Interest Rate Swap Confirmation between PXRE Reinsurance Ltd. and Select Reinsurance Ltd. (June 29, 2001)
Summary
PXRE Reinsurance Ltd. and Select Reinsurance Ltd. entered into an interest rate swap agreement effective June 29, 2001. Under this agreement, PXRE (Party A) pays Select (Party B) a floating interest rate based on USD LIBOR minus 100 basis points, while Select pays PXRE a fixed rate of 7.25%. Payments are calculated on the average daily balance of a specified account and are due on the earlier of January 1, 2011, or the termination of a related reinsurance agreement. The agreement is governed by the ISDA Master Agreement and includes standard terms for such transactions.
EX-10.34 12 b317102_ex10-34.txt MATERIAL CONTRACTS June 29, 2001 Mr. Robert P. Myron Select Reinsurance Ltd. Suite 794 48 Par La Ville Road Hamilton HM 11 Bermuda Dear Mr. Myron: The purpose of this communication (this "Confirmation") is to set forth the terms and conditions of the Swap Transaction entered into between us on the Trade Date specified below (the "Transaction"). The definitions and provisions contained in the 2000 ISDA Definitions, as published by the International Swaps and Derivatives Association, Inc., are incorporated into the Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern. This Confirmation constitutes a "Confirmation" as referred to in, and supplements, forms part of, and is subject to, the ISDA Master Agreement dated as of the date hereof, as amended and supplemented from time to time, between PXRE Reinsurance Ltd. ("Party A") and Select Reinsurance Ltd. ("Party B"). All provisions contained in the Agreement govern this Confirmation except as expressly modified below. The terms of the particular Transaction to which this Confirmation relates are as follows: Notional Amount As of each Calculation Date and the Termination Date, the average daily balance during the preceding Calculation Period of the Experience Account maintained by Party B with respect that certain Reinsurance Agreement, dated as of June 29, 2001, by and between PXRE Reinsurance Ltd. and Select Reinsurance Ltd. (the "Reference Obligation") Trade Date June 29, 2001 Effective Date June 29, 2001 Termination Date The earlier of January 1, 2011 or the date on which the Reference Obligation is terminated. Calculation Date The last day of each Calculation Period. Calculation Period The first Calculation Period shall begin on the Effective Date and end on June 30, 2001. Each subsequent Calculation Period shall be a calendar quarter. The Floating Rate Payer pays on the Payment Date an amount determined in accordance with the following: Floating Rate Payer Party A Payment Date The Termination Date Floating Rate USD LIBOR less 100 basis points. Designated Maturity 3 Months Floating Rate for initial Calculation Period 104 basis points. Rounding Factor One hundred-thousandth of one percent. Floating Rate Day Count Fraction Actual/360 Compounding On each Calculation Date Business Day The following cities are specified for use in the definition of "Business Day" as it applies to the Floating Rate Payer: New York City Hamilton, Bermuda Business Day Convention Modified Following The Fixed Rate Payer pays on each Payment Date an amount determined in accordance with the following: Fixed Rate Payer Party B Payment Date Termination Date Fixed Rate 7.25% Fixed Rate Day Count Fraction Actual/360 Compounding On each Calculation Date. Business Day The following cities are specified for use in the definition of "Business Day" as it applies to the Fixed Rate Payer: New York City Hamilton, Bermuda Business Day Convention Modified Following Calculation Agent Party A Additional Provisions None For all USD payments, We will pay you at For the Account of Party B Account Number TBD For all USD payments, Please pay us at For the Account of Party A Account Number TBD Please confirm that the following correctly sets forth the terms of our agreement by executing the copy of this Confirmation enclosed for that purpose and returning it to us via fax to the attention of Leatrice Roman at ###-###-####. Please check this Confirmation carefully and immediately upon receipt, so that errors or discrepancies can be promptly identified and rectified. We are very pleased to have concluded this Transaction with you. Regards, PXRE REINSURANCE LTD. By: /s/ Gerald L. Radke ------------------------ Gerald L. Radke Chairman Confirmed as of the date First above written By: /s/ Robert P. Myron ------------------------ Robert P. Myron Vice President Select Reinsurance Ltd.
