On Bank of Montreal Letterhead]

 

Exhibit 10.2

[On Bank of Montreal Letterhead]

15 July 2003

HUB International Limited
▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇
▇▇▇, ▇▇▇▇▇-4187

       
Attention:   ▇▇▇▇▇▇ ▇▇▇▇▇
     
Re:   Swap Transaction (Our Ref. No. 300319 / 353656)

Dear Sir/Madam:

     The purpose of this letter agreement is to set forth the terms and conditions of the Swap Transaction entered into between the BANK OF MONTREAL (“BMO”) and HUB International Limited (“Counterparty”) on the Trade Date specified below (the “Swap Transaction”). This letter agreement will constitute a “Confirmation” as referred to in the Agreement specified below.

     The definitions and provisions contained in the 2000 ISDA Definitions, as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern.

     This Confirmation evidences a complete binding agreement between BMO and the Counterparty. This Confirmation constitutes a Confirmation subject to the terms of a master agreement (the “Agreement”). The Agreement shall be in the form of the 1992 Master Agreement (Multicurrency-Cross Border) published by the International Swaps and Derivatives Association, Inc. (the “ISDA” Form) with such modifications as BMO and the Counterparty shall in good faith agree. Until BMO and the Counterparty execute and deliver the Agreement, (i) BMO and the Counterparty shall be deemed to have entered into an agreement in the form of the ISDA Form (without a Schedule), governed by the laws of the State of New York and (ii) this Confirmation, together with all other documents (each an “Other Confirmation”) confirming Specified Transactions (as defined in the ISDA Form) (this Swap Transaction together with such Specified Transactions, collectively, “Transactions”) heretofore, now or hereafter entered into between BMO and the Counterparty (except any Other Confirmation that expressly provides to the contrary), shall supplement, form a part of, and be subject to, an agreement in the form of such ISDA Form as if BMO and the Counterparty had executed an agreement in such form on the Trade Date of the first such Transaction between BMO and the Counterparty. Upon such execution and delivery of the Agreement, the terms thereof shall supercede such ISDA Form as applicable to this Swap Transaction and the other Transactions, and this Confirmation and the Other Confirmations shall supplement, form a part of, and be subject to, the Agreement.

1.   The terms of the particular Swap Transaction to which this Confirmation relates are as follows:
     
Trade Date:   15 July 2003
     
Effective Date:   15 June 2003
     
Termination Date:   15 June 2013
     
USD Fixed Amount:   As specified in Schedule I attached initially USD 55,000,000.00
     
Fixed Rate Per Payer:   BANK OF MONTREAL

 

 

     
Fixed Rate Payer Payment Dates:   Subject to adjustment in accordance with the Modified Following Business Day Convention: The 15 December and June of each year prior to and including the Termination Date, commencing with 15 December 2003.
     
Period End Date:   Unadjusted
     
Fixed Rate and Fixed Rate Day Count Fraction:   6.16% for the Initial Calculation Period and each succeeding Calculation Period on a basis of 30/360 (Unadjusted).
     
Fees:   Not Applicable
     
Business Days for USD Payment:   New York, Toronto
     
USD Floating Amount:   As specified in Schedule I attached initially USD 55,000,000.00
     
Floating Rate Payer:   HUB International Limited
     
Floating Rate Payer Payment Dates:   Subject to adjustment in accordance with the Modified Following Business Day Convention: The 15 December and June of each year prior to and including the Termination Date, commencing with 15 December 2003.
     
Floating Rate for Initial
Calculation Period:		    
(excluding the spread):   1.11875%
     
Calculation Agent:   BANK OF MONTREAL
     
Fees:   Not Applicable
     
Floating Rate Option:   USD-LIBOR-BBA
     
Spread:   plus 2.54%
     
Floating Rate Day Count Fraction:   Actual/360
     
Designated Maturity:   3 MONTH
     
Reset Dates:   First day of each Calculation Period, or Compounding Period, if Compounding is applicable.
     
Compounding:   FLAT
     
Compounding Dates:   The 15 September, December, March and June of each year subject to adjustment in accordance with the Modified Following Business Day Convention.

 

 

     
Business Days for USD Payment:   New York, Toronto
     
Business Days for Floating
Rate Reset:		   London

2.   MUTUAL RIGHT TO TERMINATE:
 
    Either party may, provided that no Event of Default or Potential Event of Default exists with respects to that party, elect to terminate this Swap Transaction on the 4th Anniversary of the Effective Date (the “Optional Termination Date”), by providing at least 5 days prior notice to the other party. Notice may be provided by telephone but is to be followed up with a written notice. In the event a party, (the “Terminating Party”) elects to terminate a Transaction pursuant to the foregoing, the Terminating Party shall at or prior to 2:00 p.m. Toronto time on the Optional Termination Date, determine the amount payable in respect of this Swap Transaction (the “Market Value”) by making the calculations required by Section 6(e)(i) of the Agreement as if the Optional Termination Date were an Early Termination Date designated as a result of the occurrence of an Event of Default with respect to the Terminating Party and the parties had specified Loss and the Second Method for that purpose. The Market Value will be paid by the relevant party on the second Business Day following the Optional Termination Date.
 
    If there is a dispute between the parties as to the calculation of the Market Value,

  (a)   the parties will consult with each other in an attempt to resolve the dispute; and
 
  (b)   if the parties fail to resolve the dispute prior to 3:00 p.m. Toronto time on the Optional Termination Date, then Bank of Montreal shall recalculate the Market Value by making calculations required by Section 6(e)(i) of the Agreement as if the Optional Termination Date were an Early Termination Date designated as a result of the occurrence of an Event of Default with respect to the Terminating Party and the parties had specified Market Quotation and the Second Method for that purpose.

    Promptly following a resolution pursuant to this paragraph, the Market Value will be paid by the relevant party on the second Business Day following the Optional Termination Date.
 
    Upon Payment of such sum as provided herein, the obligations of both parties with respect to this Transaction shall be discharged in full.
 
3.   Account Details
     
Payments to HUB International Limited:    
     
      USD    
     
    Please Advise
Payments to BANK OF MONTREAL:    
     
      USD    
    ▇▇▇▇▇▇ BANK INTERNATIONAL CORPORATION
▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇ ▇▇▇
Account #: ▇▇▇▇▇▇▇▇
ATTN: DERIVATIVES OPERATIONS.

 

 

4.   Address for Notices in connection with the Swap Transaction.
         
(a)   BANK OF MONTREAL:    
        EMFISYS – DERIVATIVES OPERATIONS
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇
▇▇▇▇▇▇, ▇▇▇ ▇▇▇
         
    Attention:   Senior Manager
Swap Desk
         
    Facsimile:   ▇▇▇-▇▇▇-▇▇▇▇
    Telex No:   0621778
    Answerback:    
         
(b)   HUB International Limited:    
        ▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇
▇▇▇, ▇▇▇▇▇-4187
         
    Attention:   ▇▇▇▇▇▇ ▇▇▇▇▇
         
    Telephone:
Facsimile: 		  8,▇▇▇-▇▇▇-▇▇▇▇
8,▇▇▇-▇▇▇-▇▇▇▇

5.   Offices:

  (a)   The Office of BANK OF MONTREAL for the Swap Transaction is TORONTO, CANADA.
 
  (b)   The Office of the Counterparty for the Swap Transaction is Chicago, USA.
         
6.   Documents to be delivered:   Each party shall deliver to the other, at the time of its execution of this Confirmation, evidence of the specimen signature and incumbency of each person who is executing the Confirmation on the party’s behalf, unless such evidence has previously been supplied in connection with the Agreement and remains true and in effect.

It is the express wish of the parties that this agreement and any related documents be drawn up and executed in English. Les parties conviennent que la prèsente convention et tous les documents s’y rattachant soient rèdigès et signès en anglais.

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing this Confirmation and returning it to us.

Please contact ▇▇▇▇▇▇ ▇▇▇▇▇▇ at ▇▇▇-▇▇▇-▇▇▇▇ or ▇▇▇▇▇▇ ▇▇▇▇▇▇-▇▇▇▇▇▇▇ at ▇▇▇-▇▇▇-▇▇▇▇ if you have any questions or discrepancies.

 

 

BMO confirms and the Counterparty acknowledges that the Bank uses a computer-based system to execute and transmit Confirmations. The parties hereby acknowledge and accept the use and validity of Confirmations which have been executed by means of an electronically-produced signature, and which have been transmitted and reproduced by telecopier or similar device. The parties acknowledge that in any legal proceedings between them respecting or in any way relating to this Confirmation, each hereby expressly waives any right to raise any defense or waiver of liability based upon the reproduction of this document by telecopier for evidentiary purpose, or the execution of this document by means of an electronically-produced signature. (Our Ref. No. 300319/353656)

Yours sincerely,

       
BANK OF MONTREAL  
       
 
By:    
 
Name:    
    /s/ ▇▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇ ▇▇▇

Confirmed as of the date first above written:

       
HUB International Limited  
       
 
By:    
    /s/ ▇▇▇▇▇▇ ▇▇▇▇▇
(Signature)
       
 
Name:    
    ▇▇▇▇▇▇ ▇▇▇▇▇
(Please Print)
       
 
Title:   VP & CFO

 

 

Schedule I.

Cashflow Schedule: BANK OF MONTREAL ▇▇▇▇▇▇/▇▇▇▇▇▇

Side 1
BANK OF MONTREAL pays USD FIXED to HUB International Limited

                                 
Period Beg   Period End   Days   Payment Date   Notional Amount   Fixed Rate %
 
 
 
 
 
15 Jun 2003   15 Dec 2003     180     15 Dec 2003     55,000,000.00       6.16  
15 Dec 2003   15 Jun 2004     180     15 Jun 2004     55,000,000.00       6.16  
15 Jun 2004   15 Dec 2004     180     15 Dec 2004     55,000,000.00       6.16  
15 Dec 2004   15 Jun 2005     180     15 Jun 2005     55,000,000.00       6.16  
15 Jun 2005   15 Dec 2005     180     15 Dec 2005     55,000,000.00       6.16  
15 Dec 2005   15 Jun 2006     180     15 Jun 2006     55,000,000.00       6.16  
15 Jun 2006   15 Dec 2006     180     15 Dec 2006     55,000,000.00       6.16  
15 Dec 2006   15 Jun 2007     180     15 Jun 2007     55,000,000.00       6.16  
15 Jun 2007   15 Dec 2007     180     17 Dec 2007     55,000,000.00       6.16  
15 Dec 2007   15 Jun 2008     180     16 Jun 2008     55,000,000.00       6.16  
15 Jun 2008   15 Dec 2008     180     15 Dec 2008     55,000,000.00       6.16  
15 Dec 2008   15 Jun 2009     180     15 Jun 2009     55,000,000.00       6.16  
15 Jun 2009   15 Dec 2009     180     15 Dec 2009     44,000,000.00       6.16  
15 Dec 2009   15 Jun 2010     180     15 Jun 2010     44,000,000.00       6.16  
15 Jun 2010   15 Dec 2010     180     15 Dec 2010     33,000,000.00       6.16  
15 Dec 2010   15 Jun 2011     180     15 Jun 2011     33,000,000.00       6.16  
15 Jun 2011   15 Dec 2011     180     15 Dec 2011     22,000,000.00       6.16  
15 Dec 2011   15 Jun 2012     180     15 Jun 2012     22,000,000.00       6.16  
15 Jun 2012   15 Dec 2012     180     17 Dec 2012     11,000,000.00       6.16  
15 Dec 2012   15 Jun 2013     180     17 Jun 2013     11,000,000.00       6.16  

 

 

Side 2
HUB International Limited pays USD 3 MONTH LIBOR T3750 to BANK OF MONTREAL

                             
Calc Date   Period Beg   Period End   Days   Payment Date   Notional Amount
 
 
 
 
 
12 Jun 2003   16 Jun 2003   15 Sep 2003     91           55,000,000.00  
11 Sep 2003   15 Sep 2003   15 Dec 2003     91     15 Dec 2003     55,000,000.00  
11 Dec 2003   15 Dec 2003   15 Mar 2004     91           55,000,000.00  
11 Mar 2004   15 Mar 2004   15 Jun 2004     92     15 Jun 2004     55,000,000.00  
11 Jun 2004   15 Jun 2004   15 Sep 2004     92           55,000,000.00  
13 Sep 2004   15 Sep 2004   15 Dec 2004     91     15 Dec 2004     55,000,000.00  
13 Dec 2004   15 Dec 2004   15 Mar 2005     90           55,000,000.00  
11 Mar 2005   15 Mar 2005   15 Jun 2005     92     15 Jun 2005     55,000,000.00  
13 Jun 2005   15 Jun 2005   15 Sep 2005     92           55,000,000.00  
13 Sep 2005   15 Sep 2005   15 Dec 2005     91     15 Dec 2005     55,000,000.00  
13 Dec 2005   15 Dec 2005   15 Mar 2006     90           55,000,000.00  
13 Mar 2006   15 Mar 2006   15 Jun 2006     92     15 Jun 2006     55,000,000.00  
13 Jun 2006   15 Jun 2006   15 Sep 2006     92           55,000,000.00  
13 Sep 2006   15 Sep 2006   15 Dec 2006     91     15 Dec 2006     55,000,000.00  
13 Dec 2006   15 Dec 2006   15 Mar 2007     90           55,000,000.00  
13 Mar 2007   15 Mar 2007   15 Jun 2007     92     15 Jun 2007     55,000,000.00  
13 Jun 2007   15 Jun 2007   17 Sep 2007     94           55,000,000.00  
13 Sep 2007   17 Sep 2007   17 Dec 2007     91     17 Dec 2007     55,000,000.00  
13 Dec 2007   17 Dec 2007   17 Mar 2008     91           55,000,000.00  
13 Mar 2008   17 Mar 2008   16 Jun 2008     91     16 Jun 2008     55,000,000.00  
12 Jun 2008   16 Jun 2008   15 Sep 2008     91           55,000,000.00  
11 Sep 2008   15 Sep 2008   15 Dec 2008     91     15 Dec 2008     55,000,000.00  
11 Dec 2008   15 Dec 2008   16 Mar 2009     91           55,000,000.00  
12 Mar 2009   16 Mar 2009   15 Jun 2009     91     15 Jun 2009     55,000,000.00  
11 Jun 2009   15 Jun 2009   15 Sep 2009     92           44,000,000.00  
11 Sep 2009   15 Sep 2009   15 Dec 2009     91     15 Dec 2009     44,000,000.00  
11 Dec 2009   15 Dec 2009   15 Mar 2010     90           44,000,000.00  
11 Mar 2010   15 Mar 2010   15 Jun 2010     92     15 Jun 2010     44,000,000.00  
11 Jun 2010   15 Jun 2010   15 Sep 2010     92           33,000,000.00  
13 Sep 2010   15 Sep 2010   15 Dec 2010     91     15 Dec 2010     33,000,000.00  
13 Dec 2010   15 Dec 2010   15 Mar 2011     90           33,000,000.00  
11 Mar 2011   15 Mar 2011   15 Jun 2011     92     15 Jun 2011     33,000,000.00  
13 Jun 2011   15 Jun 2011   15 Sep 2011     92           22,000,000.00  
13 Sep 2011   15 Sep 2011   15 Dec 2011     91     15 Dec 2011     22,000,000.00  
13 Dec 2011   15 Dec 2011   15 Mar 2012     91           22,000,000.00  
13 Mar 2012   15 Mar 2012   15 Jun 2012     92     15 Jun 2012     22,000,000.00  
13 Jun 2012   15 Jun 2012   17 Sep 2012     94           11,000,000.00  
13 Sep 2012   17 Sep 2012   17 Dec 2012     91     17 Dec 2012     11,000,000.00  
13 Dec 2012   17 Dec 2012   15 Mar 2013     88           11,000,000.00  
13 Mar 2013   15 Mar 2013   17 Jun 2013     92     17 Jun 2013     11,000,000.00  

 

Document Metadata

Filed: November 6th, 2003