SEC Contract Filing

Filing Date: 2023-08-07

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<DESCRIPTION>EX-10.2
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<DIV><FONT size="1" style="font-size:1pt;color:white">NY01/ 7269182.9 THIRD AMENDED AND RESTATED SUPPLEMENTAL TRUST AGREEMENT This Third Amended and Restated Supplemental Trust Agreement, dated as of January 15, 2020, (this &#8220;Supplemental Trust Agreement&#8221;), is entered into by and among BUILD AMERICA MUTUAL ASSURANCE COMPANY, a corporation organized and existing under the laws of New York (the &#8220;Beneficiary&#8221;), HG RE LTD., an exempted Bermuda limited company (the &#8220;Grantor&#8221;), and THE BANK OF NEW YORK MELLON, a banking corporation organized and existing under the laws of the State of New York (the &#8220;Trustee&#8221;), (the Grantor, the Beneficiary and the Trustee are hereinafter each sometimes referred to individually as a &#8220;Party&#8221; and collectively as the &#8220;Parties&#8221;). RECITALS: WHEREAS, HGR Patton (Luxembourg) S.a r.l, United States of America Branch, Beneficiary and Trustee entered into a certain Supplemental Trust Agreement dated as of July 20, 2012 (the &#8220;Original Agreement&#8221;) ; and WHEREAS, the interest of HGR Patton (Luxembourg) S.a r.l., United States of America Branch, as Grantor under the Original Agreement, was assigned to the Grantor; and WHEREAS, the Grantor Beneficiary and Trustee entered into an Amended and Restated Supplemental Trust Agreement dated as of August 14, 2017 amending the Original Agreement in certain respects and restating the Original Agreement in its entirety (the &#8220;First Amended Supplemental Trust Agreement&#8221;); and WHEREAS, the Grantor Beneficiary and Trustee entered into a Second Amended and Restated Supplemental Trust Agreement dated as of December 4, 2018, amending the First Amended Supplemental Trust Agreement in certain respects and restating the First Amended Supplemental Trust Agreement in its entirety to, among other things, acknowledge the contribution and delivery of Surplus Notes (as defined herein) from the Supplemental Trust Account (as defined herein) to HGR Fund B, a sub-fund of HGR Portfolio Solutions ICAV (&#8220;HGR Fund B&#8221;) in exchange for the receipt by the Supplemental Trust Account of shares of HGR Fund B (the &#8220;Second Amended Supplemental Trust Agreement&#8221;); and WHEREAS, the Grantor and the Beneficiary have entered into that certain First Loss Reinsurance Treaty Agreement, dated as of July 20, 2012 (as it may be amended or restated in accordance with its terms, the &quot;Reinsurance Agreement&quot;) and that certain Individual Credit Excess of Loss Facultative Reinsurance Treaty Agreement, dated as of January 15, 2020 (as it may be amended or restated in accordance with its terms, the &#8220;Excess of Loss Agreement&#8221;) (together, the &#8220;Reinsurance Agreements&#8221;); and WHEREAS, pursuant to the Original Agreement and subsequent amendments the Grantor has created and maintains a trust account with the Trustee (the &#8220;Supplemental Trust Account&#8221;) for the purposes set forth in the Reinsurance Agreements and herein; and WHEREAS, the Grantor, the Beneficiary and the Trustee have entered into that certain Regulation 114 Trust Agreement, dated July 20, 2012 (as it may be amended or restated in accordance with its terms, the &quot;Regulation 114 Trust Agreement&quot;), pursuant to which HG Re has Exhibit 10.2 </FONT></DIV>
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<DIV><FONT size="1" style="font-size:1pt;color:white"> Page 2 of 16 NY01/ 7269182.9 established the Regulation 114 Trust Account (as defined therein); and WHEREAS, the Trustee has agreed to continue to act as trustee hereunder, and to hold Assets in the Supplemental Trust Account in accordance with the terms and conditions of this Supplemental Trust Agreement; WHEREAS, the Parties desire to amend and restate the Second Amended Supplemental Trust Agreement as herein set forth to, among other things, acknowledge security for payment of amounts owed by the Grantor to the Beneficiary under the Excess of Loss Agreement and to otherwise restate the Second Amended Supplemental Trust Agreement in its entirety; NOW, THEREFORE, for and in consideration of the premises and the promises and the mutual agreements hereinafter set forth, the Parties, intending to be legally bound, covenant and agree as follows: SECTION 1. Deposit of Assets into the Supplemental Trust Account. (a) The Grantor hereby establishes the Supplemental Trust Account with the Trustee for the sole use and benefit of the Beneficiary, under the terms set forth herein, in order to secure payment of amounts owed by the Grantor to the Beneficiary under the Reinsurance Agreements. The Trustee shall administer the Supplemental Trust Account in its name as Trustee for the sole use and benefit of the Beneficiary. The Supplemental Trust Account shall be subject to withdrawal by the Beneficiary and the Grantor, respectively, solely as provided herein. The Trustee hereby accepts the Supplemental Trust Account upon the terms set forth in this Supplemental Trust Agreement. (b) The Trustee will accept and credit to the Supplemental Trust Account all assets which from time to time are delivered to it for deposit in the Supplemental Trust Account by or on behalf of the Grantor or the Beneficiary (all such assets actually received in the Supplemental Trust Account are herein referred to individually as an &#8220;Asset&#8221; and collectively as the &#8220;Asse