Form of Parent Lock-Up Agreement, dated as of March 3, 2010



 Exhibit 10.4 
 FORM OF PARENT LOCK-UP AGREEMENT 
 March 3, 2010 
 Max Capital Group Ltd. 
 Max House 
 2 Front Street 
 Hamilton, HM 11 
 Bermuda 
 Re: Max Capital Group Ltd. – Lock-Up Agreement 
 Ladies and Gentlemen: 
 1. In connection with the Agreement and Plan of
Amalgamation (the “Plan of Amalgamation”), dated as of March 3, 2010, by and among Harbor Point Limited, a Bermuda exempted company (the “Company”), Max Capital Group Ltd., a Bermuda exempted company
(“Parent”), and Alterra Holdings Limited, a Bermuda exempted company and a wholly owned subsidiary of Parent (the “Amalgamation Sub”), the undersigned has agreed, as set forth below, to refrain from disposing of
Parent voting common shares (the “Parent Common Shares”) and other securities of Parent held by it subject to, and in accordance with, the terms set forth below. Capitalized terms used in this letter agreement (this
“Agreement”) and not otherwise defined herein shall have the meanings assigned to them in the Plan of Amalgamation. 
 2. The undersigned is the record and beneficial owner (as defined in Rule 13d-3 of the Exchange Act, which meaning will apply for all purposes of this Agreement whenever the term “beneficial” or “beneficially” is used),
as of the date hereof, of the Parent Common Shares, restricted Parent Common Shares (“Parent Restricted Shares”), restricted share units (“Parent Restricted Share Units”), options to acquire Parent Common Shares
(“Parent Stock Options”) and warrants to acquire Parent Common Shares (“Parent Warrants”) to the extent applicable set forth on Schedule I attached hereto, which as of the date hereof constitutes all of the
Parent Common Shares and other securities convertible into or exercisable for any Parent Common Shares, whether vested or unvested, owned of record or beneficially by the undersigned (such Parent Common Shares, Parent Restricted Shares, Parent
Restricted Share Units, Parent Stock Options and Parent Warrants, together with (a) any Parent Common Shares issued on the exercise of Parent Stock Options and Parent Warrants, (b) any Restricted Parent Common Shares that vest after the
date of this Agreement and (c) any Parent Common Shares or other securities of Parent acquired following the date of this Agreement but prior to the Effective Time are collectively referred to as the “Subject Shares”). For the
avoidance of doubt, Subject Shares shall not include Parent Common Shares or other securities of Parent acquired by the undersigned in open market transactions after the Effective Time. 
 3. In consideration of the willingness of the Company, Parent and the Amalgamation Sub to enter into the Plan of Amalgamation, the benefits
received by the








 
undersigned in connection with the consummation of the Amalgamation, and of other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the undersigned
agrees that, during the period from the date of this Agreement until one hundred eighty (180) days following the Effective Time (the “Lock-Up Period”), subject to Section 4 below, the undersigned will not, and will not
offer or agree to, directly or indirectly, (a) sell (including any short sale), transfer, tender, encumber, assign or otherwise dispose of or (b) enter into any contract, option, derivative, swap, hedging or other agreement or arrangement
or understanding (including any profit or loss-sharing arrangement) with respect to or related to, any Subject Shares which the undersigned owns of record or beneficially, except (i) in a transaction required under applicable Law or
(ii) with the prior written approval of at least a majority of the members of the board of directors of Parent (and, in the case of any transfer prior to the Effective Time, the prior written approval of the Company). For the avoidance of
doubt, the foregoing restrictions are expressly agreed to preclude the undersigned from engaging in any hedging or other transaction that is designed to or that reasonably could be expected to lead to or result in a sale or disposition of the
Subject Shares (or the economic benefit thereof) even if such Subject Shares would be disposed of by someone other than the undersigned. Such prohibited hedging or other transactions would include without limitation any purchase, sale or grant of
any right (including without limitation any put or call option) with respect to any of the Subject Shares or with respect to any security that includes, relates to, or derives any significant part of its value from such Subject Shares. 

4. Notwithstanding the foregoing, the undersigned may (a) transfer Subject Shares to (i) any Affiliate of the undersigned or
(ii) if the undersigned is an individual, to any Family Transferee (provided, however, that in any such case, it shall be a condition to the transfer that the transferee execute an agreement stating that the transferee is
receiving and holding any such Subject Shares subject to the provisions of this Agreement and there shall be no further transfer of such Subject Shares except in accordance with this Agreement), (b) with respect to any equity awards or warrants
owned by the undersigned that would expire during the Lock-Up Period, surrender or otherwise dispose of such equity awards or warrants to Parent in connection with the exercise thereof and (c) sell, transfer, tender, assign, surrender or
otherwise dispose of Subject Shares to Parent or to any other Person to satisfy the payment of withholding income or other applicable taxes resulting from the vesting or exercising of any equity awards of Parent owned of record or beneficially by
the undersigned. In the case of a disposition under clause (c) above, the undersigned agrees to provide documentation and information to Parent supporting the sale of a specified number of Parent Common Shares at least three (3) Business
Days prior to any such disposition. The undersigned also agrees and consents to the entry of stop transfer instructions with Parent’s transfer agent and registrar against the transfer of the undersigned’s Subject Shares except in
compliance with the foregoing restrictions. For the purposes of this Agreement, “Family Transferee” shall mean a (x) Shareholder’s spouse, immediate family members or lineal descendants or (y) any trust, the
beneficiaries of which, or corporation, limited liability company or partnership, the shareholders, members or general or limited partners of which, include only persons described in clause (x). In addition, to the extent that the undersigned is an
individual, the transfer restrictions set forth in this Agreement shall not apply following the undersigned’s death, termination of employment by Parent or any of its subsidiaries for “Disability,” termination of employment by Parent
of any of its subsidiaries without “Cause,” termination of employment by the undersigned for “Good Reason,” termination of employment for “Retirement” or due to a “change in control” (each as defined in the
applicable agreements between the undersigned and Parent). 
  

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 5. Subject to paragraph 6, hereof, the undersigned hereby agrees that, until the Plan of
Amalgamation is terminated in accordance with its terms, it shall, and shall use reasonable best efforts to cause its Representatives to, comply with the covenants set forth in Section 5.4(a) of the Plan of Amalgamation applicable to the
Company as if such covenants were applicable to the undersigned. 
 6. All agreements and understandings made herein shall be
made solely in the undersigned’s capacity as a holder of Subject Shares and, to the extent the undersigned is a director or officer of Parent, not in the undersigned’s capacity as a director or officer of Parent. For the avoidance of
doubt, the Company and the undersigned acknowledge and agree that (a) to the extent the undersigned is a director of Parent, the undersigned shall be free to act in his or her capacity as a director of Parent in accordance with his or her
duties to Parent, (b) nothing herein shall prohibit or restrict any person described in clause (a) above from taking any action in facilitation of the exercise of his or her duties pursuant to the Plan of Amalgamation (including pursuant
to Section 5.4 thereof) or otherwise, (c) to the extent the undersigned is an officer of Parent, nothing herein shall prohibit or restrict the undersigned from taking any action, or failing to take any action, in his or her capacity as an
officer of Parent and in facilitation of the exercise of his or her duties to Parent as the undersigned determines in good faith is required to comply with the direction of the board of directors of Parent and (d) no action taken by any person
described in clauses (a) through (c) above acting in the capacities described therein shall be deemed to be a breach or violation by the undersigned of this Agreement. 
 7. Except as expressly provided in this Agreement, the undersigned may not assign any rights or delegate any obligations under this
Agreement without the prior written consent of Parent. Parent may not assign this Agreement without the prior written consent of the undersigned. Any such purported assignment or delegation made in violation of the foregoing shall be null and void
(in addition to any other remedy to which the other party is entitled at law or in equity in connection with such violation). 
 8. The undersigned hereby permits the Company and Parent to publish and disclose in any proxy statement or prospectus (including any document or schedule filed with the SEC) the undersigned’s identity and ownership of Subject Shares
and the nature of its commitments, arrangements and understandings pursuant to this Agreement. 
 9. This Agreement shall be
governed in all respects, including as to validity, interpretation and effect, by the Laws of Bermuda, without giving effect to its principles or rules of conflict of Laws. 
 10. The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions
of this Agreement, this being in addition to any other remedy to which such party is entitled at law or in equity. Moreover, and in recognition of the foregoing, each of the parties hereby waives (a) any defense in any action for specific
performance of this Agreement that a remedy at law would be adequate and (b) any requirement under any law for any party to post security as a prerequisite to obtaining equitable relief. 
  

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 11. Each party irrevocably and unconditionally consents, agrees and submits to the
jurisdiction of the Bermuda Supreme Court (and appropriate appellate courts therefrom) (the “Chosen Courts”), for the purposes of any litigation, action, suit or other proceeding arising out of this Agreement or any transaction
contemplated hereby. Each party agrees to commence any litigation, action, suit or proceeding relating hereto only in the Bermuda Supreme Court, or if such litigation, action, suit or other proceeding may not be brought in such court for reasons of
subject matter jurisdiction, in the other appellate courts therefrom or other courts of Bermuda. Each party irrevocably and unconditionally waives any objection to the laying of venue of any litigation, action, suit or proceeding arising out of this
Agreement in the Chosen Courts, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such litigation, action, suit or proceeding brought in any such court has been brought in an
inconvenient forum. The parties agree that a final judgment in any such litigation, action, suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by applicable Law.

 12. The parties have participated jointly in negotiating and drafting this Agreement. In the event that an ambiguity or a
question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of
this Agreement. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force
and effect so long as the economic or legal substance of this Agreement is not affected in any manner adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the terms of this Agreement remain as originally contemplated to
the fullest extent possible. 
 13. This Agreement may not be amended except by an instrument in writing among the parties.
Neither the failure nor any delay by any party hereto in exercising any right, power or privilege under this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or
privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. In addition, (a) no claim or right arising out of this Agreement can be discharged by any party, in
whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by such party, (b) no waiver that may be given by any party will be applicable except in the specific instance for which it is given and (c) no
notice to or demand on a party will be deemed to be a waiver of any obligation of such party and no notice from or demand by a party will be deemed to be a waiver of such party’s right to take further action without notice or demand as provided
in this Agreement. 
 14. This Agreement, including the schedule attached hereto, contains the entire agreement among the
parties concerning the subject matter hereof and supersedes and nullifies all prior agreements, understandings, discussions, negotiations and undertakings, whether written or oral, among the parties with respect to the subject matter hereof.

  

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 15. This Agreement may be executed in separate counterparts, each of which shall be
considered one and the same agreement and shall become effective when each of the parties has delivered a signed counterpart to the other parties, it being understood that all parties need not sign the same counterpart. Delivery of an executed
signature page of this Agreement by facsimile transmission or electronic “.pdf” shall be effective as delivery of a manually executed counterpart hereof. 
 16. This Agreement shall terminate automatically and without further action by any party on the earlier of (i) the date on which the Plan of Amalgamation is terminated in accordance with its terms
and (ii) the expiration of the Lock-Up Period. 
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 The undersigned understands that the Company, Parent and the Amalgamation Sub are relying
upon this Agreement in entering into the Plan of Amalgamation and in proceeding towards consummation of the Amalgamation. The undersigned further understands that this Agreement shall be binding upon the undersigned’s heirs, legal
representatives, successors, and permitted assigns. 
  

			
	Very truly yours,
	
	[SHAREHOLDER]
	
	[                                       
                                         
    ]
		
	[By:	 	  

		 	Name:
		 	Title:]


  

					
	Acknowledged and agreed
	as of the date first written above:
	
	MAX CAPITAL GROUP LTD.
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  

					
	HARBOR POINT LIMITED
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	








 Schedule I 
  

											
	 Name and Address
	  	Number of Parent
Common Shares

Owned as of
March 3, 2010	  	Number of Parent
Stock Options
Owned as of
March 3, 2010	  	Number of Parent
Restricted Shares
Owned as of
March 3, 2010	  	Number of Parent
Restricted Share Units
Owned as of
March 3, 2010	  	Number of Parent
Warrants
Owned as of
March 3, 2010
		  		  		  		  		  	

  

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