Exhibit 10.6
FIRST AMENDMENT
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THIS FIRST AMENDMENT dated as of October 23, 2001 (this
"Amendment") amends the Reimbursement Agreement dated as of August 24, 2001
(the "Reimbursement Agreement") among ACE Limited, a Cayman Islands company
(the "Parent"), ACE Bermuda Insurance Ltd., a Bermuda company ("ACE
Bermuda"), and ACE Tempest Reinsurance Ltd., a Bermuda company ("Tempest")
(Ace Bermuda and Tempest, together with the Parent, the "Account Parties"),
various financial institutions (the "Banks"), and First Union National Bank
("First Union"), as administrative agent (in such capacity, the
"Administrative Agent"). Terms defined in the Reimbursement Agreement are,
unless otherwise defined herein or the context otherwise requires, used
herein as defined therein.
WHEREAS, the Account Parties, the Banks, Fleet National Bank, as
Documentation Agent, First Union, as Issuing Bank, and the Administrative Agent
have entered into the Reimbursement Agreement; and
WHEREAS, the parties hereto desire to amend the Reimbursement
Agreement in certain respects as more fully set forth herein;
NOW, THEREFORE, the parties hereto agree as follows:
SECTION 1. Amendment to Negative Covenants. Effective on (and subject
to the occurrence of) the Amendment Effective Date (as defined below), Section
5.02 of the Reimbursement Agreement shall be amended as set forth below:
1.1 Amendment to Section 5.02(a)(xvi). Section 5.02(a)(xvi) of the
Reimbursement Agreement shall be amended by deleting the word "and"
immediately after the semi-colon at the end thereof.
1.2 Amendment to Section 5.02(a)(xvii). Section 5.02(a)(xvii) of the
Reimbursement Agreement shall be amended by deleting the period at the end
thereof and adding a semi-colon and the word "and" at the end thereof.
1.3 Amendment to Section 5.02(a). Section 5.02(a) of the Reimbursement
Agreement shall be amended by adding the following immediately after the
word "and" following the semi-colon at the end of subsection (xvii)
thereof:
(xviii) Liens on securities arising out of repurchase
agreements with a term of not more than three months
entered into with "Lenders" (as such term is defined in
the Five Year Credit Agreement) or their Affiliates or
with securities dealers of recognized standing; provided
that the aggregate amount of all assets of the Parent and
its Subsidiaries subject to such agreements shall not at
any time exceed $800,000,000. For purposes of this clause
(xviii), "Five Year Credit Agreement" shall mean the
Amended and Restated Five Year Credit Agreement dated as
of May 8, 2000 among the Parent, ACE Bermuda, Tempest,
ACE INA Holdings Inc. and ACE Financial Services, Inc.,
as borrowers, various financial institutions, and Xxxxxx
Guaranty Trust Company of New York, as administrative
agent, as amended, modified, supplemented or restated
from time to time.
SECTION 2. Representations and Warranties. Each Account Party
represents and warrants to the Administrative Agent and the Banks that (a)
each warranty set forth in Article IV of the Reimbursement Agreement is
true and correct as of the date of the execution and delivery of this
Amendment by the Parent, with the same effect as if made on such date
(except to the extent such representations and warranties expressly refer
to an earlier date, in which case they were true and correct as of such
earlier date), (b) the execution and delivery by the Parent of this
Amendment and the performance by each Account Party of its respective
obligations under the Reimbursement Agreement, as amended hereby (as so
amended, the "Amended Reimbursement Agreement") (i) are within the
corporate or limited liability company power, as applicable, of such
Account Party, (ii) have been duly authorized by all necessary corporate
action, as applicable, on the part of such Account Party, (iii) have
received all necessary governmental and regulatory approval and (iv) do not
and will not contravene or conflict with any provision of law or of the
organizational documents of any Account Party or of any indenture, loan
agreement or other contract, order or decree which is binding upon any
Account Party and (c) the Amended Reimbursement Agreement is the legal,
valid and binding obligation of each Account Party, enforceable against
such Account Party in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency or other similar laws of general
application affecting the enforcement of creditors' rights or by general
principles of equity limiting the availability of equitable remedies.
SECTION 3. Effectiveness. The amendments set forth in Section 1
above shall become effective on such date (the "Amendment Effective Date")
when the Administrative Agent shall have received each of the following
documents, each in form and substance satisfactory to the Administrative
Agent:
3.1 Executed Counterparts. Counterparts of this Amendment executed
by the Parent and the Required Banks.
3.2 Confirmation. A confirmation, substantially in the form of
Annex I attached hereto, executed by each of ACE Bermuda and Tempest.
3.3 Other Documents. Such other documents as the Administrative
Agent or any Bank may reasonably request in connection with the authorization,
execution and delivery of this Amendment.
SECTION 4. Miscellaneous.
4.1 Continuing Effectiveness, etc. As herein amended, the
Reimbursement Agreement shall remain in full force and effect and is hereby
ratified and confirmed in all respects. After the Amendment Effective Date,
all references in the Reimbursement Agreement and the other Loan Documents
to "Reimbursement Agreement", "Agreement" or similar terms shall refer to
the Amended Reimbursement Agreement.
4.2 Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties 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 Amendment.
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4.3 Governing Law. This Amendment shall be a contract made under
and governed by the laws of the State of New York applicable to contracts
made and to be fully performed within such state.
4.4 Successors and Assigns. This Amendment shall be binding upon
each Account Party, the Banks and the Administrative Agent and their
respective successors and assigns, and shall inure to the benefit of the
Account Parties, the Banks and the Administrative Agent and the respective
successors and assigns of the Banks and the Administrative Agent.
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Delivered at Chicago, Illinois, as of the day and year first above written.
ACE LIMITED
By:
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Title:
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FIRST UNION NATIONAL BANK, as Administrative
Agent
By:
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Title:
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FLEET NATIONAL BANK
By:
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Title:
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MELLON BANK, N.A.
By:
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Title:
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ROYAL BANK OF CANADA, NEW YORK BRANCH
By:
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Title:
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(signatures continued)
S-1
BANK ONE, N.A.
By:
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Title:
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COMERICA BANK
By:
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Title:
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DEUTSCHE BANK AG, NEW YORK BRANCH
By:
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Title:
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By:
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Title:
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STATE STREET BANK AND TRUST COMPANY
By:
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Title:
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THE BANK OF BERMUDA LIMITED
By:
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Title:
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(signatures continued)
S-2
THE BANK OF N.T. XXXXXXXXXXX & SON LIMITED
By:
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Title:
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CREDIT SUISSE FIRST BOSTON
By:
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Title:
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S-3
Annex I
CONFIRMATION
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Dated as of October 23, 2001
To: First Union National Bank, individually and as Administrative Agent, and
the other financial institutions party to the Reimbursement Agreement
referred to below
Please refer to: (a) the Reimbursement Agreement dated as of
August 24, 2001 (the "Reimbursement Agreement") among ACE Limited, ACE
Bermuda Insurance Ltd. and ACE Tempest Reinsurance Ltd. (Ace Bermuda and
Tempest, together with ACE Limited, the "Account Parties"), various
financial institutions (the "Banks"), and First Union National Bank ("First
Union"), as administrative agent (in such capacity, the "Administrative
Agent"); (b) the other "Loan Documents" (as defined in the Reimbursement
Agreement); and (c) the First Amendment dated as of October 23, 2001 to the
Reimbursement Agreement (the "First Amendment").
Each of the undersigned hereby confirms to the Administrative
Agent and the Banks that, after giving effect to the First Amendment and
the transactions contemplated thereby, each Loan Document to which such
undersigned is a party continues in full force and effect and is the legal,
valid and binding obligation of such undersigned, enforceable against such
undersigned in accordance with its terms.
ACE LIMITED
By:
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Name Printed:
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Title:
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ACE BERMUDA INSURANCE LTD.
By:
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Name Printed:
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Title:
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ACE TEMPEST REINSURANCE LTD.
By:
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Name Printed:
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Title:
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