Document:

FROM:

 

 

 

 

 

November [5], 2019

 

 

Everest
International Reinsurance, Ltd. 

Seon
Place, 4th Floor

141
Front Street

Hamilton,
HM 19

P.O.
Box HM 845

Telecopy
Number: (441) 295-4828

Attention:
[___]

 

Ladies
and Gentlemen:

 

Ref: Amendment Agreement
– Standby Letter of Credit Facility

 

This Letter Agreement
(the “Amendment Agreement”) is made as of November [5], 2019 between
Lloyds Bank Corporate Markets plc (successor in interest to Lloyds Bank plc, the
“Bank” or “us”) and Everest International Reinsurance, Ltd., a
company organized under the laws of Bermuda (the “Company”, “you”
or “your”) in connection to that certain: (i) letter agreement dated as of November
9, 2015 between the Bank and the Company (as the same may have been amended or
restated the “Facility Letter Agreement”), (ii) Master Agreement for
Standby Letters of Credit and Demand Guarantees dated as of November 9, 2015
between the Bank and the Company (as the same may have been amended or restated
the “Master Agreement”), (iii) the Pledge and Security Agreement dated
as of November 9, 2015 (as the same may have been amended or restated the “Pledge
and Security Agreement”) and (iv) Account Control Agreement, dated as of
November 9, 2015 made among the Company, the Bank and The Bank of New York
Mellon (as the same may have been amended or restated the “Account Control
Agreement” together with, the Facility Letter Agreement, the Master
Agreement and the Pledge and Security Agreement, the “Existing Documents”).
Unless otherwise specified herein, all terms defined in this Amendment
Agreement shall have the meanings as provided for in the relevant Related
Documents.   

 

You have advised us of
your intention to amend and extend the termination date of your £30,000,000 (as
such amount may be increased as hereinafter provided) bilateral FAL facility in
support of your obligation to provide Funds at Lloyd’s to support your and any
Other Party’s business assumed as a member of certain syndicates at Lloyd’s for
the 2020Year of Account. 

 

In consideration of the
mutual covenants and agreements herein contained the parties hereto agree and
covenant to amend the Existing Documents as follows: 

 

Amendment: 

 

Facility Letter

1.      Any and all references to
“Related Documents”, in any Related Documents, shall be read to include this
Amendment Agreement.  

 

2.      The reference to “£30,000,000”
in the first paragraph of the Facility Letter is deleted and replaced by “£47,000,000”.

 

 

 

Lloyds
Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in
England and Wales No. 2065. Telephone: 020 7626 1500.Authorised by the
Prudential Regulation Authority and regulated by the Financial Conduct
Authority and the Prudential Regulation Authority under number 119278.

     

 

Lloyds
Bank plc is covered by the Financial Services Compensation Scheme and the
Financial Ombudsman Service. (Please note that due to the schemes' 

eligibility criteria not all Lloyds Bank
business customers will be covered by these schemes.)

 

 

 

 

3.      The reference to
“December 31, 2018” in the second paragraph of the Facility Letter is deleted
and replaced by “December 31, 2019.” 

 

4.      The fifth paragraph of the
Facility Letter is deleted and replaced by “The Facility shall become effective
and the effective date shall occur upon the satisfaction of the following
conditions (and the documents required to be delivered shall be in form and
substance satisfactory to the Bank)(the first date of which all of the
following conditions are satisfied or waived by the Bank (but in any case, no
later than November [5], 2019), the “Effective Date”). 

 

5.      The reference to
“December 31, 2018” in the seventh paragraph of the Facility Letter is deleted
and replaced by “December 31, 2019.”

 

6.      The reference to “2019
underwriting year” in the seventh paragraph of the Facility Letter is deleted
and replaced by “2020 underwriting year.”

 

7.      The reference to “31
December 2019” in the eighth paragraph of the Facility Letter is deleted and
replaced by “December 31, 2020.”

 

 

Master Agreement

1.      The reference to
“December 31, 2022” in the definition of Termination Date in the Master
Agreement is deleted and replaced by “December 31, 2023.”

 

2.      The references to
“December 31, 2017” in clause (i) and clause (ii) of the definition of Minimum
Amount in Clause 2 of  Schedule 8(d) (Financial Covenants) in the Master
Agreement are deleted and replaced by “December 31, 2018” in both instances. 

 

3.      The reference to
“December 31, 2022” in footnote 3 in Exhibit B (Form of Application for
Irrevocable Standby Letter of Credit) to the Facility Letter is deleted and
replaced by “December 31, 2023.”

 

4.      The reference to “[2019]”
in Clause 4 of Exhibit B (Form of Application for Irrevocable Standby Letter of
Credit) to the Facility Letter is deleted and replace by “[2020]”.

 

5.      The references to
“December 31, 2017” in clause 2(a) and clause 2(c) (Minimum Consolidated Net
Worth) in Section B of Attachment A (GAAP Covenant Compliance Worksheet) to
Exhibit B (Form of Compliance Certificate) to Exhibit C to the Facility Letter
are deleted and replaced by “December 31, 2018” in both instances. 

 

Related Documents

1.      In each and every Related
Document and in all instances, all references to Lloyds Bank plc are deleted
and replaced by Lloyds Bank Corporate Markets plc as successor in interest to
Lloyds Bank plc.

 

 

 

Conditions Precedent: 

 

This
Amendment Agreement shall become effective and the effective date shall occur
upon the satisfaction of the following conditions (and the documents required
to be delivered shall be in form and substance satisfactory to the Bank) (the
first date on which all of the following conditions are satisfied or waived by
the Bank, the “Effective Date” but which must occur on or before November [5],
2019):

 

1.      delivery of this
Amendment Agreement duly executed by the Company; 

 

 

     

 

 

 

2.      delivery of copies of the
organic documents of the Company certified as true and correct and up to date
by the Secretary or Assistant Secretary of the Company or that the documents
previously delivered by the Company pursuant to the Facility Letter have not
changed;

 

3.      delivery of a certificate
of the Secretary or Assistant Secretary of the Company, attaching and
certifying copies of the resolutions of its board of directors authorizing the
execution and delivery of the Amendment Agreement and the performance of the
transactions contemplated herein and therein, and certifying the name, title,
and true signature of each officer of the Company authorized to execute the
Amendment Agreement and the other Related Documents;

 

4.      delivery of a good
standing certificate or comparable certificate relating to the Company’s good
standing under the laws of the jurisdiction of its organization if such is
available in such jurisdiction;

 

5.      delivery of a customary
Letter of Substitution from Lloyd’s of London; 

 

6.      satisfactory completion
by the Bank of all “know your customer” checks;

 

7.      delivery of favorable
opinions of counsel to the Company addressed to the Bank and covering matters
customary for a transaction of this nature;

 

8.      Evidence satisfactory to
the Bank that all necessary or appropriate steps have been taken (including the
filing of a UCC-1 financing statement and the registration of a charge under
Bermuda law) have been taken in order to perfect the lien and security interest
of the Bank in the collateral pledged to the Bank pursuant to the Pledge and
Security Agreement together with satisfactory UCC and Bermuda lien searches; 

 

9.      The Bank shall have
received evidence of acceptance by CT Corporation System of its appointment of
agent of service of process for the Company pursuant to Section 19 of the
Master Agreement; 

 

10.  No Event of Default under
the Master Agreement shall have occurred and be continuing; and

 

10.  The representations
and warranties set out in the Existing Documents are true and correct in all
respects as if made on the Effective Date except to the extent they refer to an
earlier date in which case they shall be true and correct as of such date.

 

Entire Agreement;
Restatement:
 

 

This
Amendment Agreement and the Existing Agreements constitute the entire agreement
and understanding of the parties with respect to its subject matter and
supersedes all oral communications and prior writings (except as otherwise
provided herein) with respect thereto

 

Save as
amended hereby, all terms and conditions of the Existing Documents will
continue in full force and effect. References to the Existing Documents will be
to the Existing Documents, as amended by this Amendment Agreement. 

 

Counterparts: 

 

This
Agreement may be executed by the parties hereto individually, or in any
combination of the parties hereto, in two or more counterparts, each which
shall be deemed an original, but all of which together shall constitute one and
the same instrument. Delivery of an executed counterpart of a signature page of
this Amendment Agreement by any electronic imaging means (including portable
document format) shall be effective as delivery of a manually executed
counterpart of this Amendment Agreement; provided, however, that, the Bank
shall require any request for a Letter of Credit delivered via email to attach
such request, signed by authorized signatories, in portable document format. 

 

 

 

 

 

 

     

 

 

 

 

Governing Law: 

 

                This
Amendment Agreement shall be governed by, and construed in accordance with, the
laws of the State of New York. 

 

[Signature page to
follow]
 

     

 

 

 

 

	
   

  	
  Yours sincerely,

  LLOYDS BANK CORPORATE
  MARKETS PLC

   

  By:      /S/ TINA
  WONG    

  
	
   

  	
  Name: Tina Wong

  Title:    Assistant
  Vice President

  
	
   

  	
              Transaction
  Execution

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:      /S/ KAMAIA
  BASDEO

  
	
   

  	
  Name: Kamaia Basdeo

  
	
   

  	
  Title:    Assistant
  Vice President

  
	
   

  	
              Transaction
  Execution

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged and agreed
  (in counterpart) this 5th  day of November, 2019

  	
   

  
	
   

  	
   

  
	
  EVEREST INTERNATIONAL
  REINSURANCE, LTD.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:       /S/ SANJOY
  MUKHERJEE

  	
   

  
	
  Name:  Sanjoy Mukherjee

  	
   

  
	
  Title:     CEODEED OF AMENDMENT

Date:  20th December 
2019

Between:

(1)
Citibank Europe plc (“Citibank”);

(2) Everest
Reinsurance (Bermuda) Limited; and

(3) Everest
Reinsurance (Bermuda) Limited UK Branch

(parties (2) and (3) together
know as the “Companies”).  

1. Background

1.1 On 31 December 2014 a
Committed Facility Letter for Issuance of Payment Instruments was signed
between Citibank and the Companies, as amended by a Letter of Amendment dated 30th
November 2015, 30th December 2016, 29th December 2017 and
by a Deed of Amendment 10th December 2018, and as may be
further amended, varied, suppliemented, novated or assigned from time to time  (the
“Committed Facility Letter”).  

1.2 The Parties have agreed
certain amendments to the Committed Facility Letter as detailed in this deed.  

1.3 Terms and expressions defined
in the Committed Facility Letter shall have the same meanings when used in this
deed  unless the context otherwise requires or the contrary is otherwise
indicated. 

1.4 The parties to this deed  hereby
agree that from the Effective Date (as defined below) the rights and
obligations of the parties under the Committed Facility Letter and the terms of
the Committed Facility Letter shall be amended as specifically set out below.  

2. Effective Date

The following amendments shall
take effect on and from 31st December 2019 (“Effective Date”).
 

3. Amendments

With effect from the Effective
Date, the the following amendments shall be made to the Committed Facility
Letter:

(i)      Clause
2 of the Committed Facility Letter shall be amended and restated in its
entirety as follows:

“The Facility shall be in a maximum
aggregate amount of USD200,000,000.00 (the “Facility Limit”) comprising:

(1)  Letters of Credit with a maximum tenor of
15 months inclusive of any notice period to the beneficiaries 

 

 

     

 

(2)  Letters of Credit with a maximum tenor of
24 months inclusive of any notice period to the beneficiaries. 

(1) and (2) above, collectively “Standard
LCs”.

 

(3)  
Letters
of Credit issued in respect of Funds at Lloyds obligations with a maximum tenor
of up to 60 months inclusive of any notice period to the beneficiaries (“FAL
LCs”).   The aggregate amount in respect of FAL LCs shall not exceed USD
150,000,000 and shall be made available jointly to the Companies.  

 

For
the avoidance of doubt, all or any part of the Facility shall be available to
either Company save that a utilisation by one Company shall reduce the
remaining availability for itself and the other Company. The aggregate of all
utilisations made by the Companies under the Facility shall not exceed the
Facility Limit.

 

No
credit will be issued under the Facility after 31st December, 2020 (the “Availability
End Date”) and no Credit will be issued under the Facility unless it is
expressed to expire no later than 31st December, 2024. (the “Facility Expiry
Date”).”  

 

4. Costs and expenses

Each party to this deed  shall
bear its own costs and expenses in relation to the amendments agreed pursuant
to the terms of this deed. 

5. Affirmation and acceptance

5.1 With effect from the Effective
Date, the terms and conditions of the Committed Facility Letter shall be read
and construed by reference to this deed and all references to the Committed Facility
Letter shall be deemed to incorporate the relevant amendments contained within
this deed and all references in the Committed Facility Letter  to “this Committed
Facility Letter” shall with effect from the Effective Date be references to the
Committed Facility Letter as amended by this deed.

5.2 In the event of any conflict
between the terms of this deed and the Committed Facility Letter, the terms of
this deed shall prevail. 

5.3 For the avoidance of doubt,
except as amended by the terms of this deed, all of the terms and conditions of
the Committed Facility Letter shall continue to apply and remain in full force
and effect. 

5.5 The Companies shall, at the
request of Citibank, do all such acts necessary or desirable to give effect to
the amendments effected or to be effected pursuant to the terms of this deed. 

6. Continuation of Security

The Companies confirm that, on
and after the Effective Date:

(a) notwithstanding the
amendments made to the Committed Facility Letter pursuant to this deed, the Pledge
Agreement dated 07th April 2005, as amended on 15 March 2006, 10
March 2011, 14 November 2014 between Everest Reinsurance (Bermuda) Ltd and Citibank
(the “Pledge Agreement”) and any security granted under it continues in
full force and effect; and

     

 

b) such Pledge
Agreement and security extends to the Committed Facility Letter, as amended
pursuant to this deed.

7. Counterparts

This deed may be executed in
counterparts, each of which shall be deemed to be an original, and all such
counterparts taken together shall constitute one and the same agreement. This
amendment shall take effect as a deed notwithstanding it is signed under hand
by Citibank. 

8. Third party rights

No person shall have any right
to enforce any provision of this deed under the Contracts (Rights of Third
Parties) Act 1999. 

9. Governing law

This deed (and any
non-contractual obligation, dispute, controversy, proceedings or claim of
whatever nature arising out of it or in any way relating to this deed or its
formation) shall be governed by and construed in accordance with English law. 

[signature pages follow]

     

 

Signatories
to the deed of amendment

	
   

   

   

   

  EXECUTED
  AS A DEED BY OR ON BEHALF OF 

  Everest
  Reinsurance (Bermuda) Limited UK Branch

   

  and
  signed by the persons specified on the right 

  acting
  in accordance with the laws of United Kingdom,  

  under
  the authority of the Company 

  pursuant
  to a resolution of Everest Reinsurance (Bermuda) Limited UK Branch

  dated (Insert Date): 

   

   

   

   

   

   

   

   

   

  	
   

   

   

   

   

   

  Signed    /S/
  NIGEL EDWARDS-SMITH

   

  Name     Nigel
  Edwards-Smith

   

  Title        Chief
  Administrative Officer (UK Branch)

   

  Signed    /S/
  PAUL CLAYDEN

   

  Name     Paul
  Clayden

   

  Title        Financial
  Comptroller

   

   

   

   

  

 

	
   

   

   

  EXECUTED
  AS A DEED BY OR ON BEHALF OF 

  Everest
  Reinsurance (Bermuda) Limited 

   

  and
  signed by the persons specified on the right 

  acting
  in accordance with the laws of Bermuda,  

  under
  the authority of the Company 

  pursuant
  to a resolution of Everest Reinsurance (Bermuda) Limited

  dated (Insert Date): 

   

   

   

   

  	
   

   

   

   

   

  Signed    /S/
  SANJOY MUKHERJEE

   

  Name     Sanjoy
  Mukherjee

   

  Title        Managing
  Director & CEO

   

  Signed    /S/
  DAVID LAWLER

   

  Name     David
  Lawler

   

  Title        Chief
  Accountant

   

   

   

   

  

 

 

 

 

     

 

WE HEREBY CONFIRM OUR ACCEPTANCE ON BEHALF
OF CITIBANK:

 

By:           /S/
NIALL TUCKEY

Name:
    Niall Tuckey

Title:
      Director

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