the Account Party, each
director, officer, employee and agent of the Account Party, is in compliance
with all applicable Anti-Corruption Laws, Anti-Money Laundering Laws and
Sanctions in all material respects.

(iv)             
No proceeds of any Letter of Credit have been used, directly or
indirectly, by the Account Party or, to the knowledge of the Account Party, any
of its or their respective directors, officers, employees and agents in
violation of Section 7(h). 

(j)                
Filed All Tax Returns and Paid All Taxes.  The Account
Party has filed all required tax returns, and all Taxes, assessments and other
governmental charges due from it have been fully paid, except for Taxes which
are being contested in good faith or those which the failure to file or pay
would not have a Material Adverse Effect.  The Account Party has established on
its books reserves adequate for the payment of all federal, state and other
income tax liabilities, including those being contested in good faith.

 

 

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(k)               
Financial Statements.  The financial statements most
recently furnished to Bank by the Account Party, if any, fairly present in all
material respects the financial condition of the Account Party as at the date
of such financial statements and for the periods then ended in accordance with
GAAP (except as disclosed therein and, in the case of interim financial statements
for any fiscal quarter, subject to normal year-end adjustments and except that
footnote and schedule disclosure may be abbreviated), and there has been no
material adverse change in the Account Party’s business or financial condition
or results of operations since the date of the Account Party’s most recent
annual financial statements.

(l)                
Collateral.   On the date of Issuance of any Letter of
Credit for the account of the Account Party, both immediately before and after
giving effect to such Issuance, the amount of Outstanding Letters of Credit
does not exceed the Collateral Value of the Collateral.

(m)             
Margin Stock.  The Account Party is not engaged
principally or as one of its activities in the business of extending credit for
the purpose of “purchasing” or “carrying” any “margin stock” (as each such term
is defined or used, directly or indirectly, in Regulation U of the Board of
Governors of the Federal Reserve System).  No part of the proceeds of any
Letters of Credit will be used for purchasing or carrying margin stock or for
any purpose which violates, or which would be inconsistent with, the provisions
of Regulation T, U or X of such Board of Governors.

(n)               
No Material Adverse Effect. There has been no Material Adverse Effect since December
31, 2020, and there exists no event, condition or state of facts that could
reasonably be expected to result in a Material Adverse Effect.

(o)               
Investment Company.  The Account Party is not an
“investment company” or a company “controlled” by an “investment company” (as
each such term is defined or used in the Investment Company Act).

(p)               
First Priority Security Interest.  Bank has a first
priority perfected security interest in the Collateral pledged by the Account
Party pursuant to the Security Documents.

(q)               
Insurance. The properties of the Account Party and its
Subsidiaries are insured with financially sound and reputable insurance
companies not affiliates of the Account Party, in such amounts, with such
deductibles and covering such risks as are customarily carried by companies engaged
in similar businesses and owning similar properties in localities where the
Account Party and its Subsidiaries operate.

(r)                
Disclosure. No report, financial statement, certificate or
other information furnished (whether in writing or orally) by or on behalf of
the Account Party to Bank in connection with the transactions contemplated
hereby and the negotiation of this Agreement or delivered hereunder or under
any other Credit Document (in each case, as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not materially
misleading.

 

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(s)                
Certain Bermuda Matters: As of the Closing Date, (i) the
Account Party’s insurance licenses are not the subject of any direction issued
by an Insurance Regulatory Authority, proceeding for suspension or revocation,
there is no sustainable basis for such suspension or revocation, and to the Account
Party’s knowledge, no such suspension or revocation has been threatened by any
applicable Insurance Regulatory Authority; (ii) the Account Party 

 

 

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(t)                
does not transact any insurance business, directly or indirectly,
in any jurisdiction where it would be unlawful for it to do so; and (iii) the
Account Party has not received any direction or other notification from the
Bermuda Monetary Authority pursuant to Section 32 of the Bermuda Insurance Act
and is not the subject of any Bermuda Private Act.

(u)               
ERISA.  It
does not have any direct obligation or direct liability in respect of any Plan
or Multiemployer Plan, and except as would not reasonably be expected to have a
Material Adverse Effect, no ERISA Affiliate thereof has any obligation or
liability in respect of any Plan or Multiemployer Plan. With respect to its
obligations to each Plan, it is in compliance in all material respects with the
applicable provisions of ERISA and the Code and the regulations and published
interpretations thereunder and other federal or state laws.  No ERISA Event has
occurred or is reasonably expected to occur that, when taken together with all
other such ERISA Events for which liability is reasonably expected to occur,
has had or could reasonably be expected to result in a Material Adverse Effect.

7.                 
AFFIRMATIVE Covenants. 
Until all of the Obligations (other than contingent indemnification obligations
not then due) have been paid and satisfied in full in cash, all Letters of
Credit have been terminated or expired and the Commitment terminated, the
Account Party shall: 

(a)               
GAAP Financial Statements.  Deliver to Bank, in form
and detail satisfactory to Bank:

(i)             
As soon as available and in any event
within 55 days after the end of each of the first three fiscal quarters of each
fiscal year, beginning with the fiscal quarter ending September 30, 2021, the
Quarterly Statement prepared for its board of directors in accordance with
GAAP, in each case applied on a basis consistent with that of the preceding
quarter or containing disclosure of the effect on the financial condition or
results of operations of any change in the application of accounting principles
and practices during such quarter; and

(ii)           
As soon as available and in any event within
135 days after the end of each fiscal year, beginning with the fiscal year
ending December 31, 2021, the Annual Statement prepared for its board of
directors in accordance with GAAP, in each case applied on a basis
consistent with that of the preceding year or containing disclosure of the
effect on the financial condition or results of operations of any change in the
application of accounting principles and practices during such year.

(b)               
Certificates; Other Reports.  Deliver to Bank:

(i)             
at each time financial statements are delivered pursuant to Section
7(a), a duly completed Officer’s Compliance
Certificate signed by the chief executive officer, chief financial officer,
vice president—finance, principal accounting officer, treasurer or assistant
treasurer of the Account Party, together with a Covenant Compliance Worksheet
reflecting the computation of the respective financial covenants set forth in
such Covenant Compliance Worksheet;

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(ii)           
promptly upon receipt thereof, copies of
all reports, if any, submitted to the Account Party, or any of its respective
boards of directors by its respective independent public accountants in
connection with their auditing function, including, without limitation, any
management report and any management responses thereto;

 

 

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(iii)         
promptly upon the request thereof, such
other information and documentation required by bank regulatory authorities
under applicable Anti-Money Laundering Laws (including, without limitation, any
applicable “know your customer” rules and regulations and the PATRIOT Act), as
from time to time reasonably requested by Bank;
and

(iv)          
such other information regarding the
operations, business affairs and financial condition of the Account
Party as Bank may reasonably request.

(c)               
Notice of Litigation and Other Matters.  Promptly (but
in no event later than ten (10) days after any Responsible Officer of the
Account Party becoming aware thereof) notify Bank in writing of:

(i)             
the occurrence of any Default or Event
of Default;

(ii)           
the commencement of all proceedings and
investigations by or before any Governmental Authority and all actions and
proceedings in any court or before any arbitrator against or involving the
Account Party or any of its respective properties, assets or businesses in each
case that if adversely determined would reasonably be expected to result in a
Material Adverse Effect;

(iii)         
any attachment, judgment, lien, levy or
order exceeding the Threshold Amount that has been assessed against the Account
Party; and

(iv)          
any announcement by A.M. Best of any
change in the Financial Strength Rating of the Account Party.

Each notice pursuant to this Section
7(c) shall be accompanied by a statement of a Responsible Officer of the
Account Party setting forth details of the occurrence referred to therein and
stating what action the Account Party has taken and proposes to take with
respect thereto and shall describe with particularity any and all provisions of
this Agreement and any other Credit Document that have been breached.

(d)               
Collateral.  Comply with the following:

(i)             
Pursuant to the Security Documents and as
collateral security for the payment and performance of its Obligations, the
Account Party shall grant and convey to Bank a security interest in the
Collateral charged and pledged by it, prior and superior to all other liens, except
for liens in favor of the Custodian securing payment of amounts advanced to
settle authorized transactions or pay income or distributions in respect of
Collateral.  The Account Party shall cause the
Collateral charged and pledged by it to be made subject to the Security
Documents (in form and substance reasonably acceptable to Bank) necessary for
the perfection of the security interest in the Collateral and for the exercise
by Bank of its rights and remedies with respect thereto.  The Account Party
shall promptly after the date hereof file a charge against the Collateral with
the Bermuda Registrar of Companies and deliver evidence of such filing
to Bank no later than thirty (30) days after the date hereof.

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(ii)           
The Account Party shall at all times cause the Collateral Value of the
Collateral pledged by the Account Party to equal or exceed the amount of
Outstanding 

 

 

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(iii)         
Letters of Credit at such time.  If on any date the Outstanding Letters
of Credit shall exceed the Collateral Value of the Collateral pledged by the
Account Party, the Account Party agrees to pay or deliver within three (3) Business Days
to the Custodian Collateral having an aggregate Collateral Value of not less
than the amount of such excess, with any such Collateral to be held in the
Account Party’s Custodial Account as security for all Obligations hereunder.

(iv)          
The Account Party shall deliver to Bank a Collateral Value Certificate,
setting forth the Outstanding Letters of Credit, the fair market value of the
Collateral by category and in the aggregate, the calculation of each Collateral
Value and such other information as Bank may reasonably request (A) not later than 11:00 a.m. on the
Business Day immediately preceding the date on which any Letter of Credit is to
be Issued, (B)
within ten (10)
Business Days after the end of each calendar month, (C) at and as of such other times as Bank may
reasonably request and (D) at such other times as the Account Party may
desire.

(v)            
The Account Party shall cause the Custodian to provide to Bank, in a
manner and at times consistent with the terms of the Control Agreement,
information with respect to each of its Custodial Accounts, in a format to be
agreed by Bank (acting reasonably), which information
shall provide, without limitation, a detailed list of the assets in each such
Custodial Account (including the amount of cash and a detailed description of
the Collateral (including a breakdown listing the name of each issuer, and the
fair market value of the assets held of such issuer)), the fair market value of
those assets and the pricing source of such valuation.

(e)               
Payment of Taxes and Other Obligations.  Except where
the failure to pay or perform such items described in this Section would not
reasonably be expected to have a Material Adverse Effect or impact the
Collateral, the Account Party will pay and perform all taxes, assessments and
other governmental charges that may be levied or assessed upon it or any of its
property; provided, that the Account Party may contest any item described in
this Section in good faith so long as adequate reserves are maintained with
respect thereto in accordance with GAAP.

(f)                
Compliance with Laws and Approvals.  Observe and
remain in compliance with (i) in all material respects, all applicable laws and
maintain in full force and effect all Governmental Approvals, in each case
applicable to the conduct of its business and (ii) the Bermuda Insurance Act,
except, in the case of clause (i) above only, where the failure to do so would
not reasonably be expected to have a Material Adverse Effect.

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(g)               
Maintenance of Books and Records; Inspection.  (i) maintain
adequate books, accounts and records, in which full, true and correct entries
in all material respects shall be made of all financial transactions in
relation to its business and properties, and prepare all financial statements
required under this Agreement, in each case in accordance with GAAP and in
compliance with the requirements of any Governmental Authority having
jurisdiction over it, and (ii) permit employees or agents of Bank to
visit and inspect its properties and examine or audit its books, records,
working papers and accounts and make copies and memoranda of them, and at its
own cost and expense (other than after the occurrence of an Event of Default),
and to discuss its affairs, finances and accounts with its officers and
employees and, upon notice to the Account Party, the independent public
accountants of 

 

 

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the Account Party (and by
this provision the Account Party authorizes such accountants to discuss the
finances and affairs of the Account Party), all at such times that will not
interrupt or interfere with the operation of Account Party’s business and from
time to time, upon reasonable notice and during business hours, as may be reasonably
requested; provided that except during the continuance of an Event of Default
Bank shall not exercise such rights described in clause (ii) of this Section more than once per calendar
year.

(h)               
Use of Proceeds.  Comply with the following:

(i)             
The Account Party shall use the Letters of Credit to support insurance
obligations, obligations under reinsurance agreements and retrocession
agreements and similar risk obligations. 

(ii)           
The Account Party shall not request or use any Issued Letter of Credit, (i) in furtherance
of an offer, payment, promise to pay, or authorization of the payment or giving
of money, or anything else of value, to any Person in violation of any
Anti-Corruption Laws, (ii) for the purpose of funding, financing or
facilitating any activities, business or transaction of or with any Sanctioned
Person, or in any Sanctioned Country, except to the extent permitted for a
Person required to comply with Sanctions or (iii) in any manner that would result in the
violation of any Sanctions applicable to any party hereto.

(i)                
Compliance with Anti-Corruption Laws; Anti-Money Laundering
Laws and Sanctions.  Maintain in effect and enforce policies and
procedures designed to ensure compliance by the Account Party and its 
directors, officers, employees and agents with all applicable Anti-Corruption
Laws, Anti-Money Laundering Laws, and Sanctions.

(j)                
Maintenance of Existence.  Take all reasonable action to
maintain all rights, privileges, permits, licenses and franchises necessary or
desirable in the normal conduct of its business, except to the extent that
failure to do so could not reasonably be expected to have a Material Adverse
Effect.

(k)               
Maintenance of Property and Insurance.  Comply with the
following:

(i)             
maintain, preserve and protect all of its material properties and equipment
necessary in the operation of its business in good working order and condition,
ordinary wear and tear excepted, and make all necessary repairs thereto and
renewals and replacements thereof, except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect; and 

(ii)           
maintain with financially sound and reputable insurance companies not
affiliates of the Account Party, insurance with respect to its properties and
business against loss or damage of the kinds customarily insured against by
Persons engaged in the same or similar business, of such types and in such
amounts as are customarily carried under similar circumstances by such other
Persons.

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(l)                
Further Assurances.  At the Account Party’s cost and
expense, the Account Party will execute and deliver to Bank such additional
certificates, instruments and/or documents and take such additional action as
may be reasonably requested by Bank to enable Bank to Issue 

 

 

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any Letter of Credit
pursuant to this Agreement and the related Application, to perfect and maintain
the validity and priority of the liens granted pursuant to the Security
Documents, to protect, exercise and/or enforce Bank’s rights and interests
under any Credit Document and/or to give effect to the terms and provisions of
any Credit Document.

8.                 
Financial Covenants.  Until
all of the Obligations (other than contingent indemnification obligations not
then due) have been paid and satisfied in full in cash, all Letters of Credit
have been terminated or expired and the Commitment terminated, the Account
Party covenants and agrees to the following:

(a)               
Minimum Consolidated Tangible Net Worth. The Account Party shall not permit Consolidated Tangible Net
Worth at any time to be less than the Minimum CTNW Amount.

(b)               
Financial Strength Ratings.  The Account Party shall at
all times maintain a financial strength rating by A.M. Best Company and shall
not permit such rating to be lower than “B++.”

9.                 
NEGATIVE COVENANTS.  Until all of the Obligations (other than
contingent indemnification obligations not then due) have been paid and
satisfied in full in cash, all Letters of Credit have been terminated or
expired and the Commitment terminated, the Account Party shall not directly or
indirectly:

(a)               
Changes in Business.  At any time from the date hereof
until the Final Expiry Date, make any material change in the nature of its
business as carried on at the date hereof that could be reasonably expected to
have a Material Adverse Effect or enter into any new line of business that is
not similar, corollary, related, ancillary, incidental or complementary, or a
reasonable extension, development or expansion thereof or ancillary thereto the
business as carried on as of the date hereof.

(b)               
Liens.  Create, incur, assume or suffer to exist any Lien
on any Collateral, whether now owned or hereafter acquired, other than (i)
Liens granted to Bank pursuant to any Credit Document, and (ii) Liens of the
Custodian with respect to the Custodial Accounts and funds therein by operation
of law or expressly consented to by Bank in a Control Agreement.

10.             
Events of Default.  Each of the
following shall be an “Event of Default” under this Agreement:

(a)               
Failure to Reimburse Draws.  The failure by the
Account Party to reimburse or pay any drawing under any Letter of Credit or
accrued interest thereon on the Due Date therefor.

(b)               
Failure to Pay Certain Other Amounts.  The failure by
the Account Party to pay any fee or other amount when due under or in
connection with any Credit Document or any Letter of Credit within five (5)
Business Days after the same shall become due and payable.

(c)               
Breach of Representation and Warranty.  Any
representation, warranty, certification or statement made or furnished by the
Account Party under or in connection with any Credit Document or as an
inducement to Bank to Issue a Letter of Credit shall be false, incorrect or
misleading in any material respect when made.

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(d)               
Failure to Maintain Collateral Value.  The Account Party
shall fail to maintain at any time Collateral in which Bank shall have a
perfected first priority security interest and 

 

 

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having a Collateral Value
of not less than the Outstanding Letters of Credit and such failure shall
continue or remain unremedied for more than the three (3) Business Day period
provided for in Section 7(d)(ii).  

(e)               
Failure to Perform or Observe Covenants.   

(i)                
The Account Party’s failure to perform or observe any term,
covenant or agreement contained in Section 7(c)(i),  Section 7(h),
Section  8 or  Section 9; or 

(ii)              
The Account Party’s failure to perform or observe any term,
covenant or agreement contained in any Credit Document (other than those
referred to in subsections (a), (b), (c), (d) and (e)(i) of this Section 10), and with respect to any such failure or
breach that by its nature can be cured, such failure or breach shall continue
or remain unremedied for thirty (30) calendar days after the earlier of (1) Bank’s
delivery of written notice thereof to the Account Party and (2) the Account
Party having actual knowledge that such failure or breach has occurred.

(f)                
Insolvency Proceedings, Etc.  The Account Party
institutes or consents to the institution of any proceeding under any
Bankruptcy Law; or makes an assignment for the benefit of creditors; or applies
for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property; or any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of the Account Party, as the case may be, and the
appointment continues undischarged, undismissed or unstayed for sixty (60) calendar days;
or any proceeding under any Bankruptcy Law relating to the Account Party or to
all or any material part of its property is instituted without the consent of
the Account Party, as the case may be, and continues undischarged, undismissed
or unstayed for sixty (60) calendar days; or an order for relief is
entered in any such proceeding; or the Account Party becomes unable or admits
in writing its inability or fails generally to pay its debts as they become
due.   

(g)               
Sale of Assets; Merger; Dissolution.  There shall
occur in one or a series of transactions: (i) the sale, assignment or transfer of all or
substantially all of the assets of the Account Party; (ii) a merger, amalgamation or consolidation of
the Account Party without the prior written consent of Bank, except that (A) the Account Party may merge, amalgamate or
consolidate with a Subsidiary of the Account Party so long as the Account Party
is the surviving entity in any such transaction and (B) the Account Party may
merge, amalgamate or consolidate with any Person so long as the Account Party
is the surviving entity; or (iii) the
dissolution of the Account Party.

(h)               
Credit Documents.  Any provision of any Credit
Document to which the Account Party is a party shall for any reason cease to be
valid and binding or enforceable; or the Account Party shall deny or disaffirm
in writing the enforceability of any provision of any Credit Document to which
it is a party.

(i)                
Security Documents.  Any Security Document to which
the Account Party is a party shall for any reason (other than pursuant to the
terms thereof) cease to create in favor of Bank a valid and perfected first
priority security interest in the Collateral of the Account Party purported to
be covered thereby; or Bank shall cease for any reason to hold a perfected
first priority security interest in the Collateral of the Account Party; or the
Account Party or any 

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Person acting on its
behalf shall deny or disaffirm in writing the enforceability of any Security
Document.

(j)                
Indebtedness Cross-Default.  The Account Party shall (i) default in
the payment of any Indebtedness (other than the Obligations and obligations amongst the Account Party and its
affiliates) the aggregate principal amount (including undrawn committed or
available amounts), or with respect to any Hedge Agreement, the Hedge
Termination Value, of which is in excess of the Threshold Amount beyond the
period of grace if any, provided in the instrument or agreement under which
such Indebtedness was created, or (ii) default in the observance or performance
of any other agreement or condition relating to any Indebtedness (other than
the Obligations and obligations amongst the Account
Party and its affiliates) the aggregate principal amount (including undrawn
committed or available amounts), or with respect to any Hedge Agreement, the
Hedge Termination Value, of which is in excess of the Threshold Amount or
contained in any instrument or agreement evidencing, securing or relating
thereto or any other event shall occur or condition exist (other than the
Obligations and obligations amongst the Account Party and its affiliates), the
effect of which default or other event or condition is to cause, with the
giving of notice and/or lapse of time, if required, any such Indebtedness to (A) become due, or
to be repurchased, prepaid, defeased or redeemed (automatically or otherwise),
or an offer to repurchase, prepay, defease or redeem such Indebtedness to be
made, prior to its stated maturity (any applicable grace period having expired)
or (B) be cash
collateralized (it being understood that a pledge of cash collateral by the
Account Party to secure a Hedge Agreement as initial or variation margin does
not trigger a violation of this clause (B)).

(k)               
Judgment.  One or more judgments, orders or decrees
shall be entered against the Account Party by any court and continues without
having been discharged, vacated or stayed for a period of thirty (30) consecutive
days after the entry thereof and such judgments, orders or decrees are either (i) for the payment
of money, individually or in the aggregate (not paid or fully covered by
insurance as to which the relevant insurance company has acknowledged coverage),
equal to or in excess of the Threshold Amount or (ii) for injunctive relief and could reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect.

(l)                
Employee  Benefit  Matters.  Except as would not reasonably be expected to result in a
Material Adverse Effect, any Lien  shall  be  imposed 
on  the  assets  of  the  Account
Party under ERISA with respect to any Plan or under any foreign laws similar to
ERISA governing foreign pension plans. 

(m)             
Change in Control.  There occurs any Change in Control.

11.             
REMEDIES.  Upon the occurrence and during
the continuance of any Event of Default:

(a)               
Bank may terminate the Commitment and declare all amounts owed to
Bank under this Agreement or any of the other Credit Documents and all other
Obligations, to be forthwith due and payable, whereupon the same shall promptly
become due and payable without presentment, demand, protest or other notice of
any kind, all of which are expressly waived by the Account Party, anything in
this Agreement or the other Credit Documents to the contrary notwithstanding;
provided, that upon the occurrence of an Event of Default specified in Section
10(f), the Commitment shall be automatically terminated and all
Obligations shall automatically become due and payable without presentment,
demand, protest or other notice of any kind, all of which are expressly waived
by the Account Party, 

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anything in this Agreement
or in any other Credit Document to the contrary notwithstanding. 

(b)               
Solely with respect to the occurrence of an Event of Default
under Sections 10(a), (b),
(d), or  (f), Bank may
(i) demand that the Account Party
deposit in the Custodial Account an amount of cash equal to 103% of the
aggregate Outstanding Letters of Credit to be held and applied to the
Obligations and/or (ii) terminate any or all of the Letters of Credit
or give Notices of Non-Extension in respect thereof, in each case if permitted
in accordance with their terms; provided  that upon the occurrence of an
Event of Default specified in Section 10(f),
the requirement to deliver cash collateralize pursuant to the foregoing clause
(i) in respect of all Outstanding Letters of Credit shall automatically become
due without demand or other notice of any kind, all of which are expressly
waived by the Account Party, anything in this Agreement or in any other Credit
Document to the contrary notwithstanding.  Such cash collateral shall be
applied by Bank to the payment of drafts drawn under such Letters of Credit,
and the unused portion thereof after all such Letters of Credit shall have
expired or been fully drawn upon, if any, shall be applied to repay the other
Obligations.  After all such Letters of Credit shall have expired or been fully
drawn upon and all Obligations shall have been paid in full, the balance, if
any, in such Custodial Account shall be returned to the Account Party.

(c)               
Bank may exercise from time to time any of the rights, powers and
remedies available to Bank under any Credit Document to which the Account Party
is a party, under any other documents now or in the future evidencing or
securing the Obligations or under applicable law, and all such remedies shall
be cumulative and not exclusive.  

12.             
SUBROGATION.  In the event of an Event of
Default, Bank, at its option, shall be subrogated to the Account Party’s rights
against any Person who may be liable to the Account Party on any transaction or
obligation underlying any Letter of Credit, to the rights of any holder in due
course or Person with similar status against the Account Party, and to the
rights of any beneficiary or any successor or assignee of any beneficiary.

13.             
TERM OF AGREEMENT. This Agreement shall
remain in effect from the Closing Date through and including the date upon
which all Obligations (other than contingent indemnification obligations not
then due) arising hereunder or under any other Credit Document shall have been
indefeasibly and irrevocably paid and satisfied in full, all Letters of Credit
have been terminated or expired and the Commitment has been terminated.  No
termination of this Agreement shall affect the rights and obligations of the
parties hereto arising prior to such termination or in respect of any provision
of this Agreement which survives such termination.

14.             
USA PATRIOT Act; Anti-Money Laundering Laws. 
Bank hereby notifies the Account Party that pursuant to the requirements of the
PATRIOT Act or any other Anti-Money Laundering Laws, it is required to obtain,
verify and record information that identifies the Account Party, which
information includes the name and address of the Account Party and other
information that will allow Bank to identify the Account Party in accordance
with the PATRIOT Act or such Anti-Money Laundering Laws.

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15.             
Governing Law; UCP; ISP; Standard Letter of Credit
Practice.  Each Credit Document and each Letter of Credit shall
be governed by and construed in accordance with (a) in the case of each Credit Document (other
than the Letters of Credit), the substantive laws of New York and (b) in the case of
each Letter of Credit, the governing law specified in the applicable Letter of
Credit as determined by Bank and the Account Party (which may include the laws
of a particular jurisdiction and the ISP or UCP, if applicable), which is, as
applicable, incorporated herein by reference into this Agreement 

 

 

 

and which shall control
(to the extent not prohibited by the laws of New York) in the event of any inconsistent
provisions of such law.  Unless the Account Party specifies otherwise in its
Application for a Letter of Credit, the Account Party agrees that Bank may
issue a Letter of Credit subject to the ISP or UCP.  Bank’s privileges, rights
and remedies under the ISP and UCP, as applicable, shall be in addition to, and
not in limitation of, its privileges, rights, and remedies expressly provided
for herein.  The ISP or UCP, as applicable, shall serve, in the absence of
proof to the contrary, as evidence of Standard Letter of Credit Practice with
respect to matters covered therein.  To the extent permitted by applicable law,
as between the Account Party and Bank, (i) this Agreement shall prevail in case of
conflict between this Agreement, the UCC and/or Standard Letter of Credit
Practice, (ii)
the ISP shall prevail in case of conflict between the ISP and the UCC or other
Standard Letter of Credit Practice if the Letter of Credit is governed by the
ISP, and (iii)
the UCP shall prevail in case of a conflict between the UCP and the UCC or
other Standard Letter of Credit Practice if the Letter of Credit is governed by
the UCP.  

16.             
Consent to
Jurisdiction and Venue; Service of process.  The Account PARTY HEREBY CONSENTS TO
THE EXCLUSIVE JURISDICTION OF ANY STATE COURT WITHIN NEW YORK COUNTY, NEW YORK
OR ANY FEDERAL COURT LOCATED WITHIN THE SOUTHERN DISTRICT OF THE STATE OF NEW
YORK OR ANY APPELLATE COURT THEREOF FOR ANY PROCEEDING INSTITUTED HEREUNDER OR
UNDER ANY OF THE OTHER CREDIT DOCUMENTS, OR ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS, OR ANY PROCEEDING TO
WHICH BANK OR the Account PARTY IS A
PARTY, INCLUDING ANY ACTIONS BASED UPON, ARISING OUT OF, OR IN
CONNECTION WITH ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER
ORAL OR WRITTEN) OR ACTIONS OF BANK OR PROCEEDING TO WHICH BANK OR THE ACCOUNT
PARTY IS A PARTY.  BANK AND the Account
PARTY IRREVOCABLY AGREE TO BE BOUND (SUBJECT TO ANY AVAILABLE RIGHT OF
APPEAL) BY ANY JUDGMENT RENDERED OR RELIEF GRANTED THEREBY AND FURTHER WAIVES
ANY OBJECTION THAT IT MAY HAVE BASED ON LACK OF JURISDICTION OR IMPROPER VENUE
OR FORUM NON CONVENIENS TO THE CONDUCT OF ANY SUCH PROCEEDING.  BANK AND
THE ACCOUNT PARTY IRREVOCABLY AGREE THAT SERVICE OF PROCESS MAY BE DULY EFFECTED
UPON IT BY MAILING A COPY THEREOF, BY CERTIFIED MAIL, POSTAGE PREPAID, TO IT AT
ITS ADDRESS SET FORTH IN SECTION 19  BELOW.  NOTWITHSTANDING THE FOREGOING,
NOTHING IN THIS AGREEMENT SHALL AFFECT THE RIGHT OF ANY PARTY TO SERVE LEGAL
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR THE RIGHT OF BANK TO BRING ANY
ACTION OR PROCEEDING AGAINST THE ACCOUNT PARTY OR ITS PROPERTIES IN THE COURTS
OF ANY OTHER JURISDICTION.

On or prior to the Closing Date, the Account Party shall
appoint CT Corporation System (the “Process Agent”), with an office on
the date hereof at 28 Liberty Street, New York, NY 10005 USA, as its agent to
receive on its behalf service of the summons and complaints and any other
process which may be served in any such action or proceeding, provided that a
copy of such process is also mailed to the Account Party in the manner provided
in Section ‎19.  Such service may be made by mailing or delivering a copy
of such process to the Account Party in care of the Process Agent at the
Process Agent's above address, and the Account Party hereby authorizes and
directs the Process Agent to receive such service on its behalf.  Nothing in
this Agreement will affect the right of any party hereto to serve process in
any other manner permitted by applicable law.

If the appointment of any person mentioned in this Section
16 ceases to be effective with respect to the Account Party, the Account Party
must immediately appoint a further person in the State of New York to accept
service of process on its behalf in the State of New York and, if the Account
Party does not appoint a process agent within 15 days, the Account Party
authorizes Bank to appoint a process agent for the Account Party.

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17.             
WAIVER OF JURY TRIAL.  TO THE EXTENT PERMITTED
BY APPLICABLE LAW, THE ACCOUNT PARTY AND BANK KNOWINGLY AND VOLUNTARILY WAIVE
ALL RIGHTS TO TRIAL BY JURY WITH RESPECT TO ANY LITIGATION BASED ON, ARISING
OUT OF, OR RELATING TO ANY CREDIT DOCUMENT OR LETTER OF CREDIT, OR ANY COURSE
OF CONDUCT, COURSE OF DEALING, STATEMENTS (ORAL OR WRITTEN) OR ACTIONS OF THE
ACCOUNT PARTY OR BANK WITH RESPECT THERETO.  THIS WAIVER IS A MATERIAL
INDUCEMENT FOR BANK TO ISSUE LETTERS OF CREDIT.

18.             
Bankruptcy and
Forfeiture Reinstatement.  If any consideration transferred
to Bank in payment of, or as collateral for, or in satisfaction of the
Obligations, shall be voided in whole or in part as a result of (a) a subsequent
bankruptcy or insolvency proceeding; (b) any forfeiture or seizure action or remedy; (c) any fraudulent
transfer or preference action or remedy; or (d) any other civil, criminal or equitable
proceeding or remedy, then Bank’s claim to recover the voided consideration
shall be a new and independent claim arising under the applicable Credit
Document and shall be due and payable immediately by the Account Party that is
obligated therefor under the terms of the Credit Documents.

19.             
Notices.  Unless otherwise
expressly provided herein, all notices, Instructions, approvals, requests,
demands, consents and other communications provided for hereunder
(collectively, “notices”) shall be in writing (including by facsimile or
other electronic transmission approved by Bank).  All notices shall be sent by
regular U.S. mail or certified mail prepaid, by facsimile or other electronic
transmission approved by Bank, by hand delivery, by Federal Express (or
other comparable domestic or international delivery service) prepaid to the
applicable address, facsimile number or electronic mail address set forth on
the signature page hereof of the Account Party or the Bank, as applicable. 
Bank may, but shall not be obligated to, require authentication of any
electronic transmission.  Notices sent by hand, Federal Express (or
other comparable domestic or international delivery service) or certified mail
shall be deemed to have been given when received; notices sent by regular U.S.
mail shall be deemed to have been received five (5) days after deposit into the U.S. mail;
notices sent by facsimile or other electronic transmission shall be deemed to
have been given when sent and receipt has been confirmed.  The Account Party or
Bank may change its address for notices by notifying the other of the new
address in any manner permitted by this Section.  Unless otherwise agreed by
Bank, Bank in its discretion may accept an Application or seek or receive
Instruction from, or give or send notice to, the Account Party regarding a
Letter of Credit issued for its account, including, without limitation, any
amendment thereto or waiver of any discrepancy thereunder, and the Account
Party shall be bound by and hereby affirms the Instructions of the other.  The
Account Party irrevocably consents that service of process may be made by registered
or certified mail directed to the Account Party at the address of its agent for
service of process in Bermuda, Seon Place, 4th floor, 141 Front Street,
Hamilton HM19 Bermuda.    

20.             
Waiver and Amendments.  No
modification, amendment or waiver of, or consent to any departure by Bank or
the Account Party from, any provision of any Credit Document will be effective
unless made in a writing signed by the Account Party (in the case of Bank) or
Bank (in the case of the Account Party), and then such waiver or consent shall
be effective only in the specific instance and for the purpose for which
given.  No party’s consent to any amendment, waiver or modification shall mean
that such party will consent or has consented to any other or subsequent
request to amend, modify or waive a term of any Credit Document.  No delay by
any party in exercising any of its rights or remedies shall operate as a
waiver, nor shall any single or partial waiver of any right or remedy preclude
any other further exercise of that right or remedy, or the exercise of any
other right or remedy. 

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21.             
Successors and Assigns.  Each Credit
Document to which the Account Party is a party will be binding on the Account
Party’s successors and permitted assigns, and shall inure to the benefit of the
respective successors and permitted assigns of the Account Party and Bank. 
Except as provided in the last sentence of this Section 21, Bank may assign its rights and obligations under each Credit Document, 

 

 

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including its rights to
reimbursement regarding any Letter of Credit, in whole or in part, with the
Account Party’s consent; provided that the Account Party shall be deemed to
have consented to any such assignment unless it objects by written notice to
Bank within ten (10)
Business Days after having received notice thereof; and, provided further, that
the Account Party’s consent to an assignment to any Person shall not be
required if (i)
the assignment is to an affiliate of Bank or (ii) an Event of Default has occurred and is
continuing.  Bank may sell to one or more Persons participations in or to all
or a portion of its rights and obligations under the Credit Documents without
the Account Party’s consent.  Any assignment in violation of this Section 21 shall be void.  The Account Party shall not assign or transfer any of its
interests, rights or remedies related to any Credit Document, in whole or in
part, without the prior written consent of Bank.  Any Person to whom Bank
delegates its obligation to issue a Letter of Credit must be a bank that is on
the List of Qualified U.S. Financial Institutions maintained by the Securities
Valuation Office of the National Association of Insurance Commissioners.

22.             
Severability. 
Whenever possible, each provision of each Credit Document shall be interpreted
in a manner as to be effective and valid under applicable law, but if any
provision of any Credit Document shall be prohibited by or invalid under
applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity without invalidating the remainder of such provision
or any remaining provisions of such Credit Document.

23.             
Entire Agreement.   This Agreement, together with
the other Credit Documents and any other agreement, document or instrument
referred to herein, constitute the final, exclusive and entire agreement and
understanding of, and supersede all prior or contemporaneous, oral or written,
agreements, understandings, representations and negotiations between, the
parties relating to the subject matter of the Credit Documents, provided that
this Agreement shall not supersede any reimbursement agreement (however titled)
that has been entered into specifically with respect to any “direct pay”
standby letter of credit or other similar standby letter of credit where the
terms of such reimbursement agreement have been drafted to specifically address
the particular attributes of, or the particular circumstances of the underlying
transaction supported by, such standby letter of credit.

24.             
Acknowledgement
and Consent to Bail-In.  Notwithstanding
anything to the contrary in any Credit Documents or in any other agreement,
arrangement or understanding among any such parties, each party hereto
acknowledges that any liability of any Affected Financial Institution arising
under any Credit Document, to the extent such liability is unsecured, may be
subject to the Write-Down and Conversion Powers of the applicable Resolution
Authority and agrees and consents to, and acknowledges and agrees to be bound
by:

(a)               
the application of any Write-Down and Conversion Powers by the
applicable EEA Resolution Authority to any such liabilities arising hereunder
which may be payable to it by any party hereto that is an Affected Financial
Institution; and

(b)               
the effects of any Bail-In Action on any such liability, including,
if applicable:

(i)         a
reduction in full or in part or cancellation of any such liability;

(ii)        a
conversion of all, or a portion of, such liability into shares or other
instruments of ownership in such Affected Financial Institution, its parent
undertaking, or a bridge institution that may be issued to it or otherwise
conferred on it, and that such shares or other instruments of ownership will be
accepted by it in lieu of any rights with respect to any such liability under
this Agreement or any other Credit Document; or

 

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(iii)       the variation of the terms of such liability
in connection with the exercise of the Write-Down and Conversion Powers of the
applicable Resolution Authority.

(c)               
Capitalized terms used in this Section 24 that are not otherwise
defined in this Agreement have the meanings assigned to them below.

“Affected Financial
Institution”  means (a) any EEA
Financial Institution or (b) any UK Financial Institution.

“Bail-In Action”  means the exercise of any Write-Down and Conversion
Powers by the applicable Resolution Authority in respect of any liability of an
Affected Financial Institution.

“Bail-In
Legislation”  means (a) with
respect to any EEA Member Country implementing Article 55 of Directive
2014/59/EU of the European Parliament and of the Council of the European Union,
the implementing law, regulation rule or requirement for such EEA Member
Country from time to time which is described in the EU Bail-In Legislation
Schedule and (b) with respect to the United Kingdom, Part I of the United
Kingdom Banking Act 2009 (as amended from time to time) and any other law,
regulation or rule applicable in the United Kingdom relating to the resolution
of unsound or failing banks, investment firms or other financial institutions
or their affiliates (other than through liquidation, administration or other
insolvency proceedings).

“EEA Financial
Institution”  means (a) any
credit institution or investment firm established in any EEA Member Country
which is subject to the supervision of an EEA Resolution Authority, (b) any
entity established in an EEA Member Country which is a parent of an institution
described in clause (a) of this definition, or (c) any financial institution
established in an EEA Member Country which is a subsidiary of an institution
described in clauses (a) or (b) of this definition and is subject to
consolidated supervision with its parent.

“EEA Member Country”  means any of the member states of the European Union,
Iceland, Liechtenstein, and Norway.

“EEA Resolution
Authority”  means any public
administrative authority or any person entrusted with public administrative
authority of any EEA Member Country (including any delegee) having
responsibility for the resolution of any EEA Financial Institution.

“EU Bail-In
Legislation Schedule”  means the EU
Bail-In Legislation Schedule published by the Loan Market Association (or any
successor person), as in effect from time to time.

“Resolution
Authority”  means an EEA
Resolution Authority or, with respect to any UK Financial Institution, a UK
Resolution Authority.

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“Write-Down and Conversion Powers”  means, (a) with respect to any EEA Resolution
Authority, the write-down and conversion powers of such EEA Resolution
Authority from time to time under the Bail-In Legislation for the applicable
EEA Member Country, which write-down and conversion powers are described in the
EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom,
any powers of the applicable Resolution Authority under the Bail-In Legislation
to cancel, reduce, modify or change the form of a liability of any UK Financial
Institution or any contract or instrument under which that 

 

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liability arises,
to convert all or part of that liability into shares, securities or obligations
of that person or any other person, to provide that any such contract or
instrument is to have effect as if a right had been exercised under it or to
suspend any obligation in respect of that liability or any of the powers under
that Bail-In Legislation that are related to or ancillary to any of those
powers.

(Signature pages
to follow)

 

 

 

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By: 
                                                                         

      
Name:

      
Title:

 

Notice
Details:

 

Everest
Reinsurance (Bermuda), Ltd.

Seon Place, 4th floor

141
Front Street

Hamilton
HM19 Bermuda

Attention:
[___________________________]

Telephone:
[___________________________]

Electronic
Mail:  [___________________________]

Facsimile:  [___________________________] 

 

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BANK:

 

LLOYDS BANK CORPORATE MARKETS
PLC 

 

 

 

By:                                                                                           

       Name:    

      
Title:       

 

 

 

By:                                                                                           

       Name:    

      
Title:       

 

 

Notice
Details: 

 

For
payments, bills and all other operation related issues:

 

Lloyds Bank Corporate Markets
plc

1095 Avenue of the Americas,
34th Floor

New York, NY 10036

Email:  NewYorkOperations@lbusa.com; NY-LC@lbusa.com

 

For
financial information, credit and amendment/waiver requests:

 

Lloyds Bank Corporate Markets
plc

1095 Avenue of the Americas,
34th Floor

New York, NY 10036

Tel: 212-895-9510

Email:  Tracey.Anchundia@lbusa.com 

 

For all L/C
issuances or extension requests:

 

Lloyds Bank Corporate Markets
plc

1095 Avenue of the Americas,
34th Floor

New York, NY 10036

Email:  NY-LC@lbusa.com

 

 

 

 

Schedule I

 

Collateral Base

 

 70

 357492591

 

	
  Category of
  Collateral

  	
  Maturity

  	
  Advance Rate

  
	
  Cash

  	
  N/A

  	
  100%

  
	
  CDs
  and savings, money market and demand deposit accounts issued by a federally
  insured U.S. bank (rated AA- / Aa3 or better)

  	
  N/A

  	
  95%

  
	
  U.S.
  Government Bills, Bonds and Notes (excluding savings bonds)

  	
  ≤ 5 years

  > 5 years

  	
  95%

  90%

  
	
  U.S.
  Corporate/Municipal Bonds I (rated AA- / Aa3 or better)

  	
  ≤ 5 years

  > 5 years

  	
  90%

  85%

  
	
  U.S.
  Corporate/Municipal Bonds II (rated A1 / A+ through BBB / Baa2,
  nonconvertible, NYSE-traded, denominated in USD)

  	
  ≤ 5 years

  > 5 years

  	
  85% 

  80%

  
	
  Agency
  RMBS (GNMA, FNMA, FHLMC; rated AA- / Aa3 or better) other than securities
  issued pursuant to a re-securitization

  	
  Weighted average life ≤ 2 years

  Weighted average life > 2 years and ≤ 5 years

  Weighted average life > 5 years and ≤ 10 years Weighted average life
  > 10 years

  	
  95% 

  90% 

  85% 

  80%

  
	
  Asset-Backed
  Securities (rated AAA / Aaa or better) other than securities issued pursuant
  to a re-securitization

  	
  Weighted average life ≤ 10 years

  	
  85%

  
	
  Commercial
  Paper

  	
  A1 or P1 Graded Commercial Paper

  	
  90%

  

 

Notes: 

In each case, deposited with or held by the Custodian
in a Custodial Account and capable of being marked to market on a daily basis,
except that:

1.      
No more than 20 percent of the
aggregate Collateral (by reference to Market Value) shall at any time consist
of U.S. corporate bonds rated A1 / A+
through BBB / Baa2;

2.      
In the case of Collateral falling
under Asset-Backed Securities and U.S. Corporate/Municipal Bonds above, no more
than 10 per cent of the aggregate Collateral (by reference to fair market
value) shall at any time shall have been issued by a single issuer;

3.      
No more than 10 per cent of the
aggregate Collateral (by reference to fair market value) shall at any time
consist of collateralized loan obligations;

4.      
Not more than 30 per cent of the
aggregate Collateral (by reference to fair market value) shall consist of
asset-backed securities. For clarity, this is inclusive of collateralized loan
obligations.

 

 

Exhibit A

FORM OF

Officer’s ComplianCe CertificatE

 71

 357492591

 

THIS CERTIFICATE is given pursuant to
Section 7(b)(i) of the Standby Letter of Credit Agreement, dated as of October
8, 2021 (as amended, restated, modified or supplemented from time to time, the
“Credit Agreement,” the terms defined therein being used herein as
therein defined), between EVEREST REINSURANCE (BERMUDA), LTD., an exempted
company incorporated and existing under the laws of Bermuda (the “Account
Party”), and LLOYDS BANK CORPORATE MARKETS PLC (the “Bank”). 

The undersigned hereby certifies that:

1.         He or she is the [Chief Executive Officer] [Chief Financial
Officer] [Vice President—Finance] [Principal Accounting Officer] [Treasurer]
[Assistant Treasurer] of the Account Party.

2.         Enclosed with this Certificate are copies of the financial
statements of the Account Party  as of _____________, and for the [________-month
period]  [year]  then ended, required to be delivered under
Section 7(a) of the Credit Agreement.  Such financial statements have been
prepared in accordance with GAAP [(subject to the absence of notes
required by GAAP and subject to normal year-end adjustments)][1] and present
fairly, in all material respects, the financial condition of the Account Party 
as of the date indicated and the results of operations of the Account Party 
for the period covered thereby.

3.         The undersigned has reviewed the terms of the Credit Agreement
and has made, or caused to be made under the supervision of the undersigned, a
review in reasonable detail of the transactions and condition of the Account
Party during the accounting period covered by such financial statements.

4.         The examination described in paragraph 3 above did not
disclose, and the undersigned has no knowledge of the existence of, any Default
or Event of Default during or at the end of the accounting period covered by
such financial statements or as of the date of this Certificate [, except as
set forth below.

Describe
here or in a separate attachment any exceptions to paragraph 4 above by
listing, in reasonable detail, the nature of the Default or Event of Default,
the period during which it existed and the action that Everest has taken or
proposes to take with respect thereto]. 

5.         Attached to this Certificate as Annex A  is a
covenant compliance worksheet reflecting the computation of the financial
covenants set forth in Section 8 of the Credit Agreement as of the last day of
the period covered by the financial statements enclosed herewith.

[1]Insert in the case of quarterly financial
statements.

 72

 357492591

 

IN WITNESS WHEREOF, the undersigned has
executed and delivered this Certificate as of the _______ day of _____________,
____.

Everest Reinsurance
(Bermuda), Ltd.

By:                                                                          

Name:                                                                     

Title:                                                                       

 

 73

 357492591

 

Annex
A

 

COVENANT
COMPLIANCE WORKSHEET

 

A.  Minimum
Consolidated Tangible Net Worth

(Section 8(a) of
the Credit Agreement)

 

 

	
  (1)  Consolidated
  Tangible Net Worth

  	
   

  	
   

  	
   

  
	
  a)      
  Required (Minimum CTNW Amount):

  	
   

  	
   

  	
  $[ ]

  
	
  b)     
  Actual: 

  	
   

  	
   

  	
  $        
                  

  

 

 

 

 

 

 

 74

 357492591

 

B. 
Financial Strength Rating

(Section 8(b) of
the Credit Agreement)

 

	
  (1)  Has the Account Party maintained a financial strength rating by
  A.M. Best Company at all times from the date of the most recently delivered
  Officer’s Compliance Certificate to and including the date hereof?

  	
  ___  Yes

  	
  ___  No

  
	
  (2)  Has the financial strength rating by A.M. Best Company for the
  Account Party been equal to or better than “B++” at all times during the
  period described in line (1) above?

  	
  ___  Yes

  	
  ___  No

  

 

  

 

Exhibit b

FORM OF

COLLATERAL VALUE Certificate

 

____________, 20__

Lloyds Bank Corporate Markets
plc

1095 Avenue of the Americas,
34th Floor

New York, NY 10036

Attention: Tracey Anchundia,
Director - Insurance, Financial Services

Ladies
and Gentlemen:

Reference is made to the Standby Letter of
Credit Agreement, dated as of October 8, 2021, between EVEREST REINSURANCE
(BERMUDA), LTD., an exempted company incorporated and existing under the laws
of Bermuda (the “Account Party”), and LLOYDS BANK CORPORATE MARKETS PLC
(the “Bank”) (as amended or otherwise modified from time to time, the “Credit
Agreement”).  Terms defined in the Credit Agreement are, unless otherwise
defined herein or the context otherwise requires, used herein as defined
therein.

This Collateral Value
Certificate is delivered pursuant to Section 7(d)(iii) of the Credit
Agreement.  The date of this Collateral Value Certificate is _____________,
20__ (the “Certificate Date”).  Set forth on Attachment A  is
the computation of the Collateral Value of the Collateral and certain other
information required by Section 7(d)(iii) of the Credit Agreement as of
______________, 20__ (the “Valuation Date”), calculated in accordance
with the definition of “Collateral Value” contained in the Credit Agreement and
the other provisions of the Credit Agreement (including Schedule I thereto).

The undersigned hereby
certifies that (i) the information on Attachment A  correctly
sets forth the Collateral Value (in the aggregate and for each category of
Collateral) and the Outstanding Letters of Credit as of the Valuation Date;
(ii) the Outstanding Letters of Credit do not exceed the aggregate
Collateral Value as of the Valuation Date; and (iii) nothing has come to
the attention of the undersigned to cause the undersigned to believe that Bank
does not have a first priority perfected Lien on and security interest in the
Collateral set forth on Attachment A  as of the Certificate Date.

[Signature page to follow]

 75

 357492591

 

ACCOUNT
PARTY: 

 

Everest Reinsurance (Bermuda),
Ltd.

 

By: 
                                                                        

      
Name:

      
Title:

 

 

 

 76

 357492591

 

Attachment A

 

COLLATERAL VALUE OF THE COLLATERAL 

 

 

	
  Category of Collateral

  	
  Maturity

  	
  Fair Market Value

  	
  Advance Rate

  	
  Collateral Value

  
	
  Cash

  	
  N/A

  	
  $________

  	
  100%

  	
  $________

  
	
  CDs
  and savings, money market and demand deposit accounts issued by a federally
  insured U.S. bank (rated AA- / Aa3 or better)

  	
  N/A

  	
  $________

  	
  95%

  	
  $________

  
	
  U.S.
  Government Bills, Bonds and Notes (excluding savings bonds)

  	
  ≤ 5 years

  > 5 years

  	
  $________

  $________

  	
  95% 

  90%

  	
  $________

  $________

  
	
  U.S.
  Corporate/Municipal Bonds I (rated AA- / Aa3 or better)

  	
  ≤ 5 years

  > 5 years

  	
  $________

  $________

  	
  90% 

  85%

  	
  $________

  $________

  
	
  U.S.
  Corporate/Municipal Bonds II (rated A1 / A+ through BBB / Baa2,
  nonconvertible, NYSE-traded, denominated in USD)

  	
  ≤ 5 years

  > 5 years

  	
  $________

  $________

  	
  85% 

  80%

  	
  $________

  $________

  
	
  Agency
  RMBS (GNMA, FNMA, FHLMC; rated AA- / Aa3 or better) other than securities
  issued pursuant to a re-securitization

  	
  Weighted average life ≤ 2 years

  Weighted average life > 2 years and ≤ 5
  years

  Weighted average life > 5 years and ≤ 10
  years

  Weighted average life > 10 years

  	
  $________

   

  $________

   

  $________

  $________

  	
  95% 

   

  90% 

   

  85% 

  80%

  	
  $________

   

  $________

   

  $________

  $________

  
	
  Asset-Backed
  Securities (rated AAA / Aaa or better) other than securities issued 

  	
  Weighted average life ≤ 10 years

  	
  $________

  	
  85%

  	
  $________

  

 

 77

 357492591

 

	
  pursuant to a re-securitization

  	
   

  	
   

  	
   

  	
   

  
	
  Commercial
  Paper

  	
  A1 or P1 Graded Commercial Paper

  	
  $________

  	
  90%

  	
  $________

  
	
  Total
  Collateral Value

  	
   

  	
   

  	
   

  	
  $________

  

 

Notes: 

 

In each case, deposited with or held by the Custodian
in a Custodial Account and capable of being marked to market on a daily basis,
except that:

1.      
No more than 20 percent of the
aggregate Collateral (by reference to fair market value) shall at any time
consist of U.S. corporate bonds rated A1 / A+
through BBB / Baa2;

2.      
In the case of Collateral falling
under Asset-Backed Securities and U.S. Corporate/Municipal Bonds above, no more
than 10 per cent of the aggregate Collateral (by reference to fair market
value) shall at any time shall have been issued by a single issuer;

3.      
No more than 10 per cent of the
aggregate Collateral (by reference to fair market value) shall at any time
consist of collateralized loan obligations;

4.      
Not more than 30 per cent of the
aggregate Collateral (by reference to fair market value) shall consist of
asset-backed securities. For clarity, this is inclusive of collateralized loan
obligations.

 

 78

 357492591

 

Outstanding Letters
of Credit

	
  Beneficiary

  	
  Issue Date

  	
  Undrawn Amount

  	
  Unreimbursed Drawings

  
	
   

  	
   

  	
  $________

  	
  $________

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Outstanding Letters of Credit

  	
   

  	
  $________

  	
  $________

  

Ratio of aggregate
Collateral Value to Outstanding Letters of Credit: ____________

 79

 357492591

 

 80

 357492591

 

Exhibit C

FORM OF APPLICATION

 

 

See attached.

 

APPLICATION AND AGREEMENT
FOR STANDBY LETTER OF CREDIT

 

Date
____________    L/C No. _____________                                             

 

Dear
Sir or Madam 

 

Please
issue an IRREVOCABLE Standby Letter of Credit (the “Credit”), by _____ 
courier   _____  SWIFT as follows :

 

	
      ADVISING BANK (if applicable):

  	
  FOR ACCOUNT OF EVEREST REINSURANCE (BERMUDA), LTD.

   

   

  
	
  IN FAVOR OF (BENEFICIARY’S NAME)

   

  	
  AMOUNT AND CURRENCY IN WORDS

   

   

  DATE AND PLACE OF EXPIRATION

  _______________  Lloyds Bank Corporate Markets plc counters in New
  York

  

 

In
consideration of your issuing the Credit substantially in accordance with this
application, the undersigned hereby agrees that the terms and conditions as set
forth in the Standby Letter of Credit Agreement (as amended, supplemented or
otherwise modified from time to time, the “Agreement”) dated as of October 8,
2021 between Lloyds Bank Corporate Markets plc (the “Bank”) and the undersigned
shall apply to the Credit and to the obligations of the undersigned to the Bank
with respect thereto. Unless otherwise agreed between the parties, the letter
of credit commission payable by us in respect of the Credit shall be calculated
at a rate of __ per cent (__%) calculated in accordance with the Agreement.

 

Please issue the Credit
substantially in the form attached. 

 

Covering [brief description
of what the Letter of Credit is covering]:

 

Special Instructions (if
needed):

 

Applicant:

 

EVEREST REINSURANCE
(BERMUDA), LTD.

 

By:
__________________________

Name:

Title:

 

Date:

 

 81

 357492591Click here to enter text. 

	
   

  	
  Execution Version.

   

  
	
  Letter of Credit Facility
  Agreement

  Everest Reinsurance (Bermuda),
  Ltd.,

  and certain subsidiaries of
  Everest Re Group, Ltd.

  as
  Borrowers

  and

  Barclays Bank PLC

  as Issuer

  
	
   

  	
   

  
	
  November 3, 2021

  
	 	 	 

 

 Click here to enter text. 

 

 

  

 357363582 

 

 

THIS LETTER OF CREDIT
FACILITY AGREEMENT (this "Agreement") is made on November
3, 2021

BETWEEN:

(1)                   
EVEREST REINSURANCE (BERMUDA), LTD. ("Everest
Bermuda"), a Bermuda exempted company registered as a Class 4 and
Class C insurer pursuant to the Bermuda Insurance Act (as defined below)
(Registration No. 27857);

(2)                   
certain Subsidiaries of Everest Group party hereto pursuant to Section
2.14 (each a "Designated Borrower", together with Everest
Bermuda, the "Borrowers" and, each a "Borrower");
and

(3)                   
BARCLAYS BANK PLC (the "Issuer"). 

Recitals

(A)                  
WHEREAS, Everest Bermuda has requested a letter of credit
facility from the Issuer to provide Letters of Credit from time to time to
support certain of its insurance business (as such term is defined in the
Bermuda Insurance Act), regulatory or supervisory requirements;

(B)                  
WHEREAS, the Issuer is willing to provide such Letters of Credit,
but only upon the terms and subject to the conditions set out in this
Agreement.

(C)                  
NOW THEREFORE, in consideration of the mutual covenants and
agreements herein, the parties hereto agree as follows:

1.                     
DEFINITIONS 

1.1                 
Defined
Terms

As used in this
Agreement, the following terms have the meanings specified below:

"Adjusted
Fair Market Value"  means, with respect to any Eligible
Collateral, an amount equal to the product of (a) the Fair Market Value of such
Eligible Collateral and (b) the Collateral Margin with respect to such Eligible
Collateral as set forth on schedule  1
provided, that in the event Eligible Collateral is delivered by the Borrower
pursuant to the terms of this Agreement with respect to a Letter of Credit and
such Eligible Collateral is denominated in a currency other than the currency
of such Letter of Credit, the Collateral Margin applicable to such Eligible
Collateral as set forth on Schedule 1 shall be reduced by an additional ten
(10) percent;

"Affected
Financial Institution" means (a) any EEA Financial Institution or (b)
any UK Financial Institution;

"Affiliate" 
means, as to any Person, another Person (whether or not existing as of the
date hereof) that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person
specified; "Control"  means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person, whether through the ability to exercise voting power, by
contract or otherwise.  "Controlling"  and "Controlled" 
have meanings correlative thereto;

"Agency
Securities" means single-class mortgage participation certificates in
book-entry form and denominated in Dollars backed by single-family residential
mortgage loans, the full and timely payment of interest at the applicable
certificate rate and the ultimate collection of principal of which are
guaranteed by the FHLMC (excluding REMIC or other multi-class pass-through
certificates, collateralized mortgage obligations, pass-through certificates
backed by

 357363582 

  

adjustable rate mortgages, securities paying
interest or principal only and similar derivative securities); (ii)
single-class mortgage pass-through certificates in book-entry form and
denominated in Dollars backed by single-family residential mortgage loans, the
full and timely payment of interest at the applicable certificate rate and
ultimate collection of principal of which are guaranteed by the FNMA (excluding
REMIC or other multi-class pass-through certificates, pass-through certificates
backed by adjustable rate mortgages, collateralized mortgage obligations,
securities paying interest or principal only and similar derivative
securities); and (iii) single-class fully modified pass-through certificates in
book-entry form and denominated in Dollars backed by single-family residential
mortgage loans, the full and timely payment of principal and interest of which
is guaranteed by the GNMA (excluding REMIC or other multi-class pass-through
certificates, collateralized mortgage obligations, pass-through certificates
backed by adjustable rate mortgages, securities paying interest or principal
only and similar derivatives securities);

"Agreement"  has the
meaning set forth in the preamble;

"Agreement Currency"  has
the meaning assigned to such term in Section 9.18; 

"Alternative Currency"  means
each of Euro, Sterling, Australian Dollars, Canadian Dollars and each other
currency (other than Dollars) that is approved in accordance with Section 1.5; 

"Alternative Currency Equivalent" 
means, at any time, with respect to any amount denominated in Dollars, the
equivalent amount thereof in the applicable Alternative Currency as determined
by the Issuer at such time on the basis of the Spot Rate (determined in respect
of the most recent Revaluation Date) for the purchase of such Alternative
Currency with Dollars;

"Annual Statement"  means,
as to any Insurance Subsidiary, the annual financial statement of such Person
as required to be filed with the applicable Insurance Regulatory Authority of
such Person's domicile, together with all exhibits or schedules filed therewith, prepared in
conformity with SAP;

"Anti-Corruption Laws"
means the United States Foreign Corrupt Practices Act of 1977, the UK Bribery
Act 2010, the Bribery Act 2016 of Bermuda and any similar law, rule or
regulation applicable to any Borrower or any of its Subsidiaries from time to
time concerning or relating to bribery or corruption;

"Applicable Insurance Regulatory
Authority"  means, with respect to any Insurance Subsidiary, the
insurance department or similar administrative, supervisory or regulatory
authority or agency of the jurisdiction in which such Insurance Subsidiary is
registered or licensed to conduct insurance business;

"Applicable
Time"  means, with respect to any payments in any Alternative
Currency, the local time in the place of settlement for such Alternative
Currency as may be determined by the Issuer to be necessary for timely
settlement on the relevant date in accordance with normal banking procedures in
the place of payment;

"Applicant"  means
the Borrower requesting a L/C Credit Extension;

"Asset Backed Securities"
means asset-backed securities denominated in Dollars provided that such
securities (a) (i) are issued by a Person incorporated in the United States or
a State thereof, (ii) are backed by credit card receivables, automobile loans,
commercial mortgages or utility charges (as in Rate Reduction Bonds), (iii)
have a weighted average life from the date of determination of ten years or
less, (iv) are not re-securitizations of other asset-backed 

 

 1  

  

 357363582 

securities, (v) can be settled through DTC,
and (vi) if certificated, can be delivered by book entry or (b) are otherwise
agreed to in writing by the Issuer;

"Australian Dollars"  means
the lawful currency of Australia;

"Authority"  means
any of the United Nations, the European Union, Her Majesty's Treasury, any
European Union member state, the Office of Foreign Assets Control of the U.S.
Treasury Department ("OFAC") or any other United States
government entity, the State Secretariat for Economic Affairs ("SECO")
of Switzerland, the Hong Kong Monetary Authority ("HKMA"), the
Monetary Authority of Singapore ("MAS") and/or any other body
notified in writing by the Issuer to Everest Bermuda from time to time;

"Auto-Renewal Letter of Credit" 
has the meaning assigned to such term in Section 2.2(b);

"Availability Period"  means
the period from and including the Closing Date to the Commitment Termination
Date;

"Bail-In
Action" means the exercise of any Write-Down and Conversion Powers by
the applicable Resolution Authority in respect of any liability of an Affected
Financial Institution;

"Bail-In
Legislation" means (a) with respect to any EEA Member Country
implementing Article 55 of Directive 2014/59/EU of the European Parliament and
of the Council of the European Union, the implementing law, regulation rule or
requirement for such EEA Member Country from time to time which is described in
the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom,
Part I of the United Kingdom Banking Act 2009 (as amended from time to time)
and any other law, regulation or rule applicable in the United Kingdom relating
to the resolution of unsound or failing banks, investment firms or other
financial institutions or their affiliates (other than through liquidation,
administration or other insolvency proceedings);

"Bankruptcy Code"  means
Title 11 of the United States Code entitled "Bankruptcy";  

"Barclays
Bank"  means Barclays Bank PLC;

"Beneficial Ownership Certification" 
means a certification regarding beneficial ownership as required by the
Beneficial Ownership Regulation;

"Beneficial Ownership Regulation" 
means 31 C.F.R. § 1010.230;

“Bermuda Insurance Act” means the
Insurance Act 1978 of Bermuda and its related rules and regulations, each as
amended; 

"Borrower"
has the meaning set forth in the preamble;

"Business Day"  means
any day that is not a Saturday, Sunday or other day on which commercial banks
are authorized to close under the Laws of, or are in fact closed in, Hamilton,
Bermuda, New York City, London, England or the state where the Issuer's Office with
respect to Obligations denominated in Dollars is located and if such day relates to any
Letter of Credit denominated in a currency other than Dollars or Euro, or any
other dealings in any currency other than Dollars or Euro to be carried out
pursuant to this Agreement in respect of any such Letter of Credit, means any
such day on which banks are open for foreign exchange business in the principal
financial center of the country of such currency;

"Canadian
Dollars"  means the lawful currency of Canada;

 

 21  

  

 357363582   

  

"Capital Lease Obligation" 
means, as to any Person, the obligations of such Person to pay rent or
other amounts under any lease which is required to be classified and accounted
for as a capital lease on a balance sheet of such Person in accordance with GAAP. 
For purposes of this Agreement, the amount of such Capital Lease Obligation
shall be the capitalized amount thereof determined in accordance with GAAP;

"Capital Stock"  means,
with respect to any Person, all of the shares of capital stock of (or other ownership
or profit interests in) such Person, all of the warrants, options or other
rights for the purchase or acquisition from such Person of shares of capital
stock of (or other ownership or profit interests in) such Person, all of the
securities convertible into or exchangeable for shares of capital stock of (or
other ownership or profit interests in) such Person or warrants, rights or
options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit interests in
such Person (including partnership, member or trust interests therein), whether
voting or nonvoting, and whether or not such shares, warrants, options, rights
or other interests are outstanding on any date of determination;

"Cash"  means Dollars
held by a Borrower in a Collateral Account that is a deposit account;

"Change in Law"  means
the occurrence, after the date of this Agreement, of any of the following: (a)
the adoption or taking effect of any Law, rule, regulation or treaty, (b) any
change in any Law, rule, regulation or treaty or in the administration,
interpretation, implementation or application thereof by any Governmental
Authority or (c) the making or issuance of any request, rule, guideline or directive
(whether or not having the force of law) by any Governmental Authority;
provided that, notwithstanding anything herein to the contrary, (i) the
Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests,
rules, guidelines or directives thereunder or issued in connection therewith
and (ii) all requests, rules, guidelines or directives promulgated by the Bank
for International Settlements, the Basel Committee on Banking Supervision (or
any successor or similar authority) or the United States or foreign regulatory
authorities, in each case, pursuant to Basel III, shall in each case be deemed
to be a "Change in Law", regardless of the date enacted,
adopted or issued;

"Change of Control"  means
(a) the acquisition of ownership, directly or indirectly, beneficially or of
record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the SEC thereunder as in effect on the date
hereof), other than Everest Group, and any of its direct or indirect Subsidiaries,
of Capital Stock representing 25% or more of the aggregate ordinary voting
power represented by the issued and outstanding Capital Stock of Everest
Bermuda; or (b) the acquisition of direct or indirect Control of Everest
Bermuda by any Person or group, other than Everest Group and any of its direct
or indirect Subsidiaries;

"Closing Date"  means
the first date on which all the conditions precedent in Section 4.1 
are satisfied or waived in accordance with Section 9.2; 

"Code"  means the
Internal Revenue Code of 1986, as amended;

"Collateral"  means,
with respect to any Borrower, all property and assets with respect to which a
Lien is purported to be granted in favor of the Issuer pursuant to a Security
Agreement executed by such Borrower;

"Collateral Account"  means,
with respect to any Borrower, each "deposit account" and
"securities account" (as such terms are defined in the UCC)
maintained at either of Barclays or a Custodian for such Borrower and subject
to (a) a first priority perfected security interest in favor of the Issuer and
(b) the terms of a Control Agreement;

 

 31  

  

 357363582   

  

"Collateral Compliance Certificate" 
has the meaning assigned to such term in Section 5.1(e);

"Collateral Coverage Amount" 
means, with respect to any Borrower on any date, an amount equal to the sum
of the Adjusted Fair Market Value of all Eligible Collateral of such Borrower;

"Collateral Margin"  means
each amount expressed as a percentage under the column titled "Collateral
Margin" on schedule 
1;

"Commitment"  means
the commitment of the Issuer pursuant to Section ‎2.1
to issue Letters of Credit, in an aggregate Dollar Equivalent stated amount at
any one time outstanding not to exceed the Commitment Amount;

"Commitment Amount" means
$200,000,000, as such amount is increased or reduced from time to time pursuant
to the terms hereof;

"Commitment
Fee"  has the meaning assigned to such term in Section 2.6(a);

"Commitment
Termination Date"  means the earliest of:

(a)       
November
3, 2024, and

(b)       
the
date of termination of all of the Commitment Amount pursuant to Section 7.1; 

"Company Reinsurance Agreement" 
means any arrangement whereby an Insurance Subsidiary, as reinsurer, agrees
to indemnify any other insurance or reinsurance company against all or a
portion of the insurance or reinsurance risks underwritten by such insurance or
reinsurance company under any insurance or reinsurance policy;

"Compliance Certificate" 
means a certificate substantially in the form of appendix
1; 

"Confirming
Bank"  has the meaning assigned to such term in the definition
of "Issuer";

"Consolidated
Net Income" means, for any period, an amount equal to the consolidated
net income of Everest Bermuda and its Subsidiaries (determined on a
consolidated basis in accordance with GAAP) for such period.

"Consolidated Net Worth" 
means, in respect of Everest Bermuda, at any time, the consolidated stockholders'
equity of Everest Bermuda and its Subsidiaries at such time;

"Consolidated Tangible Net Worth"
means, in respect of Everest Bermuda, as of any date of determination, the sum
of Consolidated Net Worth minus Intangible Assets of Everest Bermuda and its
Subsidiaries on such date;

"Contingent Liability"  means
any agreement, undertaking or arrangement by which any Person (outside the
ordinary course of business) guarantees, endorses, acts as surety for or
otherwise becomes or is contingently liable for (by direct or indirect
agreement, contingent or otherwise, to provide funds for payment by, to supply
funds to, or otherwise to invest in, a debtor, or otherwise to assure a
creditor against loss) the Debt, obligation or other liability of any other Person
(other than by endorsements of instruments in the course of collection), or for
the payment of dividends or other distribution upon the shares of any other
Person or undertakes or agrees (contingently or otherwise) to purchase,
repurchase, or otherwise acquire or become responsible for any Debt, obligation
or liability or any security therefor, or to provide funds for the payment or
discharge thereof (whether in the form of loans, advances, stock purchases,
capital contributions or otherwise) or to maintain solvency, assets, level of
income, 

 

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or other financial condition of any other
Person, or to make payment or transfer property to any other Person other than
for fair value received.  The amount of any Person's obligation under any
Contingent Liability shall (subject to any limitation set forth therein) be
deemed to be the lesser of (i) the outstanding principal amount (or maximum
permitted principal amount, if larger) of the Debt, obligation or other
liability guaranteed or supported thereby and (ii) the maximum stated amount so
guaranteed or supported;

"Control Agreement"  means,
with respect to any Borrower, an agreement in form and substance reasonably
acceptable to the Issuer among such Borrower, the applicable Custodian and the
Issuer with respect to any deposit or securities account of such Borrower in
which a Lien is purported to be granted to the Issuer pursuant to a Security
Agreement;

"Corporate Securities"  means
US corporate bonds capable of being marked to market on a daily basis and
cleared and settled within the United States which are rated by at least two of
Fitch, Moody's and S&P; provided that:

(a)       
such
bonds are not convertible into shares of the issuer and are deposited with or
held by the Custodian and subject to perfected first priority security in favor
of the Issuer under the Facility Documents;

(b)       
not
more than ten per cent of any Eligible Collateral (by reference to the Adjusted
Fair Market Value) shall comprise Corporate Securities issued by any single
issuer; and

(c)        
corporate
bonds and securities issued by an insurance company, a reinsurance company or a
supra-national shall not constitute "Corporate Securities" for the
purposes hereof;

"Correspondent Issuance Costs" 
has the meaning assigned to such term in Section 2.6(b);

"Custodial Lien and Set-off Rights" 
has the meaning assigned to such term in Section 3.18; 

"Custodian"  means
The Bank of New York Mellon and any other or successor custodian approved by
the Issuer;

"Debt"  means, with
respect to any Person, at any date, without duplication, (a) all obligations of
such Person for borrowed money or in respect of loans or advances; (b) all
obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments; (c) all obligations in respect of (i) outstanding letters
of credit or bankers' acceptances which have been issued for the account of
such Person or (ii) any letter of credit issued for the account of another
Person but for which such Person has a reimbursement obligation, in each case
regardless of whether such letter of credit or bankers' acceptance has been
drawn; (d) all Capital Lease Obligations of such Person; (e) all Hedging
Obligations of such Person; (f) to the extent required to be included as
liabilities in accordance with GAAP, all obligations of such Person to pay the
deferred purchase price of property or services; (g) Debt of such Person
secured by a Lien on property owned or being purchased by such Person
(including Debt arising under conditional sales or other title retention
agreements) whether or not such Debt is limited in recourse; (h) any Debt of
another Person secured by a Lien on any assets of such first Person, whether or
not such Debt is assumed by such first Person (it being understood that if such
Person has not assumed or otherwise become personally liable for any such Debt,
the amount of the Debt of such Person in connection therewith shall be limited
to the lesser of the face amount of such Debt and the fair market value of all
property of such Person securing such Debt); (i) any Debt of a partnership or
in which such Person is a general partner unless such debt is nonrecourse to
such Person; and (j) all Contingent Liabilities of such Person in connection
with the foregoing; provided that, notwithstanding anything to contrary
contained herein, Debt shall not include (x) unsecured current liabilities
incurred in the ordinary course 

 

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of business other than liabilities that are
for money borrowed or are evidenced by bonds, debentures, notes or other
similar instruments or (y) any obligations of such Person under any Company
Reinsurance Agreement or any Primary Policy;

"Debtor Relief Laws"  means
the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States, Bermuda, the United Kingdom or other applicable jurisdictions
from time to time in effect and affecting the rights of creditors generally;

"Default"  means any
event or condition that constitutes an Event of Default or that, with
the giving of any notice, the passage of time, or both, would be an Event of
Default;

"Default Rate"  means
an interest rate (before as well as after judgment) equal to the Federal Funds
Effective Rate plus 2.0 per cent per annum;

"Designated Borrower"  has
the meaning assigned to such term in the introductory paragraph hereto;

"Designated Borrower Request and
Assumption Agreement"  has the meaning assigned to such term in
Section 2.14; 

"Designated Person"  means
a person or entity;

"Dollar"  and "$" 
mean lawful money of the United States;

"Dollar Equivalent"  means,
at any time, (a) with respect to any amount denominated in Dollars, such
amount, and (b) with respect to any amount denominated in any Alternative
Currency, the equivalent amount thereof in Dollars as determined by the Issuer
at such time on the basis of the Spot Rate (determined in respect of the most
recent Revaluation Date) for the purchase of Dollars with such Alternative
Currency;

"EEA
Financial Institution" means (a) any credit institution or investment
firm established in any EEA Member Country which is subject to the supervision
of an EEA Resolution Authority, (b) any entity established in an EEA Member
Country which is a parent of an institution described in paragraph (a) of this
definition, or (c) any financial institution established in an EEA Member
Country which is a subsidiary of an institution described in paragraphs (a) or
(b) of this definition and is subject to consolidated supervision with its
parent;

"EEA
Member Country" means any of the member states of the European Union,
Iceland, Liechtenstein, and Norway;

"EEA
Resolution Authority" means any public administrative authority or any
person entrusted with public administrative authority of any EEA Member Country
(including any delegee) having responsibility for the resolution of any EEA
Financial Institution;

"Eligible Collateral"  means
Asset Backed Securities, Cash, certificates of deposit, commercial paper,
Corporate Securities, Federal Agency Debt, Government Debt, Freely Transferable
Debt of FHMLC and FNMA, supranational securities and OECD (Organisation for
Economic Co-operation and Development) government securities which (a) are
denominated in Dollars, (b) except in the case of Cash, for the purposes of
calculating the Adjusted Fair Market Value thereof, have the required rating
and/or maximum tenor as set forth in schedule 
1,
(c) are capable of being marked to market on a daily basis and (d) are held in
a Collateral Account; provided that during the existence of an Event of
Default, only Cash may be substituted for 

 

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existing Eligible Collateral and all cash
proceeds from the sale of any Eligible Collateral shall be invested in Cash
unless the Issuer agrees otherwise;

"EMU Legislation"  means
the legislative measures of the European Council for the introduction of,
changeover to or operation of a single or unified European currency;

"Equity
Interests" means, with respect to any Person, all of the shares of
capital stock of (or other ownership or profit interests in) such Person, all
of the warrants, options or other rights for the purchase or acquisition from
such Person of shares of capital stock of (or other ownership or profit
interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights or options for the purchase or
acquisition from such Person of such shares (or such other interests), and all
of the other ownership or profit interests in such Person (including partnership,
member or trust interests therein);

"ERISA"  means the
Employee Retirement Income Security Act of 1974, as amended from time to time;

"ERISA Affiliate"  means
any trade or business (whether or not incorporated) that, together with any
Borrower, is treated as a single employer under Section 414(b) or (c) of the
Code or, solely for purposes of Section
302 of ERISA and Section 412 of the
Code, is treated as a single employer under Section 414(m) or (o) of the Code;

"EU
Bail-In Legislation Schedule" means the EU Bail-In Legislation
Schedule published by the Loan Market Association (or any successor person), as
in effect from time to time;

"Euro"  and "EUR" 
mean the lawful currency of the Participating Member States introduced in
accordance with the EMU Legislation;

"Event of Default"  has
the meaning assigned to such term in Section 7; 

"Everest Bermuda"  has
the meaning set forth in the preamble;

"Everest Bermuda Security Agreement" 
means the Security Agreement dated as of the date hereof between Everest
Bermuda and the Issuer;

"Everest
Group"  means Everest Re Group, Ltd., a Bermuda company;

"Excluded Taxes"  means,
with respect to any payment made by or on account of any obligation of any
Borrower under any Facility Document, any of the following Taxes imposed on or
with respect to the Issuer or required to be withheld or deducted from a
payment to the Issuer:

(a)       
income
or franchise Taxes imposed on (or measured by) net income (i) by the
jurisdiction under the Laws of which the Issuer is organized or in which its
principal office is located or in which its applicable lending office is
located or (ii) Other Connection Taxes;

(b)       
any
branch profits or similar Taxes imposed by a jurisdiction under the Laws of
which the Issuer is organized or in which its principal office is located or in
which its applicable lending office is located;

(c)        
withholding
Taxes attributable solely to the Issuer's failure to deliver to such Borrower
such properly completed and executed documentation if such documentation would
have permitted the payments to which the withholding Taxes relate to be made
without 

 

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withholding or at a reduced rate
of withholding, provided the Issuer has determined it is legally able to
furnish such documentation;

(d)       
in
respect of a US Borrower, U.S. Federal withholding Taxes imposed on amounts
payable to or for the account of such Issuer pursuant to a law in effect on the
date on which (i) such Issuer becomes a party to this Agreement or (ii) such
Issuer changes its lending office, except in each case to the extent that,
pursuant to Section 2.10, amounts with respect to such Taxes were payable
either to such Issuer’s assignor immediately before such Issuer became a party
hereto or to such Issuer immediately before it changed its lending office; or

(e)       
withholding
Taxes imposed under FATCA;

"Facility Documents"  means,
collectively, this Agreement, the L/C Documents, and each Security Document;

"Fair Market Value" means:

(a)       
with
respect to any Government Debt, Federal Agency Debt, Debt issued by FHMLC or
FNMA or other publicly-traded security the closing price for such security on
Bloomberg, Inc. or, if Bloomberg, Inc. is not available, another quotation
service reasonably acceptable to the Issuer;

(b)       
with
respect to Cash, the amount thereof; and

(c)        
with
respect to any Eligible Collateral (other than those set forth in paragraph (a)
or (b)
of this definition), the price for such Eligible Collateral on the date of
calculation obtained from a generally recognized source approved by the Issuer
or the most recent bid quotation from such approved source (or, if no generally
recognized source exists as to such Eligible Collateral, any other source
specified by a Borrower to which the Issuer does not reasonably object);

"FATCA" means Sections 1471
through 1474 of the Code, as of the date of this Agreement (or any amended or
successor version that is substantively comparable and not materially more
onerous to comply with), any current or future regulations or official interpretations
thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code
and any fiscal or regulatory legislation, rules or practices adopted pursuant
to any intergovernmental agreement, treaty or convention among governmental
authorities and implementing such Sections of the Code

"Federal
Agency"  means any of the following agencies of the federal
government of the United States: (a) any Federal Farm Credit Bank of the Farm
Credit System; (b) the Federal Home Loan Bank; (c) GNMA; and (d) such other
federal agencies as are reasonably acceptable to the Issuer;

"Federal Funds Effective Rate" 
means, for any day, the rate calculated by the Federal Reserve Bank of New
York based on such day's federal funds transactions by depository institutions
(as determined in such manner as the Federal Reserve Bank of New York shall set
forth on its public website from time to time) and published on the next
succeeding Business Day by the Federal Reserve Bank of New York as the federal
funds target upper bound rate; provided, that if such day is not a Business
Day, the Federal Funds Effective Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next succeeding
Business Day; provided, further, that if the Federal Funds Effective Rate 

 

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for any day is less than zero,
the Federal Funds Effective Rate for such day will be deemed to be zero;

"Federal Reserve Bank of New York's
Website" means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org,
or any successor source;

"Federal Reserve Board"  means
the Board of Governors of the Federal Reserve System of the United States;

"Fees"  means the L/C
Fees, the Commitment Fee and any other fees referred to in Section 2.6; 

"FHMLC"  means the
Federal Home Mortgage Loan Corporation;

"Financial Officer"  means
the chief financial officer, chief investment officer, principal accounting
officer, treasurer or controller of a Borrower;

"Financial Strength Rating" 
means with respect to any Borrower, the financial strength rating of such
Borrower as determined by A.M. Best Company, Inc.;

"Fitch"  means Fitch
Ratings Inc. and any successor thereof;

"FNMA"  means the
Federal National Mortgage Association;

"Foreign Pension Plan"  means
any plan, fund (including, without limitation, any superannuation fund) or
other similar program established or maintained outside the United States by
any Borrower or any of its Subsidiaries primarily for the benefit of employees
of such Borrower or any one or more of its Subsidiaries residing outside the
United States, which plan, fund or other similar program provides, or results
in, retirement income, a deferral of income in contemplation of retirement or
payments to be made upon termination or severance of employment, and which plan
is not subject to ERISA or the Code;

"Freely Transferable"  means
securities which are freely transferable and traded in established and
recognized markets and as to which there are readily available price
quotations;

"GAAP"  means
generally accepted accounting principles in the United States of America as in
effect as of the date of determination thereof;

"GNMA"
means the Government National Mortgage Association;

"Government
Debt"  means Freely Transferable
Debt issued by the U.S. Treasury Department or backed by the full faith and
credit of the United States;

"Governmental
Authority"  means any nation or government, or any state or
other political subdivision thereof, and any agency, authority,
instrumentality, regulatory body, court, administrative tribunal, central bank
or other entity exercising executive, legislative, judicial, taxing, regulatory
or administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central
Bank);

"Hedging Obligations"  means,
with respect to any Person, the liability of such Person under any futures
contract or options contract, interest rate swap agreements or interest rate
collar agreements and all other agreements or arrangements (other than
Retrocession Agreements) designed to protect such Person against fluctuations in
interest rates or currency exchange rates.  Debt under a Hedging Obligation
shall be the amount of such Person's net obligation, if any, under each hedging
agreement (determined on the mark-to-market value for such

 

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agreement based upon a readily
available quotation provided by a quotation source typically used for such type
of hedging agreement or a recognized dealer in such type of hedging agreement);

"Indemnified Liabilities" 
has the meaning assigned to such term in Section 9.3(b);

"Indemnified Taxes"  means
(a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment
made by or on account of any obligation of a Borrower under any Facility
Document and (b) to the extent not otherwise described in paragraph (a), Other
Taxes;

"Indemnitee"  has the
meaning assigned to such term in Section 9.3(b);

"Information"  has
the meaning assigned to such term in Section 9.12; 

"Insurance Subsidiary"
means Everest Bermuda, each other Borrower and each Subsidiary of a Borrower
which is licensed by any Governmental Authority to engage in the insurance
business as a risk bearing entity;

"Intangible Assets" means
assets that are considered to be intangible assets under GAAP, including
customer lists, goodwill, computer software, copyrights, trade names,
trademarks, patents, domain names, franchises, licenses, unamortized deferred
charges, unamortized debt discount and capitalized research and development
costs;

"Investment Guidelines"  means,
with respect to any Borrower or any Subsidiary, the "Statement of
Investment Policy and Objectives" of such Borrower or Subsidiary as in
effect on, and delivered to the Issuer on or prior to, the Closing Date, as may
be changed from time to time by a resolution duly adopted by the board of
directors of such Borrower or Subsidiary (or any committee thereof);

"ISP"  means the
rules of the "International Standby Practices 1998" published by the
Institute of International Banking Law & Practice or such later version
thereof as may be in effect at the time of issuance of a Letter of Credit;

"Issuer"  means
Barclays Bank as an issuer of Letters of Credit hereunder, or any successor
issuer of Letters of Credit hereunder.  The Issuer may, in its discretion,
arrange for (a) one or more Letters of Credit to be issued by Affiliates or
branches of the Issuer, in which case the term "Issuer" shall include
any such Affiliate or branch with respect to Letters of Credit issued by such
Affiliate or branch and (b) any Letter of Credit that is (i) to be issued to
beneficiaries located in Australia or Canada, (ii) denominated in Australian
Dollars or Canadian Dollars or (iii) to be issued to beneficiaries requesting a
confirming bank, to be confirmed by a third party confirming bank located in
the related country and acceptable to the Issuer (acting reasonably), which
confirming bank shall have entered into a letter of credit arrangement
acceptable to the Issuer whereby such confirming bank separately undertakes to
the beneficiary of such Letter of Credit that, subject to the terms and
conditions of such Letter of Credit, demands for payment (or acceptance and
payment) under such Letter of Credit will be met by such confirming bank (each,
a "Confirming Bank"); 

"Issuer's Office"  means,
with respect to any currency, the Issuer's address and, as appropriate, account
as set forth in schedule 3 with respect to such currency, or such other address
or account with respect to such currency as the Issuer may from time to time
notify to Everest Bermuda;

"Judgment Currency"  has
the meaning assigned to such term in Section 9.18; 

 

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"Laws"  means,
collectively, all international, foreign, Federal, state and local statutes,
treaties, rules, guidelines, regulations, ordinances, codes and administrative
or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative
orders, directed duties, requests, licenses, authorizations and permits of, and
agreements with, any Governmental Authority;

"L/C Application"  means
an application and agreement for the issuance or amendment of a Letter of
Credit, a form of which is attached hereto as schedule
4,
or such other form from time to time in use by the Issuer;

"L/C Credit Extension"  means,
with respect to any Letter of Credit, the issuance thereof, the extension of
the expiry date thereof (including each Non-Renewal Notice Date), or the
increase of the amount thereof;

"L/C Documents"  means,
as to any Letter of Credit, each L/C Application and any other document,
agreement and instrument entered into by the Issuer and the Applicant or in
favor of the Issuer and relating to such Letter of Credit;

"L/C Expiration Date"  means
the date that is 12 months (or in the case of Letters of Credit denominated in
Australian Dollars, 24 months, solely if necessary for regulatory purposes)
after the Commitment Termination Date (or if such day is not a Business Day,
the immediately preceding Business Day);

"L/C Fee"  has the
meaning assigned to such term in Section 2.6(b);

"L/C Obligations"  means,
as of any date of determination, the Dollar Equivalent of the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the Dollar
Equivalent of the aggregate of all Reimbursement Obligations (including Unpaid
Reimbursement Obligations) after giving effect to any L/C Credit Extensions on
such date and repayment of any Reimbursement Obligations with respect to
Letters of Credit on such date.  The L/C Obligations of any Borrower shall be
the aggregate amount available to be drawn under all outstanding Letters of
Credit issued for the account of such Borrower plus the aggregate of all
Reimbursement Obligations (including Unpaid Reimbursement Obligations) owed by
such Borrower;

"Letter of Credit"  means
any standby letter of credit issued hereunder. Letters of Credit may be issued
in Dollars or in an Alternative Currency;

"Lien"  means, when
used with respect to any Person, any interest in any real or personal property,
asset or other right held, owned or being purchased or acquired by such Person
for its own use, consumption or enjoyment which secures payment or performance
of any obligation and shall include any mortgage, lien, pledge, encumbrance,
charge, retained title of a conditional vendor or lessor, or other security
agreement, mortgage, deed of trust, chattel mortgage, assignment, pledge,
retention of title, financing or similar statement or notice, or other
encumbrance arising as a matter of law, judicial process or otherwise;

"Material Adverse Effect" 
means any event or occurrence of whatever nature (including any adverse
determination in any litigation, arbitration or governmental investigation or
proceeding) which results in:

(a)       
a
material adverse effect on the financial condition, operations, business,
properties, or assets of (i) any Borrower individually or (ii) any Borrower and
its Subsidiaries, taken as a whole;

 

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(b)       
a
material adverse effect on the ability of any Borrower to perform any of its
Obligations under any of the Facility Documents to which it is a party; or

(c)        
a
material adverse effect on the validity, binding effect or enforceability of
this Agreement or any of the other Facility Documents (other than a Letter of
Credit), a material adverse effect on the rights, remedies or benefits
available to the Issuer under any Facility Document;

"Material Debt"  shall
mean any Debt in an aggregate principal amount exceeding $50,000,000.  For the
purposes of determining Material Debt for any letters of credit, the
"principal amount" of the obligations in respect of any letter of
credit shall be the stated amount of the applicable letter of credit;

"Maximum Rate"  has
the meaning assigned to such term in Section 9.14; 

"Moody's"  means
Moody's Investors Service, Inc. and any successor thereto;

"Multiemployer Plan"  means
a multiemployer plan as defined in Section 4001(a)(3) of ERISA;

"Net
Equity Issuance Proceeds"  means, in respect of any issuance of
Equity Interests of Everest Bermuda or any of its Subsidiaries, cash proceeds
received in connection therewith, net of underwriting discounts and commissions
and out-of-pocket costs and expenses and disbursements paid or incurred in
connection therewith in favor of any Person not an Affiliate of any Borrower;

"Net
Income" means, with respect to any Person for any period, the net
income (or loss), after extraordinary items, taxes and all other items of
expense and income of such Person for such period, determined in accordance
with GAAP.

"Nonrenewal Notice Date" 
has the meaning assigned to such term in Section 2.2(b);

"Notice of Exclusive Control" 
means a written notice, in the form attached to the applicable Control
Agreement, given by the Issuer to a Custodian upon an Event of Default that the
Issuer is exercising sole and exclusive control of a Collateral Account and the
Collateral credited thereto;

"Obligations"  means
all indebtedness, obligations and liabilities of the Borrowers to the Issuer
existing on the date of this Agreement or arising thereafter (including
interest and fees that accrue after the commencement by or against any Borrower
of any proceeding under Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding), direct or indirect, absolute or contingent, matured
or unmatured, liquidated or unliquidated, secured or unsecured, arising or
incurred under this Agreement or any of the other Facility Documents or in
respect of any Reimbursement Obligations incurred under any Letter of Credit or
other instrument at any time evidencing any thereof and arising by contract,
operation of law or otherwise;

"Organization Documents" 
means, (a) with respect to any corporation or company, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable
constitutive documents with respect to any non-U.S. jurisdiction); (b) with
respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement; and (c) with respect to any
partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation 

 

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or organization and, if
applicable, any certificate or articles of formation or organization of such
entity;

"Other Connection Taxes" 
means, with respect to the Issuer, Taxes imposed as a result of a present
or former connection between the Issuer and the jurisdiction imposing such Tax
(other than connections arising from the Issuer having executed, delivered,
become a party to, performed its obligations under, received payments under,
received or perfected a security interest under, engaged in any other
transaction pursuant to or enforced any Facility Document, or sold or assigned
an interest in any Letter of Credit or Facility Document);

"Other Taxes"  means
all present or future stamp, court or documentary, intangible, recording,
filing or similar Taxes that arise from any payment made under, from the
execution, delivery, performance, enforcement or registration of, from the
receipt or perfection of a security interest under, or otherwise with respect
to, any Facility Document,

except any such
Taxes that are Other Connection Taxes imposed with respect to an assignment;

"Outstanding
Amount" means, with respect to any L/C Obligations of the Borrowers on
any date, the aggregate amount of such L/C Obligations on such date after
giving effect to any L/C Credit Extension occurring on such date and any other
changes in the aggregate amount of the L/C Obligations as of such date,
including as a result of any reimbursements by the Borrowers of any drawing
under any Letter of Credit.

"Participating Member State" 
means each state so described in any EMU Legislation;

"PATRIOT Act"  means
the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001));

"Person"  means any
natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity;

"Plan"  means any
employee pension benefit plan (other than a Multiemployer Plan) subject to the
provisions of Title IV of ERISA or Section
412 of the Code or
Section 302 of
ERISA, and in respect of which any Borrower or any ERISA Affiliate is (or, if
such plan were terminated, would under Section 4069 of ERISA be deemed to be)
an "employer" as defined in Section 3(5) of ERISA;

"Primary Policies"  means
any insurance or reinsurance policies issued by any Insurance Subsidiary or any
third party on behalf of an Insurance Subsidiary;

"Private Act"  means
separate legislation enacted in Bermuda with the intention that such
legislation apply specifically to any Borrower, in whole or in part;

"Process Agent"  has
the meaning assigned to such term in Section 9.9(d);

"Quarterly Statement"  means,
as to any Insurance Subsidiary, the financial statement of such Person with
respect to any fiscal quarter as required to be filed with the applicable
Governmental Authority in such Person's domicile, together with all exhibits or
schedules filed therewith, prepared in
conformity with SAP;

"Reimbursement Obligation" 
means an Applicant's obligation to reimburse the Issuer on account of any
drawing under any Letter of Credit as provided in Section 2.2(c);

 

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"Related Parties" 
means, as to any Person, such Person's Affiliates and the partners,
directors, officers, employees, agents, trustees, custodians, administrators,
managers, advisors and representatives of such Person and of such Person's
Affiliates;

"Responsible Officer"  means
with respect to any Borrower (a) the president, chief executive officer, chief
financial officer, chief investment officer, chief operating officer,
treasurer, controller or any vice-president of such Borrower, (b) solely for
purposes of the delivery of incumbency certificates and certified Organization
Documents and resolutions pursuant to Section 4.1,
any vice president, secretary or assistant secretary of such Borrower and (c)
solely for purposes of requests for L/C Credit Extensions, prepayment notices
and notices for Commitment terminations or reductions given pursuant to Section 2,
any other officer or employee of such Borrower so designated from time to time
by one of the foregoing officers in a notice to the Issuer (together with
evidence of the authority and capacity of each such Person to so act in form
and substance satisfactory to the Issuer);

"Resolution
Authority" means an EEA Resolution Authority or, with respect to any
UK Financial Institution, a UK Resolution Authority;

"Retrocession Agreements" 
means any agreement, treaty, certificate or other arrangement whereby an
Insurance Subsidiary cedes to another insurer all or part of such Insurance
Subsidiary's liability under a policy or policies of insurance insured or
reinsured by such Insurance Subsidiary;

"Revaluation Date"  means
with respect to any Letter of Credit, each of the following: (i) each date of
issuance, extension or renewal of a Letter of Credit denominated in an
Alternative Currency, (ii) each date of an amendment of any such Letter of
Credit having the effect of increasing the amount thereof, (iii) each date of
any payment by the Issuer under any Letter of Credit denominated in an
Alternative Currency, (iv) each date of the calculation of outstanding L/C
Obligations in connection with the delivery of a Collateral Compliance
Certificate hereunder and (v) such additional dates as the Issuer shall
determine;

"S&P"  Standard
& Poor's Ratings Services, a Standard & Poor's Financial Services LLC
business, and any successor to its rating agency business;

"Same Day Funds"  means
with respect to any disbursements and payments, immediately available funds in
Dollars;

"Sanctioned Country"  means,
at any time, a country or territory which is the subject or target of any
comprehensive Sanctions;

"Sanctioned Person"  means,
at any time, (a) any Person listed in any Sanctions-related list of Designated
Persons maintained by the Office of Foreign Assets Control of the U.S.
Department of the Treasury, the U.S. Department of State, or by the United
Nations Security Council, the European Union or any EU member state, (b) any
Person organized or resident in a Sanctioned Country in violation of Sanctions
or (c) any Person controlled by any such Person;

"Sanctions"  means
economic or financial sanctions or trade embargoes imposed, administered or
enforced from time to time by:

(a)       
the
U.S. government, including those administered by the Office of Foreign Assets
Control of the U.S. Department of the Treasury or the U.S. Department of State,
or

(b)       
the
United Nations Security Council, the European Union or Her Majesty's Treasury
of the United Kingdom;

 

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"SAP"  means,
as to each Insurance Subsidiary, the statutory accounting practices prescribed
or permitted by the Applicable Insurance Regulatory Authority for the
preparation of its financial statements and other reports by insurance
companies of the same type as such Insurance Subsidiary in effect on the date
such statements or reports are to be prepared, except if otherwise notified by
Everest Bermuda pursuant to Section 1.3; 

"Security
Agreement" means (i) the Everest Bermuda
Security Agreement and (ii) any other security agreement substantially in the
form attached hereto as appendix
3
or such other agreement acceptable to the Issuer pursuant to which a Lien is
granted on any Collateral;

"Security
Documents" means:

(a)       
each
Security Agreement;

(b)       
each
Control Agreement; and

(c)        
any
other agreement creating or perfecting security interests or rights in the
Collateral;

"Solvent"  means,
when used with respect to a Person, that:

(a)       
the
fair saleable value of the assets of such Person is in excess of the total
amount of the present value of its liabilities (including for purposes of this
definition all liabilities (including loss reserves as determined by such
Person), whether or not reflected on a balance sheet prepared in accordance
with GAAP and whether direct or indirect, fixed or contingent, secured or
unsecured, disputed or undisputed),

(b)       
such
Person is able to pay its debts or obligations in the ordinary course as they
mature and

(c)        
such
Person does not have unreasonably small capital to carry out its business as
conducted and as proposed to be conducted;

"Spot Rate"  for a
currency means the rate determined by the Issuer to be the rate quoted by the
Issuer as the spot rate for the purchase of such currency with another currency
through its principal foreign exchange trading office on the date as of which
the foreign exchange computation is made; provided that the Issuer may
obtain such spot rate from another financial institution designated by the
Issuer if the Issuer does not have as of the date of determination a spot
buying rate for any such currency;

"Sterling"  means the
lawful currency of the United Kingdom;

"Subsidiary"  of a
Person means a corporation, partnership, limited liability company, association
or joint venture or other business entity (in each case, whether or not
existing as of the date hereof) of which a majority of the of shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
owned or the management of which is controlled, directly, or indirectly through
one or more intermediaries, by such Person.  Unless otherwise specified, all
references herein to a "Subsidiary"  or to "Subsidiaries" 
shall refer to a Subsidiary or Subsidiaries of Everest Group or Everest Bermuda,
as applicable;

"Supranational
Debt" means (a) Freely Transferable Debt issued or backed by (i) the
International Bank for Reconstruction & Development, (ii) the European Bank
for Reconstruction & Development, (iii) the Inter American Development
Bank, (iv) the International Monetary Fund, (v) the European Investment Bank,
(vi) the Asian Development 

 

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Bank, (vii) the African
Development Bank and (viii) the Nordic Development Bank and (b) OECD Government
Securities that are issued or backed by the Government of any member of the
Organization for Economic Co-operation and Development and are Freely
Transferable Debt;

"Taxes"  means all
present or future taxes, levies, imposts, duties, deductions, withholdings
(including backup withholding), assessments, fees or other charges imposed by
any Governmental Authority, including any interest, additions to tax or
penalties applicable thereto;

"Transactions" means the
execution, delivery and performance by the Borrowers of this Agreement and the
other Facility Documents and the issuance of Letters of Credit hereunder;

"UCC"  means the
Uniform Commercial Code as in effect from time to time in the relevant
jurisdiction;

"UCP"  means the
rules of the Uniform Customs and Practice for Documentary Credits, as most
recently published by the International Chamber of Commerce at the time of
issuance of a Letter of Credit;

"UK
Financial Institution" means any BRRD Undertaking (as such term is
defined under the PRA Rulebook (as amended form time to time) promulgated by
the United Kingdom Prudential Regulation Authority) or any person falling
within IFPRU 11.6 of the FCA Handbook (as amended from time to time)
promulgated by the United Kingdom Financial Conduct Authority, which includes
certain credit institutions and investment firms, and certain affiliates of
such credit institutions or investment firms;

"UK
Resolution Authority" means the Bank of England or any other public
administrative authority having responsibility for the resolution of any UK
Financial Institution;

"United States"  and
"U.S."  mean the United States of America;

"Unpaid Reimbursement Obligation" 
has the meaning assigned to such term in Section 2.2(c). 
Solely for purposes of calculating the L/C Obligations and any component
thereof, Reimbursement Obligations which have been paid by application of
proceeds of Collateral by the Issuer shall not constitute Unpaid Reimbursement
Obligations;

"Upfront
Fee Letter"  means each upfront fee letter entered into from
time to time between Everest Bermuda and Barclays Bank;

"US
Borrower"  means
a Borrower organized under the laws of the United States, any State thereof or
the District of Columbia;

"WAL"
means weighted average life from the date of determination;

"Wholly-Owned Subsidiary" 
means, with respect to any Person at any date, any Subsidiary of such
Person all of the Capital Stock or which (except directors' qualifying shares)
are at the time directly or indirectly owned by such Person; and

"Write-Down
and Conversion Powers" means, (a) with respect to any EEA Resolution
Authority, the write-down and conversion powers of such EEA Resolution
Authority from time to time under the Bail-In Legislation for the applicable
EEA Member Country, which write-down and conversion powers are described in the
EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom,
any powers of the applicable Resolution Authority under the Bail-In Legislation
to cancel, reduce, modify or change the form of a liability of any UK Financial
Institution or any contract or instrument under which that liability arises, to
convert all or part of that liability into shares, securities or obligations of
that person or any other person, to 

 

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provide
that any such contract or instrument is to have effect as if a right had been
exercised under it or to suspend any obligation in respect of that liability or
any of the powers under that Bail-In Legislation that are related to or
ancillary to any of those powers.

1.2                 
Terms
Generally

(a)              
The
definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The
words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation".  The
word "will" shall be construed to have the same meaning and effect as
the word "shall".  Unless the context requires otherwise:

(i)               
any
definition of or reference to any agreement, instrument or other document
herein shall be construed as referring to such agreement, instrument or other
document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications
set forth herein);

(ii)             
any
reference herein to any Person shall be construed to include such Person's
successors and assigns;

(iii)            
  the words "herein", "hereof" and
"hereunder", and words of similar import, shall be construed to refer
to this Agreement in its entirety and not to any particular provision hereof;

(iv)            
all
references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, this Agreement;

(v)              
any
reference to any Law herein shall include all statutory and regulatory
provisions consolidating, amending, replacing or interpreting such law and any
reference to any Law herein shall, unless otherwise specified, refer to such
Law as amended, modified or supplemented from time to time; and

(vi)            
the
words "asset" and "property" shall be construed to have the
same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract
rights.

(b)             
In
the computation of periods of time from a specified date to a later specified
date, the word "from" means "from and including;" the words
"to" and "until" each mean "to but excluding;"
and the word "through" means "to and including."

1.3                 
Changes
in GAAP

If Everest
Bermuda notifies the Issuer that it requests an amendment to any provision
hereof to eliminate the effect of any change occurring after the date hereof in
GAAP or in the application thereof on the operation of such provision, regardless
of whether any such notice is given before or after such change in GAAP or in
the application thereof, then such provision shall be interpreted on the basis
of GAAP as in effect and applied immediately before such change shall have
become effective until such notice shall have been withdrawn or such provision
amended in accordance herewith.

1.4                 
Exchange
Rates; Currency Equivalents

 

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(a)              
The
Issuer shall determine the Spot Rates as of each Revaluation Date to be used
for calculating Dollar Equivalent amounts of L/C Credit Extensions and L/C
Obligations denominated in Alternative Currencies.  Such Spot Rates shall
become effective as of such Revaluation Date and shall be the Spot Rates
employed in converting any amounts between the applicable currencies until the
next Revaluation Date to occur.  Except for purposes of financial statements
delivered by a Borrower hereunder or calculating financial covenants hereunder
or except as otherwise provided herein, the applicable amount of any currency
(other than Dollars) for purposes of the Facility Documents shall be such
Dollar Equivalent amount as so determined by the Issuer.

(b)             
Wherever
in this Agreement in connection with the issuance, amendment, extension or
renewal of a Letter of Credit, an amount, such as a required minimum or
multiple amount, is expressed in Dollars, but such Letter of Credit is
denominated in an Alternative Currency, such amount shall be the relevant
Alternative Currency Equivalent of such Dollar amount (rounded to the nearest
unit of such Alternative Currency, with 0.5 of a unit being rounded upward), as
determined by the Issuer, as the case may be.

1.5                 
Additional
Alternative Currencies

(a)              
An
Applicant may from time to time request that Letters of Credit be issued in a
currency other than those specifically listed in the definition of
"Alternative Currency"; provided that such requested currency is a
lawful currency (other than Dollars) that is readily available and freely
transferable and convertible into Dollars.

(b)             
Any
such request shall be made to the Issuer not later than 11:00 a.m. (New York
City time), no less than five Business Days prior to the date of the desired
L/C Credit Extension (or such other time or date as may be agreed by the Issuer
in its sole discretion).  The Issuer shall notify the Applicant not later than
11:00 a.m. (New York City time), no more than three Business Days after receipt
of such request whether it consents, in its sole discretion, to the issuance of
Letters of Credit in such requested currency.  Any failure by the Issuer to respond
to such request within the time period specified in the preceding sentence
shall be deemed to be a refusal by the Issuer to permit Letters of Credit to be
issued in such requested currency.  If the Issuer consents to the issuance of
Letters of Credit in such requested currency, the Issuer shall so notify the
Applicant and such currency shall thereupon be deemed for all purposes to be an
Alternative Currency hereunder for purposes of any Letter of Credit issuances.

1.6                 
Change
of Currency

(a)              
Unless
otherwise prohibited by law, if more than one currency or currency unit are at
the same time recognized by the central bank of any country as the lawful
currency of that country, then:

(i)               
any
reference in the Facility Documents to, and any obligations arising under the
Facility Documents in, the currency of that country shall be translated into,
or paid in, the currency or currency unit of that country designated by the
Issuer (after consultation with Everest Bermuda); and

(ii)             
any
translation from one currency or currency unit to another shall be at the
official rate of exchange recognized by the central bank for the conversion of
that currency or currency unit into the other, rounded up or down by the Issuer
(acting reasonably).

 

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(b)             
If
a change in any currency of a country occurs, this Agreement will, to the
extent the Issuer (acting reasonably and after consultation with Everest
Bermuda) specifies to be necessary, be amended to comply with any generally
accepted conventions and market practice in the relevant market relation to
that currency and otherwise to reflect the change in currency.

2.                    
COMMITMENTS 

2.1                 
Commitment 

Subject to the
terms and conditions set forth herein, the Issuer agrees (a) from time to time
on any Business Day during the Availability Period, to issue Letters of Credit
denominated in Dollars or in one or more Alternative Currencies for the account
of each Borrower and to amend, renew or extend Letters of Credit previously
issued by it, in accordance with Section 2.2,
and (b) to honor drawings under the Letters of Credit; provided that after
giving effect to any L/C Credit Extension, (i) the L/C Obligations shall not
exceed the Commitment Amount, and (ii) the L/C Obligations of the Applicant
shall not exceed such Applicant's Collateral Coverage Amount; provided further
that no more than three Letters of Credit may be issued on any day. The L/C
Obligations of each Borrower shall be several in nature and no Borrower will be
liable for the L/C Obligations of another Borrower.

2.2                 
Letters
of Credit

(a)              
Generally. 

(i)               
The
Issuer shall not be under any obligation to issue any Letter of Credit if:

(A)              
any
order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain the Issuer from issuing such Letter of
Credit, or any Law (including with respect to Sanctions) applicable to the
Issuer or any request or directive (whether or not having the force of law)
from any Governmental Authority with jurisdiction over the Issuer shall
prohibit, or request that the Issuer refrain from, the issuance of letters of
credit generally or the Letter of Credit in particular or shall impose upon the
Issuer with respect to such Letter of Credit any restriction, reserve or
capital requirement (for which the Issuer is not otherwise compensated hereunder)
not in effect on the Closing Date, or shall impose upon the Issuer any
unreimbursed loss, cost or expense which was not applicable on the Closing Date
and which the Issuer in good faith deems material to it;

(B)             
the
issuance of such Letter of Credit would violate one or more policies of the
Issuer applicable to letters of credit generally and/or Sanctions;

(C)             
except
as otherwise agreed by the Issuer, such Letter of Credit is to be denominated
in a currency other than Dollars or an Alternative Currency;

(D)             
the
Issuer does not as of the issuance date of such requested Letter of Credit
issue Letters of Credit in the requested currency or, (x) in the case of a
Letter of Credit requested in Australian Dollars or Canadian Dollars or where
the beneficiary is located in Australia or Canada, or (y) to the extent the
relevant beneficiary has requested use of a Confirming Bank, the Issuer is not
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of Credit (including as a result
of the Correspondent Issuance Costs not being approved by the Borrowers
pursuant to Section 2.6(b));

(E)             
the
Borrower requesting such Letter of Credit is an Irish company, unless the beneficiary
of such Letter of Credit is neither habitually resident in Ireland nor has a
place of establishment in Ireland; or

(F)              
such
Letter of Credit contains any provisions for automatic reinstatement of the
stated amount after any drawing thereunder.

(ii)             
The
Issuer shall not be under any obligation to amend or extend any Letter of
Credit if (A) the Issuer would have no obligation at such time to issue the
Letter of Credit in its amended form under the terms hereof, (B) the
beneficiary of such Letter of Credit does not accept the proposed amendment
thereto or (C) such Letter of Credit is (x) issued to a beneficiary located in
Australia or Canada, (y) issued in Australian Dollars or Canadian Dollars or
(z) otherwise issued with a Confirming Bank and, in each such case, the
Confirming Bank in respect of such Letter of Credit does not accept the
proposed amendment or extension thereto and the Issuer is not able to select a
replacement Confirming Bank.

(iii)            
Each
Letter of Credit shall expire at or prior to the close of business on the
earliest of (A) the date requested by the Applicant and (B) the L/C Expiration
Date.

(b)             
Procedures
for Issuance and Amendment of Letters of Credit; Auto-Renewal Letters of
Credit.

(i)               
Each
Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Applicant delivered to the Issuer in the form of an L/C
Application, appropriately completed and signed by a Responsible Officer of
such Applicant.  Such L/C Application must be received by the Issuer not later
than 11:00 a.m. (New York City time) at least five Business Days (or such
shorter period as the Issuer may agree in a particular instance) prior to the
proposed issuance date or date of amendment, as the case may be.  In the case
of a request for an initial issuance of a Letter of Credit, such L/C
Application shall specify in form and detail reasonably satisfactory to the
Issuer: (A) the name of the Applicant, (B) the name of the account party (if
different), (C) the proposed issuance date of the requested Letter of Credit
(which shall be a Business Day); (D) the amount and currency thereof; (E) the
expiry date thereof (which shall be the earlier of the date which is 12 months
from the date of issuance (or, in the case of Letters of Credit denominated in
Australian Dollars, 24 months, solely if necessary for regulatory purposes) or
the L/C Expiration Date); (F) the name and address of the beneficiary thereof
(which shall not be Lloyd's of London or members of its syndicate); (G) the
documents to be presented by such beneficiary in case of any drawing
thereunder; and (H) the full text of any certificate to be presented by such
beneficiary in case of any drawing thereunder.  In the case of a request for an
amendment of any outstanding Letter of Credit, such L/C Application shall
specify in form and detail reasonably satisfactory to the Issuer: (1) the
Letter of Credit to be amended; (2) the proposed date of amendment thereof
(which shall be a Business Day); and (3) the nature of the proposed amendment. 
Additionally, such Applicant shall furnish to the Issuer such other documents
and information pertaining to such requested Letter of Credit issuance or
amendment, including any L/C Documents, as the Issuer may reasonably require.

 

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(ii)             
Upon
confirmation by the Issuer that the requested issuance or amendment is
permitted in accordance with the terms hereof, then, subject to the terms and
conditions set forth herein, including, without limitation, Section 4.2,
the Issuer shall, on the requested date, issue a Letter of Credit for the
account of such Applicant or enter into the applicable amendment, as the case
may be.

(iii)            
If
an Applicant so requests in any applicable L/C Application, the Issuer may, in
its sole and absolute discretion, agree to issue a Letter of Credit that has
automatic renewal provisions (each, an "Auto-Renewal Letter of Credit");
provided that any such Auto-Renewal Letter of Credit shall permit the Issuer to
prevent any such renewal at least once in each twelve month period (commencing
with the date of issuance of such Letter of Credit) by giving prior notice to
the beneficiary thereof not later than a day (the "Nonrenewal Notice
Date") in each such 12 month period to be agreed upon at the time such
Letter of Credit is issued.  The Applicant shall not be required to make a
specific request to the Issuer for any such renewal.  Once an Auto-Renewal
Letter of Credit has been issued, the Issuer shall renew such Letter of Credit
at any time to an expiry date not later than the L/C Expiration Date; provided,
however, that the Issuer shall not (x) permit any such renewal if the Issuer
has determined that it would not be permitted at such time to issue such Letter
of Credit in its renewed form under the terms hereof (by reason of the
provisions of Section 2.2 
or otherwise) or (y) be obligated to permit such renewal if it has determined
or received notice (which may be in writing or by telephone (if immediately
confirmed in writing)) on or before the day that is fourteen Business Days
before the Nonrenewal Notice Date from the Applicant that one or more of the
applicable conditions set forth in Section 4.2 
is not then satisfied, and directing the Issuer not to permit such renewal.

(iv)            
Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof,
the Issuer will also deliver to the Applicant a true and complete copy of such
Letter of Credit or amendment. 

(c)              
Drawings
and Reimbursement.  Upon receipt from the beneficiary of any Letter of Credit
of any notice of a drawing under such Letter of Credit, the Issuer shall notify
the Applicant thereof, and the Issuer shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment
under such Letter of Credit.  The Applicant shall reimburse the Issuer in
Dollars for the amount of such drawing under the Letter of Credit; provided
that, in the case of a Letter of Credit denominated in an Alternative Currency,
the Issuer may in its sole discretion demand or agree to accept reimbursement
in such Alternative Currency instead of in Dollars.  In the case of any such
reimbursement in Dollars of a drawing under a Letter of Credit denominated in
an Alternative Currency, the Issuer shall notify the Applicant of the Dollar
Equivalent of the amount of the drawing promptly following the determination
thereof.  For a Letter of Credit to be reimbursed in Dollars, the Applicant
shall reimburse the Issuer in an amount equal to the amount of such drawing and
in the applicable currency by 3:00 p.m. (New York City time) on the next
succeeding Business Day; provided that all fees related to such Letter of Credit
shall continue to accrue through such next succeeding Business Day.  For a
Letter of Credit to be reimbursed in an Alternative Currency, the Applicant
shall reimburse the Issuer in an amount equal to the amount of such drawing and
in the applicable currency by the Applicable Time on the next succeeding
Business Day; provided that all fees related to such Letter of Credit shall
continue to accrue through such next succeeding Business Day.  If the Applicant
fails to so reimburse the Issuer by such time, the Dollar Equivalent of the
amount of the unreimbursed drawing (the 

 

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"Unpaid
Reimbursement Obligation") shall be due and payable on demand
(together with interest) and shall bear interest at the Default Rate.  Any
notice given by the Issuer pursuant to this Section 2.2 
may be given by telephone if immediately confirmed in writing; provided that
the lack of such confirmation shall not affect the conclusiveness or binding
effect of such notice. 

(d)             
Obligations
Absolute.  The obligation of an Applicant to reimburse the Issuer for each
drawing under each Letter of Credit issued for its account and to repay each
Reimbursement Obligation with respect thereto shall be absolute, unconditional
and irrevocable, and shall be paid strictly in accordance with the terms of
this Agreement under all circumstances, including the following:

(i)               
any
lack of validity or enforceability of such Letter of Credit or any term or
provision thereof, any Facility Document, or any other agreement or instrument
relating thereto;

(ii)             
the
existence of any claim, counterclaim, setoff, defense or other right that the
Applicant may have at any time against any beneficiary or any transferee of
such Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the Issuer or any other Person, whether in
connection with this Agreement, the transactions contemplated hereby or by such
Letter of Credit or any agreement or instrument relating thereto, or any
unrelated transaction;

(iii)            
any
draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; or any loss
or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit;

(iv)            
any
payment by the Issuer under such Letter of Credit against presentation of a
draft or certificate that does not comply strictly with the terms of such
Letter of Credit; or any payment made by the Issuer under such Letter of Credit
to any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
assignee for the benefit of creditors, liquidator, receiver or other
representative of or successor to any beneficiary or any transferee of such
Letter of Credit, including any arising in connection with any proceeding under
any Debtor Relief Law;

(v)              
any
exchange, release or non-perfection of any collateral, or any release or
amendment or waiver of or consent to departure from any guarantee, for all or
any of the Obligations of the Applicant in respect of such Letter of Credit;

(vi)            
any
adverse change in the relevant exchange rates or in the availability of the
relevant Alternative Currency to the Applicant or in the relevant currency
markets generally; or

(vii)           
any
other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute
a defense available to, or a discharge of, the Applicant.

The Applicant
shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance
with the Applicant's instructions or other irregularity, the Applicant will
promptly notify 

 

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the Issuer. 
The Applicant shall be conclusively deemed to have waived any such claim
against the Issuer and its correspondents unless such notice is given as
aforesaid.

(e)              
Role
of Issuer.  The Issuer and the Applicant agree that, in paying any drawing
under a Letter of Credit, the Issuer shall not have any responsibility to
obtain any document (other than any sight draft, certificates and documents
expressly required by such Letter of Credit) or to ascertain or inquire as to
the validity or accuracy of any document or the authority of the Person
executing or delivering any document.  Neither the Issuer, nor any of its
correspondents, participants or assignees shall be liable for (i) any action
taken or omitted in the absence of gross negligence or willful misconduct or
(ii) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or L/C Application.  The
Applicant hereby assumes all risks of the acts or omissions of any beneficiary
or transferee with respect to its use of any Letter of Credit; provided that
this assumption is not intended to, and shall not, preclude the Applicant from
pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement.  Neither the Issuer nor any of
the respective correspondents, participants or assignees of the Issuer shall be
liable or responsible for any of the matters described in Section 2.2(d);
provided that, notwithstanding anything in such Section to the contrary, the
Applicant may have a claim against the Issuer, and the Issuer may be liable to
the Applicant, to the extent, but only to the extent, of any direct (as opposed
to indirect, special, punitive or exemplary) damages suffered by the Applicant
which a court of competent jurisdiction determines in a final non-appealable
judgment were caused by the Issuer's gross negligence or willful misconduct or
the Issuer's willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit.  In
furtherance and not in limitation of the foregoing, the Issuer may accept
documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary,
and the Issuer shall not be responsible for the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in
whole or in part, which may prove to be invalid or ineffective for any reason.

(f)               
Applicability
of ISP or UCP.  Unless otherwise expressly agreed by the Issuer and the
Applicant when a Letter of Credit is issued, such Letter of Credit shall be subject
to either the ISP or, if required by the applicable Governmental Authority
regulating the beneficiary of such Letter of Credit, the UCP.

(g)              
Conflict
with L/C Application.  In the event of any conflict between the terms of this
Agreement and the terms of any L/C Application, the terms hereof shall control.

2.3                 
Cash
Collateralization

If the L/C Obligations are accelerated
pursuant to Section 7.1,
and until the final expiration date of all Letters of Credit and thereafter so
long as any L/C Obligations are payable hereunder, the applicable Borrower
shall immediately cash collateralize its Letters of Credit with cash and cash
equivalents in an amount equal to 102 per cent of the outstanding L/C
Obligations and shall deposit such cash and cash equivalents in a special
collateral account pursuant to arrangements satisfactory to the Issuer at the
Issuer's office in the name of the applicable Borrower, but under the sole
dominion and control of the Issuer.

2.4                 
Termination
or Reduction of Commitment

 

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The Everest
Bermuda may, upon notice to the Issuer, terminate or reduce the unused portion
of the Commitment; provided that (a) such notice shall be in writing and must
be received by the Issuer at least three Business Days prior to the effective
date of such termination or reduction, and shall be irrevocable, (b) any such
partial reduction shall be in an aggregate amount of $5,000,000 or a larger
multiple of $1,000,000, (c) the Everest Bermuda shall not terminate or reduce
the Commitment if, after giving effect thereto and to any concurrent
prepayments hereunder, the L/C Obligations would exceed the Commitment Amount. 
Unless previously terminated, the Commitment shall automatically terminate on
the date specified in paragraph (a)
of the definition of "Commitment Termination Date".

2.5                 
Interest 

(a)              
If
any amount payable by a Borrower under this Agreement or any other Facility
Document (including any interest, fees and other amount) is not paid when due,
whether by acceleration or otherwise, such amount shall thereafter bear
interest at a rate per annum equal to the applicable Default Rate. While any
Event of Default exists the L/C Fees shall accrue at the Default Rate.

(b)             
Interest
on Unpaid Reimbursement Obligations shall be payable upon the date of repayment
and upon demand.

(c)              
Interest
hereunder shall be due and payable before and after judgment and before and
after the commencement of any proceeding under any Debtor Relief Law.

(d)             
Any
interest accruing on any unpaid and overdue amount will be compounded daily but
will remain due and payable on demand.

2.6                 
Fees 

(a)              
Commitment Fee

The Everest
Bermuda shall pay to the Issuer a commitment fee (the "Commitment Fee"),
in Dollars, equal to 0.125 per cent per annum times the actual daily amount by
which the Commitment Amount exceeds the L/C Obligations.  The accrued
Commitment Fee shall be payable in arrears on the last Business Day of each
March, June, September and December, commencing on the first such date to occur
after the date hereof, and on the Commitment Termination Date.

(b)             
L/C Fees

Each Applicant
agrees to pay to the Issuer a Letter of Credit fee, in Dollars with respect to
the Stated Amount of each of its outstanding Letters of Credit (the "L/C
Fee"), during the period from and including the Closing Date to but
excluding the later of the Commitment Termination Date and the date on which
the Issuer ceases to have any L/C Obligations thereunder, in an amount equal to
the product of (x) the Dollar Equivalent of the daily amount available to be
drawn under such Letter of Credit (whether or not such maximum amount is then
in effect under such Letter of Credit if such maximum amount increases
periodically pursuant to the terms of such Letter of Credit) times (y) 0.375
per cent per annum, calculated in accordance with Section 2.6(c)
below.  Accrued L/C Fees shall be
payable in arrears on the last Business Day of each March, June, September and
December, commencing on the first such date to occur after the Closing Date,
and ending on the earlier of (i) the date, after the Commitment Termination
Date, on which there are no outstanding Letters of Credit and (ii) the L/C
Expiration Date; provided that any such fees accruing after the L/C Expiration
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demand. 
Notwithstanding anything herein to the contrary, while any Event of Default
exists, all L/C Fees shall accrue at the Default Rate.  In addition, each
Applicant agrees to pay to the Issuer, in Dollars, (i) the customary issuance,
presentation, amendment and other processing fees, and other standard costs and
charges, of the Issuer relating to letters of credit as from time to time in
effect, and (ii) with respect to Letters of Credit issued to beneficiaries
located other than in the United States or the United Kingdom or with respect
to Letters of Credit issued in currencies other than Dollars or Sterling, if
there will be any fees and expenses charged by any correspondent or Confirming
Bank in connection with such Letter of Credit ("Correspondent Issuance
Costs"), the Issuer shall, as soon as reasonably practicable, advise
the Applicant of such Correspondent Issuance Costs and such Letter of Credit
shall not be issued unless and until such Correspondent Issuance Costs have
been approved by the Applicant, notwithstanding the timeframes for the issuance
of Letters of Credit required by Section 2.2. 
All of such fees, costs and charges described in the immediately preceding
sentence shall be payable to the Issuer within three Business Days after its
demand therefor and are non-refundable.

(c)              
Upfront Fees

The
Borrowers shall pay an upfront fee to the Issuer on the Closing Date, in an
amount set out in the invoice issued to Everest Bermuda by the Issuer on or
prior to the Closing Date.

(d)             
Tariff Charges

The
Borrowers shall pay the tariff charges set out in schedule 5 to this Agreement
in connection with each item set out in such schedule.

(e)              
Fee Computation

The L/C Fees
and the Commitment Fee shall be computed on the basis of a year of 360 days and
in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day).  Each determination by the Issuer of
a fee hereunder shall be conclusive absent manifest error.

2.7                 
Evidence
of Debt

Issuer shall
maintain in accordance with its usual practice records evidencing the
indebtedness of each Borrower to Issuer resulting from each L/C Credit
Extension.  The entries made in the records maintained pursuant to this Section
2.7 shall be prima facie evidence absent manifest error of the existence and
amounts of the obligations recorded therein.  Any failure of the Issuer to maintain
such records or make any entry therein or any error therein shall not in any
manner affect the obligations of any Borrower under this Agreement and the
other Facility Documents.

2.8                 
Payments
Generally

(a)              
Payments by a Borrower

All payments to
be made by a Borrower under any Facility Document shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff. 
All payments by a Borrower shall be made to the Issuer at the Issuer's Office
in Dollars and in Same Day Funds not later than 3:00 p.m. (New York City time)
on the date specified herein or, in the case of any payment in an Alternative
Currency, not later than the Applicable Time on the date specified herein. 
With respect to L/C Obligations 

 

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denominated in
an Alternative Currency and payable in Dollars, the Applicant shall make such
payment in Dollars in the Dollar Equivalent of the Alternative Currency payment
amount.

All amounts received by the Issuer after (i)
3:00 p.m. (New York City time), in the case of payments in Dollars, or (ii) the
Applicable Time, in the case of payments in an Alternative Currency, shall in
each case be deemed to have been received on the next succeeding Business Day
and any applicable interest or fees shall continue to accrue.  If any payment
to be made by a Borrower shall fall due on a day that is not a Business Day,
payment shall be made on the next succeeding Business Day and such extension of
time shall be reflected in computing interest or fees, as the case may be;
provided that, if such next succeeding Business Day would fall after the
Commitment Termination Date, payment shall be made on the immediately preceding
Business Day.

(b)             
Application of Insufficient Payments

Subject to Section 7.2,
if at any time insufficient funds are received by and available to the Issuer
with respect to an Applicant to pay fully all amounts of such Borrower's
principal, Unpaid Reimbursement Obligation, interest and fees then due
hereunder, such funds shall be applied (i) first, to pay such Borrower's
interest and fees then due hereunder and (ii) second, to pay such Borrower's
Unpaid Reimbursement Obligations then due hereunder.

2.9                 
Compensation
for Losses

Upon written demand of the Issuer from time
to time, setting forth in reasonable detail the basis for calculating such
compensation, each Applicant shall promptly (but in any event within ten days)
after such demand compensate the Issuer for and hold the Issuer harmless from
any loss, cost or expense incurred by it as a result of any failure by the
Applicant to make payment of any drawing under any Letter of Credit (or
interest due thereon) denominated in an Alternative Currency on its scheduled due date, including,
any loss or expense arising from the liquidation or reemployment of funds
obtained by it from fees payable to terminate the deposits from which such
funds were obtained, or from the performance of any foreign exchange contract;
provided that, for the avoidance of doubt, no Applicant shall be obligated to
compensate the Issuer under this Section for any loss of anticipated profits in
respect of any of the foregoing.

2.10             
Taxes 

(a)              
Payments Free of Taxes

Any and all payments by or on account of any
obligation of any Borrower under any Facility Document shall be made free and
clear of and without deduction or withholding for any Taxes; provided that if
any applicable Law (as determined in the good faith discretion of the Issuer)
requires the deduction or withholding of any Tax from any such payment by such
Borrower, then such Borrower shall make such deduction or withholding and
timely pay the full amount deducted or withheld to the relevant Governmental
Authority in accordance with applicable Law and, if such Tax is an Indemnified
Tax, then the sum payable by such Borrower shall be increased as necessary so
that after making such deductions or withholdings (including such deductions or
withholdings applicable to additional sums payable under this Section) the
Issuer receives an amount equal to the sum it would have received had no such
deductions or withholdings been made.

 

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(b)             
Payment of Other Taxes by the Applicant

Each Borrower shall timely pay to the
relevant Governmental Authority in accordance with applicable Law, or at the
option of the Issuer timely reimburse the Issuer for the payment of, any Other
Taxes.

(c)              
Indemnification by the Applicant

Each Borrower shall indemnify the Issuer
within ten days after demand therefor, for the full amount of any Indemnified
Taxes (including Indemnified Taxes imposed or asserted on or attributable to
amounts payable under this Section) payable or paid by the Issuer with respect
to such Applicant and any reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority.  A certificate as
to the amount of such payment or liability delivered to the Applicant by the
Issuer shall be conclusive absent manifest error.

(d)             
Evidence of Payments

As soon as practicable after any payment of
Taxes by any Borrower to a Governmental Authority pursuant to this Section,
such Applicant shall deliver to the Issuer the original or a certified copy of
a receipt issued by such Governmental Authority evidencing such payment, a copy
of the return reporting such payment or other evidence of such payment
reasonably satisfactory to the Issuer.

(e)              
Treatment of Certain Refunds

If any party determines, in its sole
discretion exercised in good faith, that it has received a refund of any Taxes
as to which it has been indemnified pursuant to this Section (including
additional amounts pursuant to this Section), it shall pay to the indemnifying
party an amount equal to such refund (but only to the extent of indemnity
payments made under this Section 2.10 
with respect to the Taxes giving rise to such refund), net of all out-of-pocket
expenses (including Taxes) of such indemnified party and without interest
(other than any interest paid by the relevant Governmental Authority with
respect to such refund).  Such indemnifying party, upon the request of such
indemnified party, shall repay to such indemnified party the amount paid over
pursuant to this paragraph (e)
(plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) in the event that such indemnified party is required to
repay such refund to such Governmental Authority.  Notwithstanding anything in
this paragraph (e)
to the contrary, in no event will the indemnified party be required to pay any
amount to an indemnifying party pursuant to this paragraph (e)
the payment of which would place the indemnified party in a less favorable net
after-Tax position than the indemnified party would have been in if the Tax
subject to indemnification and giving rise to such refund had not been
deducted, withheld or otherwise imposed and the  indemnification payments or
additional amounts giving rise to such refund had never been paid.  This
paragraph (e)
shall not be construed to require any indemnified party to make available its
Tax returns (or any other information relating to its Taxes that it deems
confidential) to the indemnifying party or any other Person.

(f)              
Indemnification by the Issuer

The Issuer shall indemnify each Borrower
within ten days after demand therefor, for any Excluded Taxes attributable to
the Issuer and that are payable or paid by such Borrower in connection with any
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therefrom or
with respect thereto, whether or not such Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority.  A certificate as
to the amount of such payment or liability delivered to the Issuer by such
Borrower shall be conclusive absent manifest error.

2.11             
Increased
Costs

(a)              
Increased Costs Generally

If any Change in Law shall:

(i)               
impose,
modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for
the account of, or credit extended or participated in by, the Issuer;

(ii)             
subject
the Issuer to any Taxes, other than;

(A)              
Indemnified
Taxes;

(B)             
Taxes
described in paragraphs (c) through (e) of the definition of "Excluded
Taxes"; and

(C)             
Other
Connection Taxes on gross or net income, profits or revenue (including
value-added or similar Taxes or that are franchise or branch profits Taxes) on
its loans, loan principal, letters of credit, commitments, or other
obligations, or its deposits, reserves, other liabilities or capital
attributable thereto; or

(iii)            
impose
on the Issuer any other condition, cost or expense (except, in each case, with
respect to Taxes) affecting this Agreement or any Letter of Credit,

and the result of any of the foregoing shall
be to increase the cost to the Issuer of issuing or maintaining any Letter of
Credit (or of maintaining its obligation to issue any Letter of Credit), or to
reduce the amount of any sum received or receivable by the Issuer hereunder
(whether of interest or any other amount) then, upon request of the Issuer, the
Borrowers will pay to the Issuer such additional amount or amounts as will
compensate the Issuer for such additional costs incurred or reduction suffered.

(b)             
Capital and Liquidity Requirements

If the Issuer determines that any Change in
Law affecting the Issuer, any of its applicable lending offices or its holding
company regarding capital or liquidity requirements has or would have the
effect of reducing the rate of return on capital for the Issuer or its holding
company, if any, as a consequence of this Agreement, the Commitment of the
Issuer or the Letters of Credit issued by the Issuer, to a level below that
which the Issuer or its holding company could have achieved but for such Change
in Law (taking into consideration the Issuer's or its holding company's
policies with respect to capital adequacy and liquidity), then from time to
time the Borrowers will pay to the Issuer such additional amount or amounts as
will compensate the Issuer or its holding company for any such reduction
suffered.

(c)              
Certificates for Reimbursement

A certificate of the Issuer setting forth in
reasonable detail the amount or amounts necessary to compensate the Issuer or
its holding company as specified in paragraph (a)
 

 

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or (b)
of this Section and delivered to such Borrower, shall be conclusive absent
manifest error.  Such Borrower shall pay the Issuer the amount shown as due on
any such certificate promptly (but in any event within ten days) after receipt
thereof.

(d)             
Delay in Requests

Failure or delay on the part of the Issuer
to demand compensation pursuant to this Section shall not constitute a waiver
of the Issuer's right to demand such compensation; provided that no Borrower
shall be required to compensate the Issuer pursuant to this Section for any
increased costs incurred or reductions suffered more than three months prior to
the date that the Issuer notifies such Borrower of the Change in Law giving
rise to such increased costs or reductions, and of the Issuer's intention to
claim compensation therefor (except that, if the Change in Law giving rise to
such increased costs or reductions is retroactive, then the three-month period
referred to above shall be extended to include the period of retroactive effect
thereof).

2.12             
Illegality 

If it becomes unlawful in any applicable
jurisdiction for the Issuer to issue or maintain any Letter of Credit:

(a)              
the
Issuer shall promptly notify Everest Bermuda upon becoming aware of that event;
and

(b)             
upon
the Issuer notifying Everest Bermuda, the Issuer shall have no obligation to
issue or maintain any Letter of Credit in such jurisdiction.

2.13             
Mitigation
Obligations

If at any time the Issuer requests
compensation under Section 2.10 
or Section 2.11,
then the Issuer shall, at the request of Everest Bermuda, use reasonable
efforts to assign its rights and obligations hereunder to another of its
offices, branches or Affiliates, if, in the judgment of the Issuer, such
designation or assignment:

(a)              
would
eliminate or reduce amounts payable pursuant to Section 2.10 
or Section 2.11,
as the case may be, in the future; and

(b)             
in
each case, would not subject the Issuer to any unreimbursed cost or expense and
would not otherwise be disadvantageous to the Issuer. Everest Bermuda hereby
agrees to pay all reasonable costs and expenses incurred by the Issuer in
connection with any such designation or assignment.

2.14             
Designated
Borrowers

(a)              
Everest
Bermuda may at any time, upon not less than 15 days' notice from Everest
Bermuda to the Issuer (or such longer period as is determined by the Issuer to
be reasonably necessary for the Issuer to comply with governmental or
regulatory requirements), request to designate any additional Insurance
Subsidiary of Everest Group (a "Designated Borrower") as a
Borrower to request Letters of Credit by delivering to the Issuer a duly
executed notice and agreement in substantially the form of appendix
4
(a "Designated Borrower Request and Assumption Agreement"). 
If, following receipt by the Issuer of a duly completed Designated Borrower
Request and Assumption Agreement, the Issuer agrees (in its sole discretion)
that a Designated Borrower shall be entitled to request L/C Credit Extensions
hereunder, then promptly 

 

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following receipt of all items
set forth in Section 4.2(f),
the Issuer shall send the accepted Designated Borrower Request and Assumption
Agreement to such Designated Borrower and Everest Bermuda and the effective
date upon which the Designated Borrower shall constitute a Borrower for
purposes hereof, and each of the parties agrees that such Designated Borrower
otherwise shall be a Borrower for all purposes of this Agreement; provided that
no L/C Application may be submitted by or on behalf of such Designated Borrower
until the date five Business Days after such effective date.
For the avoidance of doubt, (a) the parties hereto acknowledge and agree that
prior to any Designated Borrower becoming entitled to request L/C Credit
Extensions, the Issuer shall have received the items set forth in Section 4.2(f),
and (b) the Issuer shall have no obligation to agree to any proposed Designated
Borrower becoming a Designated Borrower hereunder pursuant to this Section
(notwithstanding the fact that all items under Section 4.2(f)
may have been delivered to the Issuer), and any decision to accept a Designated
Borrower shall be in the sole discretion of the Issuer.

(b)             
Everest
Bermuda and each Insurance Subsidiary of Everest Group that is or becomes a
"Designated Borrower" pursuant to this Section 2.14 
hereby irrevocably appoints Everest Bermuda as its agent for all purposes
relevant to this Agreement and each of the other Facility Documents, including
(i) the giving and receipt of notices and (ii) the execution and delivery of
all documents, instruments and certificates contemplated herein and all
modifications hereto.  Any acknowledgment, consent, direction, certification or
other action which might otherwise be valid or effective only if given or taken
by all Borrowers, or by each Borrower acting singly, shall be valid and
effective if given or taken only by Everest Bermuda, whether or not any such
other Borrower joins therein.  Any notice, demand,
consent, acknowledgement, direction, certification or other communication
delivered to Everest Bermuda in accordance with the terms of this Agreement
shall be deemed to have been delivered to each Designated Borrower.

(c)              
Everest
Bermuda may from time to time, upon not less than five Business Days' notice
from Everest Bermuda to the Issuer (or such shorter period as may be agreed by
the Issuer in its sole discretion), terminate a Designated Borrower's status as
such, provided that there are no Letters of Credit issued for the account of
such Designated Borrower or other amounts payable by such Designated Borrower
hereunder, as of the effective date of such termination.

2.15             
[Reserved] 

2.16             
[Reserved] 

3.                    
REPRESENTATIONS
AND WARRANTIES

Each Borrower
represents and warrants to the Issuer that:

3.1                 
Corporate
Authority

(a)              
Incorporation; Good Standing

Such Borrower
(a) is a company duly organized, validly existing and in good standing under
the laws of its jurisdiction of organization, (b) has all requisite corporate
(or the equivalent company) power to own its property and conduct its business
as now conducted and as presently contemplated, and (c) is in good standing as
a foreign corporation (or similar business entity) and is duly authorized to do
business in each jurisdiction where such qualification is necessary except
where a failure to be so qualified would not reasonably be expected to have a
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(b)             
Authorization; Enforceability

The
Transactions are within such Borrower's corporate powers and have been duly
authorized by all necessary corporate and, if required, shareholder action. 
Each Facility Document to which such Borrower is a party has been duly executed
and delivered by such Borrower and constitutes a legal, valid and binding
obligation of such Borrower, enforceable in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors' rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

3.2                 
Governmental
Approvals; No Conflicts

The
Transactions (a) do not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority, except such as
have been obtained or made and are in full force and effect, (b) will not
violate any applicable Law or the Organization Documents of such Borrower or
any order of any Governmental Authority applicable to such Borrower and (c)
will not violate or result in a default under any indenture, agreement or other
instrument binding upon such Borrower or its assets, or give rise to a right
thereunder to require any payment to be made by such Borrower.

3.3                 
Financial
Condition; No Material Adverse Change

(a)              
Financial Statements

Each Borrower
has heretofore furnished to the Issuer the unaudited consolidated balance sheet
and statements of income of such Borrower as of and for the fiscal quarter
ended June 30, 2021. Such financial statements present fairly, in all material
respects, the financial position and results of operations of such Borrower and
its consolidated Subsidiaries as of such date and for such period in accordance
with GAAP.

(b)             
No Material Adverse Changes. 
Since December 31, 2020, there has been no event or
circumstance that, either individually or in the aggregate, has had or could
reasonably be expected to have a Material Adverse Effect.

3.4                 
Properties 

(a)              
Good Title. 
Such Borrower has good title to, or valid leasehold interests in, all its real
and personal property material to its business, taken as a whole, except for
minor defects in title that do not interfere with its ability to conduct its
business as currently conducted or to utilize such properties for their
intended purposes.

(b)             
Intellectual Property. 
Such Borrower owns, or is licensed to use, all trademarks, tradenames,
copyrights, patents and other intellectual property material to its business,
and, to the knowledge of such Borrower, the use thereof by such Borrower does
not infringe upon the rights of any other Person, except for any such
infringements that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

3.5                 
Litigation 

There are no
actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of such Borrower, threatened in
writing against or affecting such Borrower or any of its Subsidiaries (a) that
could reasonably be expected, 

 

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individually
or in the aggregate, to result in a Material Adverse Effect or (b) that involve
this Agreement or the Transactions.

3.6                 
Compliance
with Laws and Agreements

Each of such
Borrower and its Subsidiaries is in compliance with: (i) its Organization
Documents and (ii) all Laws and orders of any Governmental Authority applicable
to it or its property, except where the failure to do so, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

3.7                 
Investment
Company Status

No Borrower is
an "investment company" as defined in, or subject to regulation
under, the Investment Company Act of 1940.  No Borrower is engaged in
"investment business" as defined in the Investment Business Act 2003
of Bermuda, as amended.

3.8                 
Taxes 

Each of such
Borrower and its Subsidiaries has timely filed or caused to be filed all Tax
returns and reports required to have been filed and has paid or caused to be
paid all Taxes required to have been paid by it, except (a) Taxes that are
being contested in good faith by appropriate proceedings and for which such
Borrower or such Subsidiary, as applicable, has set aside on its books adequate
reserves or (b) to the extent that the failure to do so could not reasonably be
expected to result in a Material Adverse Effect.

3.9                 
ERISA 

No Borrower has
any direct obligations or direct liability under any Plan, and except as would
not reasonably be expected to have a Material Adverse Effect, no ERISA
Affiliate has any obligation or liability with respect to any Plan.

3.10             
Insurance
Licenses

As of the
Closing Date,

(a)              
schedule 2
attached hereto lists all of the jurisdictions in which any Borrower holds
active licenses and is authorized to transact insurance business;

(b)             
no
such license is the subject of a direction issued by an Applicable Insurance
Regulatory Authority, proceeding for suspension or revocation, there is no
sustainable basis for such suspension or revocation, and to such Borrower's
knowledge, no such suspension or revocation has been threatened by any
Governmental Authority;

(c)              
schedule 2
also indicates the type or types of insurance in which any Borrower is
permitted to engage with respect to each license therein listed; and

(d)             
no
Borrower nor any Insurance Subsidiary transacts any insurance business,
directly or indirectly, in any jurisdiction where it would be unlawful for it
to do so.

3.11             
Subsidiaries 

As of the
Closing Date, such Borrower has no Subsidiaries.

3.12             
Material
Agreements

 

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Neither
such Borrower nor any Subsidiary is in default in the performance, observance
or fulfillment of any of the obligations, covenants or conditions contained in
any agreement to which it is a party, which default could reasonably be expected
to have a Material Adverse Effect.

3.13             
Disclosure 

Such Borrower
has disclosed to the Issuer all agreements, instruments and corporate or other
restrictions to which it or any of its Subsidiaries is subject, and all other
matters known to it, that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect.  None of the reports,
financial statements, certificates or other information furnished by or on
behalf of such Borrower to the Issuer in connection with the negotiation of
this Agreement or delivered hereunder taken as a whole (as modified or
supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projected financial
information, such Borrower represent only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time (it
being understood that projected financial information is as to future events
and is not to be viewed as fact and that actual results during the period or
periods covered by any such information may differ significantly from the projected
results and such differences may be material).

As of the
Closing Date, the information included in the Beneficial Ownership
Certification is true and correct in all respects.

3.14             
Solvency 

Such Borrower
and each Subsidiary of such Borrower are, on a consolidated basis, Solvent.

3.15             
Foreign
Pension Plan

Except as,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect:

(a)              
each
Foreign Pension Plan has been maintained in compliance with its terms and in
compliance with the requirements of any and all applicable Laws, statutes,
rules, regulations and orders (including all funding requirements and the
respective requirements of the governing documents for each such Foreign
Pension Plan) and has been maintained, where required, in good standing with
applicable regulatory authorities;

(b)             
all
contributions required to be made with respect to a Foreign Pension Plan have
been timely made;

(c)              
no
actions or proceedings have been taken or instituted to terminate or wind up a Foreign
Pension Plan;

(d)             
neither
such Borrower nor any Subsidiary has incurred any obligation in connection with
the termination of or withdrawal from any Foreign Pension Plan; and

(e)              
no
Foreign Pension Plan is a defined benefit plan.

3.16             
Anti-Corruption
Laws and Sanctions

Such Borrower
has implemented and maintains in effect policies and procedures reasonably
designed to ensure compliance in all material respects by such Borrower, its
Subsidiaries and 

 

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their
respective directors, officers, employees and agents with Anti-Corruption Laws
and applicable Sanctions, and such Borrower, its Subsidiaries and their
respective officers and employees and to the knowledge of such Borrower its
directors and agents (under the control of such Borrower or any Subsidiary),
are in compliance with Anti-Corruption Laws and applicable Sanctions in all
material respects.  None of (a) such Borrower, any Subsidiary or to the
knowledge of such Borrower any of their respective directors, officers or
employees, or (b) to the knowledge of such Borrower, any agent (under the
control of such Borrower or Subsidiary) of such Borrower or any Subsidiary that
will act in any capacity in connection with or benefit from the letter of
credit facility established hereby, is a Sanctioned Person.  No Letter of
Credit, use of proceeds or other transaction contemplated by this Agreement
will violate Anti-Corruption Laws or applicable Sanctions.

3.17             
Absence
of Financing Statements

There is no
financing statement, security agreement, chattel mortgage, real estate mortgage
or other document filed or recorded with any filing records, registry or other
public office, that purports to cover, affect or give notice of any present or
possible future lien on any of the Collateral other than those in favor of the
Issuer.

3.18             
Perfection
of Security Interest

All filings,
assignments, pledges and deposits of documents or instruments have been made
and all other actions have been taken, or, where applicable Law requires filing
after the execution of this Agreement (or the Security Agreements), will be
taken, that are necessary or advisable, under applicable Law, to establish and
perfect the Issuer's security interest in the Borrower's Collateral.  The
Issuer acknowledges and agrees that the Collateral is subject to liens and
set-off rights in favor of the Custodian as expressly permitted pursuant to the
applicable Control Agreement (the "Custodial Lien and Set-off Rights"). 
The Collateral and the Issuer's rights with respect to the Collateral are not
subject to any setoff, claims, withholdings or other defenses other than the
Custodial Lien and Set-off Rights.  Such Borrower is the owner of the
Collateral free from any lien, encumbrance or security interest, other than the
Custodial Lien and Set-Off Rights and the Liens granted hereby.

3.19             
Use
of Proceeds

Letters
of Credit will be used solely to support Company Reinsurance Agreements,
insurance or reinsurance agreements or the regulatory or supervisory
requirements applicable to the Borrowers, provided that no Letter of Credit
will be issued to Lloyd's of London or members of its syndicate (whether in
connection with a Company Reinsurance Agreement or to provide supporting
funds).

3.20             
Representations
as to Foreign Jurisdiction Matters

(a)              
If
such Borrower is not organized under the laws of the United States or a state
thereof, such Borrower is subject to civil and commercial Laws with respect to
its obligations under this Agreement and the other Facility Documents to which
it is a party (the "Applicable Facility Documents"), and the execution,
delivery and performance by such Borrower of the Applicable Facility Documents
constitute and will constitute private and commercial acts and not public or
governmental acts. Neither such Borrower nor any of its property has any
immunity from jurisdiction of any court or from any legal process (whether
through service or notice, attachment prior to judgment, attachment in aid of
execution, execution or otherwise) under the laws of the jurisdiction in which
such Borrower is organized (the "Applicable Foreign Jurisdiction")
in respect of its obligations under the Facility Documents.

 

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(b)             
The
Applicable Facility Documents are in proper legal form under the Laws of the
Applicable Foreign Jurisdiction for the enforcement thereof against such
Borrower under the Laws of the Applicable Foreign Jurisdiction, and to ensure
the legality, validity, enforceability or admissibility in evidence of the
Applicable Facility Documents. It is not necessary to ensure the legality,
validity, enforceability, priority or admissibility in evidence of the
Applicable Facility Documents that the Applicable Facility Documents be filed,
registered or recorded with, or executed or notarized before, any court or
other authority in the jurisdiction in which such Borrower is organized and
existing or that any registration charge or stamp or similar tax be paid on or
in respect of the Applicable Facility Documents or any other document, except
for any such filing, registration, recording, execution or notarization that
has been made and is in full force and effect, or is not required to be made
until the Applicable Facility Documents are sought to be enforced, or any such
filing, registration or recording with respect to the Security Agreements which
will be made promptly after the execution of this Agreement (or the Security
Agreements).

(c)              
As
of the Closing Date (or, in the case of a Designated Borrower, the date such
Person becomes a Borrower), there is no tax, levy, impost, duty, fee,
assessment or other governmental charge, or any deduction or withholding,
imposed by any Governmental Authority in or of the Applicable Foreign
Jurisdiction either (i) on or by virtue of the execution or delivery of the
Applicable Facility Documents or (ii) on any payment to be made by such
Borrower pursuant to the Applicable Facility Documents.

(d)             
The
execution, delivery and performance of the Applicable Facility Documents are,
under applicable foreign exchange control regulations of the Applicable Foreign
Jurisdiction, not subject to any notification or authorization except (i) such
as have been made or obtained or (ii) such as cannot be made or obtained until
a later date (provided that any notification or authorization described in
paragraph (ii) shall be made or obtained as soon as is reasonably practicable).

(e)              
If
the Borrower's Applicable Foreign Jurisdiction is Bermuda, such Borrower has
not received any direction or other notification from the Bermuda Monetary
Authority pursuant to Section
32 of the Bermuda
Insurance Act and is not the subject of any Private Act.

3.21             
No
Event of Default

No Default has
occurred and is continuing.

4.                    
CONDITIONS 

4.1                 
Closing
Date

The obligation
of the Issuer to issue Letters of Credit hereunder is subject to the
satisfaction (or waiver in accordance with Section 9.2)
of the following conditions:

(a)              
Executed Counterparts of this Agreement. 
The Issuer shall have executed this Agreement and received a counterpart of
this Agreement signed by Everest Bermuda (or written evidence satisfactory to
the Issuer of a signed signature page to this Agreement that Everest Bermuda
have signed a counterpart of this Agreement).

(b)             
Executed Counterparts of the Security
Documents.  The Issuer shall have
received from Everest Bermuda, a counterpart of its applicable Security
Documents executed by the parties thereto which shall be in full force and
effect and shall be in form and 

 

  

substance satisfactory to the
Issuer and the Issuer shall have viewing rights with respect to the Collateral
Accounts subject to such Control Agreement.

(c)              
Certificates. 
The Issuer shall have received such customary certificates of resolutions or
other action, incumbency certificates and/or other certificates of the
secretary, assistant secretary or Responsible Officers of Everest Bermuda as
the Issuer may require evidencing the identity, authority and capacity of each
Responsible Officer thereof authorized to act as a Responsible Officer in
connection with the Facility Documents.

(d)             
Corporate Documents. 
The Issuer shall have received such other documents and certificates (including
Organization Documents and good standing (or similar) certificates) as the
Issuer may reasonably request relating to the organization, existence and good
standing of  and any other legal matters relating to Everest Bermuda, the
Facility Documents or the transactions contemplated thereby.

(e)              
Opinion of Counsel to Everest Bermuda. 
The Issuer shall have received an opinion of Mayer Brown LLP, New York counsel
to Everest Bermuda, addressed to the Issuer and dated the Closing Date, in form
and substance satisfactory to the Issuer (and Everest Bermuda hereby instructs
such counsel to deliver such opinion to the Issuer).

(f)               
Opinion of Additional Counsel to Everest
Bermuda  The Issuer shall have received
(i) an opinion of Conyers Dill & Pearman Limited, Bermuda counsel to
Everest Bermuda addressed to the Issuer and dated the Closing Date, in form and
substance satisfactory to the Issuer (and Everest Bermuda hereby instructs such
counsel to deliver such opinion to the Issuer).

(g)              
Fees and Expenses. 
Everest Bermuda shall have paid all fees, costs and expenses (including legal
fees and expenses) agreed in writing to be paid by it to the Issuer in
connection herewith to the extent due (and, in the case of expenses (including
legal fees and expenses), to the extent that statements for such expenses shall
have been delivered to Everest Bermuda prior to the Closing Date).

(h)             
KYC Information. 
Everest Bermuda shall have provided to the Issuer the documentation and other
information requested by the Issuer in connection with applicable "know
your customer" and anti-money-laundering rules and regulations, including
the PATRIOT Act.  If Everest Bermuda qualifies as a "legal entity
customer" under the Beneficial Ownership Regulation, it shall have
provided to the Issuer a Beneficial Ownership Certification in relation to it.

(i)               
Financial Strength Rating. 
The Financial Strength Rating of Everest Bermuda shall be B++ or better.

(j)               
Officer's Certificate. 
The Issuer shall have received a certificate, dated the Closing Date and signed
by a Responsible Officer of Everest Bermuda, confirming satisfaction of the conditions
set forth in paragraph (i) of this Section and compliance with the conditions
set forth in paragraphs (b)
and (c)
of the first sentence of Section 4.2. 

(k)              
Compliance Certificate. 
The Issuer shall have received a duly completed Compliance Certificate of
Everest Bermuda dated as of the Closing Date.

(l)               
Process Agent Letter. 
A letter from the Process Agent agreeing to the terms of Section 9.9(d)
in respect of Everest Bermuda.

 

  

The
Issuer shall notify Everest Bermuda of the Closing Date, and such notice shall
be conclusive and binding on the Borrowers.

4.2                 
Conditions
to All L/C Credit Extensions

The obligation
of the Issuer to make any L/C Credit Extension is additionally subject to the
satisfaction of the following conditions:

(a)              
the
Issuer shall have received, except with respect to an Auto-Renewal Letter of
Credit, an L/C Application, as applicable, in accordance with the requirements
hereof;

(b)             
the
representations and warranties of the Borrowers set forth in this Agreement and
in any other Facility Document shall be true and correct in all material
respects (or, in the case of any such representation or warranty already
qualified by materiality, in all respects) on and as of the date of such L/C
Credit Extension (or, in the case of any such representation or warranty
expressly stated to have been made as of a specific date, as of such specific
date);

(c)              
no
Default shall have occurred and be continuing or would result from such L/C
Credit Extension or from the application of proceeds thereof;

(d)             
in
the case of a Letter of Credit to be denominated in an Alternative Currency,
there shall not have occurred any change in national or international
financial, political or economic conditions or currency exchange rates or
exchange controls which in the reasonable opinion of the Issuer would make it
impracticable for such L/C Credit Extension to be denominated in the relevant
Alternative Currency; 

(e)              
following
any L/C Credit Extension, the L/C Obligations shall not exceed the Commitment
Amount and the L/C Obligations of a Borrower shall not exceed such Borrower's
Collateral Coverage Amount;

(f)               
In
addition to satisfaction of the conditions in paragraphs (a)
through (e),
the obligation of the Issuer to make an initial L/C Credit Extension to a
Designated Borrower is subject to the satisfaction of the conditions that the
Issuer shall have received the following:

(i)               
a
Designated Borrower Request and Assumption Agreement executed by such
Designated Borrower and Everest Bermuda, a Security Agreement executed by such
Designated Borrower and the Issuer and a Control Agreement executed by the
Designated Borrower, the Issuer and the applicable Custodian;

(ii)             
all
documents as shall reasonably demonstrate the existence of such Designated
Borrower, the corporate power and authority of such Designated Borrower to
enter into, and the validity with respect to such Designated Borrower of, this
Agreement and the other Facility Documents to which it is a party and the
incumbency of officers executing the Facility Documents (including an opinion
of counsel to such Designated Borrower and, if such counsel is not licensed to
practice in New York, an opinion of New York counsel), in form and substance
reasonably satisfactory to the Issuer;

(iii)            
a
certificate of a Responsible Officer of such Designated Borrower either (A)
attaching copies of all consents, licenses and approvals from a Governmental
Authority required in connection with the execution, delivery and performance
by such Designated Borrower and the validity against such Designated Borrower
of the Facility Documents to which it is a party and confirming that such
consents, 

 

  

licenses and approvals shall be
in full force and effect, or (B) stating that no such consents, licenses or
approvals are so required;

(iv)            
such
corporate documents and other information as the Issuer shall reasonably
request for purposes of the Patriot Act and its "Know Your Client"
requirements, including, if such Designated Borrower qualifies as a "legal
entity customer" under the Beneficial Ownership Regulation, a Beneficial
Ownership Certification in relation to such Designated Borrower; 

(v)              
if
such Designated Borrower is not organized in the United States or a state thereof,
the Issuer shall not be subject to any legal or regulatory requirement to be
licensed to do business in the jurisdiction in which such Designated Borrower
is organized in order to make L/C Credit Extensions to such Designated Borrower
or shall be otherwise prohibited from extending credit to such Designated
Borrower; and

(vi)            
A
letter from the Process Agent agreeing to the terms of Section 9.9(d)
in respect of such Designated Borrower.

Each request
for an L/C Credit Extension hereunder and each L/C Credit Extension shall be
deemed to constitute a representation and warranty by the Borrowers on and as
of the date of the applicable L/C Credit Extension as to the matters specified
in paragraphs (b)
and (c)
above in this Section.

5.                    
AFFIRMATIVE
COVENANTS

Until the
Commitment has expired or been terminated and all Letters of Credit shall have
expired or been terminated and all other Obligations have been paid in full,
each Borrower covenants and agrees to:

5.1                 
Financial
Statements, Certificates and Information

Deliver to the
Issuer:

(a)              
within
150 days after the end of Everest Bermuda's fiscal year, the audited
consolidated financial statements of Everest Bermuda for that fiscal year.  The
consolidated financial statements will set forth in each case in comparative
form the figures for the previous fiscal year as available, all reported on by
PricewaterhouseCoopers LLP or other independent public accountants of
recognized national standing (without a "going concern" or like
qualification or exception and without any qualification or exception as to the
scope of such audit) to the effect that such consolidated financial statements
present fairly in all material respects the financial condition and results of
operations of Everest Bermuda and its consolidated Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied;

(b)             
commencing
with the fiscal quarter ending September 30, 2021, within 70 days after the end
of each of the first three quarters of each fiscal year of Everest Bermuda,
unaudited consolidated balance sheet and related statements of operations for
that financial quarter and the fiscal year to date.  The consolidated financial
statements will set forth in each case in comparative form the figures for the
corresponding period or periods of (or, in the case of the balance sheet, as of
the end of) the previous fiscal year as available, all certified by a Financial
Officer of Everest Bermuda as presenting fairly in all material respects the
financial condition and results of operations of Everest 

 

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Bermuda and its consolidated
Subsidiaries in accordance with GAAP consistently applied, subject to normal
year-end audit adjustments and the absence of footnotes;

(c)              
concurrently
with the delivery to the Issuer of the financial statements under
Sections 5.1(a)
and 5.1(b),
a duly completed Compliance Certificate signed by a Financial Officer of
Everest Bermuda;

(d)             
within
ten days after A.M. Best, S&P or any other nationally recognized rating
agency shall have announced a change in its financial strength rating of such
Borrower or any Insurance Subsidiary thereof, or shall have first assigned a
rating thereto, written notice of such changed or initial rating;

(e)              
[reserved]; 

(f)               
within
ten Business Days after the end of each calendar month, a certificate (a "Collateral
Compliance Certificate") substantially in the form of appendix
2
attached hereto, signed by an officer of such Borrower, certifying compliance
with the collateral coverage requirement set forth in Section
5.10 
and demonstrating, in detail satisfactory to the Issuer, the Fair Market Value
of such Borrower's Eligible Collateral as of the last Business Day of the
immediately preceding month; and

(g)              
promptly
following any request therefor, such other information regarding the
operations, business affairs and financial condition of any Borrower, or
compliance with the terms of this Agreement, as the Issuer may reasonably
request.

Information
required to be delivered pursuant to the foregoing Section 5.1(a),
(b)
and (c)
shall be deemed to have been delivered on the date on which such Borrower delivers
copies of such information to the Issuer or on the date on which such Borrower
provides notice (including notice by electronic transmission) to the Issuer
that such information has been posted on a website identified in such notice
and accessible by the Issuer without charge.

5.2                 
Notices 

(a)              
Furnish
to the Issuer as soon as possible but in any event within ten days after any
officer of such Borrower becomes aware thereof, written notice of the
following:

(i)               
Defaults. 
The occurrence of any Default.

(ii)             
Litigation. 
The filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting such Borrower that
could reasonably be expected to result in a Material Adverse Effect.

(iii)            
Foreign Pension Plan Liabilities. 
Any Borrower's Foreign Pension Plan becomes a defined benefits plan.

(iv)            
Insurance Licenses. 
(i) The receipt by any Insurance Subsidiary of any notice or direction from any
Governmental Authority (including any Applicable Insurance Regulatory
Authority) of the expiration without renewal, revocation or suspension of, or
the institution of any proceedings to revoke or suspend, any license now or
hereafter held by such Insurance Subsidiary which is required to conduct
insurance business in compliance with all applicable Laws and regulations, (ii)
the receipt of any notice from any Governmental Authority (including any
Applicable Insurance Regulatory Authority) of the institution of any
disciplinary proceedings against or in respect of any Insurance Subsidiary, or
the issuance of any order, 

 

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the taking of any action or any
request for an extraordinary audit for cause by any Governmental Authority
(including any Applicable Insurance Regulatory Authority)
or (iii) any judicial or administrative order limiting or controlling the
insurance business of any Insurance Subsidiary (and not the insurance industry
generally) which has been issued or adopted.

(v)              
Beneficial Ownership Certification . 
Any change in the information provided in the Beneficial Ownership Certification
that would result in a change to the list of beneficial owners identified in
parts (c) or (d) of such certification.

(b)             
Furnish
to the Issuer as soon as possible but in any event within three Business Days
after any officer of such Borrower becomes aware thereof, written notice of any
setoff, claims, withholdings or other defenses to which any of its Collateral,
or the Issuer's rights with respect to such Collateral, are subject other than
with respect to the Custodial Lien and Set-off Rights, provided, that such
Borrower will notify the Issuer hereunder of any set-off exercised by the
Custodian pursuant to the Custodial Lien and Set-off Rights.

Each notice
delivered under this Section 5.2 shall be accompanied by a statement of a
Financial Officer or other executive officer of such Borrower setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.

5.3                 
Existence;
Conduct of Business

Such Borrower
will, and will cause each Subsidiary to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect (a) its legal
existence and (b) the rights, licenses, permits, privileges and franchises
(including without limitation, certificates of authority and other required
insurance licenses) material to the conduct of the business of such Borrower
and its Subsidiaries, taken as a whole, except, in the case of paragraph (b),
where failure to do so, individually or in the aggregate, could not be expected
to result in a Material Adverse Effect; provided that the foregoing shall not
prohibit any merger or consolidation permitted under this Agreement.

5.4                 
Maintenance
of Office

Such Borrower
will maintain its principal or registered office at the location set forth
below its name on its signature page, or at such other place as such Borrower
shall designate upon written notice to the Issuer, where notices, presentations
and demands to or upon such Borrower in respect of the Facility Documents to
which such Borrower is a party may be given or made.

5.5                 
Payment
of Obligations

Such Borrower
will, and will cause each Subsidiary to, pay its obligations, including Tax
liabilities, that, if not paid, could result in a Material Adverse Effect
before the same shall become delinquent or in default, except where (a) the
validity or amount thereof is being contested in good faith by appropriate
proceedings and (b) such Borrower or such Subsidiary has set aside on its books
adequate reserves with respect thereto in accordance with GAAP or SAP, as
applicable.

5.6                 
Maintenance
of Properties; Insurance

Such Borrower
will, and will cause each Subsidiary to, (a) keep and maintain all property
material to the conduct of the business of such Borrower and its Subsidiaries
taken as a whole 

 

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in
good working order and condition, ordinary wear and tear excepted, and (b)
maintain, with financially sound and reputable insurance companies, insurance
in such amounts and against such risks as are customarily maintained by
companies engaged in the same or similar businesses operating in the same or
similar locations.

5.7                 
Books
and Records; Inspection Rights

Such Borrower
will, and will cause each Subsidiary to, keep proper books of record and
account in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities.  Such Borrower will,
and will cause each Subsidiary to, permit any representatives designated by the
Issuer, upon reasonable prior notice, to visit and inspect its properties, to
examine and make extracts from its books and records, and to discuss its
affairs, finances and condition with its officers and independent accountants,
all at such reasonable times and as often as reasonably requested; provided
that unless an Event of Default exists, the Borrowers shall not be required to
pay the costs and expenses of more than one such inspection in any year.

5.8                 
Compliance
with Laws

Such Borrower
will, and will cause each Subsidiary to, comply with (i) the Bermuda Insurance
Act and (ii) all other applicable Laws, rules, regulations and orders of any
Governmental Authority applicable to it or its property, except, in the case of
clause (ii) above only, where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.  Such Borrower will maintain in effect and enforce policies and
procedures reasonably designed to ensure compliance in all material respects by
such Borrower, its Subsidiaries and their respective directors, officers, employees
and agents under their control with Anti-Corruption Laws and applicable
Sanctions. 

5.9                 
Use
of Proceeds

Letters of
Credit will be used solely to support Company Reinsurance Agreements, insurance
or reinsurance agreements or the regulatory or supervisory requirements
applicable to the Borrowers, provided that no Letter of Credit hereunder shall
be issued to support the capital requirements at Lloyd's of London, otherwise
known as "Funds at Lloyd's".  The Borrowers will not request any
Letter of Credit, and the Borrowers shall not use, and shall procure that their
respective Subsidiaries and their respective directors, officers, employees and
agents shall not use any Letter of Credit (A) in furtherance of an offer,
payment, promise to pay, or authorization of the payment or giving of money, or
anything else of value, to any Person in violation of any Anti-Corruption Laws,
(B) for the purpose of funding, financing or facilitating any activities,
business or transaction of or with any Sanctioned Person, or in any Sanctioned
Country in violation of applicable Sanctions, or (C) in any manner that would
result in the violation of any Sanctions applicable to any party hereto.

5.10             
Collateral
Coverage

(a)              
Such
Borrower hereby covenants and agrees that its Collateral Coverage Amount must
at all times be equal to or greater than its L/C Obligations.

(b)             
The
Issuer shall determine the Adjusted Fair Market Value of each Borrower's
Eligible Collateral based on the valuations provided by the Custodian for the
applicable Collateral Account.  Such Borrower agrees that at all times
following the date of this Agreement until (i) the Commitment has expired or
been terminated, (ii) all Letters of Credit have expired or been terminated and
(iii) all L/C Obligations have been paid in full, it will do or cause to be
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authority from such Borrower at
all times to have viewing access to its Collateral Accounts and it will use
commercially reasonable efforts to ensure that the Issuer shall at all times
have viewing access to its Collateral Accounts.  In the event that, for any
reason, the Issuer shall not have access to such Borrower's Collateral
Accounts, such Borrower shall use commercially reasonable efforts to procure
that the Custodian delivers to the Issuer copies of any information requested
with respect to its Collateral Accounts and Collateral in order for the Issuer
to determine whether such Borrower is in compliance with its obligations under
Section 5.10(a)
above (each such determination, a "Collateral Valuation"). 

(c)              
For
the avoidance of doubt, the Issuer shall not be obligated to make any L/C
Credit Extension related to the Commitment unless such Borrower is, both before
and after giving effect to such L/C Credit Extension, in compliance with
Section 5.10(a)
above.

(d)             
If
the Issuer determines that as of any date, such Borrower is not in compliance
with its obligations under Section 5.10(a)
above, (i) the Issuer shall as soon as reasonably practicable thereafter notify
such Borrower thereof by email in accordance with Section 9.1(a)
of such non-compliance and provide copies of information obtained from the
Custodian, supporting calculations of the Issuer and other information relevant
to such determination, in connection with the applicable Collateral Valuation,
as evidence of such Borrower's failure to comply with its obligations under
Section 5.10(a)
above; and (ii) upon such notification, such Borrower undertakes to deliver
such further Eligible Collateral within three Business Days of such notice as
is necessary to ensure that, immediately following the delivery of that further
Eligible Collateral, it is in compliance with its obligations under Section 5.10(a)
above.

(e)              
Failure
to comply with paragraph (d)
above shall constitute an Event of Default under the terms and conditions of
this Agreement.

(f)               
In
the event that the L/C Obligations exceed the Commitment Amount, Everest
Bermuda shall (and shall cause the other Borrowers to) use commercially reasonable
efforts to decrease the L/C Obligations in the amount necessary to eliminate
such excess.

5.11             
Further
Assurances

Such
Borrower will cooperate with the Issuer and execute such further instruments
and documents as the Issuer shall reasonably request to carry out to its
satisfaction the transactions contemplated by this Agreement and the other
Facility Documents.

6.                    
NEGATIVE
COVENANTS

Until the
Commitment has expired or been terminated, all Letters of Credit have expired
or been terminated and all other Obligations have been paid in full, each
Borrower covenants and agrees with the Issuer that:

6.1                 
Liens 

Such Borrower
will not, and will not permit any of its Subsidiaries to create, assume, incur,
or otherwise permit to exist any Lien on any of its Collateral, other than
Liens created pursuant to the Facility Documents or the Custodial Lien and
Set-Off Rights.

6.2                 
Sanctions 

 

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(a)              
No
portion of any Letter of Credit shall be used, directly or indirectly, for the
purposes of any transaction related to either: (i) a Sanctioned Person or (ii)
a Sanctioned Country in violation of applicable Sanctions.

(b)             
Neither
such Borrower, nor any of its Subsidiaries, shall engage in any conduct which
might reasonably be expected to cause it to become the subject of Sanctions.

6.3                 
A.M.
Best Rating

Such Borrower
will not permit its A.M. Best Rating to fall below the rating of B++ or to be
withdrawn.

6.4                 
Financial
Covenant

Everest
Bermuda will not permit its Consolidated Tangible Net Worth at any time to be
less than the sum of (i) $ 2,051,940,800, plus (ii) 25.0% of its Consolidated
Net Income for the period from December 31, 2020 through the last day of the
then most recently ended fiscal quarter of Everest Bermuda, plus (iii) 25.0% of
the aggregate Net Equity Issuance Proceeds received by it and its Subsidiaries
for the period from December 31, 2020 through the last day of its then most
recently ended fiscal quarter.

7.                    
EVENTS
OF DEFAULT; ACCELERATION

7.1                 
Events
of Default and Acceleration

The occurrence
and continuance of any of the following shall constitute an event of default
(each an "Event of Default"): 

(a)              
default
in the payment of any Obligations under any of the Facility Documents when and
as due and payable, including, without limitation, default in the payment of
Reimbursement Obligations, Fees and interest, which shall continue unremedied
for a period of five Business Days;

(b)             
any
representation or warranty made or deemed made by or on behalf of any Borrower
or any Subsidiary in or in connection with this Agreement, any Facility
Document or any amendment, modification thereof or waiver thereunder, or in any
report, certificate, financial statement or other document furnished pursuant
to or in connection with this Agreement, any Facility Document or any amendment
or modification thereof or waiver thereunder, shall prove to have been
incorrect or misleading in any material respect when made or deemed made;

(c)              
default
in the performance of any of the agreements or covenants of any Borrower set
forth in Sections  5.1(a), 5.1(b), 5.1(c), 5.1(f),
5.1(g), 5.2(a)(i), 5.2(a)(ii), 5.2(b) and 5.3 
(with respect to any Borrower's existence), 5.7,
5.10 
or Section 6; 

(d)             
default
in the performance of any of the agreements or covenants of any Borrower set
forth in Sections  5.1(d), 5.2(a)(iii), 5.2(a)(iv) and 5.2(a)(v) and the
continuance of such default unremedied for a period of 10 Business Days after
the earlier of (x) the date upon which any Responsible Officer had actual
knowledge of such default and (y) the date of notice thereof from the Issuer to
any Borrower;

(e)              
default
in the performance of any of the agreements or covenants of any Borrower under
this Agreement or any other Facility Document (other than those specified in
Section 7.1(a),
(b),
(c)
or (d) above) and continuance of such default unremedied for a period of 30
days after the earlier of (x) the date upon which any Responsible Officer 

 

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had actual knowledge of such
default and (y) the date of notice thereof from the Issuer to any Borrower;

(f)               
a
Borrower shall (i) default in the payment of any Debt (other than the
Obligations and obligations amongst the Borrowers and their Affiliates) the
aggregate principal amount (including undrawn committed or available amounts)
of which is in excess of the Material Debt amount beyond the period of grace if
any, provided in the instrument or agreement under which such Debt was created,
or (ii) default in the observance or performance of any other agreement or
condition relating to any Debt (other than the Obligations and obligations
amongst the Borrowers and their Affiliates) the aggregate principal amount
(including undrawn committed or available amounts) of which is in excess of the
Material Debt amount or contained in any instrument or agreement evidencing,
securing or relating thereto or any other event shall occur or condition exist
(other than the Obligations and obligations amongst the Borrowers and their
Affiliates), the effect of which default or other event or condition is to
cause, with the giving of notice and/or lapse of time, if required, any such
Debt to (A) become due, or to be repurchased, prepaid, defeased or redeemed
(automatically or otherwise), or an offer to repurchase, prepay, defease or
redeem such Debt to be made, prior to its stated maturity (any applicable grace
period having expired) or (B) be cash collateralized.

(g)              
an
involuntary proceeding under any Debtor Relief Law shall be commenced or an
involuntary petition shall be filed seeking (i) liquidation, winding-up,
administration, reorganization or other relief in respect of any of any
Borrower or its debts, or of a substantial part of its assets, under any
Federal, state or foreign bankruptcy, insolvency, administration, receivership
or similar law now or hereafter in effect or (ii) the appointment of a
liquidator, receiver, trustee, custodian, sequestrator, conservator,
administrator, administrative receiver or similar official for any Borrower or
for a substantial part of its assets, and, in any such case, such proceeding or
petition shall continue undismissed for 60 days or an order or decree approving
or ordering any of the foregoing shall be entered;

(h)             
any
Borrower shall (i) voluntarily commence any proceeding or file any petition
seeking liquidation, winding-up, administration, reorganization or other relief
under any Debtor Relief Law now or hereafter in effect, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or petition described in paragraph (g)
of this Section, (iii) apply for or consent to the appointment of a liquidator,
receiver, trustee, custodian, sequestrator, conservator, administrator or
similar official for any Borrower or for a substantial part of its assets, (iv)
file an answer admitting the material allegations of a petition filed against
it in any such proceeding, (v) make a general assignment for the benefit of
creditors or (vi) take any action for the purpose of effecting any of the
foregoing;

(i)               
any
Borrower shall become unable, admit in writing its inability or fail generally
to pay its debts as they become due;

(j)               
one
or more judgments for the payment of money in an aggregate amount in excess of
$50,000,000 shall be rendered against any Borrower and the same shall remain
undischarged for a period of 45 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment
creditor to attach or levy upon any assets of any Borrower to enforce any such
judgment;

(k)              
any
circumstance in respect of any Foreign Pension Plan shall have occurred that,
in the opinion of the Issuer, when taken together with all other such
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occurred, could reasonably be
expected to result in a Material Adverse Effect and continues unremedied for
five Business Days;

(l)               
a
Change of Control shall occur;

(m)            
any
Governmental Authority revokes or fails to renew any material license, permit
or franchise of any Borrower, or any Borrower for any reason loses any material
license, permit or franchise, or any Borrower suffers the imposition of any
restraining order, escrow, suspension or impound of funds in connection with any
proceeding (judicial or administrative) with respect to any material license,
permit or franchise, which could reasonably be expected to result in a Material
Adverse Effect;

(n)             
any
Control Agreement is terminated by any party thereto and such Borrower, the
Issuer and another financial institution satisfactory to the Issuer have not,
as of the date that is three Business Days prior to the effective date of such
termination, entered into a control agreement in form and substance reasonably
satisfactory to the Issuer, such that the Issuer's first priority lien and
security interest in such Collateral is preserved unimpaired;

(o)              
the
Issuer's security interest in any Collateral shall cease to be a first priority
perfected security interest, otherwise than in accordance with the terms hereof
or in connection with the Custodial Lien and Set-Off Rights; or any action at
law, suit or in equity or other legal proceeding to cancel, revoke or rescind
this Agreement or any other Facility Document shall be commenced by or on
behalf of any Borrower or any of its shareholders, or any court or any other
governmental or regulatory authority or agency of competent jurisdiction shall
make a determination that, or issue a judgment, order, decree or ruling to the
effect that, this Agreement or any one
or more of the other Facility Documents is illegal, invalid or unenforceable in
accordance with the terms thereof;

(p)              
any
of the Collateral is subject to any lien or encumbrance or any claim or demand,
other than the Custodial Lien and Set-Off Rights, that if unpaid might by law
or upon bankruptcy, insolvency or otherwise, be given any priority whatsoever
over any Borrower's general creditors with respect to the Collateral or is
transferred for the purposes of the payment of indebtedness not arising
hereunder or is taken by attachment, execution or any other form of legal
process;

(q)              
the
assertion of any levy, seizure or attachment on any Collateral, other than with
respect to the Custodial Lien and Set-Off Rights, or the taking of any action
by a regulatory authority to obtain control (which shall not have been vacated,
discharged or stayed or bonded pending appeal within 60 days from the entry
thereof) of any part of the Collateral, other than with respect to the
Custodial Lien and Set-Off Rights;

(r)               
the
taking of any action by a regulatory authority to obtain control of any
Borrower or a substantial part of its assets (which shall not have been
vacated, discharged or stayed or bonded pending appeal within 60 days from the
entry thereof); or 

(s)              
there
shall occur in one or a series of transactions: (i) the sale, assignment or
transfer of all or substantially all of the assets of any Borrower; (ii) a
merger, amalgamation or consolidation of any Borrower without the prior written
consent of the Issuer, except that (A) any Borrower may merge, amalgamate or
consolidate with a Subsidiary of such Borrower so long as such Borrower is the
surviving entity in any such transaction and (B) any Borrower may merge,
amalgamate or consolidate with any Person provided (u) such Borrower is the
surviving entity and organized in the same jurisdiction as such Borrower's
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consolidation and (v) the
security interest granted under such Borrower's Security Agreement continues in
full force and effect with the same priority and there are no additional
barriers to enforcement of the same; or (iii) the dissolution of any Borrower. 

If any Event of
Default (other than an Event of Default described in paragraph (g) or (h)
above) shall have occurred and be continuing, the Issuer may by notice to
Everest Bermuda, (A) terminate the Commitment, and upon such notice being given
the Commitment shall terminate immediately and the Issuer shall be relieved of all
further obligations to issue, extend, amend or renew Letters of Credit; and in
the case of the occurrence an Event of Default described in paragraph (g) or
(h) above, the Commitment shall automatically terminate without further action
on the part of the Issuer, and the Issuer shall be relieved of all further
obligations to issue, extend, amend or renew Letters of Credit; (B) require
that the Borrowers cash collateralize the L/C Obligations; and (C) exercise all
rights and remedies available to it under the Facility Documents and/or
applicable Law.  No termination of the Commitment shall relieve any Borrower of
any of the Obligations and upon such termination of the Commitment hereunder,
all Obligations and all interest accrued and unpaid thereon shall become
immediately due and payable, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by each Borrower. 
If any Event of Default shall occur and be continuing, the Issuer may, with or
without prior notice to the applicable Borrower or any other Borrower, and
without demand for additional collateral, (i) transfer, or cause the Custodian
to transfer any or all of the Collateral and/or the Collateral Account into the
name of the Issuer or its nominee (including, without limitation, having the
Collateral debited from the Collateral Account and credited to an account
designated by the Issuer) and vote any Collateral constituting securities or
closely held Capital Stock; (ii) require the applicable Borrower to provide
additional Eligible Collateral if its Collateral Coverage Amount is not equal
to or greater than its L/C Obligations at any time and require the applicable
Borrower (or instruct the Custodian) to convert Collateral into (and thereafter
only invest in) Cash and to the extent required, by the Issuer, such Cash to be
denominated in Dollars; (iii) sell at public or private sale any or all of the
applicable Borrower Collateral; (iv) apply to, or set off against, the
Obligations of such Borrower all or any portion of its Collateral, securities
or other property of such Borrower in the possession of the Issuer; (v) convert
any of the Collateral or any proceeds thereof into the applicable Alternative
Currency, with any such conversion costs being considered a collection expense
and added to the Obligations; and (vi) at its discretion in its own name or in
the name of such Borrower take any action for the collection of its Collateral,
including the filing of a proof of claim in insolvency proceedings, and may receive
the proceeds thereof and execute releases therefor.  Each Borrower agrees that
the Issuer has no obligation to sell or otherwise liquidate its Collateral in
any particular order or to apply the proceeds thereof to any particular portion
of the Obligations.  Each Borrower further agrees that after the occurrence and
during the continuance of an Event of Default, to the extent that any voting
rights exist, the Issuer shall have no obligation to vote any Collateral
constituting securities or closely held Capital Stock but shall have the right
to do so in its sole discretion.

In connection
with any secured party's sale, the Issuer is authorized, if it deems it
advisable to do so, in order to comply with any applicable securities laws, to
restrict the prospective bidders or purchasers to persons who will represent
and agree that they are purchasing the Collateral for their own account for
investment, and not with a view to the distribution or re-sale thereof.  Sales
made subject to such restriction shall be deemed to have been made in a
commercially reasonable manner.

7.2                 
Application
of Payments

After the
exercise of remedies provided for in Section 7.1,
any amounts received on account of any Borrower's Obligations shall be applied
by the Issuer to such Borrower's Obligations as it elects in its sole
discretion; provided that, the Issuer shall be entitled to retain an amount
equal 

 

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to
such Borrower's L/C Obligations to be applied to satisfy drawings under such
Letters of Credit as they occur.  If any amount remains on deposit after all
such Letters of Credit have either been fully drawn or expired, such remaining
amount shall be applied to the other Obligations, if any of such Borrower;
notwithstanding anything contained herein to the contrary, the Issuer shall
only apply funds received from a Borrower or any of such Borrower's Collateral
to the Obligations of such Borrower.

8.                    
[Reserved] 

9.                    
MISCELLANEOUS 

9.1                 
Notices 

(a)              
Notices Generally. 
Unless otherwise expressly provided herein, all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service or mailed by certified or registered mail
to the applicable party hereto, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as provided in schedule 3.  Notices and
other communications sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when
received.  Notices and other communications delivered through Electronic Media
(defined below) to the extent permitted under paragraph (b)
shall be deemed received upon the sender's receipt of an acknowledgement from
the intended recipient (such as by the "return receipt requested"
function, as available, return e-mail or other written acknowledgement);
provided that, if such Instruction (defined below) is not sent during the
normal business hours of the recipient, such Instruction shall be deemed to
have been sent at the opening of business on the next Business Day for the
recipient.

(b)             
Electronic Communications. 
Notices and other communications to the Issuer hereunder may be delivered or
furnished by e-mail, facsimile or other electronic communications (including
Internet or intranet websites) pursuant to procedures approved by the Issuer
("Electronic Media").  In connection therewith, each Borrower
(i) authorizes the Issuer to act on any instruction, notice or communication
("Instruction") it receives by Electronic Media and which
appears to the Issuer to originate from a Responsible Officer, (ii)
acknowledges that the Issuer is not obliged to act on any Instruction it
receives by Electronic Media if it has any reason to believe that the
Instruction is not authorized or has been incorrectly transmitted, or if it
considers that clarification or verification is required or desirable, and
(iii) acknowledges and accepts that Electronic Media may not be secure and that
third parties may gain access to the information contained therein as a result
of the parties utilizing such media.  Any Instruction forwarded by Electronic
Media shall be irrevocable.  The use of Electronic Media as a means of
communications will remain operational for an undetermined period and may be
revoked at any time by notice from the Issuer to such Borrower.

(c)              
Change of Address, etc.  A
Borrower or the Issuer may change its address, facsimile number, telephone
number or electronic mail address for notices and other communications
hereunder by notice to the other parties hereto.

(d)             
Reliance by Issuer and Indemnification. 
The Issuer shall be entitled to rely and act upon any notices (including
telephonic notices and Instructions given by Electronic Media) purportedly
given by or on behalf of a Borrower even if (i) such notices were not made in a
manner specified herein, were incomplete or were not preceded or followed by
any other form of notice specified herein or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation thereof.  All
telephonic notices to and telephonic 

 

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communications with the Issuer
may be recorded by the Issuer, and each of the parties hereby consents to such
recording.

9.2                 
Waivers;
Amendments

(a)              
No Waiver; Remedies Cumulative; Enforcement. 
No failure or delay by the Issuer in exercising any right, remedy, power or
privilege hereunder or under any other Facility Document shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right,
remedy, power or privilege, or any abandonment or discontinuance of steps to
enforce such a right remedy, power or privilege, preclude any other or further
exercise thereof or the exercise of any other right remedy, power or
privilege.  The rights, remedies, powers and privileges of the Issuer hereunder
and under the Facility Documents are cumulative and are not exclusive of any
rights, remedies, powers or privileges that any such Person would otherwise
have.

(b)             
Amendments, Etc.  Except
as otherwise expressly set forth in this Agreement, no amendment or waiver of
any provision of this Agreement or any other Facility Document, and no consent
to any departure by any Borrower therefrom, shall be effective unless in
writing executed by such Borrower and the Issuer, and each such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given.

9.3                 
Expenses;
Indemnity; Etc.

(a)              
Costs and Expenses. 
Everest Bermuda shall pay or reimburse (i) all reasonable out-of-pocket costs
and expenses incurred by the Issuer in connection with the preparation,
negotiation, execution, delivery and administration of this Agreement and the
other Facility Documents, or any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions contemplated
hereby or thereby shall be consummated), including the reasonable and
documented fees, charges and disbursements of counsel and (ii) all reasonable
out-of-pocket costs and expenses incurred by the Issuer (including the
reasonable and documented fees, charges and disbursements of counsel for the
Issuer) in connection with the enforcement or protection of any rights and
remedies under this Agreement and the other Facility Documents, including all
such costs and expenses incurred during any legal proceeding, including any
proceeding under any Debtor Relief Law, and including in connection with any
workout, restructuring or negotiations in respect of the L/C Credit Extensions
and the Facility Documents.

(b)             
Indemnification by the Borrowers. 
Each Borrower shall indemnify the Issuer (and any sub-agent thereof), and the
Issuer, and each Related Parties of any of the foregoing Persons (each such
Person being called an "Indemnitee") on a joint and several
basis against, and hold each Indemnitee harmless from, any and all liabilities,
obligations, losses, damages, penalties, claims, demands, actions, judgments,
suits, costs (including settlement costs), disbursements and out-of-pocket fees
and expenses (including the reasonable fees, charges and disbursements of any
counsel for any Indemnitee) of any kind or nature whatsoever which may at any
time be imposed on, incurred by or asserted or awarded against any Indemnitee
in any way relating to or arising out of or in connection with or by reason of
any actual or prospective claim, litigation, investigation or proceeding in any
way relating to, arising out of, in connection with or by reason of any of the
following, whether based on contract, tort or any other theory (including any
investigation of, preparation for, or defense of any pending or threatened claim,
litigation or proceeding): (x) the execution, delivery, enforcement,
performance or administration of any Facility Document or any other document
delivered in connection with the transactions contemplated thereby or the
consummation of the transactions 

 

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contemplated thereby or (y) any
Commitment, any L/C Credit Extension or the use or proposed use thereof or of
the proceeds thereof (including any refusal by the Issuer to honor a demand for
payment under a Letter of Credit if the documents presented in connection with
such demand do not strictly comply with the terms of such Letter of Credit);
provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such liabilities, obligations, losses, damages, penalties,
claims, demands, actions, judgments, suits, costs, fees and expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee; collectively, the "Indemnified Liabilities"),
in all cases, whether or not caused by or arising, in whole or in part, out of
the negligence of such Indemnitee and regardless of whether such Indemnitee is
a party thereto, and whether or not any such claim, litigation, investigation
or proceeding is brought by a Borrower, its equity holders, its affiliates, its
creditors or any other Person.

(c)              
Waiver of Consequential Damages, Etc.  To
the fullest extent permitted by applicable Law, no Borrower shall assert, and
hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct
or actual damages) arising out of, in connection with, or as a result of, any
Facility Document or any other document contemplated thereby, the transactions
contemplated thereby, any Commitment or any L/C Credit Extension, the use
thereof or of the proceeds thereof or such Indemnitee's activities in
connection therewith (whether before or after the Closing Date).  No Indemnitee
shall be liable for any damages arising from the use by unintended recipients
of any information or other materials obtained through any information
transmission systems in connection with the Facility Documents or the
transactions contemplated thereby unless determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Indemnitee.

(d)             
Payments. 
All amounts due under this Section shall be payable promptly after demand
therefor by the relevant Person entitled thereto.

9.4                 
Successors
and Assigns

(a)              
Successors and Assigns. 
The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns permitted
hereby, except that no Borrower may assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the
Issuer.  The Issuer may at any time assign to one or more assignees all or a
portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment (including, for purposes of this paragraph (a),
participations in L/C Obligations)); provided that the consent of Everest
Bermuda shall be required for any assignment (such consent not to be
unreasonably withheld or delayed and which consent is hereby given for
assignments to any Affiliate) unless any Event of Default has occurred and is
continuing at the time of such assignment; provided that Everest Bermuda shall
be deemed to have consented to any such assignment unless it shall object
thereto by written notice to the Issuer within ten Business Days after having
received notice thereof.

(b)             
Register.
The Issuer, acting solely for this purpose as an agent of Borrower, shall
maintain a record of any sale, transfer, assignment or participation, including
any assignment by any assignee of the Issuer, and a register for the
recordation of the names and addresses of any such assignees, and the
commitments of, and principal amounts (and stated interest) of the L/C
Obligations owing to, each purchaser, transferee, assignee or participant
pursuant to the terms hereof from time to time (the "Register"). 
 

 

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The entries in the Register
shall be conclusive absent manifest error, and the Borrower, the Issuer and all
such purchasers, transferees, assignees and participants shall treat each
person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement.  The Register shall be
available for inspection by the Borrower and any purchaser, transferee,
assignee or participant, at any reasonable time and from time to time upon
reasonable prior notice.

(c)              
Certain Pledges. 
The Issuer may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of the Issuer,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank or any central bank having jurisdiction over the Issuer; provided that no
such pledge or assignment shall release the Issuer from any of its obligations
hereunder or substitute any such pledgee or assignee for the Issuer as a party
hereto.

9.5                 
Survival 

All covenants,
agreements, representations and warranties made by a Borrower herein and in any
Facility Document or other documents delivered in connection herewith or
therewith or pursuant hereto or thereto shall be considered to have been relied
upon by the other parties hereto and shall survive the execution and delivery
hereof and thereof and the making of the L/C Credit Extensions hereunder,
regardless of any investigation made by any such other party or on its behalf
and notwithstanding that the Issuer may have had notice or knowledge of any
Default at the time of any L/C Credit Extension, and shall continue in full
force and effect as long as any Obligation hereunder shall remain unpaid or
unsatisfied or any Letter of Credit shall remain outstanding.  The provisions
of Sections 2.9,
2.10,
2.11,
9.3,
and 9.15  shall survive and remain in
full force and effect regardless of the consummation of the transactions
contemplated hereby, the payment in full of the Obligations, the expiration or
termination of the Letters of Credit and the Commitments or the termination of
this Agreement or any provision hereof.

9.6                 
Counterparts;
Integration; Effectiveness; Electronic Execution

(a)              
Counterparts; Integration; Effectiveness. 
This Agreement may be executed in counterparts (and by different parties hereto
in different counterparts), each of which shall constitute an original, but all
of which when taken together shall constitute a single contract.  This
Agreement and the other Facility Documents, and any separate letter agreements
with respect to fees and expenses payable to the Issuer, constitute the entire
contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating
to the subject matter hereof.  Except as provided in Section
4.1,
this Agreement shall become effective when it shall have been executed by the
Issuer and when the Issuer shall have received a counterpart hereof that bears
the signature of each Borrower.  Delivery of an executed counterpart of a
signature page of this Agreement by facsimile or in electronic (ie, "pdf"
or "tif") format shall be effective as delivery of a manually
executed counterpart of this Agreement.

(b)             
Electronic Execution of Assignments and
Certain Other Documents.  The words
"execution", "signed", "signature", and words of
like import in any amendment or other modification hereof (including waivers
and consents) shall be deemed to include electronic signatures or the keeping
of records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable Law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures
and 

 

 501  

  

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Records Act, or any other
similar state Laws based on the Uniform Electronic Transactions Act.

9.7                 
Severability 

If any provision
of this Agreement or the other Facility Documents is held to be illegal,
invalid or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Agreement and the other Facility Documents shall
not be affected or impaired thereby and (b) the parties shall endeavor in good
faith negotiations to replace the illegal, invalid or unenforceable provisions
with valid provisions the economic effect of which comes as close as possible
to that of the illegal, invalid or unenforceable provisions.  The invalidity of
a provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

9.8                 
Right
of Setoff

If an Event of
Default shall have occurred and be continuing, the Issuer, and each of its
Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by applicable Law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held, and other obligations (in whatever currency) at any
time owing, by the Issuer or any such Affiliate, to or for the credit or the
account of the applicable Borrower against any and all of the obligations of
such Borrower now or hereafter existing under this Agreement or any other
Facility Document to the Issuer or their respective Affiliates, irrespective of
whether or not the Issuer or Affiliate shall have made any demand under this
Agreement or any other Facility Document and although such obligations of such
Borrower may be contingent or unmatured or are owed to a branch, office or
Affiliate of the Issuer different from the branch, office or Affiliate holding
such deposit or obligated on such indebtedness.  The rights of the Issuer, the
Issuer and their respective Affiliates under this Section are in addition to
other rights and remedies (including other rights of setoff) that the Issuer or
its Affiliates may have.  The Issuer agrees to notify such Borrower promptly
after any such setoff and application; provided that the failure to give such
notice shall not affect the validity of such setoff and application.

9.9                 
Governing
Law; Jurisdiction; Etc.

(a)              
Governing Law. 
This Agreement and the other Facility Documents and any claims, controversy,
dispute or cause of action (whether in contract or tort or otherwise) based
upon, arising out of or relating to this Agreement or any other Facility
Document (except, as to any other Facility Document, as expressly set forth
therein) and the transactions contemplated hereby and thereby shall be governed
by, and construed in accordance with, the Law of the State of New York.

(b)             
Jurisdiction. 
Each Borrower irrevocably and unconditionally agrees that it will not commence
any action, litigation or proceeding of any kind or description, whether in law
or equity, whether in contract or tort or otherwise, against the Issuer or any
Related Party of the Issuer, in any way relating to this Agreement or any other
Facility Document or the transactions relating hereto or thereto, in a forum
other than the courts of the State of New York sitting in New York County, and
of the United States District Court of the Southern District of New York and
any appellate court from any thereof, and each of the parties hereto irrevocably
and unconditionally submits to the exclusive jurisdiction of such courts and
agrees that all claims in respect of any such action, litigation or proceeding
may be heard and determined in such New York State court or, to the fullest
extent permitted by applicable Law, in such Federal court.  Each of the parties
hereto agrees that a final judgment in any such action, litigation or
proceeding shall be 

 

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conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner provided
by Law.  Nothing in this Agreement or in any other Facility Document shall
affect any right that the Issuer may otherwise have to bring any action or
proceeding relating to this Agreement or any other Facility Document against
any Borrower or its properties in the courts of any jurisdiction.

(c)              
Waiver of Venue. 
Each Borrower irrevocably and unconditionally waives, to the fullest extent
permitted by applicable Law, any objection that it may now or hereafter have to
the laying of venue of any action or proceeding arising out of or relating to
this Agreement or any other Facility Document in any court referred to in
paragraph (b)
of this Section.  Each of the parties hereto hereby irrevocably waives, to the
fullest extent permitted by applicable Law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

(d)             
Service of process. 
On or prior to the Closing Date, Everest Bermuda shall, and on or prior to the
date any Designated Borrower becomes a party hereto, such Designated Borrower
shall, appoint CT Corporation (the "Process Agent"), with an
office on the date hereof at 1209 Orange Street, Wilmington, DE 19801, as its
agent to receive on its behalf service of the summons and complaints and any
other process which may be served in any such action or proceeding, provided
that a copy of such process is also mailed in the manner provided in Section 9.1. 
Such service may be made by mailing or delivering a copy of such process to a
Borrower in care of the Process Agent at the Process Agent's above address, and
each Borrower hereby irrevocably authorizes and directs the Process Agent to
receive such service on its behalf.  Each party hereto irrevocably consents to
service of process in the manner provided for notices in Section 9.1. 
Nothing in this Agreement will affect the right of any party hereto to serve
process in any other manner permitted by applicable law.
If the appointment of the Process Agent ceases to be effective with respect to
any Borrower, such Borrower must immediately appoint a further person in the
State of New York to accept service of process on its behalf in the State of
New York and, if such Borrower does not appoint such agent for service of
process within 15 days, such Borrower authorizes the security agent to appoint
such agent for service of process for, and at the expense of such Borrower.

9.10             
WAIVER
OF JURY TRIAL

Each party
hereto hereby irrevocably waives, to the fullest extent permitted by applicable
Law, any right it may have to a trial by jury in any legal proceeding directly
or indirectly arising out of or relating to this agreement or any other
Facility Document or the transactions contemplated hereby or thereby (whether
based on contract, tort or any other theory).  Each party hereto (a) certifies
that no representative, agent or attorney of any other person has represented,
expressly or otherwise, that such other person would not, in the event of
litigation, seek to enforce the foregoing waiver and (b) acknowledges that it
and the other parties hereto have been induced to enter into this Agreement and
the other Facility Documents by, among other things, the mutual waivers and
certifications in this Section.

 

 521  

  

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9.11             
Headings 

Article
and Section headings and the Table of Contents used herein are for convenience
of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this
Agreement.

9.12             
Confidentiality 

The Issuer
agrees to maintain the confidentiality of the Information, except that
Information may be disclosed (a) to its Related Parties (it being understood
that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information
confidential in accordance with customary practices); (b) to the extent
required or requested by any regulatory authority purporting to have
jurisdiction over or to which an agreement exists between it or its Related
Parties (including any self-regulatory authority, such as the National
Association of Insurance Commissioners); (c) to the extent required by
applicable Laws or regulations or by any subpoena or similar legal process; (d)
in connection with the exercise of any remedies hereunder or under any other
Facility Document or any action or proceeding relating to this Agreement or any
other Facility Document or the enforcement of rights hereunder or thereunder;
(e) subject to an agreement containing provisions substantially the same (or at
least as restrictive) as those of this Section (or as may otherwise be
reasonably acceptable to Everest Bermuda) to (i) any assignee of or participant
in, or any prospective assignee of or participant in, any of its rights and
obligations under this Agreement, or (ii) any actual or prospective party (or
its Related Parties) to any swap, derivative other transaction under which
payments are to be made by reference to a Borrower and its obligations, this
Agreement or payments hereunder; (f) on a confidential basis to any rating
agency in connection with rating a Borrower or its Subsidiaries or the credit
facility hereunder; (g) with the consent of such Borrower; or (h) to the extent
that such Information (x) becomes publicly available other than as a result of
a breach of this Section, or (y) becomes available to the Issuer or any of its
Affiliates on a nonconfidential basis from a source other than a Borrower.  For
purposes of this Section, "Information"  means all
information received from a Borrower or any of its Affiliates relating to a
Borrower or any of its Affiliates or any of their respective businesses, other
than any such information that is available to the Issuer on a nonconfidential
basis prior to disclosure by a Borrower or any of its Affiliates.  Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

9.13             
PATRIOT
Act

The Issuer is
subject to the PATRIOT Act and hereby notifies each Borrower that pursuant to
the requirements of the PATRIOT Act, it is required to obtain, verify and record
information that identifies each Borrower, which information includes the name
and address of each Borrower and other information that will allow the Issuer
to identify each Borrower in accordance with the PATRIOT Act.  Each Borrower
shall, promptly following a request by the Issuer, provide all documentation
and other information that the Issuer requests in order to comply with its
ongoing obligations under applicable "know your customer" and
anti-money-laundering rules and regulations, including the PATRIOT Act.

9.14             
Interest
Rate Limitation

Notwithstanding
anything herein to the contrary, if at any time the interest rate applicable
under any Facility Document, together with all fees, charges and other amounts
which are treated as interest under such Facility Document under applicable Law
(collectively, "charges"),  

 

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shall exceed the maximum lawful
rate (the "Maximum Rate") which may be contracted for,
charged, taken, received or reserved by the Issuer in accordance with
applicable Law, the rate of interest payable pursuant to such Facility
Document, together with all charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and charges
that would have been payable pursuant to such Facility Document but were not
payable as a result of the operation of this Section shall be cumulated and the
interest and charges payable to the Issuer in respect of other Facility
Documents or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the
Federal Funds Effective Rate for each day to the date of repayment, shall have
been received by the Issuer.

9.15             
Payments
Set Aside

To the extent
that any payment by or on behalf of a Borrower is made to the Issuer or the
Issuer exercises its right of setoff, and such payment or the proceeds of such
setoff or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Issuer in its discretion) to be repaid to a
trustee, receiver or any other party, in connection with any proceeding under
any Debtor Relief Law or otherwise, then to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or
such setoff had not occurred.

9.16             
No
Advisory or Fiduciary Responsibility

In connection
with all aspects of each transaction contemplated hereby (including in
connection with any amendment, waiver or other modification hereof or of any
other Facility Document), each Borrower acknowledges and agrees, and
acknowledges its Affiliates' understanding, that: (a) (i) no fiduciary,
advisory or agency relationship between the Borrowers and their respective
Subsidiaries and the Issuer is intended to be or has been created in respect of
the transactions contemplated hereby or by the other Facility Documents,
irrespective of whether the Issuer has advised or is advising any Borrower or
any Subsidiary thereof on other matters, (ii) the services regarding this
Agreement provided by the Issuer are arm's-length commercial transactions
between each Borrower and its Affiliates, on the one hand, and the Issuer, on
the other hand, (iii) each Borrower has consulted its own legal, accounting,
regulatory and tax advisors to the extent that it has deemed appropriate and
(iv) each Borrower is capable of evaluating, and understands and accepts, the
terms, risks and conditions of the transactions contemplated hereby and by the
other Facility Documents; and (b) (i) the Issuer has been acting solely as a
principal and, except as expressly agreed in writing by the relevant parties,
has not been, is not, and will not be acting as an advisor, agent or fiduciary
for any Borrower or any of its Affiliates, or any other Person; (ii) the Issuer
has no obligation to any Borrower or any of its Affiliates with respect to the
transactions contemplated hereby except those obligations expressly set forth
herein and in the other Facility Documents; and (iii) the Issuer and its
Affiliates may be engaged, for its own accounts or the accounts of customers,
in a broad range of transactions that involve interests that differ from those
of the Borrowers or any of their respective Affiliates, and the Issuer has no
obligation to disclose any of such interests to any Borrower or any of its
Affiliates.  To the fullest extent permitted by Law, each Borrower hereby
waives and releases any claims that it may have against the Issuer, with
respect to any breach or alleged breach of agency or fiduciary duty in
connection with any aspect of any transaction contemplated hereby.

9.17             
Acknowledgement
and Consent to Bail-In of Affected Financial Institutions

Notwithstanding
anything to the contrary in any Facility Documents or in any other agreement,
arrangement or understanding among any such parties, each party hereto
acknowledges that 

 

 541  

  

 357363582       

  

any
liability of any Affected Financial Institution arising under any Facility
Document, to the extent such liability is unsecured, may be subject to the
Write-Down and Conversion Powers of the applicable Resolution Authority and
agrees and consents to, and acknowledges and agrees to be bound by:

(a)              
the
application of any Write-Down and Conversion Powers by the applicable EEA
Resolution Authority to any such liabilities arising hereunder which may be
payable to it by any party hereto that is an Affected Financial Institution;
and

(b)             
the
effects of any Bail-In Action on any such liability, including, if applicable:

(i)               
a
reduction in full or in part or cancellation of any such liability;

(ii)             
a
conversion of all, or a portion of, such liability into shares or other
instruments of ownership in such Affected Financial Institution, its parent
undertaking, or a bridge institution that may be issued to it or otherwise
conferred on it, and that such shares or other instruments of ownership will be
accepted by it in lieu of any rights with respect to any such liability under
this Agreement or any other Facility Document; or

(iii)            
the
variation of the terms of such liability in connection with the exercise of the
Write-Down and Conversion Powers of the applicable Resolution Authority.

9.18             
Judgment
Currency

If, for the
purposes of obtaining judgment in any court, it is necessary to convert a sum
due hereunder or any other Facility Document in one currency into another
currency, the rate of exchange used shall be that at which in accordance with
normal banking procedures the Issuer could purchase the first currency with
such other currency on the Business Day preceding that on which final judgment
is given.  The obligation of each Borrower in respect of any such sum due from
it to the Issuer hereunder or under the other Facility Documents shall,
notwithstanding any judgment in a currency (the "Judgment Currency")
other than that in which such sum is denominated in accordance with the
applicable provisions of this Agreement (the "Agreement Currency"),
be discharged only to the extent that on the Business Day following receipt by
the Issuer of any sum adjudged to be so due in the Judgment Currency, the
Issuer may in accordance with normal banking procedures purchase the Agreement
Currency with the Judgment Currency.  If the amount of the Agreement Currency
so purchased is less than the sum originally due to the Issuer from a Borrower
in the Agreement Currency, such Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Issuer against such loss. 
If the amount of the Agreement Currency so purchased is greater than the sum
originally due to the Issuer in such currency, the Issuer agrees to return the
amount of any excess to such Borrower (or to any other Person who may be
entitled thereto under applicable Law).

IN
WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed by their respective authorized signatories
as of the day and year first above written.

 

 551  

  

 357363582       

  

schedule 1  

Collateral
Coverage Amount Calculation

	
  Category of Eligible
  Collateral

  	
  Collateral Margin

  (expressed as a percentage of the
  principal amount)

  
	
  Cash

  	
  100%

  
	
  Time
  deposits, certificates of deposit and money market deposits, denominated in
  Dollars, of any commercial bank incorporated in the United States with a
  rating of at least (i) AA- from S&P, (ii) Aa3 from Moody's or (iii) AA-
  from Fitch and maturing within two years from the date of determination.
  Money market mutual funds with same-day liquidity and with a rating of (i)
  AAA from S&P, (ii) Aaa from Moody's, (iii) AAA from Fitch or (iv) 1 by
  the NAIC Securities Valuation Office.

  	
  90%

  
	
  Commercial
  paper issued by any entity organized in the United States with maturities of
  one year or less (rated at least A-1 or the equivalent thereof by S&P
  and/or P-1 by Moody's)

  	
  90%

  
	
  Government
  Debt

  Maturity
  < 
  1 year

  Maturity
  < 
  5 years, but > 1 year

  Maturity
  < 
  10 years, but > 5 year

  Maturity
  > 10 years

  	
  

  

   

  97%

  95%

  90%

  85%

  
	
  Agency
  Securities (GNMA, FNMA, FHLMC) rated by at least two of Moody's, S&P,
  and/or Fitch Aa3 / AA- / AA- or better

  WAL
  ≤ 1 year

  WAL
  ≤ 5 years, but > 1 year

  WAL
  ≤ 10 years, but > 5 years

  WAL
  > 10 years

  	
  

  

   

  97%

  95%

  90%

  85%

  

 

 561  

  

 357363582       

  

	
  Supranational
  Debt rated at least AA- by S&P and/or Aa3 by Moody’s

  Maturity <  2 years

  Maturity <  10 years, but
  > 2 years

  Maturity > 10 years  

  	
   

  95%

  90%

  80%

  
	
  Corporate Securities (rated by at least two of Moody's, S&P,
  and/or Fitch Aa3/AA-/AA- or better)

  Maturity <  1 year

  Maturity <  5 years, but
  > 1 year

  Maturity > 5 years

  	
  

  

   

  95%

  90%

  85%

  
	
  Corporate Securities (rated by at least two of Moody's, S&P,
  and/or Fitch A3/A-/A- or better), Non-convertible

  Maturity <  1 year

  Maturity <  5 years, but
  > 1 year

  Maturity > 5 years

   

  	
  

  

   

  90%

  85%

  80%

   

  
	
  Corporate Securities (rated by at least two of Moody's, S&P,
  and/or Fitch Baa2/BBB/BBB or better), Non-convertible

  Maturity <  1 year

  Maturity <  5 years, but
  > 1 year

  Maturity > 5 years

  	
  

  

   

  85%

  80%

  75%

  
	
  Asset
  Backed Securities (rated by at least two of Moody's, S&P, and/or Fitch
  Aa3/AA-/AA- or better)

  Maturity <  1 year

  Maturity <  5 years, but
  > 1 year

  Maturity
  ≤ 10 years, but > 5 years

  	
  

  

   

  90%

  85%

  73%

  
	 	 	 

 

 571  

  

 357363582       

  

 

The following
conditions and limitations also apply with respect to the Eligible Collateral:

1.                    
other
than Government Debt and Agency Securities or, FHMLC or FNMA (so long as such
Person is under the conservatorship of the Federal Housing Finance Agency), no
single issue or issuer shall constitute more than 10 per cent of the Fair
Market Value of the Eligible Collateral;

2.                    
no
Collateral shall be included Eligible Collateral unless it is capable of being
marked to market on a daily basis and cleared and settled within the United
States;

3.                    
the
advance rate of the marketable Securities detailed in the above table shall be
decreased by an additional 10 per cent to the extent that such marketable
securities are held in a currency other than the currency of the applicable
Letter of Credit;

4.                    
Eligible
Collateral ranked BBB and Asset Backed Securities shall not constitute more
than 30 per cent of Fair Market Value of the Eligible Collateral;

5.                    
in
the case that the currency of a Letter of Credit issued under this facility is
different from the currency of the Eligible Collateral in relation thereto,
there will be an additional advance rate applied to such Eligible Collateral
(if applicable);

6.                    
securities
issued by reinsurers and insurers in relation to this facility shall not be
Eligible Collateral;

7.                    
no
covered bonds shall be included as Eligible Collateral; and

8.                    
all
Eligible Collateral will be subject to monthly valuations.

 

schedule 2  

Insurance
Licenses

See
attached

 

 581  

  

 357363582       

  

schedule 3  

Information for
Notices

1.                    
Borrower: 

	
  Everest
  Reinsurance (Bermuda), Ltd.

  
	
  Seon
  Place, 4th Floor

  141
  Front Street

  Hamilton
  HM19 Bermuda

  
	
  Attn:
  Peter Bell

  
	
  E-mail
  address: Peter.Bell@everestrebermuda.bm

  

 

2.                    
Barclays
Bank PLC:

	
  Barclays
  Bank PLC

  
	
  SED
  Insurance LC Specialist

  
	
  Level
  11, 1 Churchill Place

  
	
  London
  E14 5HP

  
	
  Attention:
  SED Insurance LC Specialists

  
	
  Tel:
  + 44 (0) 20 7116 5456

  
	
  Instructions
  E-Mail: sedinsurancelcspecialists@barclays.com

  

Wire Instructions:

	
  USD

  	
   

  
	
  Bank Name :

  	
  Barclays Bank PLC, New York

  
	
  SWIFT Code:

  	
  BARCUS33

  
	
  For the account of:

  	
  Barclays Bank PLC, London

  
	
  SWIFT Code:

  	
  BARCGB22

  
	
  Account No.:

  	
  280568476

  
	
  For further credit to:

  	
  RLOC USD CENC

  
	
  Sort Code:

  	
  208754

  
	
  Account No.: 

  	
  74918144

  

 

 591  

  

 357363582       

  

	
  IBAN:

  	
  GB47 BARC 2087 5474 9181 44

  
	
  Reference:

  	
   Everest Reinsurance (Bermuda) Ltd.

  

 

 60  

  

 357363582 

  

3.                    
Issuer: 

	
  Barclays
  Bank PLC

  
	
  SED
  Insurance LC Specialist

  
	
  Level
  11, 1 Churchill Place

  
	
  London
  E14 5HP

  
	
  Attention:
  SED Insurance LC Specialists

  
	
  Tel:
  + 44 (0) 20 7116 5456

  
	
  Instructions
  E-Mail: sedinsurancelcspecialists@barclays.com

  

 

 

 61  

  

 357363582 

  

schedule 4  

L/C Application

	
  From:

  	
  [Name
  of Applicant]

  
	
  To:

  	
  Barclays
  Bank plc (the "Issuer") 

  
	
   

  	
  Dated:
  []

  

Dear Sirs

Everest Reinsurance (Bermuda)
Ltd. – Letter of Credit Facility Agreement dated as of [],
2021 (as may be amended, amended and restated, supplemented or otherwise
modified, the "Agreement") 

1.                    
We
refer to the Agreement.  This is an L/C Application.  Terms defined in the
Agreement have the same meaning in this L/C Application unless given a
different meaning in this L/C Application.

2.                    
We
hereby request that [a new Letter of Credit be issued] [an existing Letter of
Credit be [[increased][decreased][[and otherwise] modified]][1]
on the following terms:

	
  Applicant

  	
   

  
	
  Account
  Party (if different):[2]

  	
   

  
	
  [Proposed
  L/C Extension Date][3]

  	
  []
  (or, if that is not a Business Day, the next Business Day)

  
	
  [Proposed
  amendment date][4]:

  	
  []
  (or, if that is not a Business Day, the next Business Day)

  
	
  [Currency
  and Amount]:[5]

  	
   

  
	
  [Existing
  Letter of Credit Number]:[6]

  	
   

  
	
  [Existing
  Letter of Credit Currency and Amount]:[7]
  

  	
   

  

 

[1]
                        Select appropriate option depending on
whether the L/C Application relates to an initial issuance of a Letter or
Credit or an amendment (increase, decrease or other modification) to an
existing Letter of Credit.

[2]
                        Insert Name of Wholly-Owned Subsidiary of the Borrower,
as applicable. 

[3]
                        Include for an initial issuance of a Letter of Credit.

[4]
                        Include for an amendment to an existing Letter of Credit.

[5]
                        Include for an initial issuance of a Letter of Credit.

[6]
                        Include for an amendment to an existing Letter of
Credit.

[7]
                        Include for an amendment to an existing Letter of
Credit.

 62  

  

 357363582 

  

	
  [Increased amount]
  [Decreased amount][8]:

  	
   

  
	
  [Other
  amendments]:[9]
  

  	
   

  
	
  Beneficiary
  Details

  	
   

  
	
  Name:

  	
   

  
	
  Address:

  	
   

  
	
  Contact Name and
  Email/Phone:

  	
   

  
	
  [Intermediary Name,
  Address and Contact Details]:[10]

  	
   

  
	
  [Term
  of Letter of Credit]:[11]

  	
  []
  months

  
	
  [Expiry
  Date]:[12]

  	
   

  
	
  [Auto-Renewal
  Letter of Credit (i.e., evergreen)]:[13]

  	
  [Yes][No]

  
	
  [Auto-Renewal
  Letter of Credit Notice of Non-Renewal Period]:[14]

  	
  []
  days

  
	
  [Governing
  Law]:[15]

  	
   

  

3.                    
We
confirm that each condition specified in Section
2.1 
(Commitment) and Section 2.2(b)
(Procedures for Issuance and Amendment of Letters of Credit; Auto-Renewal
Letters of Credit) is satisfied on the date of this L/C Application.

4.                    
[We
further confirm that such Borrower is in compliance with Section 4.2 
after making [this L/C Credit Extension][the above amendment].][16]

5.                    
Delivery
instructions: [specify delivery instructions] 

 

[10]
                      Include for an initial issuance of a Letter of Credit, if
applicable.

[11]
                      Include for an initial issuance of a Letter of Credit.

[12]
                      Include for an initial issuance of a Letter of Credit.

[13]
                      Include for an initial issuance of a Letter of Credit.

[14]
                      Include for an initial issuance of an Auto-Renewal Letter
of Credit.

[15]
                      Include for an initial issuance of a Letter of Credit.

[16]
                      Select as appropriate depending on whether the L/C
Application is for an initial issuance of a Letter of Credit, an increase in
the amount of an existing Letter of Credit, or an extension of the expiry date
of an existing Letter of Credit, or otherwise delete this clause.

[8]
                        Include for an amendment to an existing Letter of
Credit where the amount of such Letter of Credit is increasing or decreasing.

[9]
                        Include for an amendment to an existing Letter of
Credit to specify any changes other than an increase or decrease in the amount
of such Letter of Credit (if applicable).

 63  

  

 357363582 

  

6.                    
[Attached
hereto are the documents (including the full text of any certificate) to be
presented by the beneficiary in case of any drawing under the Letter of
Credit.][17]

Yours faithfully

	
  Signed
  by [Name of Signatory], [Authorized Signatory] for and on behalf of [Name
  of Applicant] 

   

  	
  )

  )

  )

  )

  	
   

  	
   

  

 

 

[17]                       Include
for an initial issuance of a Letter of Credit.

 64  

  

 357363582 

  

 

schedule 5  

Tariff Charges

 

	
  Each
  issuance of a Letter of Credit

  	
  $120

  
	
  Each
  amendment to a Letter of Credit

  	
  $95

  
	
  Each
  L/C Credit Extension

  	
  $60

  
	
  Each
  payment of a demand under a Letter of Credit

  	
  $100

  

 

 

 

 65  

  

 357363582 

  

appendix
1  

Form of
Compliance Certificate[18]

	
  Financial
  Statement Date:

  	
  []
  20[]

  
	
  To:

  	
  Barclays Bank PLC

  [Address]

  

 

Ladies and Gentlemen:

Reference is made to that
certain Letter of Credit Facility Agreement dated as of [],
2021 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the "Agreement;" the terms defined
therein being used herein as therein defined) among Everest Reinsurance
(Bermuda), Ltd. ("Everest Bermuda") and certain Subsidiaries
of Everest Group party thereto pursuant to Section 2.14 
of the Agreement (each a "Designated Borrower" and, together
with Everest Bermuda, the "Borrowers" and, each a "Borrower")
and Barclays Bank PLC (the "Issuer"). 

The undersigned Financial
Officer hereby certifies as of the date hereof that he/she is the []
of Everest Bermuda, and that, as such, he/she is authorized to execute and
deliver this Compliance Certificate to the Issuer on the behalf of Everest Bermuda, and that:

[Use
following paragraph 1
for fiscal year-end financial statements] 

1.                    
Everest
Bermuda has delivered the year-end audited financial statements required by
Section 5.1(a)
of the Agreement for the fiscal year of Everest Bermuda ended as of the above
date, together with the report and opinion of an independent certified public
accountant required by such section.

[Use
following paragraph 1
for fiscal quarter-end financial statements] 

1.                    
Everest
Bermuda has delivered the unaudited financial statements required by Section 5.1(b)
of the Agreement for the fiscal quarter of Everest Bermuda ended as of the
above date.  Such financial statements fairly present in all material respects
the financial condition and results of operations of Everest Bermuda and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the
absence of footnotes.

2.                    
The
undersigned has reviewed and is familiar with the terms of the Agreement and
has made, or has caused to be made under his/her supervision, a detailed review
of the transactions and condition (financial or otherwise) of Everest Bermuda
during the accounting period covered by such financial statements.

3.                    
There
has been no material change in GAAP or in the application thereof which has
occurred since the date of the last financial statements delivered pursuant to Section 5.1 
of the Agreement [except [describe change and effect on the financial
statements attached to this Compliance Certificate]] 

 

[18]
Compliance Certificates to be delivered by Everest Bermuda. 

 66  

  

 357363582 

  

4.                    
A
review of the activities of Everest Bermuda during such fiscal period has been
made under the supervision of the undersigned with a view to determining
whether during such fiscal period the Borrowers performed and observed all its Obligations
under the Facility Documents, and

[select 
one:] 

[to the best knowledge of the
undersigned, no event or condition exists as of the date of this Compliance
Certificate which constitutes a Default.] 

[or] 

[to the best knowledge of the
undersigned, during such fiscal period the following covenants or conditions
have not been performed or observed and the following is a list of each such
Default and its nature and status:] 

5.                    
The
financial covenant analyses and information set forth on schedule 
1
attached hereto are true and accurate on and as of the date of this Compliance
Certificate.

IN WITNESS WHEREOF,
the
undersigned has executed this Compliance Certificate as of []

	
  Signed
  by

   

  for
  and on behalf of Everest Reinsurance (Bermuda), Ltd.

  	
  )

  )

  )

  )

  	
   

  	
   

  

 

 

 67  

  

 357363582 

  

For the
Quarter/Year ended []
("Statement Date") 

SCHEDULE 1

to
the Compliance Certificate ($ in 000's)

1.                    
Section
6.4 
– Consolidated Tangible Net Worth of Everest
Bermuda

(a)         Consolidated
Net Worth of Everest Bermuda

and its Subsidiaries:                                                                                                 $______________

(b)         Intangible
Assets of Everest Bermuda

and its Subsidiaries:                                                                                                 $______________

Consolidated
Tangible Net Worth of Everest Bermuda 

 (Item 1(a) minus  Item 1(b)):                                                                                 $______________

Minimum
amount of Consolidated Tangible Net Worth of 

Everest Bermuda required under 

Section 6.4 (provide calculation below):                                                            $______________

_________________________________________________

_________________________________________________

_________________________________________________

 

2.                    
Section 6.3 
– Financial Strength Rating of applicable Borrowers (must be B++ or better)

[List each Borrower and its rating if
not all the same] 

 

 68  

  

 357363582 

  

appendix
2  

Form of
Collateral Compliance Certificate

[]
20[]

	
  Barclays
  Bank PLC

  
	
  [ADDRESS] 

  

Re: Everest

Reference is made to that
certain Letter of Credit Facility Agreement, dated as of [],
2021 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the "Agreement;" the terms defined
therein being used herein as therein defined) among Everest Reinsurance
(Bermuda), Ltd. ("Everest Bermuda"), [Name of Borrower
providing certificate if not Everest Bermuda (the "Borrower")]
and certain other Subsidiaries and Barclays Bank Plc ("Issuer"). 
Capitalized terms used herein without definition shall have the respective
meanings assigned to such terms in the Facility Agreement. 

This Collateral Compliance
Certificate is being furnished to the Issuer pursuant to Section 5.1(e)
of the Facility Agreement.  The undersigned officer of [Everest Bermuda][19]/[the
Borrower][20]
hereby certifies to you as follows: (a) the information furnished in the
calculations attached hereto was true and correct as

of []
and (b) as of the date of this Collateral Compliance Certificate, there exists
no Event of Default under any of the Facility Documents.

IN WITNESS WHEREOF,
the undersigned officer has executed this Collateral Compliance Certificate as
of the date first written above.

[BORROWER]

	
  Signed
  by

   

  for
  and on behalf of [[]]: 

  	
  )

  )

  )

  )

  	
   

  	
   

  

 

 

[19] To be
inserted if Everest Bermuda is providing the Compliance Certificate.

[20] To be
inserted if any Designated Borrower is providing the Compliance Certificate.

  

Collateral Compliance
Certificate Worksheet

For

[Name
of Borrower]

[]
20[]

 

 70  

  

 357363582 

  

appendix
3  

Form of
Security Agreement

Security
Agreement

THIS SECURITY AGREEMENT (this
"Agreement") dated as of []
is between [DESIGNATED BORROWER] (the "Debtor") and BARCLAYS
BANK PLC (the "Issuer"). 

WITNESSETH

WHEREAS, Everest Reinsurance
(Bermuda), Ltd., certain Subsidiaries of Everest Re Group, Ltd. (including the
Debtor) as Designated Borrowers, and the Issuer entered into that certain
Letter of Credit Facility Agreement, dated as of [],
2021, as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the "Facility Agreement"; the terms
defined therein and not otherwise defined herein being used herein as therein
defined), pursuant to which the Issuer agreed to issue Letters of Credit for
the account of the Debtor; and

WHEREAS, as a condition
precedent to the issuance of Letters of Credit for the account of the Debtor,
the Debtor is required to execute and deliver this Agreement; and

WHEREAS, the Liabilities of the
Debtor with respect to the Letters of Credit issued for its account under the
Facility Agreement are to be secured pursuant to this Agreement;

NOW, THEREFORE, for and in
consideration of the issuance of Letters of Credit by the Issuer for the
account of the Debtor, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

1.                    
Definitions 

When used herein, (a) the terms Certificated
Security, Chattel Paper, Commodities Contract, Control, Deposit Account,
Financial Assets, General Intangibles, Instrument, Investment Property,
Proceeds, Securities Account, Security, Security Certificate, Security
Entitlement and Uncertificated Security shall have the respective meanings
assigned to such terms in Article 8
Article 9, as applicable, of the Uniform Commercial Code (as defined below) and
(b) the following terms have the following meanings (such definitions to be
applicable to both the singular and plural forms of such terms):

Agreement - see the Preamble.

Collateral – see Section
2. 

Collateral Account means account number []
established and maintained by the Financial Institution in the name of the
Debtor as a Securities Account for purposes of the Uniform Commercial Code.

Debtor - see the Preamble.

Event of Default means an Event of Default
under the Facility Agreement.

Facility Agreement - see the Recitals.

Financial Institution means [The Bank of New
York Mellon].

Issuer - see
the Preamble.

 

  

Liabilities
means, as to the Debtor, all obligations (monetary or otherwise) of the Debtor
under or in connection with the Letters of Credit issued for the account of the
Debtor (including any L/C Fees and Unpaid Reimbursement Obligations and
interest thereon) under the Facility Agreement, this Agreement, any Control
Agreement or any other Facility Document or any other document or instrument
executed by the Debtor in connection with such Letters of Credit, howsoever
created, arising or evidenced, whether direct or indirect, absolute or
contingent, now or hereafter existing, or due or to become due including,
without limitation, any post-petition interest accruing during any bankruptcy
reorganization of the Debtor or other similar proceeding.

Uniform Commercial Code means the Uniform
Commercial Code as in effect in the State of New York on the date of this
Agreement; provided, however, as used in Section 7,
"Uniform Commercial Code" means the Uniform Commercial Code as
in effect from time to time in the applicable jurisdiction.

2.                    
Grant of Security Interest

As security for the payment of all
Liabilities, the Debtor hereby grants to the Issuer, a continuing security
interest in all of the Debtor's right, title and interest in the following,
whether now or hereafter existing or acquired (collectively, the "Collateral"): 

(a)              
the
Collateral Accounts, 

(b)             
all
Financial Assets at any time credited to or carried in the Collateral Accounts
(including without limitation (i) Securities (whether constituting Certificated
Securities or Uncertificated Securities), (ii) Security Entitlements, (iii)
Investment Property, (iv) General Intangibles, (v) Instruments and (vi) Chattel
Paper), and 

(c)              
all
products and Proceeds (including without limitation all dividends,
distributions and payments received thereon or in exchange or substitution
thereof) with respect to any of the foregoing; and together with all books,
records, writings, databases, information and other property evidencing,
embodying or incorporating any of the foregoing.

3.                    
Warranties 

The Debtor warrants that:

(a)              
no
financing statement or other filing or registration evidencing a Lien (other
than any which may have been filed on behalf of the Issuer) covering any of the
Collateral is on file in any public office;

(b)             
the
Debtor is and will be the lawful owner of all Collateral, free of all liens and
claims whatsoever, other than (i) the security interest created hereunder and
(ii) any banker's Lien, right of set-off and similar Liens in favor of the
Financial Institution permitted by the Control Agreement with the Financial Institution
(collectively, "Permitted Liens"), with full power and
authority to execute this Agreement and perform the Debtor's obligations
hereunder, and to subject the Collateral to the security interest hereunder;

(c)              
the
Debtor's true legal name as registered in the jurisdiction in which such Debtor
is organized or incorporated, jurisdiction of incorporation or organization,
chief executive office, and principal place of business and the office where
the Debtor keeps its records concerning the Collateral are set forth on schedule 
1
hereto;

 

 72  

  

 357363582 

  

(d)             
the
Debtor has not been known by any legal name different from the one set forth on
the signature page of this Agreement; and

(e)              
the
Collateral Account is maintained in the United States and governed by the laws
of the State of New York or another state in the United States.

4.                    
Agreements of the Debtor

The Debtor (a) will, upon request of the
Issuer, execute (as applicable) and deliver such financing statements and other
documents (and pay the cost of filing or recording the same in all public
offices reasonably deemed appropriate by the Issuer) and do such other acts and
things, as the Issuer may reasonably request in connection with the perfection
and enforcement of the security interest granted hereunder; (b) will cause the
Issuer's security interest in Collateral consisting of Investment Property to
be and remain continuously perfected by Control (free of all other liens, claims
and rights of third parties whatsoever, other than Permitted Liens) to secure
the payment of the Liabilities; (c) will keep its records concerning the
Collateral in such a manner as will enable the Issuer or its designees to
determine at any time the status of the Collateral; (d) will furnish the Issuer
such information concerning the Debtor, the Collateral and the Financial
Institution as the Issuer may from time to time reasonably request; (e) will,
upon reasonable request of the Issuer, stamp on its records concerning the
Collateral, and add on all Chattel Paper constituting a portion of the
Collateral, a notation, in form reasonably satisfactory to the Issuer, of the
security interest of the Issuer hereunder; (f) will pay to the Financial
Institution any charges or costs imposed by the Financial Institution pursuant
to agreements with the Financial Institution; (g) agrees to indemnify, defend,
and hold harmless the Issuer, its successors and assigns and its directors,
officers, employees and agents, from and against any and all losses,
liabilities, damages, obligations, deficiencies, payments, costs and expenses
sustained or incurred by the Issuer in any way arising from or related to the
Issuer's actions with respect to the Financial Institution other than any such
losses, liabilities, damages, obligations, deficiencies, payment costs or
expenses which are determined by a court of competent jurisdiction by a final
and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of the Issuer, its successors and assigns, or its directors,
officers, employees or agents and (h) will reimburse the Issuer for all
reasonable expenses, including reasonable attorneys' fees and legal expenses,
incurred by the Issuer in seeking to collect or enforce any rights in respect
of the Collateral.

Any reasonable expenses incurred by the
Issuer in protecting, preserving and maintaining any Collateral shall be borne
by the Debtor.  Whenever an Event of Default shall be existing and continuing,
the Debtor shall at the request of the Issuer do any and all lawful acts and
execute any and all proper documents reasonably required by the Issuer in aid
of such enforcement and the Debtor shall promptly, upon demand, reimburse and
indemnify the Issuer for all reasonable costs and expenses incurred by the
Issuer in the exercise of its rights under this Section 4. 

5.                    
Investments 

(a)              
The
Debtor hereby agrees that it shall only give instructions or entitlement orders
to the Financial Institution consistent with Sections
5.10 
and 5.11  of the Facility Agreement.

(b)             
The
Debtor shall cause the Financial Institution to execute and deliver to the
Issuer on or prior to the date hereof (or on or prior to such later date as
agreed to in writing by the Issuer) a Control Agreement with respect to the
Collateral Accounts.

(c)              
As
long as no Event of Default exists, and is continuing, the Debtor shall be the
sole party entitled to exercise for any purpose any and all (i) voting rights
and (ii) powers, in either case arising from or relating to the Debtor's
interest in respect of any Investment 

 

 73  

  

 357363582 

  

Property
(including the power to direct the Financial Institution with respect to the
investment of funds or sale of Investment Property); provided, however, the
Debtor shall not exercise such rights or powers in a manner, or consent to any
action that would in any manner impair the enforceability of the Issuer's Lien
on any of the Collateral.  At any time an Event of Default exists, and is
continuing, all rights of the Debtor provided in this Section 5(c)
shall cease, and all voting rights and powers described herein shall thereupon
be vested in the Issuer which shall have the sole and exclusive right and
authority to exercise such voting rights and powers.  The Issuer hereby agrees
that it shall not issue to the Financial Institution a [Notice of Exclusive
Control] (as defined in the Control Agreement) unless an Event of Default shall
have occurred and be continuing at the time such [Notice of Exclusive Control]
is issued.

6.                    
Event of Default

Whenever an Event of Default shall exist and
be continuing, the Issuer may exercise from time to time any rights and
remedies available to it under applicable Law and in addition may sell or
otherwise dispose of the Collateral or any part thereof.  In connection
therewith and subject to the requirements of the Uniform Commercial Code, the
Collateral may be sold in one or more sales, at public or private sale,
conducted by an officer or agent of, or auctioneer or attorney for, the Issuer,
at the Issuer's place of business or elsewhere, for cash, upon credit or for
other property, for immediate or future delivery, on such terms as the Issuer
shall deem appropriate and at such price or prices as the Issuer shall deem
best.  The Issuer may be the purchaser of any or all of the Collateral so sold
at a public sale.  The Issuer may, in its sole discretion, at any such sale,
restrict the prospective bidders or purchasers who will provide assurances
satisfactory to the Issuer that the Collateral may be offered and sold to them
without registration under the Securities Act of 1933, as amended, and without
registration or qualification under any other applicable state or federal law. 
Any notification of intended disposition of any of the Collateral required by
applicable Law shall be deemed reasonably and properly given if given at least
five days before such disposition.  Any proceeds of any disposition by the
Issuer of any of the Collateral may be applied to payment of expenses in
connection with the Collateral, including reasonable attorneys' fees and legal
expenses, and any balance of such proceeds may be applied by the Issuer toward
the payment of such of the Liabilities, and in such order of application, as
the Issuer may from time to time elect.

7.                    
Issuer Rights and Powers

(a)              
Upon
the occurrence and during the continuance of an Event of Default, the Debtor
hereby irrevocably appoints the Issuer as the Debtor's attorney-in-fact (which
appointment as attorney-in-fact is coupled with an interest), with full
authority in the place and stead of the Debtor and in the name of the Debtor,
effective from time to time in the Issuer's discretion to take any action and
to execute any instrument which the Issuer may reasonably deem necessary or
advisable to accomplish the purposes of this Agreement, including to ask,
demand, collect, sue for, recover and receive moneys due and to become due
under or in connection with the Collateral, to receive, indorse and collect any
drafts or other Instruments, Documents and Chattel Paper in connection
therewith and to file any claims or take any action or institute any proceedings
which the Issuer may reasonably deem necessary or desirable for the collection
thereof or to enforce compliance with the terms and conditions of this
Agreement.  Notwithstanding the foregoing, the Issuer shall not be obligated to
exercise any right or duty as attorney-in-fact or have any duty to the Debtor
in connection therewith.

(b)             
The
powers conferred on the Issuer hereunder shall not impose any duty upon it to
exercise any such powers.  Except for the safe custody of any Collateral in its
possession and the accounting for moneys actually received by it hereunder, the
Issuer shall have 

 

 74  

  

 357363582 

  

no
duty as to any Collateral or as to the taking of any necessary steps to
preserve any rights pertaining to any Collateral.

(c)              
The
Debtor hereby authorizes the Issuer to file at any time appropriate Uniform
Commercial Code financing statements or other necessary filings in such
jurisdictions and offices as the Issuer deems reasonably necessary in
connection with the perfection of a security interest in the Collateral granted
hereunder.  [The Debtor acknowledges that a copy of this Agreement will be
filed with [].]

8.                    
Rights and Remedies

Upon the occurrence and during the
continuance of an Event of Default and the enforcement by the Issuer of its
rights and remedies hereunder, all payments received by the Debtor in respect
of the Collateral shall be received in trust for the benefit of the Issuer,
shall be segregated from other funds of the Debtor, and shall be forthwith paid
over to the Issuer in the same form as so received (with any necessary
indorsement) for application to the Liabilities as provided in this Agreement.

9.                    
General 

The Issuer's sole duty with respect to the
custody, safekeeping and physical preservation of the Collateral in its
possession, under Section 9-207 of the Uniform Commercial Code or otherwise,
shall be to deal with it in the same manner as the Issuer deals with similar
property for its own account.  The Issuer shall be deemed to have exercised
reasonable care in the custody and preservation of any of the Collateral in its
possession if it takes such action for that purpose as the Debtor requests in
writing, but failure of the Issuer to comply with any such request shall not of
itself be deemed a failure to exercise reasonable care, and no failure of the
Issuer to preserve or protect any rights with respect to such Collateral
against prior parties, or to do any act with respect to the preservation of
such Collateral not so requested by the Debtor, shall be deemed of itself a
failure to exercise reasonable care in the custody or preservation of such
Collateral.

All notices and other communications
provided for hereunder (a) shall be in writing and shall be sent by the means
provided for in, and shall be deemed delivered in accordance with,
Section 9.1 
of the Facility Agreement and (b) shall be sent (i) in the case of the Issuer,
to its address provided for in schedule 3 of the Facility Agreement and
(ii) in the case of the Debtor, to its address provided for in schedule 3
of the Facility Agreement.

The Debtor agrees to pay all reasonable
expenses (including reasonable attorneys' fees and legal expenses) paid or
incurred by the Issuer in endeavoring to collect the Liabilities, or any part
thereof, and in enforcing this Agreement, and such obligations will themselves
be Liabilities.

No delay on the part of the Issuer in the
exercise of any right or remedy shall operate as a waiver thereof, and no
single or partial exercise by the Issuer of any right or remedy shall preclude
other or further exercise thereof or the exercise of any other right or remedy.

This Agreement
shall remain in full force and effect until all Liabilities have been paid in
full, the Commitment has terminated and all Letters of Credit issued for the
account of the Debtor have terminated or been returned undrawn whereupon the
remaining Collateral shall be returned to the Debtor; provided that this
Agreement may be terminated at the request of the Debtor prior to the
termination of the Commitments if all Liabilities have been paid in full and
there are no outstanding Letters of Credit issued for the account of the
Debtor.  If at any time all or any part of any payment theretofore applied by
the Issuer to any of the Liabilities is or must be rescinded or returned by the
Issuer for any reason whatsoever (including, without 

 

 75  

  

 357363582 

  

limitation, the
insolvency, bankruptcy or reorganization of the Debtor), such Liabilities
shall, for the purposes of this Agreement, to the extent that such payment is
or must be rescinded or returned, be deemed to have continued in existence,
notwithstanding such application by the Issuer, and this Agreement shall
continue to be effective or be reinstated, as the case may be, as to such
Liabilities, all as though such application by the Issuer had not been made.

This Agreement shall be construed in
accordance with and governed by the laws of the State of New York.  Whenever possible,
each provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining
provisions of this Agreement.

The rights and privileges of the Issuer
hereunder shall inure to the benefit of its successors and assigns.

This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
and each such counterpart shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.  Delivery of
an executed counterpart of a signature page of this Agreement by facsimile or
in electronic (i.e., "pdf" or "tif") format shall be
effective as delivery of a manually executed counterpart of this Agreement.

ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
FACILITY DOCUMENT, SHALL BE BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE
OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF
NEW YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE ISSUER'S OPTION, IN THE
COURTS OF ANY JURISDICTION

WHERE SUCH COLLATERAL OR OTHER
PROPERTY MAY BE FOUND.  EACH OF THE DEBTOR AND THE ISSUER HEREBY EXPRESSLY AND
IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH
ABOVE.  EACH OF THE DEBTOR AND THE ISSUER FURTHER IRREVOCABLY CONSENTS TO THE
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 9.1 
OF THE FACILITY AGREEMENT.  NOTHING IN ANY FACILITY DOCUMENT WILL AFFECT THE
RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW.  EACH OF THE DEBTOR AND THE ISSUER HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

EACH OF THE
DEBTOR AND THE ISSUER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION
OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER
FACILITY DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
THEREWITH OR ARISING FROM ANY BANKING RELATIONSHIP EXISTING IN CONNECTION WITH
ANY OF THE 

 

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 357363582 

  

FOREGOING, AND
AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY.

IN WITNESS WHEREOF, this
Agreement has been duly executed as of the day and year first above written.

	
  Signed
  by

   

  for and on behalf of
  [DESIGNATED BORROWER]: 

  	
  )

  )

  )

  )

  	
   

  	
   

  

 

 

	
  Signed
  by

   

  for
  and on behalf of BARCLAYS BANK PLC: 

  	
  )

  )

  )

  )

  	
   

  	
   

  

 

 

 77  

  

 357363582 

  

SCHEDULE
1

Organizational
Information

Legal Name:

Jurisdiction of Incorporation:

Chief Executive Office:

Principal Place of Business:

Location of Records re:
Collateral:

 

 78  

  

 357363582 

appendix
4  

Form of
Designated Borrower

Request and Assumption Agreement

Date:[]

To:               Barclays
Bank PLC 

                    [Address]

                    Attn:  []

From:         [Everest
Reinsurance (Bermuda), Ltd.]

Ladies and Gentlemen:

This Designated Borrower Request
and Assumption Agreement is made and delivered pursuant to Section 2.14 of
that certain Letter of Credit Facility Agreement dated as of [],
2021 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the "Agreement;" the terms defined
therein being used herein as therein defined) among Everest Reinsurance
(Bermuda), Ltd. ("Everest Bermuda") and certain Subsidiaries
of Everest Re Group, Ltd. party thereto pursuant to Section
2.14 
of the Agreement (each a "Designated Borrower" and, together
with Everest Bermuda, the "Borrowers" and, each a "Borrower")
and Barclays Bank PLC ("Issuer"). 

Each of []
(the "Designated Borrower") and Everest Bermuda hereby
confirms, represents and warrants to the Issuer that the Designated Borrower is
an Insurance Subsidiary of Everest Group.

The documents required to be
delivered to the Issuer under Section 2.14 
and Section 4.2(f)
of the Agreement will be furnished to the Issuer in accordance with the
requirements of the Agreement.

Complete if the Designated
Borrower is a US Person: The true and correct U.S.
taxpayer identification number of the Designated Borrower is [].

Complete if the Designated
Borrower is a Non-US Person: The true and
correct unique identification number that has been issued to the Designated
Borrower by its jurisdiction of organization and the name of such jurisdiction
are set forth below:

	
  Identification Number

  	
  Jurisdiction of Organization

  
	
   

  	
   

  
	
   

  	
   

  

The parties
hereto hereby confirm that with effect from the date this Agreement is accepted
by the Issuer (the "Effective Date"), the Designated Borrower
shall have obligations, duties and liabilities toward each of the other parties
to the Agreement identical to those which the Designated Borrower would have
had if the Designated Borrower had been an original party to the Agreement as a
Borrower.  Also as of the date of the Effective Date, the Designated Borrower
confirms its acceptance of, and consents to, all representations and
warranties, covenants, and other terms and provisions of the Agreement.

The parties hereto
hereby request that the Designated Borrower be entitled to have Letters of
Credit issued for its account and understand, acknowledge and agree that the
Designated Borrower shall not have any right to request any Letters of Credit
its account unless and until the date five Business Days after the Effective
Date.

 

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 357363582   

  

Accordingly,
Everest Bermuda and the Designated Borrower hereby represent and warrant and
agree that as of the "Effective Date":

1.                    
Each
of the representations and warranties contained in the Agreement and in the
other Facility Documents (to the extent the same relate to a Subsidiary of
Everest Bermuda) is true and correct as to the Designated Borrower on and as of
the Effective Date (or, if any such representation or warranty is expressly stated
to have been made as of a specific date, as of such specific date);

2.                    
The
Designated Borrower's addresses for notices, other communications and service
of process provided for in the Agreement shall be given in the manner, and with
the effect, specified in Section
9.1 
of the Agreement to it at its "Address for Notices" specified on the
signature pages below or (if no such address is so specified) to it c/o the
address for Everest Bermuda; and

3.                    
As
of the Effective Date, the payment of the Reimbursement Obligations and
interest thereon and all other amounts under the Agreement will not be subject,
by withholding or deduction, to any Taxes imposed by the [Designated Borrower's
jurisdiction(s)] for the Designated Borrower.

In addition to the foregoing, Everest
Bermuda hereby represents and warrants and agrees that as of the Effective
Date:

(a)              
Each
of the representations and warranties contained in the Agreement and in the
other Facility Documents is true and correct in all material respects on and as
of the Effective Date (or, if any such representation or warranty is expressly
stated to have been made as of a specific date, as of such specific date);
and

(b)             
No
Default has occurred and is continuing.

This Designated Borrower Request and
Assumption Agreement shall constitute a Facility Document under the Agreement.

This Designated Borrower Request and
Assumption Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same agreement.

THIS DESIGNATED BORROWER REQUEST AND
ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF NEW YORK.

 

[Remainder
of page intentionally left blank.]

 

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 357363582   

  

IN WITNESS
WHEREOF, the parties hereto have caused this Designated Borrower Request and
Assumption Agreement to be duly executed and delivered by their proper and duly
authorized signatories as of the day and year first above written.

	
  Signed
  by

   

  for
  and on behalf of [DESIGNATED
  BORROWER]: 

  	
  )

  )

  )

  )

  	
   

  	
   

  

 

 

	
  Signed
  by

   

  for and on behalf of EVEREST
  REINSURANCE (BERMUDA), LTD.

  	
  )

  )

  )

  )

  	
   

  	
   

  

 

 

Accepted this ___
day of _____, 20__ 

BARCLAY BANK PLC, as Issuer

 

By: 
________________________

Name:

Title:

 8160  

  

 357363582   

  

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their proper and duly authorized signatories as of the day and
year first above written.

 

Borrower

	
  Signed by

   

  for and on behalf of EVEREST
  REINSURANCE (BERMUDA), LTD.: 

  	
  )

  )

  )

  )

  	
   

  	
   

  

 

 

 

 8260  

  

 357363582   

  

The Issuer

	
  Signed
  by

   

  for
  and on behalf of BARCLAYS BANK PLC: 

  	
  )

  )

  )

  )

  	
   

  	
   

  

 

 

 

 83  

  

 357363582

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