Exhibit 10.3





Exhibit 10.3




INDEMNIFICATION AGREEMENT




THIS AGREEMENT is made the [ ] day of [ ], 2010 by and between Endurance Specialty Holdings
Ltd., a Bermuda company (the “Company”), and [Executive], who serves as an officer of the Company
on the date hereof (the “Indemnitee”).




WHEREAS, the Indemnitee serves as an officer of the Company;



WHEREAS, the Company wishes the Indemnitee to continue to serve as an officer of the Company
and the Indemnitee is willing, under certain circumstances, to continue in such capacity; and



WHEREAS, as an inducement to continued service as a officer by the Indemnitee and its other
directors and officers, the Company has determined to provide additional protection to the
Indemnitee as set forth herein.



NOW, THEREFORE, in consideration of the Indemnitee’s continued and future service to the
Company, the parties agree as follows:




	1.	 	Indemnification. The Company agrees to indemnify the Indemnitee to the full extent
permitted by Bermuda law and the Company’s Bye-Laws, as each exists now and as each may be
amended in the future to permit additional indemnification for the Indemnitee.
	 
	2.	 	Payment of Expenses. Without limiting the indemnification provided in Section 1 and
subject to the limitations, terms and conditions of this Agreement, including, but not limited
to, the limitations in Section 9, the Company agrees, to the fullest extent permitted by
applicable law and the Company’s Bye-Laws as in effect at any time during the term of this
Agreement, to pay all costs, charges and other expenses, including, but not limited to,
attorneys’ fees, costs of appearance, attachment and similar bonds (hereinafter referred to as
“Expenses”) incurred by the Indemnitee in connection with any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative
(including, but not limited to, any action by or in the right of the Company), to which the
Indemnitee is, was or at any time becomes a party, or is threatened to be made a party, by
reason of the fact that the Indemnitee is, was or at any time becomes a director, officer,
employee, agent or fiduciary of the Company, or is or was serving or at any time serves at the
request of the Company as a director, officer, employee, agent, or fiduciary of another
corporation, partnership, joint venture, trust or other enterprise or with respect to any
employee benefit plan (or its participants or beneficiaries) of the Company or any such other
enterprise as such Expenses accrue and, in any event, within twenty (20) days after the
Company has received written request therefor from or on behalf of the Indemnitee. The
Company shall continue to make such payments unless and until there has been a final
adjudication by a court of competent jurisdiction establishing
that the Indemnitee is not entitled to payment of such Expenses in accordance with Section 9 of
this Agreement.




 


 









 











	3.	 	Maintenance of D&O Insurance. The Company currently maintains directors’ and
officers’ liability insurance with a limit of coverage of $70,000,000 (the “D&O Policies”).






	 	a.	 	So long as the Indemnitee shall continue to serve in any capacity described
in Section 2 and thereafter so long as the Indemnitee shall be subject to any possible
action, suit or proceeding by reason of the fact that the Indemnitee served in any of
said capacities, the Company will purchase and maintain in effect for the benefit of
the Indemnitee one or more valid, binding and enforceable policies of directors’ and
officers’ liability insurance providing, in all respects, coverage and amounts at
least comparable to that provided pursuant to the D&O Policies.
	 
	 	b.	 	Notwithstanding Section 3(a), the Company shall not be required to maintain
directors’ and officers’ liability insurance in effect if such insurance is not
reasonably available or if, in the reasonable business judgment of the Board of
Directors of the Company (the “Board”) as it may exist from time to time, either (i)
the premium cost for such insurance is substantially disproportionate to the amount of
insurance or (ii) the coverage is so limited by exclusions that there is insufficient
benefit provided by such insurance.
	 
	 	c.	 	If the Company, acting under Section 3(b), does not purchase and maintain in
effect directors’ and officers’ liability insurance, the Company shall indemnify and
hold harmless the Indemnitee to the full extent of the coverage which would otherwise
have been provided by the D&O Policies.
	 
	 	d.	 	The Company shall pay all Expenses incurred by the Indemnitee in connection
with any action, suit or proceeding to enforce the Indemnitee’s rights under the D&O
Policies.






	4.	 	Procedure for Requesting Indemnification and Payment of Expenses. To obtain
indemnification and payment of Expenses under this Agreement, the Indemnitee shall submit to
the Company a written request, including therein or therewith such documentation and
information as is reasonably available to the Indemnitee and is reasonably necessary to
determine whether and to what extent the Indemnitee is entitled to indemnification. The
Secretary of the Company shall, promptly upon receipt of such a request for indemnification,
advise the Board in writing that the Indemnitee has requested indemnification. Any
determination as to the eligibility of an Indemnitee to indemnification and/or payment of
Expenses shall be made:






	 	a.	 	by the Board, by a majority vote at a meeting duly constituted by a quorum of
directors not party to the proceedings or matter with regard to which the
indemnification is, or would be claimed; or
	 
	 	b.	 	in the case such a meeting cannot be constituted by lack of a disinterested
quorum, by independent legal counsel in a written opinion.




 


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	5.	 	Presumptions and Effect of Certain Proceedings.






	 	a.	 	In making a determination with respect to entitlement to indemnification or
payment of Expenses hereunder, the person or persons or entity making such
determination shall presume that Indemnitee is entitled to indemnification or payment
of Expenses under this Agreement if Indemnitee has submitted a request for
indemnification or payment of Expenses in accordance with Section 4 of this Agreement,
and the Company shall have the burden of proof to overcome that presumption in
connection with the making of any determination contrary to that presumption.
	 
	 	b.	 	If the person, persons or entity empowered or selected pursuant to Section 4
to determine whether Indemnitee is entitled to indemnification or payment of Expenses
hereunder shall not have made a determination within thirty (30) days after receipt by
the Company of the request therefor, the requisite determination of entitlement shall
be deemed to have been made and Indemnitee shall be entitled to indemnification and/or
payment of Expenses hereunder.
	 
	 	c.	 	The termination of any action, suit or proceeding by judgment, order,
settlement, conviction, a plea of nolo contendere or its equivalent,
or an entry of an order of probation prior to judgment, does not create a presumption
that Indemnitee is not entitled to indemnification and/or payment of Expenses
hereunder.






	6.	 	Defense of Claims. With respect to any action, suit or proceeding described in
Section 2, the Company may elect to assume the investigation and defense of such action, suit
or proceeding with counsel it selects with the consent of the Indemnitee, which consent shall
not be unreasonably withheld. After notice to the Indemnitee from the Company of its election
to assume the investigation and defense of such action, suit or proceeding, the Company shall
not be liable to the Indemnitee under this Agreement for any expenses subsequently incurred by
the Indemnitee in connection with the investigation and defense of such action, suit or
proceeding other than for services requested by the Company or the counsel it selected. The
Indemnitee shall have the right to employ his own counsel, but the expenses incurred by the
Indemnitee after notice from the Company of its assumption of the investigation and defense
shall be at the expense of the Indemnitee. Notwithstanding the foregoing, however, the
Indemnitee shall be entitled to separate counsel in any action, suit or proceeding brought by
or on behalf of the Company or as to which counsel for the Indemnitee reasonably concludes
that there is a conflict of interest between the Company and the Indemnitee, provided that the
Company shall not be required to pay the expenses of more than one such separate counsel for
persons it is indemnifying in any one action, suit or proceeding unless the counsel originally
chosen to represent such Indemnitees as a group reasonably concludes that substantial
and material conflicts of interest prevent such counsel from acting for the Indemnitees as a
single client.




 


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	7.	 	Indemnitee’s Reimbursement. The Indemnitee agrees to reimburse the Company for all
amounts paid by the Company pursuant to this Agreement in the event and to the extent, but
only in the event and only to the extent, that there is a final adjudication by a court of
competent jurisdiction establishing that the Indemnitee is not entitled to be so indemnified
or to have such amounts paid by the Company.






	8.	 	Contribution. If the indemnification or payment of Expenses provided by this
Agreement should be unavailable or insufficient to hold the Indemnitee harmless, then the
Company agrees that, for purposes of this Section, the Company shall be treated as if it were
a party to the threatened, pending or completed action, suit or proceeding in which the
Indemnitee was involved and that the Company shall contribute to the amounts paid or payable
by the Indemnitee as a result of Expenses, judgments for both compensatory and punitive
damages, fines, penalties and amounts paid in settlement. The amount of contribution provided
by this Section shall be determined by (i) the relative benefits accruing to the Company on
the one hand and the Indemnitee on the other which arose out of the acts or omissions
underlying the threatened, pending or completed action, suit or proceeding in which the
Indemnitee was involved, (ii) the relative fault of the Company on the one hand and the
Indemnitee on the other in connection with such acts or omissions, and (iii) any other
equitable considerations appropriate under the circumstances. For purposes of this Section,
the relative benefits of the Company shall be deemed to be the benefits accruing to it and the
relative benefit of the Indemnitee shall be deemed to be an amount not greater than the
Indemnitee’s annual base salary or Indemnitee’s compensation from the Company plus any
personal benefit received from such acts or omissions. The relative fault shall be determined
by reference to, among other things, the fault of the Company and all of its directors,
officers, employees and agents (other than the Indemnitee), as a group and treated as one
entity, on the one hand, and the Indemnitee’s and such group’s relative intent, knowledge,
access to information and opportunity to have altered or prevented the act or omission on the
other hand.






	9.	 	Limitations on Indemnification, Advancement and Contribution. Notwithstanding
anything in the foregoing to the contrary, the Company shall not be liable under this
Agreement to make any indemnity payment, advancement of Expenses or contribution in connection
with any action, suit or proceeding:






	 	a.	 	to the extent that payment is actually made, or for which payment is
available, to or on behalf of the Indemnitee under an insurance policy, except in
respect of any amount in excess of the limits of liability of such policy or any
applicable deductible for such policy;
	 
	 	b.	 	to the extent that payment has or will be made to the Indemnitee by the
Company otherwise than pursuant to this Agreement;
	 
	 	c.	 	to the extent that there was a final adjudication by a court of competent
jurisdiction that the Indemnitee is liable for fraud or dishonesty in relation to the
Company;




 


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	 	d.	 	to the extent the application of such provision is prohibited under the
Bermuda Companies Act 1981, as amended from time to time; or
	 
	 	e.	 	To the extent of any “short swing profit” disgorgement or similar liability
arising under Section 16(b) of the U.S. Securities Exchange Act of 1934, as amended
(the “Exchange Act”).






	10.	 	Enforcement of Indemnitee’s Rights. The Indemnitee shall have the right to enforce
this Agreement in any court of competent jurisdiction if the Company either fails to indemnify
the Indemnitee or fails to advance Expenses pursuant to the Company’s Bye-Laws or this
Agreement. The Company agrees to stipulate in any such suit that the Company is bound by all
the provisions of this Agreement and is precluded from making any assertion to the contrary.
The burden of proof shall be on the Company in any such suit to demonstrate by the weight of
the evidence that the Indemnitee is not entitled to indemnification or advance payment of
Expenses. The Indemnitee’s Expenses incurred in establishing his right to indemnification or
advancement of Expenses, in whole or in part, in any such action (or settlement thereof) shall
be paid by the Company as they accrue and, in any event within twenty (20) days after the
Company has received written request therefore from or on behalf of the Indemnitee. The
Company shall continue to make such payments unless and until there has been a final
adjudication by a court of competent jurisdiction establishing that the Indemnitee is not
entitled to indemnification or advance payment of Expenses, in which event the Indemnitee
agrees to reimburse the Company for all amounts paid under this Section 10.






	11.	 	Change in Control. The Company agrees that if there is a Change in Control, as
defined below, of the Company (other than a Change in Control which has been approved by a
majority of the Board who were directors immediately prior to such Change in Control), then
(a) any determination with respect to an Indemnitee’s eligibility to receive payment of
Expenses under this Agreement shall be made by the members of the Board who were directors
immediately prior to such Change in Control and (b) with respect to all other matters
thereafter arising concerning the rights of the Indemnitee to indemnity payments and payments
of Expenses under this Agreement, the Company shall seek legal advice only from special,
independent counsel selected by the Indemnitee with the consent of the Company (which consent
shall not be unreasonably withheld), and who has not otherwise performed services for the
Company within the last five years (other than in such capacity and in connection with such
matters). Such counsel, among other things, shall render a written opinion to the Company and
the Indemnitee as to whether and to what extent the Indemnitee would be permitted to be
indemnified under this Agreement and applicable law. The Company agrees to be bound by such
written opinion of the special, independent counsel, to pay the reasonable fees of such
counsel and to fully indemnify such counsel against any and all expenses (including attorneys’
fees), claims, liabilities and damages arising out of or relating to this Agreement or counsel’s
engagement pursuant hereto.




 


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A “Change in Control” for purposes of this Agreement shall be deemed to have occurred upon the
earliest to happen of the following:




	 	a.	 	The acquisition, in one or more transactions, of beneficial ownership (within
the meaning of Rule 13d-3 under the Exchange Act) by any person or entity or any group
of persons or entities who constitute a group (within the meaning of Rule 13d-3 of the
Exchange Act), other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or a subsidiary, of any securities of the Company
if, as a result of such acquisition, such person, entity or group either (i)
beneficially owns (within the meaning of Rule 13d-3 under the Exchange Act), directly
or indirectly, more than 30% of the Company’s outstanding voting securities entitled
to vote on a regular basis for a majority of the members of the Board or (ii)
otherwise has the ability to elect, directly or indirectly, a majority of the members
of the Board;
	 
	 	b.	 	A change in the composition of the Board such that a majority of the members
of the Board are not Continuing Directors. A “Continuing Director” means, as of any
date of determination, any member of the Board who (i) was a member of the Board on
the date of this Agreement, or (ii) was nominated and elected to such Board with the
affirmative vote of a majority of the Continuing Directors who were members of the
Board at the time of such nomination or election; or
	 
	 	c.	 	The shareholders of the Company approve (i) a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity) at least 50% of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or (ii) a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the Company
(in one or more transactions) of all or substantially all of the Company’s assets.







	12.	 	Settlement. The Company shall not be liable to indemnify the Indemnitee under this
Agreement for any amounts paid in settlement of any action, suit or proceeding without its
written consent, which consent shall not be unreasonably withheld. The Company shall not
settle any action, suit or proceeding which would impose any penalty or limitation on the
Indemnitee without the Indemnitee’s written consent, which consent shall not be unreasonably
withheld. In the event that consent is not given and the parties hereto are unable to agree
on a proposed settlement, independent legal counsel shall be retained by the Company, at its
expense, with the consent of the Indemnitee, which consent shall not be unreasonably withheld,
for the purpose of determining whether or not the proposed settlement is reasonable under all
of the
circumstances, and if independent legal counsel determines the proposed settlement is
reasonable, the settlement may be consummated without the consent of the other party.




 


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	13.	 	Company Subrogation Rights. In the event of any payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights of recovery of
the Indemnitee against any person or organization and the Indemnitee shall execute all papers
required and shall do everything that may be reasonably necessary to secure such rights.






	14.	 	Non-Exclusive. Nothing in this Agreement shall diminish or otherwise restrict, and
this Agreement shall not be deemed exclusive of, the Indemnitee’s rights to indemnification or
advancement of Expenses under any provision of Bermuda law or the Bye-Laws of the Company or
otherwise.






	15.	 	Notice to the Company. The Indemnitee will promptly notify the Company of any
threatened, pending or completed action, suit or proceeding against the Indemnitee described
in Section 2. The failure to notify or promptly notify the Company shall not relieve the
Company from any liability which it may have to the Indemnitee otherwise than under this
Agreement, and shall relieve the Company from liability hereunder only to the extent the
Company has been prejudiced.






	16.	 	Notices. Any notice that is required or permitted to be given under this Agreement
shall be in writing and shall be personally delivered or deposited in the United States mail,
certified or registered mail with proper postage prepaid and addressed:






If to the Company, to:





Endurance Specialty Holdings Ltd.

Wellesley House

90 Pitts Bay Road

Pembroke HM08

Bermuda

Attn: Secretary





If to the Indemnitee, to the residence address or residence facsimile number of the Indemnitee
set forth in the records of the Company.




Each party hereto may provide the other party hereto with notice of a new address for notices
under this Section 16, in which event notices under this Agreement shall be delivered to such
other address as the party may have furnished to the other party at least 10 calendar days
prior to such notice.




	17.	 	Supersedes Prior Agreements. This Agreement replaces and supersedes any other
agreement or agreements, oral or written, that the Company may have with Indemnitee with
respect to the subject matter covered by this Agreement, including but not limited to the
Indemnification Agreement, dated [ ], 2007, between the Company and the Indemnitee.




 


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	18.	 	Separability. Each of the provisions of this Agreement is a separate and distinct
agreement and independent of the others, so that if any provision shall be held to be invalid
or unenforceable for any reason, such invalidity or unenforceability shall not affect the
validity or enforceability of the other provisions.






	19.	 	Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of Bermuda, without regard to principles of conflict of laws.






	20.	 	Duration of Agreement. Unless otherwise terminated pursuant to a written instrument
signed by both parties in accordance with Section 22 hereof, this Agreement shall continue in
effect until and terminate upon the later of (a) ten (10) years after the Indemnitee has
ceased to occupy any of the positions or have any of the relationships described in Section 2
of this Agreement and (b) the final termination of all pending or threatened actions, suits,
proceedings or investigations with respect to Indemnitee.






	21.	 	Binding Effect. This Agreement shall be binding upon the Indemnitee and upon the
Company, its successors and assigns, and shall inure to the benefit of the Indemnitee, his
heirs, personal representatives and assigns and to the benefit of the Company, its successors
and assigns.






	22.	 	Amendment and Termination. Except for any automatic termination pursuant to Section
20 hereof, no amendment, modification, termination or cancellation of this Agreement shall be
effective unless in writing signed by both parties.






	23.	 	Headings. The headings of the sections of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.






	24.	 	Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall for all purposes be deemed to be an original, but all of which together shall
constitute one and the same Agreement. Only one such counterpart signed by the party against
whom enforceability is sought needs to be produced to evidence the existence of this
Agreement.




 


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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written
above.



	 	 	 	 	 
	 	ENDURANCE SPECIALTY HOLDINGS LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	  	 	 
	 	 	[Executive] 	 
	 	 	 	 
	 




 


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